Zepto Cafe Scales Down Amid Persistent Supply Chain Issues

Zepto Cafe is scaling down its operations and has drawn attention in the quick commerce sector. The move comes as the company grapples with persistent logistical challenges. According to Inc42, Zepto Cafe has paused services at multiple locations.

The quick commerce player, known for its 10-minute grocery delivery model, entered the food and beverage space last year with Zepto Cafe. It offers freshly brewed coffee, quick bites, and beverages alongside regular grocery orders. But now, Zepto’s supply chain issues appear to have slowed down its ambitions in this space.

A Promising Bet, Now on Hold

Zepto Cafe gained traction, especially in metro cities like Mumbai and Bengaluru. It was part of Zepto’s larger strategy to diversify its offerings and capture a share of the growing convenience food segment. However, insiders say the food unit faced operational challenges from the beginning.

The company struggled to manage freshness, consistent quality, and real-time delivery of ready-to-consume products. These supply chain hurdles at Zepto’s Cafe made it difficult to maintain the same efficiency that it has in grocery deliveries.

Not a Shutdown, But a Pause

While Zepto hasn’t officially announced a permanent shutdown, it has confirmed that operations in the cafe segment are being re-evaluated. The company stated that it’s “temporarily pausing” services in select zones while working to resolve backend issues.

For now, Zepto has scaled back Cafe availability in several areas, with the option temporarily removed from the app in cities where performance metrics weren’t met.

Zepto’s supply chain issues aren’t unique. Quick commerce companies entering the food and beverage segment often face greater complexity compared to standard grocery delivery. Perishable goods require tighter temperature control, faster movement, and tighter quality checks, adding pressure on last-mile logistics.

According to industry analysts, Zepto’s core strength has always been groceries and everyday essentials. Entering the freshly-prepared food space brings a new set of challenges, from kitchen coordination to packaging and demand prediction.

The company’s rapid growth and high customer expectations may have left little room for trial and error. In this case, the scaling down of Zepto Cafe seems like a tactical retreat rather than a business failure.

What’s Next?

Despite the pause, Zepto is expected to revisit the Cafe model after ironing out its supply chain gaps. With growing demand for on-demand food options, the company still has an opportunity, if it can optimize backend operations.

Experts say that resolving supply chain hurdles at Zepto Cafe will be key if the brand wants to re-enter the category successfully. Until then, customers may have to wait longer to see fresh brews on the Zepto app again.