OYO plans to enter F&B biz with in-house kitchens, QSR carts
OYO launched the test pilot in select cities in January yielding positive results and prompting a nationwide rollout. The vertical is set to contribute 5-10% additional revenue.
Global travel tech company OYO on Thursday plans to enter the F&B business with in-house kitchens and quick service restaurant (QSR) carts/lobby stores at its company-serviced hotels.
As part of this programme, it will cover 1,500 of its company-serviced hotels in FY26, to provide guests with access to in-house kitchen services.
“To support this, OYO is developing a network of trusted F&B experts in key cities such as Delhi, Mumbai, Bengaluru, Hyderabad, Pune, Indore, Kolkata, Jaipur, and Lucknow,” said Varun Jain, Chief Operating Officer, OYO.
The kitchens will allow guests to order meals via online platforms, including OTAs and the OYO app, by selecting the ‘Kitchen Services’ option. “The kitchen setup would vary from a full-fledged commercial kitchen for an extensive menu or a pantry setup for essential food items based on individual hotel profile and backend infrastructure,” the company said.
The hospitality startup will also introduce QSR carts and lobby stores under the brand name ‘Townhouse Cafe’ offering ready-to-eat food options. “The menu will focus on well-priced meals including regional cuisine and continental food options,” OYO said.
The company expects the F&B to contribute 5-10% additional revenue at the hotel level on a stable state basis, it added.
In January, OYO has launched a pilot programme to test the concept. It was launched across 100 company-serviced hotels in cities including Delhi, Gurugram, Hyderabad and Bengaluru. “The successful implementation of this pilot has paved the way for the nationwide rollout in the upcoming fiscal year,” the company said.
Edited by Kanishk Singh