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News In Brief Business and Economy

Zepto Aims for 10-Minute F&B Deliveries with Nationwide Cafe Rollout

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Zepto Aims for 10-Minute F&B Deliveries with Nationwide Cafe Rollout
19 Nov 2024
6 min read

News Synopsis

Zepto is setting new standards in the quick commerce industry by launching Zepto Café, aimed at delivering food and beverages within just 10 minutes. The service is currently available at over 120 cafés across major cities, including Mumbai, Delhi, and Bengaluru, with plans to expand to Hyderabad, Chennai, and Pune soon. Zepto’s strategic focus on speed and quality is a significant step forward in revolutionizing the food delivery sector in India.

Quality and Precision Behind Zepto Café

Zepto CEO Aadit Palicha emphasizes that the company's ability to deliver food in just 10 minutes is driven by careful attention to quality control and operational efficiency. Zepto Café uses state-of-the-art equipment sourced over the past year, including high-end coffee machines utilizing handcrafted brewing techniques. This ensures that each cup of coffee and every dish meets the highest standards of quality and consistency, rivaling India's finest offline café chains.

Palicha believes that this attention to detail in food preparation is one of the key reasons behind Zepto Café's growing popularity. By combining the quick 10-minute delivery model with premium food offerings, Zepto Café is reshaping the landscape of India’s Quick Commerce sector.

Impressive Financial Growth and Expansion Plans

Zepto Café has already achieved significant milestones, with a reported Annual Run Rate (ARR) GMV of ₹160 crore after just a year of operation. This impressive figure has been attained through just 15% of Zepto’s expanding dark store network, showcasing the robust unit economics of the model. As Zepto continues to grow, the company is on track to reach an ARR of ₹1,000 crore by the next fiscal year, fueled by a rapid expansion strategy and consistent growth in demand.

Local Food Preferences in Key Cities

Zepto Café’s expansion reflects its ability to cater to regional tastes and food preferences across India’s diverse culinary landscape. Here’s how the brand is resonating in different cities:

  • Bangalore: Known for its coffee culture, the city surprisingly favors Adrak Chai over the traditional Filter Coffee, with Adrak Chai outselling Filter Coffee by a 3:1 ratio on the Zepto platform.

  • Mumbai: Zepto has observed a rising demand for popular snacks like Samosa and Garlic Bread with Cheese Dip, proving that timeless favorites can still thrive in a bustling metropolis.

  • Chennai: While Medu Vada Sambar Dip remains a city staple, Zepto is also introducing new favorites like Mini Butter Croissants, which are now selling 4X more than the traditional snacks.

  • Hyderabad: Zepto Café has tapped into the local nostalgia by pairing comfort foods like Bun Maska with more modern options, such as Vietnamese Cold Coffee, which are gaining popularity in the city.

The Future of Zepto Café

Zepto Café's growth is a clear indicator of how online cafés are becoming an integral part of India's food delivery ecosystem. The company is set to further extend its reach by launching 100+ new cafés every month in high-density urban locations. Zepto’s expansion strategy and innovative approach are positioning the brand to meet the increasing demand for quick, high-quality food options in India’s rapidly changing consumer market.

With its ability to provide fast, consistent, and high-quality deliveries, Zepto Café is reshaping how Indians experience food delivery, one 10-minute delivery at a time.

TWN In-Focus