Zepto Cafe, the quick food delivery arm of Zepto, has temporarily halted operations in several small cities across North India. The affected cities include Agra, Chandigarh, Meerut, Mohali, Amritsar, and parts of Delhi. This move has impacted around 44 cafes and over 400 employees.
Why Did Zepto Cafe Pause Operations?
The main reasons behind this temporary shutdown are ongoing supply chain challenges and rising operational costs. Zepto has been facing difficulties in maintaining consistent supply and managing high costs in these smaller markets. The company is now working to refine its kitchen software, onboard new vendors, and better map hyperlocal demand to ensure smoother operations when it resumes service.
A spokesperson stated, “We remain committed to the cafe business and will invest aggressively going forward.” The company expects to restart operations in these cities by the end of the next quarter.
Impact on Employees and Store Operations
The temporary closure has affected more than 400 employees, many of whom were offered alternate roles within Zepto’s dark stores or nearby locations. Zepto is also optimizing its workforce, reducing the average staff per cafe from nine to seven or eight to control costs and improve efficiency.
Zepto Cafe’s Rapid Growth and Future Plans
Despite the current pause, Zepto Cafe continues to see strong demand in major metros like Mumbai, Delhi, and Bengaluru. The company recently crossed 1 lakh daily orders and is targeting a revenue run rate of ₹1,000 crore by 2026. Zepto plans to expand aggressively, adding over 100 new cafes each month and introducing a diverse menu of 148 items, including chai, coffee, snacks, and desserts—all delivered within 10 minutes.
Industry Context
Zepto’s pause comes at a time when other quick commerce players are rethinking their rapid food delivery strategies. While some have shut down their 10-15 minute food delivery service, others have expanded quick snack delivery to more cities.
What’s Next for Zepto Cafe?
Zepto remains optimistic and aims to resolve its supply issues soon. Operations in the affected cities are expected to resume by early June 2025. The company’s long-term vision is clear—continue scaling, innovate on technology, and deliver quality food quickly across India.