Zepto Cafe, a quick food delivery arm of Zepto, has temporarily suspended operations in several small cities in north India including Agra, Chandigarh, Meerut, Mohali, and Amritsar.
Around 44 cafes have halted operations, affecting more than 400 employees, due to supply chain challenges.
Zepto confirmed the pause in operations, citing the need to address supply chain issues, with plans to resume operations in these locations by the end of the following quarter.
The startup also intends to downsize its workforce at many cafes, aiming to reduce the average staff count from 9 to 7-8 employees per store.