OYO Ventures into F&B with In-House Kitchens and QSR Carts

According to the news reports, OYO has unveiled its plans to venture into the food and beverage (F&B) space by introducing in-house kitchens and Quick Service Restaurant (QSR) carts or lobby stores at its company-serviced hotels. With a primary focus on the Townhouse by OYO branded properties, the company aims to elevate the in-hotel dining experience and generate additional revenue streams across its hospitality portfolio.

Flexible Kitchen Models for Guest Convenience

As part of this initiative, OYO announced that it will implement in-house kitchen services at 1,500 company-serviced hotels in FY26. These kitchens will enable guests to conveniently order meals via online travel agencies (OTAs) and the OYO app by selecting the “Kitchen Services” option. The company clarified that kitchen formats would be tailored to each hotel, ranging from full-fledged commercial kitchens offering extensive menus to compact pantry setups for basic food items, depending on the hotel’s profile and infrastructure.

Townhouse Café to Offer Regional and Continental Menus

In addition to the kitchens, OYO is set to launch QSR carts and lobby-based stores branded as ‘Townhouse Café’. These outlets will serve well-priced meals featuring regional and continental dishes. The pilot programme, which commenced in January 2025, has already been rolled out in 100 company-serviced hotels across Delhi, Gurgaon, Hyderabad, and Bangalore. This successful trial has laid the groundwork for a nationwide rollout in the upcoming fiscal year. The company is also building a network of “trusted F&B experts” in cities including Delhi, Mumbai, Bangalore, Hyderabad, Pune, Indore, Kolkata, Jaipur, and Lucknow to support the initiative.

Conclusion

OYO anticipates that its F&B venture will contribute an additional 5%-10% revenue at the hotel level on a stable state basis. Varun Jain, Chief Operating Officer, OYO, stated that the initiative aims to enhance the in-hotel dining experience for guests by offering “fresh”, “convenient”, and “quality” meal options across its network.

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