OYO to enter QSR space, expects F&B to contribute 5%-10% additional revenue
MUMBAI: Travel tech company OYO is entering into the good & beverage (F&B) business with in-house kitchens and Quick Service Restaurant (QSR) carts/lobby stores at its company-serviced hotels with a focus on Townhouse by OYO branded hotels. OYO is expecting F&B to contribute 5%-10% additional revenue at the hotel level on a stable state basis.
As part of this program, OYO said it will cover 1500 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.
In addition to in-house kitchens, OYO said it is also introducing QSR carts and lobby stores under the brand name 'Townhouse Cafe' offering ready-to-eat food options. The menu, as per Oyo, will focus on well-priced meals including regional cuisine and continental food options.
To test the concept, OYO launched a pilot program since January this year across 100 company-serviced hotels in select cities such as Delhi, Gurgaon, Hyderabad and Bangalore.
Varun Jain, Chief Operating Officer, OYO said "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".
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