New Delhi: Hospitality firm Oyo is all set to enter the high-margin segment with the launch of its coffee chain, The French Press.
According to a report by Moneycontrol, the Softbank-backed company has launched an outlet each in Delhi and Bengaluru and will open at least a dozen more soon, two people privy to the development said.
The launch was in partnership with a leading coffee chain through a franchise model, one of the sources said. Moneycontrol couldn't immediately ascertain the identity of the partnering coffee outlet.
Oyo confirmed the development in an email.
It was operating these coffee shops and kitchens in many of its Townhouse properties, both independently and sometimes in partnership with an established brand, Oyo said. It, however, didn't name the partners.
In Delhi, the coffee outlet, launched earlier this month, is in the premises of the Townhouse in the market at Siri Fort area. It started off as a takeaway and a delivery service. The cafe is also listed on the food delivery app Zomato.
The café not only caters to the guests staying in the property but is open to all customers.
The company is following its room-pricing model for cafes as well. Food items are competitively priced and range between Rs 100 and Rs 250.
In the last one year, the hotel start-up’s focus on the food segment has grown exponentially. It hired Chandan Agarwal as the head of food and beverage and cloud kitchen unit in December.
Oyo runs a bunch of cloud kitchen brands such as Adraq by Oyo and O'Biryani by Oyo catering to different palates.
This comes at a time when India’s largest coffee-chain Café Coffee Day has suddenly been hit by a crisis after its owner VG Siddhartha’s death on July 29. Shares of Coffee Day Enterprises have stayed locked at the lower circuit erasing nearly 65.4 percent in 11 consecutive sessions, ever since.
The market capitalisation fell from around Rs 7,000 crore from the peak levels to Rs 1,399 crore.
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