Zepto, led by Aadit Palicha, has temporarily halted its Zepto Café operations across more than seven cities in North India. This pause is due to supply chain issues and a shortage of available staff, according to media reports.
Impact on Zepto’s Dark Stores
The service disruption has affected 44 of Zepto’s dark stores located in key regions such as Delhi NCR, Agra, Meerut, Haridwar, Gorakhpur, Mohali, Amritsar, and Ghaziabad. Sources indicate that Zepto plans to resume operations by the second quarter of the year, specifically between July and September.
Delhi NCR: A Key Market with Tough Competition
Delhi NCR is a critical market for Zepto’s quick commerce operations, especially since it competes with Zomato and Blinkit, which are owned by Eternal and dominate the area. Maintaining a strong presence here is important for Zepto’s growth strategy.
Zepto Café’s Product Offerings
Zepto Café focuses on delivering ready-to-eat snacks and beverages, including tea, coffee, puffs, and pizza. The service is designed as an alternative to traditional food delivery platforms like Zomato and Swiggy.
CEO’s Claims on Business Performance
According to Zepto CEO Aadit Palicha, the café segment had achieved a milestone of processing 100,000 orders daily. The business was running at an annualized gross merchandise value (GMV) of USD 100 million, with a stable gross margin of around 50%.
Staff Relocation and Attrition Issues
During the shutdown, Zepto relocated most kitchen staff to other stores. However, around 15 employees resigned because they were unwilling to move, as reported by company insiders.
