Oyo to enter F&B with in-house kitchens and QSR carts

Oyo has announced its plans to enter the 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, the company said Thursday.

As part of this programme, 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 via online platforms, including OTAs and the Oyo app, by selecting the "Kitchen Services" option.

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


In addition to in-house kitchens, Oyo is also introducing QSR carts and lobby stores under the brand name ‘Townhouse Cafe’. The company said the menu will focus on well-priced meals including regional cuisine and continental food options.

Oyo said it is expecting F&B to contribute 5%-10% additional revenue at the hotel level on a stable state basis.

To test the concept, Oyo said has launched a pilot program since January this year across 100 company-serviced hotels in select cities such as Delhi, Gurgaon, Hyderabad and Bangalore. This has paved the way for the nationwide rollout in the upcoming fiscal year, the company said

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 said it is developing a network of 'trusted F&B experts' in key cities such as Delhi, Mumbai, Bangalore, Hyderabad, Pune, Indore, Kolkata, Jaipur, and Lucknow.