Hospitality chain Oyo on Thursday announced plans to foray into the food and beverage business with in-house kitchens and Quick Service Restaurant (QSR) carts at its company-serviced hotels.
Under the new initiative, Oyo guests will be able to order meals through the company’s mobile app and website, as well as online travel agents, by selecting the “Kitchen Services” option. These will be serviced through its in-house kitchens.
This kitchen setup would be smaller than a full-fledged commercial kitchen and would be based on the individual hotel profile and back-end infrastructure.
Moreover, in the Oyo’s Townhouse properties, there will be QSR kiosks under the brand name “Townhouse Cafe”.
At first, these new facilities would be available in the company’s 1,500 hotels in 2025-26.
The company expects its new F&B offerings to improve customer satisfaction and contribute around 5-10% additional revenue to the company, at the hotel level.
“Oyo is developing a network of trusted F&B experts in key cities such as Delhi, Mumbai, Bengaluru, Hyderabad, Pune, Indore, Kolkata, Jaipur, and Lucknow,” said Varun Jain, chief operating officer at OYO.
To test the concept, Oyo first launched a pilot programme in January this year across 100 company-serviced hotels in cities such as Delhi, Gurugram, Hyderabad and Bengaluru.
“The successful implementation of this pilot has paved the way for the nationwide rollout in the upcoming fiscal year,” it said in the announcement.
Earlier this year, Ritesh Agarwal, founder and group CEO of Oyo Rooms, in an internal mail, said that the company is likely to report a profit after tax of around Rs 1,100 crore in FY26.
The EBITDA is likely to be around Rs 2,000 crore.
In FY25, the company’s revenue is likely to touch Rs 2,100 crore, growing about 60% from the previous year. The company has been expanding globally to expand its footprint.
Its latest integration with G6 Hospitality is likely to add around Rs 275 crore to the company’s revenue in FY25.
“Even without G6, our revenue stands strong at Rs 1,886 crore, demonstrating robust growth of around 42%,” Agarwal said in the mail.