Railways to Allow McDonald’s, KFC, Haldiram’s at Stations Under New Premium Catering Category

In a significant step toward modernising station amenities, the Ministry of Railways has approved the entry of leading food chains such as McDonald’s, KFC, Pizza Hut, Haldiram’s, Bikanerwala and Baskin Robbins at railway stations. The new category, created under the Catering Policy 2017, aims to offer passengers better-quality food options that match global service standards.

Premium Brand Catering Outlets Introduced Under Catering Policy 2017

The Railway Board has formally created a new segment called “Premium Brand Catering Outlets”, expanding the existing formats that include tea stalls, milk counters and juice bars. These outlets will provide passengers with recognised, hygienic and reliable food choices, especially at high-footfall stations.

The circular, issued by A. Rangarajan, Deputy Director (Catering), has been shared with all Zonal Railways and concerned authorities for immediate implementation.

Licensing Only Through e-Auction: No Nomination Allowed

To maintain transparency, Indian Railways has made it clear that no premium brand stall will be allotted through direct nomination.

All licences will be issued strictly via the existing e-auction platform, with a dedicated segment carved out for premium brands.

This move ensures that well-known food companies can participate competitively while complying with government norms.

Single-Brand Outlets Allowed; Franchise or Company-Owned

Under the new guidelines:

• Outlets can be company-owned or run by authorised franchises.
• Each unit must operate under one specific brand name to maintain identity and quality standards.

Only stations with sufficient demand and available space in the approved layout plan will be permitted to host these premium outlets.

Five-Year Licensing Period with Standard Financial Terms

The licence for each premium food outlet will be valid for five years, in alignment with other categories under the Catering Policy 2017.

Financial terms, including minimum licence fees and payment norms, will continue to follow existing policy guidelines.

Station-Specific Conditions to Ensure Smooth Operation

Zonal Railways have been instructed to prepare Special Conditions of Contract (SCC) for each station before allotting any outlet. These conditions will ensure that the brand’s operations fit station layouts, crowd flow, safety norms and local requirements.

Why This Move Matters: Boosting Passenger Experience

With railway footfall increasing and passengers demanding better services, allowing established food brands is expected to:

• Improve food quality and hygiene
• Increase variety and convenience
• Bring Indian stations closer to global standards
• Enhance station revenue through competitive bidding

This marks a strategic push by the Railways to modernise passenger amenities while maintaining transparency.

The approval of premium food brands at stations signals a major shift in how Indian Railways views passenger comfort and service quality. With strict e-auction rules and well-defined operational guidelines, the initiative is expected to transform railway food services in the coming years. Passengers may soon enjoy globally recognised food brands while travelling—marking another milestone in the Railways’ modernization journey.

FAQ

1. What are Premium Brand Catering Outlets?

These are outlets operated by well-known national or international food brands, approved under a new category introduced in the Catering Policy 2017.

2. Which food brands may open at railway stations?

Brands like McDonald’s, KFC, Pizza Hut, Haldiram’s, Bikanerwala, and Baskin Robbins may operate if they meet eligibility and demand criteria.

3. How will these outlets be allotted?

All allotments will be done exclusively through the Indian Railways e-auction system—no nominations or direct allotments are allowed.

4. Can franchises apply for these stalls?

Yes. Outlets may be run by authorised franchise partners or the company itself, but must operate under a single brand name.

5. What is the licence duration for these brand outlets?

Each licence will remain valid for five years, following the standard norms of the Railways’ Catering Policy.