The Big Reveal: OYO Confirms Entry Into the Food Business
After weeks of industry speculation and curiosity, it’s now confirmed—OYO, the global hospitality giant, is officially stepping into the food and beverage (F&B) industry. The company has greenlit a new initiative involving in-house kitchens, lobby-level QSR (Quick Service Restaurant) carts, and dedicated food spaces across its Townhouse and other hotel formats.
This bold pivot into food services signals OYO’s ambitions beyond rooms and ratings. But why now? And what exactly does this move entail? Here’s everything you need to know.
A Culinary Makeover for OYO Hotels
OYO’s latest transformation will be visible across more than 1,500 of its company-serviced hotels by FY26. The company is rolling out full-scale commercial kitchens, pantry-style setups, and food kiosks, depending on the size and location of the hotel.
This isn’t just about offering breakfast anymore. Guests will now be able to enjoy on-site meals, snacks, and beverages throughout the day—prepared fresh by OYO’s kitchen teams. These services will be accessible via:
- In-room dining
- On-site food counters
- OYO’s mobile app for ordering
- Third-party delivery platforms (in select markets)
The change promises to significantly enhance the value proposition of staying at an OYO property—especially for business travelers, families, and long-stay guests looking for convenience and consistency in meals.
Meet “Townhouse Café”: QSR Carts & Lobby Stores
Perhaps the most exciting feature of OYO’s F&B foray is the launch of QSR-style food carts and lobby cafés under the new brand “Townhouse Café.”
These kiosks will serve a curated selection of:
- Ready-to-eat meals
- Snacks
- Packaged foods
- Hot beverages
Placed strategically in hotel lobbies or near entrances, these QSR carts will operate like mini cafés—blending speed, taste, and affordability. Ideal for quick meals and impulse buys, they’re expected to attract not just guests but also walk-in customers in high-footfall areas.
A New Revenue Channel for Hotel Partners
The decision to branch into food is not just about guest satisfaction—it’s also a smart financial move.
OYO estimates that these food offerings could generate an additional 5% to 10% revenue per property on a steady-state basis. That’s a significant boost in the traditionally tight-margin hospitality sector. By handling food services in-house (rather than relying solely on third-party restaurants), OYO aims to increase control over quality, pricing, and guest engagement.
Why Now? Reading Between the Lines
- OYO’s move seems to be a strategic answer to multiple industry trends:
- Guests today expect holistic hospitality: room, food, and services under one roof.
- The growing popularity of quick service dining makes QSR models more profitable than full-fledged restaurants.
- With rising food delivery demand, having on-premise kitchens opens up another revenue stream via food delivery platforms.
- It also helps OYO differentiate itself in a crowded budget-to-midscale hotel market.
Verdict: The News Is True, and It’s a Game Changer
To answer the burning question: Is this news real or just speculation?
Yes—it’s 100% confirmed. OYO is indeed entering the food game with a structured, multi-tiered approach that includes:
- In-house kitchens
- Pantry systems
- Lobby-level QSR carts
- A brand-new F&B identity under the “Townhouse Café” label
- This isn’t a minor add-on—it’s a significant shift in OYO’s business model.
Final Thoughts
With this bold step, OYO is not just renting rooms—it’s crafting an entire guest experience. From check-in to check-out, from bed to breakfast, OYO is aiming to become a one-stop hospitality platform. As it rolls out these services in phases, industry experts will be watching closely to see how this gamble plays out in an increasingly competitive landscape.
Will this be the next big thing in budget hospitality? Time—and taste—will tell.