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Townhouse Cafe' Quick Service Restaurant (QSR) carts and in-house kitchens are being introduced in OYO's company-serviced hotels as part of its expansion into the food and beverage industry. This initiative follows a successful pilot across 100 hotels and aims to roll out to 1,500 properties in the fiscal year 2025-26. The move is expected to enhance guest satisfaction and contribute an additional 5-10% to hotel-level revenue. The company is also establishing a network of trusted F&B experts in key cities to support this expansion.
OYO has announced its strategic entry into the food and beverage (F&B) sector, introducing in-house kitchens and Quick Service Restaurant (QSR) carts under the 'Townhouse Cafe' brand at its company-serviced hotels. This initiative is set to launch across 1,500 properties during the fiscal year 2025-26, following a successful pilot program initiated earlier this year at 100 hotels in cities such as Delhi, Gurugram, Hyderabad, and Bengaluru. Advertisement
The in-house kitchen setups will vary depending on each hotel's profile and infrastructure, ranging from full-service commercial kitchens offering an extensive menu to pantry-style setups providing essential food items. Guests will have the convenience of ordering meals through the OYO app, website, and online travel agents by selecting the 'Kitchen Services' option.
Additionally, the 'Townhouse Cafe' QSR carts will be strategically placed in hotel lobbies, offering a selection of ready-to-eat meals, regional specialties, and continental dishes. This service aims to cater to travelers seeking quick and convenient dining options without the need for extended wait times.
OYO anticipates that this F&B initiative will contribute an additional 5-10% to hotel-level revenue on a stable-state basis. The company is also developing a network of trusted F&B experts in key cities, including Delhi, Mumbai, Bengaluru, Hyderabad, Pune, Indore, Kolkata, Jaipur, and Lucknow, to support the nationwide rollout.
This move marks OYO's renewed focus on the F&B sector, building upon its previous experience with cloud kitchens launched in 2019, which were discontinued during the pandemic. The company is now better equipped to expand its food business in a more strategic and sustainable manner.
The establishment of a network of trusted F&B experts in key cities further supports the company's commitment to delivering consistent and high-quality services across its properties. This initiative reflects OYO's adaptability and responsiveness to consumer preferences, positioning the company for sustained growth in the competitive hospitality industry.
Source: Economic Times
5th Jun, 2025
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