Zepto, one of India’s fastest-growing quick commerce startups, has unexpectedly paused its Zepto Cafe services in over seven key North Indian cities. This move affects 44 of its ~1,000 dark stores, primarily due to supply chain issues and staff unavailability.
Zepto Cafe, the company’s in-house food initiative, offers quick bites like coffee, tea, puffs, and pizzas — a category designed to compete with the likes of Zomato and Swiggy by offering faster, affordable alternatives directly from its network of dark stores. The pause, though temporary, comes at a critical time in the battle for urban consumers’ stomach share.
In this article, we’ll take a closer look at why Zepto has paused its Cafe services in North India, how this impacts the quick commerce and food delivery landscape, and what it could mean for its rivals and future growth.
Credits: Mint
Cities Affected: Zomato-Blinkit Territory
The disruption is concentrated in Delhi NCR, Agra, Meerut, Haridwar, Gorakhpur, Mohali, Amritsar, and Ghaziabad — regions considered crucial due to high consumer demand and intense competition.
These cities are also strongholds for Zomato and Blinkit, both owned by Deepinder Goyal-led Eternal. A service gap in these territories could mean a reversal of market share gains that Zepto has managed to claw away from traditional food delivery services.
According to company sources, services are expected to resume by Q2 (July–September 2025), but the impact in the interim could be significant.
Staffing Crisis and Kitchen Shifts
Beyond supply constraints, Zepto also faced internal workforce challenges. As a part of the temporary shutdown, the company relocated most of its kitchen staff to functioning stores, but at least 15 employees quit after refusing to move.
While Zepto has maintained its core delivery and grocery operations, the Cafe segment had emerged as a high-margin, high-frequency vertical for the brand. Losing ground here could delay its goal of becoming a full-stack quick commerce platform.
A Strong Run Before the Setback
The timing of the pause is notable, as Zepto Cafe was reportedly clocking 1 lakh orders per day, nearing a $100 million annualised GMV run-rate, with CEO Aadit Palicha touting a 50% steady-state gross margin. These metrics signaled strong early product-market fit.
Quick eats, made and delivered from dark stores, offer better margins than traditional restaurant delivery, and with tighter control over quality and speed. That’s exactly why the sudden scale-back has raised eyebrows.
Pressure Mounts from Competitors
This hiccup also comes as the competition intensifies. While Zomato and Swiggy continue to dominate the restaurant delivery space, Blinkit has launched its own food vertical Bistro by Blinkit, a similar quick-meal initiative. Another player, Swish, remains Bengaluru-centric for now but has hinted at eventual expansion.
In fact, Deepinder Goyal recently acknowledged the disruptive impact of quick commerce on traditional food delivery. “Growth remains below expectations… the quick delivery of packaged food is leading to a drop in demand for restaurant orders,” he said during Eternal’s earnings call on May 1.
What’s Next for Zepto?
If Zepto fails to resume Cafe operations quickly, or if the disruption spreads to more cities, it could hand back crucial market share to its rivals — especially in the cafe and snack segment, which was becoming a core differentiator.
However, insiders remain optimistic that this is a temporary operational dip, not a strategic retreat. With strong margins, growing demand, and the brand’s aggressive execution DNA, Zepto Cafe could still bounce back — but it’ll need to shore up supply lines and rebuild kitchen teams fast.
Credits: Moneycontrol
Final Word
In the breakneck world of quick commerce, even a short stumble can become a strategic setback. Zepto’s Cafe service pause may be brief, but the ripples could alter market dynamics if not addressed swiftly. Whether Zepto emerges stronger in Q2 or loses its early lead may depend on what it does in the next few months — both inside its kitchens and across the competitive battlefield.
