On the demand front, the reports state that daily orders at Zepto Cafe have decreased in June as compared to the early part of the year
On account of challenges like sourcing products and shortage of trained staff to run kitchens, Zepto Cafe, the food delivery service from the quick commerce platform, has scaled down operations, as per media reports.
The reports noted that the development comes at a time when the sector is heating up due to intense competition from Blinkit’s Bistro and Swiggy’s Snacc. Zepto is putting efforts to control the cash burn, the reports highlighted, while adding that the company has slowed the introductions of its dark stores or mini warehouses as well.
On the demand front, the daily orders at Zepto Café decreased in June as compared to the early part of the year. Average daily orders used to be around 1,30,000 at its peak but have recently come down to 65,000 to 67,000 in May to June period. The reports added that the platform pulled plug on Café services at 44 stores where it operated the 10-minute food delivery in May.
In a post on LinkedIn around four months ago, Aadit Palicha, the Co-founder and Chief Executive Officer (CEO) of Zepto, wrote, “Zepto Café has hit 1,00,000 orders per day. That’s closing in on a USD 100 million Annualised GMV run-rate with a around 50 per cent steady-state gross margin (already over 10 per cent of the scale of some of the top quick service restaurant (QSR) chains in the country).”
However, the reports have also pointed out the company stated that the order volumes have grown by around 700 per cent year-on-year (YoY) and over 15 per cent on a month-to-month (MoM) basis. The company is looking to double down on it and grow meaningfully this year, as per the reports.
