Zepto Cafe, the quick-service food vertical of hyperlocal delivery startup Zepto, has temporarily closed operations in several smaller cities across North India, including Agra, Chandigarh, Meerut, Mohali, and Amritsar.
According to ET Now, approximately 44 cafes have been put on hold, impacting over 400 employees, including staff from recently launched outlets.
Key Points:
- Cities Affected: Agra, Chandigarh, Meerut, Mohali, Amritsar
- Stores Closed: 44 (temporarily)
- Employees Affected: Over 400
- Primary Reason: Rising costs and supply chain bottlenecks
- Company Response: Outlets placed on hold; operations expected to resume by end of next quarter
What Triggered the Closures?
Reports from Moneycontrol indicate that Zepto was burning ₹250–300 crore per month late last year. This aggressive spending has now been significantly reduced:
- March 2025: ₹115–120 crore
- Jan-Feb 2025: ₹105–110 crore
- Current Burn: ₹95 crore per month
A key step in cost-cutting includes reducing store manpower—from nine employees per café to seven or eight—in an effort to streamline operations and lower fixed costs.
Zepto’s Statement:
In a statement to ET Now, a Zepto spokesperson explained that the closures are temporary and part of a broader strategy to resolve supply chain issues. The company confirmed it is:
- Holding operations temporarily
- Planning to relaunch by next quarter
- Remaining committed to the cafe business
- Preparing for aggressive reinvestment
Zepto’s Growth Outlook:
Despite operational setbacks, Zepto remains bullish on its growth:
- Crossed 1,00,000 daily orders in February 2025
- Aims to triple that number within the next 12 months
Industry-Wide Context:
Zepto’s situation is reflective of a broader recalibration in India’s rapid delivery ecosystem:
