Global and Indian F&B Brands Eye Indian Railway Stations as the Next Big Opportunity

New Delhi: India’s rapidly transforming railway network is attracting the attention of both global and domestic food and beverage brands. With the introduction of trains like Vande Bharat and Amrit Bharat and a major redevelopment of railway stations, brands such as McDonald’s, KFC, Haldiram’s, Wow! Momo, and Baskin Robbins are keen to set up outlets at these stations.

According to officials and industry insiders, railway stations may even surpass airports in sales potential due to higher passenger footfall. Government sources indicate that the first premium outlets are expected to open by 2026, following revisions to the 2017 railway catering policy that now explicitly allows premium food brands.

Franchise Opportunities
Sagar Daryani, President of the National Restaurant Association of India (NRAI), noted, “While order values at airports may be higher, railway stations have significantly higher customer volumes. With the right model, outlets at stations can generate substantial revenue. Key factors include higher sales, fast turnaround times, and lower entry costs.”

The government has announced plans to conduct e-auctions for five-year licenses at over 7,000 stations, allowing brands to open either company-owned or franchise outlets. Premium food outlets will be required to maintain high-quality food and service standards and pay a fixed license fee for station space.

Haldiram’s Sees Big Potential
A spokesperson from Haldiram’s, India’s largest sweets and snacks manufacturer, said, “This policy opens enormous opportunities for the industry. We see several advantages in establishing outlets at railway stations. With proper implementation, this could become the next big QSR (Quick Service Restaurant) opportunity, serving travelers of all ages and socio-economic groups.”

Boosting Railway Revenue
According to NRAI President and Wow! Momo co-founder Sagar Daryani, as operational frameworks mature, organized food brands will become a major growth driver for Indian Railways. New outlets will also contribute to non-fare revenue, which currently accounts for roughly 3% of total railway income. For perspective, in FY24, Indian Railways recorded ₹588.07 crore in non-fare revenue, rising to ₹686.9 crore in FY25. Studies by the NITI Aayog suggest substantial untapped potential, as non-fare revenue from railways in developed countries can reach up to 30%.

With this initiative, Indian Railways is set to become a hotspot for premium F&B brands, offering travelers quality dining experiences while creating a new avenue of revenue for the nation’s rail network.