Zepto Cafe, the quick-service food vertical of IPO-bound Zepto, has temporarily closed operations at around 200 of its 600 stores as part of an internal restructuring to address muted demand in select areas. The move is part of a broader optimisation effort as the company looks to channel resources toward its high-demand quick commerce operations.
The company is redeploying employees from the affected cafes — typically two to three per outlet — to roles in dark stores, primarily supporting picker and packer operations to meet the surge in quick- commerce orders. This reallocation is aimed at improving efficiency and ensuring workforce utilisation in business-critical areas.
Sources indicate that the closures are temporary and limited to locations where Zepto Cafe witnessed inconsistent or low order volumes. The company is reportedly exploring options to revamp or relocate these cafes to more promising zones based on demand patterns.
This is not the first instance of course correction within the Cafe business — a similar realignment in June 2025 led to temporary halts at 44 stores, 80 per cent of which have since resumed operations.
The development follows a period of leadership churn at Zepto. Shashank Shekhar Sharma, former CXO, Zepto Cafe, recently exited to join FoodStories as CEO, while Chandan Rungta, who led Zepto’s private-label meat brand Relish, has also departed. The Cafe vertical is currently being overseen by Vinay Dhanani, president at Zepto.
Zepto’s decision comes amid intensifying competition in the quick- food delivery segment, with players such as Blinkit’s Bistro, Swiggy’s Snacc, and Accel-backed Swish expanding aggressively across multiple pincodes.
The restructuring coincides with Zepto’s $450 million fundraise led by California Public Employees’ Retirement System (CalPERS), valuing the company at $7 billion and boosting its cash reserves to $900 million.
