Oyo, the renowned hospitality chain, is set to innovate its service offerings by venturing into the food and beverage sector. This exciting initiative, announced on Thursday, aims to enhance the dining experience for guests at Oyo’s serviced hotels through in-house kitchens and Quick Service Restaurant (QSR) kiosks. By integrating food services directly into their operations, Oyo is poised to elevate customer satisfaction and revenue.

Oyo’s New Culinary Experience

Starting in 2025-26, Oyo will introduce a streamlined food service option that allows guests to conveniently order meals via the company’s app or website. The new feature, labeled “Kitchen Services,” will enable guests to select from a variety of meal options, all prepared in Oyo’s smaller-scale kitchens tailored to the unique needs of each hotel.

• Quick Service Restaurants: In addition to in-house kitchens, Oyo is rolling out QSR kiosks named “Townhouse Cafe” at its Townhouse properties, providing quick and delicious meal options for guests on the go.

The pilot program, which commenced in January across 100 hotels in major cities such as Delhi, Gurugram, Hyderabad, and Bengaluru, proved successful, leading to the decision for a nationwide rollout.

Financial Projections and Growth

Oyo anticipates that its new food and beverage offerings will not only enhance the guest experience but also contribute an additional 5-10% revenue at the hotel level. Varun Jain, Oyo’s Chief Operating Officer, highlighted the company’s commitment to building a network of trusted food and beverage experts in key metropolitan areas, including Mumbai, Bengaluru, Hyderabad, Pune, Indore, Kolkata, Jaipur, and Lucknow.

In an internal communication earlier this year, Oyo’s founder and group CEO, Ritesh Agarwal, projected a profit after tax of approximately ₹1,100 crore for FY26, with an EBITDA of around ₹2,000 crore. For FY25, the company expects revenues to reach ₹2,100 crore, reflecting an impressive 60% growth from the previous year. Agarwal noted that even without recent expansions, including the integration with G6 Hospitality, Oyo’s revenue stands strong at ₹1,886 crore, showcasing a substantial growth rate of 42%.

Conclusion

As Oyo embarks on this new venture into food and beverage, the hospitality chain aims to redefine guest experiences while bolstering its financial performance. With a focus on quality and convenience, Oyo’s innovative approach is set to make waves in the hospitality industry, ensuring that guests enjoy not only comfortable accommodations but also delightful dining options.