OYO to enter F&B with in-house kitchens, QSR carts in serviced hotels

Global travel tech firm OYO on Thursday said it plans to enter the food and beverage business with in-house kitchens and Quick Service Restaurant (QSR) carts at its company-serviced hotels.

The QSR initiative, under brand name 'Townhouse Cafe', will focus on the 'Townhouse by OYO' branded hotels. It will cover 1,500 company-serviced hotels during the first phase of the programme in FY2025-26.

Besides, guests can order meals through online platforms, including the OYO app and website, as well as online travel agents, by selecting the "Kitchen Services" option.

The kitchen setup would vary from a full-fledged commercial kitchen for an extensive menu or a pantry setup for essential food items, based on the individual hotel profile and back-end infrastructure.

"The F&B initiative is a result of consistent consumer feedback that the hotels should provide in-room dining options as well. The programme is expected to increase customer satisfaction scores.

"OYO is expecting F&B to contribute 5-10 per cent additional revenue at the hotel level on a stable state basis," the company stated.

To test the concept, OYO launched a pilot programme since January this year across 100 company-serviced hotels in cities such as Delhi, Gurugram, Hyderabad and Bengaluru.

According to the company, the successful implementation of this pilot has paved the way for the nationwide rollout in the upcoming fiscal year.

"The initiative aims to enhance the in-hotel dining experience for guests by offering fresh, convenient, and quality meal options across its network.

"...OYO is developing a network of trusted F&B experts in key cities such as Delhi, Mumbai, Bengaluru, Hyderabad, Pune, Indore, Kolkata, Jaipur, and Lucknow," Varun Jain, Chief Operating Officer at OYO, said.