Oyo Expands into Quick-Service Restaurant Market with Townhouse Cafe

Oyo, known for its hospitality services, has entered the quick-service restaurant (QSR) sector by launching its in-house brand, Townhouse Cafe. These cafes are set to be established across hotels managed by the company, specifically Townhouse by OYO.

Since January 2025, Oyo has been testing this model, covering approximately 100 hotels across India. The company aims to expand this initiative significantly, with plans to include 1,500 hotels in the upcoming months, as outlined in the company’s recent press release.

Guests can conveniently place food orders through Oyo’s app as well as through partner online travel agencies (OTAs). In addition to in-house kitchens, Oyo is introducing QSR carts and lobby stores under the Townhouse Cafe brand, providing ready-to-eat meal options.

The press release states that OYO is establishing a network of food and beverage professionals throughout key cities including Delhi, Mumbai, Bengaluru, Hyderabad, Pune, Indore, Kolkata, Jaipur, and Lucknow to support its food service operations.

Although Oyo has not yet released its complete financial data for FY25, the company reported a revenue of Rs 5,389 crore in FY24, slightly decreasing from Rs 5,464 crore in FY23. Notably, a 16% reduction in expenses enabled it to achieve a net profit after tax (PAT) of Rs 230 crore for the year.

This QSR initiative appears to align with Oyo’s overarching strategy to enhance revenue through supplementary services. This is not Oyo’s initial venture into the food industry; the company previously launched a cloud kitchen business in 2019 but exited during the pandemic. While food operations naturally complement the hotel sector, they require specialised skills and committed teams. It seems Oyo has gained useful insights from its earlier endeavour and is now positioned to scale its food offerings in a more thoughtful and sustainable way.