OYO Enters Food and Beverage Sector with Launch of Townhouse Café and In-House Kitchen Services
In a strategic move to diversify its business offerings, hospitality major OYO has announced its foray into the food and beverages (F&B) sector. The Ritesh Agarwal-led company revealed plans to launch in-house kitchens and quick service restaurant (QSR) carts at its company-managed properties, starting with its popular Townhouse-branded hotels.
The initiative is part of OYO’s broader vision to enhance the guest experience by offering quality, affordable, and accessible dining options within its hotel premises. The new food service arm will be launched under the brand name Townhouse Café, and the company will begin rolling out these services in phases, starting with select Tier-1 and Tier-2 cities across India.
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According to a statement from the company, customers staying at OYO properties, particularly in Townhouse hotels, will now be able to order meals directly through the OYO app and other online travel agency (OTA) platforms. Guests will have the option to select the “kitchen service” feature during their booking or stay, enabling convenient access to freshly prepared meals from the in-house kitchens or QSR carts located on-site.
The new offering aims to address a long-standing pain point for travelers—limited or inconsistent food options at budget hotels. By integrating food services directly into its hotel operations, OYO is seeking to increase both guest satisfaction and operational efficiency. The brand’s focus on QSR models will also allow for quick preparation, standardized menus, and faster service, catering to the preferences of modern travelers and business professionals.
Ritesh Agarwal, Founder and Group CEO of OYO, said that entering the F&B space is a natural extension of the company’s efforts to provide end-to-end hospitality solutions. “With the launch of Townhouse Café and in-house kitchens, we are creating an ecosystem where guests can enjoy a seamless hospitality experience—from booking a room to ordering a freshly cooked meal—all within the OYO network,” he added.
The move also aligns with OYO’s strategy to boost revenue per available room (RevPAR) by offering more value-added services. Food and beverage operations typically contribute significantly to hotel revenue in full-service hospitality models. By bringing food preparation in-house, OYO can control quality, pricing, and service standards, all while increasing margins.
Industry experts see this as a smart move for OYO, especially at a time when travel demand is rebounding and consumer expectations are higher than ever. The integrated food offering may also provide OYO with a competitive edge over other budget hotel chains and aggregators, who largely depend on external restaurant tie-ups or third-party delivery apps.
In conclusion, OYO’s entry into the food and beverage sector through Townhouse Café and in-house kitchens reflects the company’s commitment to innovation and guest-centric service. As the hospitality landscape continues to evolve, this new initiative is likely to position OYO more firmly as a comprehensive hospitality platform offering both accommodation and quality dining experiences under one roof.
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