India’s Zepto Cafe Closes 200 Stores Amid Low Demand and Supply Chain Challenges
- ByStartupStory | November 11, 2025
Quick commerce giant Zepto has recently shut down operations at around 200 of its cafe outlets across select cities in India, citing weak consumer demand and ongoing supply chain disruptions as key reasons behind the move. These closures reflect Zepto’s strategic reallocation of resources as it focuses on strengthening its core quick commerce business.
Zepto Cafe, an arm of Zepto specializing in ready-to-eat food delivery, has faced persistent operational hurdles, including supply shortages, staff absenteeism, and quality control concerns across multiple locations. The shutdowns have impacted several northern and eastern cities including Delhi-NCR, Chandigarh, Agra, Meerut, Mohali, Amritsar, and a few others. The affected employees, numbering over 400, have been offered transfers to nearby outlets or reassigned within Zepto’s broader ecosystem.
The closures come amid mixed customer feedback over freshness and service reliability, with reports of frequent “temporarily unavailable” notices due to vendor issues. Zepto had been investing heavily in its cafe vertical as part of a broader diversification plan but has had to pause or scale down operations while addressing supply chain inefficiencies and recalibrating the unit’s business model.
Despite the cafe closures, Zepto continues to expand its dark store network and quick commerce delivery operations, which remain the company’s main focus. Zepto CEO Aadit Palicha recently reaffirmed the company’s commitment to the food delivery sector, stating aggressive investment would continue to support cafe growth once operational challenges are resolved.
Zepto aims to rebuild the cafe business with better supply chain management and operational efficiencies, targeting a launch of revamped services aligned with customer expectations by mid-2026. Internal sources say the company is also experimenting with optimized workforce deployment to reduce costs while sustaining service quality.
This strategic reassessment corresponds with Zepto’s ongoing efforts to drive profitability and scale amidst stiff competition from players like Blinkit and Dunzo in India’s rapidly evolving quick commerce and food tech market.
In summary, Zepto Cafe’s closure of approximately 200 locations underscores the operational and demand-side challenges facing the quick food delivery vertical. However, the company’s focused investment in streamlining supply chains and core delivery services signals a longer-term intent to restore growth and customer trust in its cafe offerings. The move also reflects the broader market realities where sustainability and service quality are paramount for startups aiming to build lasting presence in India’s competitive food and quick commerce sectors.
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