There’s good news for quick-service restaurant (QSR) companies and for passengers who are unhappy with the food currently available at railway stations.
The Railways has decided to allow premium brand outlets to open at stations, which could greatly benefit QSR companies.
Experts believe this approval is especially positive for companies like Westlife and Sapphire Foods. This is a major step by the Railways in the area of catering.
With this decision, passengers will soon see single-brand premium food outlets at stations.
Popular brands such as McDonald’s, KFC, and Pizza Hut will now be available for travelers to enjoy.
Currently, railway catering includes categories like tea stalls, milk bars, and juice bars. South Central Railway had earlier requested the launch of a QSR brand,
and now the Railway Board has agreed. This new approval will be implemented across all railway zones.
Under the new scheme, brands like McDonald’s, KFC, Pizza Hut, Baskin Robbins, Haldiram’s, Bikanervala, and Reebok will be allowed to set up their outlets on station premises.
Passengers at many major railway stations will soon be able to enjoy food from these premium brands.
New Rules for Allotting Outlets
The Railways has announced that these new premium brand outlets will be allotted only through e-auction.
A separate section is being created in the e-auction system for this purpose. Each outlet will be granted for five years, just like other catering stalls.
The license fee and other conditions will remain the same as the current catering policy.
QSR Stocks React to the News
The announcement positively impacted QSR stocks today:
Westlife Foods is trading around ₹546, up 0.29% or ₹1.60, after touching an intraday high of ₹585.90.
Sapphire Foods is trading around ₹263, up 4.46% or ₹11.20, with a day’s high of ₹264.
Jubilant Foods also showed strong intraday movement, hitting an intraday high of ₹605.90. It is currently trading around ₹601, down ₹1.70 or 0.28%.
Devyani International is trading up at ₹146.75, an increase of 3.05%.
