- It has opened a single outlet in Delhi and Bengaluru and will open at least a dozen more in the near future.
- Food products are priced competitively, ranging from Rs 100 to Rs 250.
Hospitality firm Oyo is all set to enter the high-margin segment with the launch of its coffee chain, The French Press. the Softbank-backed company has launched an outlet each in Delhi and Bengaluru and will open at least a dozen more soon, two people privy to the development said.
The launch was in partnership with a leading coffee chain through a franchise model, one of the sources said.
As India’s biggest hotel chain, operating franchised and leasing assets, we have an active role in the F&B company, with an average of about 25 percent of our income coming through the kitchens we work in some of our hotels. Therefore, we value culinary design and excellent food experience, said an Oyo spokesperson.
In many of its Townhouse characteristics, it operated these coffee shops and kitchens, both separately and sometimes in collaboration with an established brand, Oyo said. It did not name the partners, however.
The coffee outlet, started previously this month in Delhi, is on the market in the Siri Fort region at the Townhouse premises. It began as a takeaway and a service of delivery. The cafe is also listed on the food delivery app Zomato.
Not only does the café serve the guests staying in the property, but it is also accessible to all clients. The company also follows its café room-pricing model. Food products are priced competitively, ranging from Rs 100 to Rs 250.
The focus of the hotel start-up on the food segment has risen exponentially over the past year. In December, it recruited Chandan Agarwal as the food and drink director and cloud kitchen unit.
Also, Oyo tested the world of food technology a few months ago with its cloud kitchens and offerings on Zomato-as Adraq by Oyo and O’Biryani’s Oyo.
This comes at a time when, following the death of its owner VG Siddhartha on July 29, India’s largest coffee chain Café Coffee Day was suddenly struck by a crisis. Coffee Day Enterprises ‘ shares have since remained locked in the reduced circuit erasing almost 65.4 percent in 11 consecutive sessions. The market capitalization dropped from the peak levels to Rs 1,399 crore from around Rs 7,000 crore.