Zepto’s café venture — the quick-delivery unicorn’s foray into ready-to-eat food — has hit a speed bump. The company has halted operations at dozens of its Zepto Cafe outlets in smaller northern cities, including Agra, Chandigarh, Meerut, Mohali, and Amritsar.
According to a report by ET Now, around 44 cafes have temporarily shut their doors, affecting over 400 employees. Zepto confirmed the closures, citing ongoing supply chain hiccups. In a statement to the channel, the company said it expects to get these locations back on track by the end of the next quarter.
“We’re still bullish on the café business and plan to double down on it with fresh investments,” a spokesperson said, without offering specifics on the reopening timeline.
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In addition to the temporary closures, Zepto is reportedly trimming its in-store workforce. While a typical Zepto Cafe is staffed by about nine employees, the company is looking to reduce that number to seven or eight at several locations as part of an internal restructuring.
These developments come amid rising salary bills for the startup. A Moneycontrol report notes that Zepto spent around ₹95 crore on employee salaries in April. Though slightly lower than previous months, that figure is about 80% of what larger players like Zomato and Swiggy pay — even though Zepto has nearly half their workforce.
In March, Zepto’s payroll reportedly crossed ₹115 crore. Salaries in January and February hovered between ₹105–₹110 crore.
Adding to Zepto’s woes, delivery executives in Hyderabad have launched an indefinite strike, now in its fifth day. The workers are protesting a drastic cut in their per-order payment — from ₹35 earlier this year to just ₹10–₹12 in May.
Shaik Salauddin, president of the Telangana Gig and Platform Workers’ Union (TGPWU), told Inc42 that Zepto has not shown any intention to reverse the cut. “Local managers told us point-blank there will be no revision,” he said.
The union has now taken the matter to the state’s additional labour commissioner, E. Gangadhar, urging the government to step in over what they describe as “ongoing violations of worker rights.” Workers across several dark stores in the city have joined the protest, claiming the company has failed to respond to repeated requests for a meeting.
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The situation paints a challenging picture for Zepto, which is juggling supply chain problems, operational slowdowns, rising costs, and labour unrest — all while trying to establish its niche in India’s crowded quick-commerce market.
