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Zepto Cafe scales down operations amid supply chain issues, staffing shortages
The move also coincides with rising competition from Blinkit’s Bistro and Swiggy’s Snacc, both of which are rapidly expanding in major cities.
Quick commerce platform Zepto has scaled down operations of its 10-minute food delivery vertical, Zepto Cafe, according to an ET report. The decision comes amid challenges related to product sourcing and a shortage of trained kitchen staff.
The move also coincides with rising competition from Blinkit’s Bistro and Swiggy’s Snacc, both of which are rapidly expanding in major cities.
In June, daily order volumes were significantly lower compared to early 2025. Additionally, in May, Zepto ceased operations in 44 of the approximately 1,000 stores offering Zepto Cafe services. In the May-June period, the average orders were between 65,000 - 67,000 as compared to around 1,20,000 - 1,30,000, added the report.
Facing a slowdown in its food delivery business and a cooling of quick commerce operations, Zepto had initiated discussions with existing investors, General Catalyst and Avenir Growth, to raise $500 million, according to the report.
"Zepto Café order volume has grown by 700 percent year-on-year, and 15 percent + month-on-month with 1,000 crores of annual net sales. We are continuing to double down on Café and expect it to continue growing meaningfully this year," stated the company spokesperson.
In the past three-four months, the download of the Zepto Cafe, which was rolled out in December 2024 and was being heavily marketed on digital platforms, significantly declined. It plunged to around 17,000 in June from 1.5 mn downloads when it was first rolled out.
Suppliers associated with Zepto Cafe also raised concerns over a drop in order volumes and delays in picking up already ordered goods. As part of its efforts to revamp kitchen operations, Zepto also pulled back select Zepto Cafe menu items, particularly those that require frying, added the report.
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