OYO To Enter F&B Business With In-house Kitchens And QSR Carts

Travel tech startup OYO on Thursday announced plans to enter the food and beverage business with in-house kitchens and Quick Service Restaurant (QSR) carts at its company-serviced hotels.

OYO's new plan to venture into F&B

OYO guests will now be able to order meals through the company’s mobile app and website, as well as online travel agents, by selecting the “Kitchen Services” option, served through its in-house kitchens. 

The kitchen setup would be smaller than a full-fledged commercial kitchen based on the individual hotel profile and back-end infrastructure.

Additionally, QSR kiosks under the brand name “Townhouse Cafe” will be stationed in the OYO Townhouse properties.

Moreover, in the OYO Townhouse properties, there will be QSR kiosks under the brand name “Townhouse Cafe”.

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OYO launches pilot, eyes launching new facilities in 1500 hotels

OYO launched a pilot programme since January this year across 100 company-serviced hotels in cities such as Delhi, Gurugram, Hyderabad and Bengaluru.

Initially, the company would introduce the new facilities in its 1,500 hotels in 2025-26.

Ritesh Agarwal’s company expects its new F&B offerings to improve customer satisfaction and contribute around 5-10% additional revenue to the company, at the hotel level.

To test the concept, OYO first launched a pilot programme in January this year across 100 company-serviced hotels in cities such as Delhi, Gurugram, Hyderabad and Bengaluru.

“The successful implementation of this pilot has paved the way for the nationwide rollout in the upcoming fiscal year,” it said in the announcement. 

Earlier this year, OYO founder Ritesh Agarwal shared in an email that the company is likely to report a profit after tax of around Rs 1,100 crore in FY26. 

The EBITDA is likely to be around Rs 2,000 crore. 

“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 at OYO.

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