At the risk of sounding cliché, speed is of the essence for quick commerce platform Zepto. It is set to launch a standalone app for its 10-minute food delivery service Café next week, Aadit Palicha, CEO of the company said in a social media post on Wednesday. “Zepto Café is scaling rapidly; we’re launching 100+ cafés a month and already clocking 30K+ orders/day,” Palicha wrote on social media.
Zepto Café was launched in April 2022 as a division of Zepto; integrated with Zepto’s hyperlocal dark-store model, it promises freshly prepared snacks and beverages delivered within 10-15 minutes. Advanced algorithms predict demand, ensuring a seamless order process. This is core to Zepto Café’s promise of combining quality with convenience. Palicha noted that while the app’s initial version might not be perfect, it reflects the company’s philosophy of launching fast and iterating quickly — a strategy central to its success.
Zepto Café says it ensures speed and quality with top-of-the-line equipment, including imported speed ovens and coffee machines. The company says it can cook everything on its menu in under 2 minutes with sourced ingredients, with the remaining 8 minutes spent delivering the order straight to customers. To lure customers it will blend universal favourites with locally inspired offerings, such as Samosa Pav in Mumbai or Podi Idli in Chennai, allowing it to cater to diverse regional tastes while maintaining consistency.
Zepto has been working overtime to expand the Café offering. Last month, it announced the expansion of the service with more than 120 cafés within retail stores across Mumbai, Delhi and Bengaluru, and soon in Hyderabad, Chennai, and Pune. “As we expand into new cities and launch 100-plus new cafes every month, we are on track to achieve an ARR of `1,000 crore by the next fiscal year,” Palicha had said at the launch.
India’s quick food delivery segment holds vast potential. Analysts predict the market will grow to $17.5 billion by 2026 at a CAGR of 25-30%. Yasin Hamidani, director of Media Care Brand Solutions, says services like Zepto Café align well with the preferences of Millennials and Gen Z, who demand ultra-fast, on-the-go options. “With increasing digital payments and loyalty programmes, the scope for such services is only set to grow,” he says. Other analysts echo this optimism, pointing to the young, tech-savvy population as a key driver for the segment’s expansion.
Recipe for success
Analysts say Zepto Café needs a combination of affordability, quality, and sustainability to take off quickly. Customisation, health-conscious offerings, and eco-friendly packaging will help differentiate it in a crowded market. Strategic partnerships for data-driven insights will allow it to personalise customer experiences and strengthen loyalty. They also recommend leveraging social media platforms and influencer collaborations to build brand visibility. Campaigns emphasising speed, convenience, and quality will help it get the attention of young urban audiences. Hyperlocal promotions and loyalty programmes can deepen engagement. Ridhima Kansal, director of Rosemoore, notes, “It will be critical to the brand’s long-term success to develop a strong and coherent image that associates with the customers.”
All that will take care of 50% of its challenges. An equally big challenge would be delivering on its promise. Here the first hurdle will be dealing with competition, primary among which are heavyweights Swiggy and Zomato. Swiggy recently announced the launch of Bolt, which already accounts for 5% of its total food delivery orders. Meanwhile, Zomato is also trying to target quick food delivery with its Everyday vertical in select locations. The two are unlikely to take kindly to Zepto Café’s muscle flexing.
Since Zepto is planning to prepare the meals from scratch, maintaining McDonald’s-esque consistency is another concern. That would require substantial investment in logistics, packaging, and workforce training, all of which can cramp the room for manoeuvre. Says Raghunandan Saraf, CEO of Saraf Furniture, “Retaining skilled delivery personnel, managing fluctuating raw material costs, and adhering to city-specific regulations can complicate operations.”
To navigate at least some of these challenges, the company is falling back on innovation and its planning capabilities. To begin with, it has invested in modular kitchen designs, advanced inventory systems, and rigorous training programmes to ensure consistent quality across its 500+ dark stores. It is also stressing the use of predictive algorithms to optimise inventory management and minimise waste.