Hospitality major OYO, under the leadership of founder Ritesh Agarwal, has announced its entry into the food and beverages (F&B) sector with the launch of in-house kitchens and quick service restaurant (QSR) carts across its company-serviced hotels.
The new offering will debut under the Townhouse Cafe brand, focusing primarily on OYO’s Townhouse hotel category.
The move is part of the startup’s strategy to enhance guest experience and unlock additional revenue streams.
Customers will be able to order meals directly through the OYO app or via online travel agents by selecting a newly introduced “kitchen service” option.
Depending on the hotel’s size and profile, the kitchen setup may range from a full-scale commercial kitchen to a compact pantry offering essential food items.
As part of its pilot program launched in January 2025, OYO has already implemented the service in 100 properties across Delhi, Gurugram, Hyderabad, and Bengaluru.
It now aims to scale the initiative to 1,500 hotels by the end of the financial year 2025-26 (FY26).
OYO anticipates that this initiative will contribute an additional 5–10% in hotel-level revenues.
The foray into F&B comes on the back of OYO’s return to profitability in FY24, reporting a net profit of ₹229.5 crore, a significant turnaround from the ₹1,286.5 crore loss in FY23.
However, operational revenues saw a marginal dip to ₹5,388.7 crore in FY24, down 1.3% from the previous year.
As part of its broader growth strategy, the Peak XV-backed company has expanded into the U.S. market with the acquisition of G6 Hospitality.
Founder Ritesh Agarwal stated that G6 contributed ₹275 crore to the company’s Q4 FY25 revenues and played a pivotal role in a 60% revenue jump during the quarter. OYO is now targeting a net profit of ₹1,100 crore in FY26.
