Zepto Cafe Archives -

Introduction

Zepto is an Indian quick-commerce company headquartered in Bengaluru. It was founded in July 2021 by Aadit Palicha and Kaivalya Vohra. Building on its success in 10-minute grocery delivery, Zepto launched Zepto Cafe in 2022 as a pilot program in Mumbai, expanding it nationwide by November 2024. This innovative service represents a significant evolution in India’s quick commerce landscape, combining the convenience of ultra-fast delivery with freshly prepared food and beverages.

What is Zepto Cafe?

Zepto Cafe is not a traditional food delivery service. “Let me clarify that we are not doing food delivery. This is a Café format, with ready-to-drink coffee, chai, and packaged snacks” as initially clarified by the company. The service has since evolved to offer a comprehensive cafe experience delivered to customers’ doorsteps in just 10 minutes.

Introduced in 2022, Zepto Café offers a diverse menu, including all-day breakfast options, freshly brewed beverages like chai and coffee, baked goods, and popular snacks like Maggi. The concept bridges the gap between quick commerce and food delivery, creating a unique niche in India’s competitive food tech market.

Service Overview

Delivery Promise

Zepto Cafe maintains the company’s signature 10-minute delivery promise, leveraging the existing dark store network that has made Zepto successful in grocery delivery. “We have cracked 10-minute delivery with high quality food preparation processes, which is why we are seeing strong customer love.”

Geographic Coverage

Zepto is now serving through 120+ Cafés at stores across Mumbai, Delhi, Bengaluru, and soon it will set foot in Hyderabad, Chennai, and Pune. The nationwide rollout demonstrates the company’s confidence in the cafe model and its potential for scalability.

Menu and Offerings

Comprehensive Selection

The service offers a diverse menu of 148 items, including coffee, chai, pastries, and snacks, catering to fast-paced urban lifestyles. The menu is designed to cater to diverse regional preferences and modern urban tastes.

Popular Items and Regional Preferences

The menu, which boasts over 148 items, includes classics like samosas and vada pav alongside new-age options such as Vietnamese Cold Coffee and Mini Butter Croissants, catering to diverse regional tastes. For example, in Bangalore, Adrak Chai is outselling traditional Filter Coffee 3:1, showcasing interesting regional consumption patterns.

Category Breakdown

Category	Popular Items	Description
Beverages	Masala Chai, Spanish Coffee, Hazelnut Cold Coffee, Peach Iced Tea, Vietnamese Cold Coffee	Freshly brewed hot and cold beverages
Food Items	Samosas, Vada Pav, Maggi, Hyderabadi Chicken Biryani, Butter Chicken & Rice, Paneer Makhani & Naan	Traditional snacks and full meals
Breakfast	All-day breakfast options, Mini Butter Croissants	Morning and anytime breakfast items
Desserts	Chocolate Mousse, Tiramisu, Layered Double Chocolate Cake Jar	Sweet treats and desserts
Baked Goods	Pastries, Croissants	Freshly baked items

Business Performance and Growth

Financial Metrics

“With Zepto Café, we’ve blended our 10-minute delivery strategy with India’s favorite snacks and drinks to create a service that really appeals to our customers. Zepto Café has responded incredibly well, generating an Annual Run Rate (ARR) GMV of ₹160 crore with only 15% of our growing” dark store network operational for the cafe service.

Market Position

The cafe service represents a strategic diversification for Zepto, moving beyond its core grocery delivery business. The online cafe features a diverse menu with over 148 items, including freshly brewed chai, coffee, all-day breakfast, pastries, and savoury snacks, promising a 10-minute delivery service, positioning it uniquely in the market.

Technology and Operations

Infrastructure

Zepto Cafe leverages the company’s existing dark store infrastructure, which has been crucial to its success. “Over the past year, our team has meticulously researched and sourced state-of-the-art equipment for our Cafés, including cof”fee machines and food preparation equipment designed for speed and quality.

Quality Assurance

The company has invested significantly in maintaining quality standards while achieving rapid delivery times. The focus on “high quality food preparation processes” ensures that the 10-minute promise doesn’t compromise on taste or freshness.

Competitive Landscape

Market Context

Launched around the same time when companies like Swiggy and Zomato were testing 10-minute food delivery, Zepto’s cafe model represents a different approach to quick food delivery. While traditional food delivery platforms focus on restaurant partnerships, Zepto Cafe operates more like a cloud kitchen model integrated with quick commerce.

Comparison with Competitors

Platform	Delivery Time	Model	Focus Area
Zepto Cafe	10 minutes	In-house cafe/cloud kitchen	Beverages, snacks, quick meals
Swiggy/Zomato	10-30 minutes	Restaurant partnerships	Full restaurant meals
Traditional Cafes	Dine-in/pickup	Physical locations	Complete cafe experience

Recent Developments and Leadership

Strategic Appointments

The company has been strengthening its cafe operations with strategic hires from the food and beverage industry, indicating its serious commitment to this vertical. These appointments suggest that Zepto views the cafe business as a significant growth driver for the future.

Expansion Plans

With the nationwide rollout announced in November 2024, Zepto Cafe is positioned for rapid expansion across India’s major metropolitan areas. The company’s established logistics network provides a strong foundation for scaling the cafe operations.

Customer Reception and Market Impact

Consumer Response

Zepto CEO Aadit Palicha stated that their 10-minute delivery model, combined with high-quality offerings, has fostered strong customer loyalty. The positive customer response has been a key factor in the decision to expand nationwide.

Urban Lifestyle Integration

Serving the concept of a quick meal for today’s fast-paced urban lifestyle, Zepto Cafe addresses the growing demand for convenience in India’s metropolitan areas. The service particularly appeals to working professionals, students, and urban families seeking quick, quality food options.

Challenges and Future Outlook

Operational Challenges

Maintaining food quality while ensuring 10-minute delivery presents unique operational challenges. The company’s investment in specialized equipment and processes indicates its commitment to overcoming these hurdles.

Market Opportunities

The Indian quick commerce market continues to grow rapidly, and Zepto Cafe’s unique positioning between traditional food delivery and quick commerce creates new market opportunities. The success of the pilot and initial expansion suggests strong potential for further growth.

Revenue Projections

With an ARR GMV of ₹160 crore achieved with limited store coverage, the nationwide expansion could significantly impact Zepto’s overall revenue profile and market position in India’s competitive food delivery landscape.

Conclusion

Zepto Cafe represents a innovative approach to food delivery in India, combining the speed of quick commerce with the quality and variety of a modern cafe. By leveraging its existing infrastructure and focusing on ultra-fast delivery of freshly prepared food and beverages, Zepto has created a unique market position that differentiates it from traditional food delivery platforms.

The service’s rapid expansion from a Mumbai pilot to a nationwide rollout, coupled with strong financial performance and customer reception, indicates its potential to become a significant player in India’s food delivery ecosystem. As urban lifestyles continue to prioritize convenience and speed, Zepto Cafe is well-positioned to capture a growing share of the quick food delivery market.

Category Zepto Cafe

Zepto Cafe: Revolutionizing Quick Food Delivery in India