Zepto Cafe halts operations in 44 stores until Q2

Quick commerce company Zepto has temporarily suspended operations at 44 of its Zepto Cafe outlets in northern cities as it works to adjust its supply chain infrastructure to accommodate rising demand.

The closure, which is expected to last until July-September quarter, has affected company's dark stores across multiple locations including Agra, Chandigarh, Meerut, Mohali, Amritsar, and Delhi NCR, as reported by NDTV Profit.

Zepto Cafe represents the firm's foray into hot food delivery, offering items such as coffee, puffs, pizzas, and tea. The service was positioned as an alternative to established food delivery platforms Zomato and Swiggy.

According to earlier statements from CEO Aadit Palicha, the cafe division was processing nearly 100,000 orders daily and was approaching a $100 million annualised gross merchandise value run rate.

Staff members affected by the temporary closures were notified of the decision on April 20 and provided with a month to consider transferring to alternative nearby locations.

The company currently operates approximately 750 cafes across its network. The temporary suspension is part of broader supply chain optimisation efforts as the company scales its operations to meet growing consumer demand in the quick commerce sector.