OYO To Enter F&B With In-House Kitchens, QSR Carts

Hospitality major OYO is planning to foray into the food and beverages sector with in-house kitchens and quick service restaurant carts at its company-serviced hotels.

The Ritesh Agarwal-led startup said in a statement that it will start the new services with a focus on its Townhouse branded hotels.

The company will be setting up in-house kitchens and quick service restaurant stores named Townhouse Cafe.

The new offering will allow customers to order meals via online platforms such as the OYO app and other online travel agents by selecting the ‘kitchen service’ option on the app.

The startup further said that the kitchen set up may vary as per the profile of the hotel from a full-fledged commercial set up to a pantry for essential food items.

Townhouse hotel properties at OYO will have a Townhouse Cafe for quick snacking needs and would also include regional and continental meal options as part of the menu.

The startup covered 100 company-serviced hotels in the pilot phase targeting cities such as Delhi, Gurugram, Hyderabad and Bengaluru.  The pilot project was initiated in January this year and the startup further plans to cover 1,500 properties in the financial year ending 2025-26 (FY26).

“To support this, OYO is developing a network of trusted F&B experts in key cities such as Delhi, Mumbai, Bangalore, Hyderabad, Pune, Indore, Kolkata, Jaipur, and Lucknow,” said  Varun Jain, chief operating officer at OYO.

The Delhi NCR-based startup states that the decision to expand its offerings in the F&B space stems from customer feedback and it further believes that the new offering would generate 5-10% additional revenue at the hotel level.

Founded in 2012 by Agarwal, OYO is a full stack travel tech platform which offers easy to book and affordable accommodations to its customers. It claims to operate over 1.7 Lakh hotels with a presence in over 35 countries including Indian, Europe and Southeast Asia.

The Peak XV-backed startup turned profitable in FY24 posting a net profit of INR 229.5 Cr as against a net loss of INR 1,286.5 Cr in the previous fiscal year. However its operation revenue for the period under review remained flat at INR 5,388.7 Cr, a decline of 1.3% from INR 5,463.9 Cr in FY23.

To increase its revenue channels, the startup also expanded its operations in the US and acquired G6 Hospitality. Besides, Agarwal claimed that G6 Hospitality added INR 275 Cr to the revenues of its fourth quarter of FY25 and was one of the major contributors in a 60% jump in its revenues for the period. Besides, Agarwal said that the Lightspeed-backed startup is expected to report a net profit of INR 1,100 Cr in FY26.

Besides, in the starting of this year, the startup also made changes in its check-in policies and barred the entry of unmarried couples in its partnered hotels. The pilot phase began with Meerut and would be expanded to other cities later.