Global travel tech firm OYO plans to enter the food and beverage business with in-house kitchens and Quick Service Restaurant (QSR). carts at its company-serviced hotels.

The QSR initiative, under the brand name 'Townhouse Cafe', will focus on the ‘Townhouse by OYO' branded hotels. It will cover 1,500 company-serviced hotels during the first phase of the program in FY2025-26.

Additionally, guests can place meal orders via online platforms, such as the OYO website and app, along with online travel agents, by choosing the ‘Kitchen Services’ option.

The kitchen configuration could range from a comprehensive commercial kitchen for a diverse menu to a pantry arrangement for basic food supplies, depending on the specific hotel profile and behind-the-scenes infrastructure.

The F&B initiative stems from ongoing consumer feedback indicating that hotels ought to offer in-room dining choices as well. The initiative is anticipated to boost customer satisfaction ratings.

OYO anticipates that F&B will add 5-10 percent more revenue at the hotel level on a stable state basis.

To evaluate the idea, OYO initiated a pilot program in January this year at 100 hotels serviced by the company in cities including Delhi, Gurugram, Hyderabad, and Bengaluru.

As stated by the company, the effective execution of this pilot has set the stage for the countrywide launch in the next fiscal year.

The program seeks to improve the dining experience within the hotel for guests by providing fresh, convenient, and high-quality meal choices throughout its network.

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"OYO is developing a network of trusted F&B experts in key cities such as Delhi, Mumbai, Bengaluru, Hyderabad, Pune, Indore, Kolkata, Jaipur, and Lucknow,” says Varun Jain, Chief Operating Officer at OYO.