Oyo, a prominent hospitality chain, has announced its expansion into the food and beverages sector, introducing in-house kitchens and quick service restaurants (QSRs) across its Townhouse hotels.
This strategic move is anticipated to add between 5%-10% additional revenue at the hotel level on a stable state basis.
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The company’s ambitious programme targets 1,500 of its company-serviced hotels by financial year 2026.
Guests will have the option to order meals from the in-house dining facilities or through online platforms, including Oyo’s own application. The kitchen setup will be tailored to each hotel’s profile, ranging from full-fledged commercial kitchens to pantry setups for essential food items.
“In addition to in-house kitchens, the company is also introducing QSR carts and lobby stores under the brand name ‘Townhouse Cafe’, offering ready-to-eat food options and on-the-go customer needs without the wait time of traditional restaurants,” Oyo stated.
This initiative aims to cater to the growing demand for convenience and quality within the hospitality sector.
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By GlobalDataThe decision follows a successful pilot programme launched in January this year, which included 100 company-serviced hotels across cities such as Delhi, Gurugram, Hyderabad, and Bengaluru. The nationwide rollout is a testament to the programme’s initial success.
“The initiative aims to enhance the in-hotel dining experience for guests by offering fresh, convenient, and quality meal options across its network,” stated Oyo chief operating officer Varun Jain. To support this expansion, Oyo is building a network of trusted F&B experts in key cities across India.
This expansion comes at a time when the Indian market is witnessing a premiumisation trend, with customers increasingly willing to spend on enhanced hotel stays. Oyo’s in-house dining initiative is expected to significantly improve customer experiences at its company-serviced hotels.
In April 2025, ET Travelworld revealed that OYO plans to launch a dedicated app for its premium hotels and mid-market to premium company-serviced hotels.
