With the development of infrastructure, coupled with a strong resurgence in travel post-pandemic, travel retail is becoming a key channel for the organised restaurant industry.
Restaurant and cafe chains are focussing on more aggressive expansion plans in post-pandemic times with highways and airports offering great opportunities, say players
Take for instance Coca-Cola India-owned Costa Coffee, which aims to strengthen its pan-India presence in the country over the next three years.
Vinay Nair, General Manager, India & Emerging Markets, Costa Coffee said, “ We are strongly focussing on specialised channels for expansion in the country. Besides high streets, the transportation channel through airports and highways has emerged as a key channel to grow our footprint. It enables us to tap into consumption occasions for coffee during travel. Our stores at airports and highways have been garnering strong traction.”
For restaurant and cafe chains, travel retail is also helping them to strengthen their presence beyond the key metros.
“We now also have a presence at airports in many of the smaller markets such as Jaipur, Lucknow, Guwahati, and Bhubaneswar. As the economy grows and life comes back to normal, we are seeing a record number of people flying and, airports, therefore, serve as a great opportunity,” said Sushant Dash, CEO, Tata Starbucks.
Dash added, “Similarly, the improvement in infrastructure with the development of highways has led to consumers traveling more. We have been tapping into these opportunities over the last few years and it all depends on how fast we manage to get the right kind of real estate options.”
Branded outlets
With rising aspirations, consumers are increasingly seeking branded outlets on various consumption occasions, including travel, industry players pointed out.
Connaught Plaza Restaurants Pvt Ltd, McDonald’s franchise in North and East regions, plans to double the number of restaurants over the next three years.
Rajeev Ranjan, MD, McDonald’s India-North and East, too, said that travel retail will be one of the key focus areas for the brand’s aggressive expansion.
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“Development of infrastructure and rising aspiration of consumers are among the key factors that are driving India’s consumption story,” he added.
“We are excited about the new opportunities that are emerging for restaurant expansion with the development of new highways and airports. These infrastructure projects are connecting more cities and towns across the country, creating new markets for us to explore and reach out to. This presents a fantastic opportunity for both travellers and the brand,” said Sanjiv Singhal, Board Chairman, Nirula’s.