Zepto expands cafe service to major cities; eyes Rs 1,000 cr revenue run-rate by 2026

Quick commerce platform Zepto on Monday announced the rollout of its cafe service in major cities and said it targets a revenue run-rate of Rs 1,000 crore by 2026. It will serve over 120 Cafes at stores across Mumbai, Delhi, Bengaluru, and soon in Hyderabad, Chennai, and Pune, a company statement said.

"We have cracked 10-minute delivery with high-quality food preparation processes, which is why we are seeing strong customer love. Over the past year, our team has meticulously researched and sourced state-of-the-art equipment for our cafes, including coffee machines that employ handcrafted brewing techniques," Zepto CEO Aadit Palicha said.

Serving the concept of a quick meal for today's fast-paced urban lifestyle, the online cafe features a diverse menu with over 148 items, including freshly brewed chai, coffee, all-day breakfast, pastries, and savoury snacks, promising a 10-minute delivery service, it added.

Zepto Cafe was launched in April 2022 as a division of Zepto, which itself was founded in July 2021 by Aadit Palicha and Kaivalya Vohra.

"The response has been phenomenal, with Zepto Cafe now achieving an (estimated) Annual Run Rate (ARR) GMV of Rs 160 crore with just 15 per cent of our expanding dark store network with proven unit economics.

"As we expand into new cities and launch 100-plus new cafes every month, we are on track to achieve an ARR of Rs 1,000 crore by the next fiscal year," Palicha said. ARR refers to the projection of upcoming revenue over a longer time period (usually one year) based on previously earned revenue.