Travelling by train in India could soon come with a gourmet twist. Leading global and Indian restaurant chains, including McDonald’s, KFC, Haldiram’s, Wow Momo, and Baskin Robbins, are set to launch premium food and beverage outlets at railway stations across the country, offering passengers a dining experience comparable to airports.
The move comes after the government amended the Catering Policy 2017 to allow premium restaurant chains to operate at stations. According to officials, the first outlets are expected to become operational in 2026.
A High-Volume Opportunity
Railway stations offer enormous sales potential due to high passenger footfall. “Airports may have higher average order values, but railway stations provide unmatched scale. With the right model, these outlets can generate very strong returns on investment, driven by volume-led sales, faster turnaround times, and lower entry costs,” said Sagar Daryani, President of the National Restaurants Association of India (NRAI) and cofounder of Wow Momo.
Licensing and Operations
Restaurant chains will be allotted five-year licenses through e-auctions at more than 7,000 railway stations. Brands can operate either company-owned or franchise stores. Premium outlets must maintain high-quality food and service while paying a fixed license fee for using space at the stations. Zonal railways can also introduce “special conditions” to ensure operational feasibility while prioritizing passenger interests.
Passenger-Friendly Meals and Revenue Boost
The initiative aims to improve passenger experience while contributing to Indian Railways’ non-fare revenue, which currently accounts for about 3% of total income. A Niti Aayog assessment highlights the untapped potential, noting that non-fare revenue contributes nearly 30% of railway income in developed countries. Indian Railways reported non-fare revenue of Rs 588.07 crore in FY24, which rose to Rs 686.9 crore in FY25.
Changing Food Trends
According to a study by retail group IRHPL, beverages dominate food and beverage sales at airports, accounting for roughly 70% of revenue through soft drinks, coffee, juices, and alcohol. Industry executives expect similar trends at railway stations. “This policy unlocks massive potential for organised food brands. If executed well, this could become the next big QSR (quick-service restaurant) business opportunity for travellers of all ages and socio-economic groups,” said a Haldiram’s spokesperson.
Future Outlook
As operational frameworks mature, organised food brands are likely to increasingly see railway stations as a major growth platform. The addition of premium outlets aligns with Indian Railways’ push to enhance passenger services while boosting non-fare revenue streams.
