Zepto temporarily closes 200 Zepto Cafe outlets as part of restructuring

Zepto has temporarily paused operations at about 200 of its 600 Zepto Cafe outlets as part of an internal restructuring effort aimed at addressing low or inconsistent demand in certain locations. The move is part of a broader optimisation strategy as the company focuses on strengthening its high-demand quick-commerce business ahead of its planned IPO.
Employees from the affected outlets — typically two to three per cafe — are being redeployed to Zepto’s dark stores to support picker and packer functions. The company aims to utilise its workforce more efficiently in areas experiencing higher order volumes.
According to sources, the closures are temporary and limited to underperforming locations. Zepto is also evaluating opportunities to revamp or relocate these cafes based on shifting consumer demand patterns.
This restructuring follows a previous realignment in June 2025, when operations were temporarily halted at 44 Zepto Cafe stores, most of which have since reopened.
The development comes amid changes in leadership within the vertical. Former Zepto Cafe CXO Shashank Shekhar Sharma recently moved to FoodStories as CEO, while Chandan Rungta, who headed the Relish private-label meat division, has also exited. The cafe business is currently overseen by Vinay Dhanani, president at Zepto.
The temporary closures also coincide with Zepto’s recent $450 million fundraise led by the California Public Employees’ Retirement System (CalPERS), valuing the company at $7 billion and raising its available cash to about $900 million.
The restructuring takes place against the backdrop of rising competition in the quick-food category, with Blinkit’s Bistro, Swiggy’s Snacc, and Accel-backed Swish expanding their presence across multiple locations.
​