Zepto Cafe closed its 44 stores in these seven cities of North India, this big reason surfaced – Zepto discontinued its cafe services in over seven north Indian sites as supply crunch

Zepto has closed its cafe services in more than seven cities of North India. The reason for this is reduction in supply and some employees not to use. Zepto Cafe is the unit of the company that sells coffee, tea, puff, pizza and other food items. This service was for customers who usually order food from zomato or swigy. Currently, the company has about 1,000 stores, but out of this, 44 cafes have been discontinued in dark stores.

According to information received by Moneycontrol, Zepto Cafe services are no longer available in cities like Delhi-NCR, Agra, Meerut, Haridwar, Gorakhpur, Mohali, Amritsar and Ghaziabad. A total of 44 stores have been affected by this. Sources say that services may resume in the second quarter of July to September. However, there has been no official statement on this issue from Zepto. Areas such as Delhi-NCR have special significance to the company, as there is dominance of zomato and blinkit. Both of these brands are under the Eternal Company.

According to the information, when the service was discontinued, the company tried to send several of its kitchen staff to other stores, but 15 employees refused to work elsewhere and quit the job.

Swiggy can get benefit

This obstruction in the service of Zepto Cafe has occurred at a time when there is a strict competition in the market between Zapto, Blinking, Zomato and Swigi. Quick Commerce companies are now delivering packed food in a very short time, which has reduced the demand to get food from the restaurant. Eaterial Company CEO Deepinder Goyal released the results of the company on May 1, saying, “Growth is less than our expectations. The number of food ordering from the restaurant is decreasing due to instant delivery of packed food from Quick Commerce.” If Zepto shut down café services in other cities or further downtime, companies like Swiggy and Zomato can reinforce their grip in the market again.

1 lakh orders are found every day

Zepto Cafe CEO Adit Palicha said that his unit is fulfilling around 1 lakh orders every day and now he is going to reach the GMV (Gross Merchandise Value) of about $ 100 million annually. He also said that the steady gross profit of the café unit is about 50 percent. Zepto is now competing not only with the bistro of food delivery companies and the blinkit. However, Swish’s services are currently only in Bengaluru.