From Hotels to Meals: OYO Bets on F&B Biz with In-House Kitchens, QSR Carts

Hospitality giant OYO has announced its plans to enter the food and beverages (F&B) business with in-house kitchens and Quick Service Restaurants (QSR) carts/lobby stores at its company-serviced hotels with a focus on Townhouse by OYO branded hotels, the company said in an official statement.

The global hospitality brand will cover 1,500 of their company serviced hotels in FY26, providing guests with access to in-house kitchen services. These kitchens will allow guests to order meals seamlessly via online platforms, including OTAs and the OYO app, by selecting the "Kitchen Services" option.

The kitchen setup would vary from full-fledged commercial kitchen for an extensive menu or a pantry setup for essential food items based on individual hotel profile and backend infrastructure.

Besides this, OYO is also introducing QSR carts and lobby stores under the brand name ‘Townhouse Cafe’. This will offer ready-to-eat food options, to cater to the snacking, hunger pang, midnight meal and on the go customer needs without the wait time of traditional restaurants. Its menu will focus on meals including regional cuisine and continental food options.

“The initiative aims to enhance the in-hotel dining experience for guests by offering fresh, convenient, and quality meal options across its network. To support this, OYO is developing a network of trusted F&B experts in key cities such as Delhi, Mumbai, Bangalore, Hyderabad, Pune, Indore, Kolkata, Jaipur, and Lucknow,” said OYO chief operating officer Varun Jain.

The company claimed that the program is expected to increase customer satisfaction scores. OYO is expecting F&B to contribute 5%-10% additional revenue at the hotel level on a stable state basis.

To test the concept, it has launched a pilot program since January this year across 100 company-serviced hotels in select cities such as Delhi, Gurgaon, Hyderabad and Bengaluru.

OYO is a global platform that aims to empower entrepreneurs and small businesses with hotels and homes by providing full-stack technology products and services that aim to increase revenue and ease operations; bringing easy-to-book, affordable, and trusted accommodation to customers around the world.

It offers more than 40 integrated products and solutions to patrons who operate over 1,70,000 hotel and home storefronts in more than 35 countries including India, Europe and Southeast Asia, as of June 30, 2024.