OYO dives into QSR: Townhouse Cafe to spice up hotel stays and revenue

OYO, the global travel tech and hospitality giant, has announced its entry into the Quick Service Restaurant (QSR) and food & beverage (F&B) sector, aiming to add a fresh flavor to its hotel offerings and a new stream of revenue. The company will introduce in-house kitchens and QSR carts-branded as Townhouse Cafe-across 1,500 company-serviced hotels by the 2025-26 financial year.

This move is set to transform the guest experience at OYO’s Townhouse properties, where travelers will soon be able to order well-priced regional and continental meals directly through the OYO app, website, or online travel agents. The kitchen setups will be tailored to each hotel’s profile, ranging from full-fledged commercial kitchens to compact pantry-style operations.

OYO expects this F&B initiative to contribute an additional 5-10% in revenue at the hotel level once fully rolled out. The company piloted the Townhouse Cafe concept in January 2025 across 100 hotels in cities like Delhi, Gurgaon, Hyderabad, and Bangalore. The successful pilot has paved the way for the nationwide expansion.

To ensure quality and consistency, OYO is building a network of trusted F&B experts in key cities including Delhi, Mumbai, Bengaluru, Hyderabad, Pune, Indore, Kolkata, Jaipur, and Lucknow. The focus is on offering fresh, convenient, and quality meal options, enhancing both customer satisfaction and the in-hotel dining experience.

This isn’t OYO’s first taste of the food business-the company previously experimented with cloud kitchens in 2019 but exited during the pandemic. With the lessons learned, OYO now appears better equipped to scale its food business sustainably, integrating it as a core part of its hotel operations.

Sources: The New Indian Express, Financial Express, Economic Times, Entrackr