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Quick commerce giant Zepto is reportedly scaling back its Zepto Café operations as it battles persistent supply chain challenges and a shortage of trained kitchen staff. This, even as competitors aggressively expand their footprint in urban markets. The move comes just months ahead of Zepto’s much-anticipated IPO, expected in early 2026.
Zepto Café, which launched in 2023 to offer freshly prepared snacks, meals, and beverages delivered within minutes, has witnessed explosive growth. However, the company is now consolidating operations in several metros, pulling back from low-margin zones to stabilize performance. In an official statement to Franchise India, Zepto said:
"Zepto Café order volume has grown by 700% year-on-year, and 15%+ month-on-month with 1,000 crores of annual net sales. We are continuing to double down on Café and expect it to continue growing meaningfully this year."
Despite the bullish tone, operational realities are proving challenging. The issues have been further compounded by rising costs and margin pressure in the competitive quick-service segment.
Meanwhile, rivals are moving fast to capitalize on Zepto’s recalibration. Blinkit recently expanded its freshly-prepared food vertical Blinkit Bistro in Delhi-NCR and Mumbai, while Swiggy has doubled down on its own snacking service, Swiggy Snacc, with new launches in Bengaluru and Pune. Both platforms are using dark kitchens and strategic tie-ups to streamline operations and meet growing demand for instant, quality food in urban areas.
As Zepto prepares for public listing, its ability to balance growth with operational stability in the Café vertical will be closely watched by investors and analysts alike.
