In a sharp reflection of the evolving dynamics in India’s fast-paced food and quick commerce sectors, Zepto has temporarily shut down its Zepto Cafe operations in 44 dark stores across North India. This operational pause arises from a combination of supply chain constraints and staffing issues, highlighting the logistical complexities even the most ambitious startups face as they scale.
Zepto Cafe serves as the food-focused vertical of Zepto, offering ready-to-eat products such as coffee, tea, puffs, pizzas, and other snacks. The company designed the offering to attract consumers away from traditional food aggregators like Zomato and Swiggy by promising faster service and lower delivery costs through its extensive network of dark stores. However, the current pause reveals the hurdles that rapid expansion often brings.
The Pause and the Impacted Regions
According to sources cited by Moneycontrol, Zepto suspended operations in cities including Delhi NCR, Agra, Meerut, Haridwar, Gorakhpur, Mohali, Amritsar, and Ghaziabad. These urban centers represent strategic markets in North India where demand for food delivery remains consistently high. The temporary disruption affects exactly 44 dark stores and could last until Q2 of the financial year — between July and September 2025.
The halt comes at a critical time for the brand. Zepto currently operates close to 1,000 dark stores across the country, forming the backbone of both its grocery and food delivery businesses. The affected stores in North India represent a significant portion of its market presence in the region.
Staffing and Operational Challenges
Zepto faced not only a shortage of supplies but also a human resources issue. Several kitchen employees in the impacted stores failed to report for work, disrupting operations. In response, the company transferred a majority of its kitchen staff to other functioning locations across the country. However, nearly 15 employees opted to resign instead of relocating, according to insiders.
This staffing fallout points to broader challenges in workforce management in the quick commerce sector. High-pressure environments, long working hours, and limited job flexibility often result in elevated attrition rates — a reality that even tech-driven startups must address as they scale.
Competitive Backdrop: A Tactical Advantage for Rivals?
Zepto’s move to pause services in these territories could temporarily open the door for competitors like Zomato and Blinkit. Both companies already dominate the Delhi NCR market and operate with highly optimized delivery logistics. Blinkit, under the same parent company as Zomato — Eternal — has been aggressively expanding into instant grocery and snack delivery, often targeting the same customer base Zepto Cafe hopes to capture.
In a recent earnings call on May 1, Eternal’s CEO Deepinder Goyal acknowledged the pressure from quick commerce platforms. He observed a decline in restaurant food delivery demand due to the rising popularity of instant, packaged offerings. Goyal’s comments illustrate how rapidly shifting consumer preferences continue to blur the lines between traditional food delivery and quick commerce.
Temporary Setback or Strategic Rethink?
Despite the current hiccup, Zepto Cafe has notched up considerable success in its short lifespan. CEO Aadit Palicha previously disclosed that the service was processing over 1 lakh daily orders and had reached an annualized GMV run-rate of nearly $100 million. Additionally, the unit maintained a steady 50% gross margin — a rare feat in the food delivery business where profitability remains elusive for most players.
Palicha built Zepto Cafe to bridge a clear market gap: affordable, fast, and reliable access to fresh food without relying on restaurant partnerships. With tight control over both production and delivery via dark stores, Zepto established a vertically integrated model that drove both efficiency and speed.
The current pause likely signals a need to recalibrate operations rather than an abandonment of strategy. Sources suggest that Zepto intends to resume full service by Q2 of FY2025, pointing to a temporary retrenchment for optimization.
Rising Competition from New-Age Offerings
While Zomato and Swiggy continue to fight for dominance, new players have started making inroads into the food and snack delivery segment. Blinkit has launched “Bistro,” a curated menu of fresh snacks and beverages that echoes Zepto Cafe’s offerings. Swish, another emerging platform, has also entered the market, currently operating in Bengaluru with expansion plans in the pipeline.
These competitors understand the value of vertical integration and fast fulfillment. With consumers growing increasingly impatient and more price-sensitive, the ability to deliver quality food quickly — and consistently — determines long-term viability.
In this context, Zepto’s move to suspend operations may create a temporary vacuum that competitors will try to fill. However, if Zepto manages to stabilize its supply chains and resolve staffing bottlenecks, it can quickly reclaim lost territory with the kind of operational discipline it demonstrated during its initial expansion phase.
Quick Commerce: The Next Battleground
India’s quick commerce segment has become the next major battleground for digital consumer platforms. Players like Zepto, Blinkit, Swiggy Instamart, and Dunzo are fighting for both grocery and snack delivery dominance. Unlike traditional food aggregators, these platforms own or control their inventory, allowing for faster delivery — sometimes within 10 minutes.
While grocery delivery forms the core of this model, ready-to-eat meals and beverages are emerging as powerful value additions. Consumers increasingly want “everything now,” from eggs and bread to coffee and hot snacks. Zepto Cafe tapped into this behavioral shift early, using its dark store infrastructure to offer not just products but also convenience.
Consumer Loyalty and Brand Stickiness
Zepto’s customer retention depends heavily on its ability to offer a seamless, consistent experience. The pause in cafe services may affect consumer loyalty if the downtime extends or if service quality dips after the restart. In quick commerce, brand stickiness derives not only from pricing but also from reliability and speed — both of which remain under scrutiny now.
The company must double down on supply chain planning, staff retention strategies, and process automation if it wants to compete sustainably. With user expectations growing by the day, even minor disruptions risk damaging consumer trust.
The Road Ahead
Zepto must treat this disruption as an opportunity to refine operations. Short-term pain could yield long-term gains if the company uses this time to redesign its logistics, improve kitchen efficiency, and strengthen its human resource practices. By reinforcing its backend while ensuring customer satisfaction, Zepto can restore momentum once operations resume.
At the same time, the company cannot afford to ignore the aggressive push from competitors. Blinkit’s Bistro and Swish’s expansion indicate that others are circling the market niche Zepto Cafe created. The company must act quickly, innovate continuously, and execute flawlessly to maintain its edge.
Conclusion
Zepto’s pause in Zepto Cafe operations across North India serves as a reminder that even the most ambitious quick commerce startups face real-world operational challenges. However, with a strong brand, proven demand, and sound unit economics, the company retains the foundation to bounce back stronger.
As competition in food and quick commerce intensifies, Zepto’s response to this temporary disruption will shape not just its future but also the trajectory of India’s fast-evolving delivery ecosystem.