Zepto Cafe Scales Back Operations Amid Supply Challenges and Focus on Cash Burn Control

Zepto Cafe, the 10-minute food delivery venture launched by quick commerce startup Zepto, is scaling back its operations as it navigates sourcing constraints and a shortage of trained kitchen staff. The move comes at a time when competition in the express food delivery space is intensifying, with rivals like Blinkit’s Bistro and Swiggy’s Snacc expanding rapidly across major cities.

Industry insiders report that Zepto Cafe’s daily order volume has declined sharply in recent months. Earlier this year, daily orders had reached a peak of 120,000–130,000, but by May–June 2025, they dropped to around 65,000–67,000. This slowdown led Zepto to suspend Cafe services at 44 of its roughly 1,000 dark stores during May.

The retrenchment aligns with Zepto’s broader focus on reducing cash burn and improving operational efficiency, as the company prepares for a significant $500 million fundraise from existing backers, including General Catalyst and Avenir Growth. This fresh capital is expected to support Zepto’s planned IPO in 2026, positioning it for long-term growth and profitability.

As part of this strategy, Zepto has also slowed the rollout of new dark stores — critical hubs enabling its 10-minute delivery promise — to better manage operational expenses and resources across verticals.

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User engagement metrics reflect the broader decline in momentum. Downloads of the standalone Zepto Cafe app fell dramatically to just 17,000 in June 2025, compared to a high of 1.5 million downloads in December 2024. Despite this dip, Zepto Cafe still sources over 90% of its orders from the primary Zepto app, limiting the direct business impact of the dedicated app’s slowdown.

The rapid pullback comes as India’s express food delivery segment faces growing operational scrutiny. Players like Blinkit and Swiggy are expanding aggressively, challenging Zepto Cafe to refine its positioning and manage logistical complexities without compromising on customer experience.

Industry experts suggest this could mark the start of a consolidation phase in the hyper-fast food delivery space, where sustainable unit economics and operational efficiency become as critical as speed and scale.

Despite scaling down, Zepto remains focused on its core quick commerce business and broader expansion plans. As it recalibrates Zepto Cafe’s strategy, the company is betting on disciplined growth and cash conservation to attract fresh investment and strengthen its case ahead of its anticipated IPO.

The express food delivery sector, once seen as the next big frontier, now faces a reality check — balancing consumer expectations for instant delivery with the complexities of supply chains, staffing, and profitability.