Zepto Cafe Temporarily Shuts 44 Stores Across North India Amid Operational Hurdles

 

 

In a significant Zepto retail update, the fast-growing quick commerce company has temporarily suspended operations at 44 Zepto Cafe stores across North India. The affected locations include key cities such as Delhi NCR, Agra, Meerut, Amritsar, Haridwar, Mohali, Gorakhpur, and Ghaziabad. The Zepto Cafe temporary closure is attributed to persistent supply chain disruptions and staffing shortages, impacting the company’s ambitious expansion of its hot food delivery vertical.

Zepto Cafe’s Meteoric Rise Faces a Setback

Zepto Cafe, the in-house hot food and beverage service of Zepto, was introduced as a strategic move to challenge food delivery giants like Zomato, Swiggy, and Blinkit. Offering items such as coffee, tea, puffs, and pizzas, it had scaled aggressively to deliver nearly 1 lakh orders daily and was reportedly on track to reach a $100 million annualised GMV run rate, according to CEO Aadit Palicha.

Despite this rapid success, the Zepto Cafe store shutdown highlights the operational hurdles that come with such rapid scaling. Sources indicate that most of the affected kitchen staff were relocated to other stores, but 15 employees resigned due to relocation disagreements. The company expects services to resume in Q2 (July–September) once supply and staffing stabilize.

What Caused the Temporary Shutdown?

The Zepto Cafe shut down reason appears to be a combination of factors. A supply crunch has made it difficult to maintain consistent inventory across key outlets, while employee no-shows and attrition have exacerbated the issue. These Zepto operational hurdles have disrupted workflows at a critical time, especially in North Indian cities, where competitors have a strong presence.

Competitive Pressures Mount

The Zepto Cafe temporary closure comes at a time when the food delivery sector is fiercely competitive. In the Delhi NCR region alone, Zomato and Blinkit (both owned by Eternal) maintain a significant market share, while Swiggy and new entrant Swish in Bengaluru add further pressure. If Zepto’s disruption extends beyond Q2 or spreads to other regions, analysts warn that it could lose market share to traditional food delivery services.

Despite this temporary pullback, Zepto remains committed to its quick commerce strategy and in-house food delivery vision. The company’s decision to pause, rather than permanently shut down operations, suggests it is recalibrating its model to withstand supply chain complexities and workforce challenges. The Zepto Cafe North India stores shutdown serves as a crucial test for the startup as it strives to maintain growth momentum while managing the intricacies of scaling physical food operations in a hyper-competitive environment.