Oyo Enters Food & Beverage Segment with In-House Kitchens and QSR Carts

Oyo, the prominent hospitality brand, has officially announced its entry into the food and beverage (F&B) sector. The company is introducing in-house kitchens and Quick Service Restaurant (QSR) carts across its company-managed hotels to diversify offerings and enhance guest experience.

F&B Services to Be Integrated via Oyo App and Website

Under this new initiative, Oyo guests can order meals using the Oyo mobile app, its official website, or through online travel agencies (OTAs) by choosing the “Kitchen Services” option. These services will be delivered through the company’s internal kitchen setups, tailored according to each hotel’s infrastructure and profile.

Compact Kitchen Models for Greater Efficiency

Unlike full-scale commercial kitchens, Oyo’s setup will consist of smaller, efficient kitchen models to suit the operational needs of individual hotels. This ensures cost-effectiveness and scalability across different property types.

Townhouse Properties to Feature ‘Townhouse Cafe’ QSR Kiosks

In addition to in-house kitchens, QSR kiosks branded as “Townhouse Cafe” will be rolled out at Oyo Townhouse properties, offering guests quick and quality food options on the go.

F&B Expansion Targeted Across 1,500 Hotels in FY26

The rollout is set to cover around 1,500 company-serviced hotels during FY2025-26, as per Oyo’s plan. The company estimates that this venture will enhance customer satisfaction while contributing an additional 5-10% revenue per hotel.

Oyo Building Network of F&B Experts in Key Cities

“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,” said Varun Jain, Chief Operating Officer at Oyo.

Pilot Program Success Leads to Nationwide Rollout

The company initially piloted the kitchen and QSR concept in January 2024 at 100 company-operated hotels in cities like Delhi, Gurugram, Hyderabad, and Bengaluru.
“The successful implementation of this pilot has paved the way for the nationwide rollout in the upcoming fiscal year,” Oyo stated in its announcement.

Oyo's Financial Outlook: Strong Revenue and Profit Growth

Earlier this year, Ritesh Agarwal, Oyo’s Founder and Group CEO, shared in an internal communication that the company is projected to post a profit after tax of approximately Rs 1,100 crore in FY26.

The EBITDA for the same fiscal year is expected to reach Rs 2,000 crore. For FY25, the company’s revenue is forecasted to hit Rs 2,100 crore, reflecting a 60% year-on-year growth.

Global Expansion and G6 Hospitality Integration Boost Revenue

In a strategic move to expand globally, Oyo’s recent integration with G6 Hospitality is likely to add Rs 275 crore to the company’s revenue in FY25.

“Even without G6, our revenue stands strong at Rs 1,886 crore, demonstrating robust growth of around 42%,” Agarwal said in the mail.

History of OYO Rooms

1. OYO Rooms (OYO Hotels & Homes): This is the Indian multinational hospitality chain. Here's a summary of its history based on the provided search results:

• Founding: Founded in 2012 by Ritesh Agarwal in Gurgaon, Haryana, India. The name OYO stands for "On Your Own" rooms. The initial concept in 2011 was "Oravel Stays."

• Early Vision: Agarwal, at a young age (17), traveled extensively and recognized a lack of affordable and quality hotels in the unbranded budget category. His vision was to provide standardized and budget-friendly accommodations.

• Early Growth (2013-2015):

  • Opened the first OYO in 2013 in Gurugram.

  • Launched the oyorooms.com website in 2013.

  • Received Series A funding in 2014.

  • Launched the OYO App in 2015.

  • Expanded to 100 cities and crossed 10,000 rooms in 2015.

• International Expansion (2016-2019):

  • Expanded to Malaysia in 2016, its first region outside India.

  • Introduced dynamic pricing in 2016.

  • Launched OYO Townhouse (mid-market brand) in 2017.

  • Expanded outside of Asia to the UK in 2018.

  • Entered China and Indonesia in 2018.

  • Launched OYO OS for property managers in 2018.

  • Launched long-stay rental service "OYO Life" and customer loyalty program "OYO Wizard" in 2018.

  • Launched in the US, Europe, and the Middle East in 2019.

  • Launched OYO Lite and Yo! Chat in 2019.

  • Introduced OYO Workspaces (co-working) in 2019.

  • Acquired @Leisure Group (vacation homes in Europe) in 2019.

• Key Developments (2020-Present):

  • Crossed 50 million app downloads globally in 2020 and 100 million in 2021.

  • Launched Sanitized Stays safety protocols in 2020.

  • Collaborated with Yatra, Airbnb, and EaseMyTrip to form CHATT in 2021.

  • Appointed Deepa Malik as an independent director in 2021.

  • Onboarded Rajnish Kumar (former SBI Chairman) as a strategic advisor in 2021.

  • Achieved its first-ever annual profit of ₹229 crore in FY24.

  • As of FY24, OYO's revenue was ₹5,388 crore.

  • Operates in Asia, Europe, and the Americas.

  • Has over 157,000 storefronts using its technology globally.

  • Ritesh Agarwal became the world's youngest self-made billionaire (after Kylie Jenner) in February 2020.

  • OYO has faced challenges and the COVID-19 pandemic impacted its business.

  • The company has pursued acquisitions to expand its offerings and reach.