Launch · Commerce & Consumer Brands

Zepto Cafe closes stores after rapid growth

By Startup Enthusiast · 25 July 2025

What they do

Zepto Cafe delivers beverages and snacks within 10 minutes using dark stores

In July 2025, it shut cafe services at 44 of roughly 1,000 stores; insiders say about 100 closed

The closures contrast with its February 2025 achievement of over 100,000 daily orders and a $100 million GMV run rate

Zepto Cafe launched in 2022 as the 10-minute food-delivery arm of quick-commerce firm Zepto, selling beverages via dark stores.
It crossed 100,000 daily orders in February 2025.
CEO Aadit Palicha stated the cafe hit a $100 million GMV run rate.
In July 2025, Zepto Cafe shut cafe services at 44 stores out of roughly 1,000.
Insiders estimate ~100 stores have closed in total.
The closures reflect challenges in the coffee and quick-service cafe model in India.

Physical coffee chains in India struggle: Cafe Coffee Day collapsed and Starbucks faces profitability issues.
Cafes spend 15–20% of sales on rent at prime locations; Starbucks pays ~Rs 25 lakh/month rent in Mumbai prime spots and needs 500+ cups/day to break even on rent.
India's per capita coffee consumption is 70g vs global average 1.3kg, limiting the addressable market.
Abhinav Mathur, CEO of Kaapi Machines, commented on the math of rental costs and labor complexity.

Zepto is a quick-commerce firm that delivers groceries and essentials within 10 minutes.
Zepto Cafe is its food-delivery vertical, offering beverages and snacks from dark stores (small warehouses used only for delivery, not open to walk-in customers).
It generates revenue by selling food items at a markup and charging delivery fees.
The cafe operates across India and had roughly 1,000 stores before the closures.

Product: A rapid-delivery app for groceries and everyday essentials.
Customers: Consumers ordering groceries and essentials online.
How it makes money: It earns from product margins, delivery fees, and order-value thresholds across its quick-commerce network.
What sets it apart: It was built as a quick-commerce native company from day one.
Operations: Operates dark-store based 10-minute delivery across multiple Indian cities.