Oyo Makes Comeback in Food Business with Townhouse Cafe QSR chain

Oyo has announced it is getting back into the food and beverage business by setting up in-house kitchens and Quick Service Restaurant (QSR) carts or lobby stores in its company-run hotels, especially those under the Townhouse brand.

The company plans to launch these kitchen services in 1,500 hotels by FY26. Guests will be able to order food through online platforms, including the Oyo app, by choosing the "Kitchen Services" option.

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Depending on the hotel, the kitchen setup will either be a full commercial kitchen with a wide menu or a basic pantry offering essential meals.

Oyo is also launching QSR carts and lobby stores called ‘Townhouse Cafe’, which will offer affordable meals, including regional and continental dishes.

Oyo expects the food and beverage segment to add 5–10% extra revenue at the hotel level once fully rolled out.

The company has been testing this model since January in 100 hotels across cities like Delhi, Gurgaon, Hyderabad and Bangalore, and now plans to expand nationwide.

Oyo COO Varun Jain said the goal is to improve the in-hotel dining experience with fresh, convenient and high-quality food. 

Oyo is building a team of F&B experts in cities such as Delhi, Mumbai, Bangalore, Hyderabad, Pune, Indore, Kolkata, Jaipur and Lucknow to support the rollout.

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