How Culinary Scene is Taking Off at Indian Airports

How Culinary Scene is Taking Off at Indian Airports

Airports across India are now increasingly home to a variety of F&B outlets, shifting focus from traditional retail to more diverse and sophisticated food options.

By Sakshi Singh, Contributory Author

Dec 19, 2023 / 13 MIN READ

The Indian aviation industry's transformation extends beyond infrastructure and airline services, significantly impacting the Food & Beverage (F&B) sector within airports. This evolution reflects a broader global trend where airports are no longer seen as mere transit points but as integral parts of the travel experience, offering unique dining and shopping experiences.

Expanded F&B Offerings

Airports across India are now increasingly home to a variety of F&B outlets, shifting focus from traditional retail to more diverse and sophisticated food options. This change is driven by various factors, including high rental costs in retail spaces, the logistical challenges of maintaining large inventories, and stiff competition from e-commerce. F&B outlets, with their lower space and inventory requirements and higher customer footfall, offer a more lucrative option.

GMR Group-led Hyderabad Rajiv Gandhi International Airport has invited Expressions of Interest (EOI) from companies to manage the food & beverage business across the airport estate. The target of the EOI is to pre-qualify interested parties for a subsequent Request for Proposals (RFP) stage, during which details of the draft F&B Concession Agreement as well as spaces under the contact will be shared. The airport company plans to select one successful bidder to manage and operate all F&B areas.

The Dominance of Quick Service Restaurants (QSRs)

QSRs have become a significant aspect of the F&B landscape in Indian airports. Notable players like K Hospitality have expanded their portfolio to include airport spaces with QSRs, lounges, and food courts, featuring a mix of local, national, and global brands. The Indian F&B industry, with QSRs at its forefront, is expected to see a compound annual growth rate of 14.2 percent between 2020 and 2024, marking it as a high-profit sector??.

Towards the end of the last decade, with the privatisation of airports, the company entered the space with QSRs in airports, later expanding the business to airport lounges and highways. Majority of K Hospitality’s revenue comes from its travel F&B business, while revenue from the other verticals are evenly distributed. “We expect that mix to change dramatically in the next two years,” says Karan Kapur, Executive Director of K Hospitality Corp.

Global Brands and Market Fragmentation

The airport QSR market is highly fragmented, hosting a mix of global giants and regional players. Brands like Subway, Burger King, McDonald's, KFC, and Starbucks have established a strong presence, while regional brands often partner with larger concessionaires for growth opportunities??.

McDonald’s India (West and South) has launched the nation’s first-ever Airport Drive-Thru restaurant in Mumbai, the company announced in a press release. Spanning over 3,000 sq. ft., the outlet is located 100 meters from Terminal 2 (T2) of the Chhatrapati Shivaji Maharaj International Airport (CSMIA). This Experience of the Future (EOTF) restaurant is also the first McDonald’s restaurant in Mumbai to operate 24×7.

While international giants have made a mark for themselves, their Indian counterparts including Bengaluru-based ?Biggies Burger? is ambitious and aspire to scale as big as these companies. “The first model consists of an area of over 250 square feet for cafe experience, which can cost from INR 18 lakh onwards. The second standalone model starts from INR 28 lakh and consists of a minimum of 750 square feet like a food court or airport,” says the founder, Biraja Prasad.

Technological Integration

In response to the tech-savvy consumer base, airport F&B services are increasingly integrating technology. This includes mobile apps for online presence, intelligent automation in operations, and transparent online order tracking systems. These technological advancements aim to enhance efficiency and customer experience??.

Sustainability and Locally Sourced Ingredients

In response to the global shift towards sustainability, many airport F&B outlets in India are increasingly prioritizing eco-friendly practices. This includes the use of biodegradable packaging, reduction of single-use plastics, and a commitment to sourcing ingredients locally to support regional farmers and businesses. Sustainability initiatives not only align with broader environmental goals but also resonate with travelers who prioritize eco-conscious choices. The emphasis on locally sourced ingredients extends to showcasing the rich culinary diversity of different regions within India. Airports are becoming platforms to celebrate local cuisines, offering travelers a chance to savor authentic dishes representative of the specific state or city they are departing from or arriving at.

Adapting to Post-Pandemic Changes

The COVID-19 pandemic has necessitated significant changes in how airport F&B businesses operate. Emphasis on safety, sanitation, and innovative customer retention strategies have become paramount in the post-pandemic era??.

A Diverse Culinary Landscape

The culinary offerings in Indian airports now span a wide range, from coffee shops and bakeries to full-service restaurants and bars. This diversity caters to various tastes and preferences, offering travelers a taste of local as well as international cuisines. The focus is not just on food but on creating a holistic dining experience that complements the travelers' journey.

Delhi Airport's Terminal 3 boasts of housing India's largest lounge. For a world-class luxury experience, Encalm Hospitality Pvt Ltd. has launched the Encalm Privé exclusively for business class and first-class passengers. The lounge facilities at the food court level of Terminal 3 will be open for first-class air passengers of partner airlines and Credit Card users.

"The Privé isn't your mainstream airport lounge," said Vikas Sharma, CEO of Encalm Hospitality, while talking about the Privé positioning. "We've always strived towards providing delightful experiences that become memories for our customers, and Privé is another step towards that direction. It is our flagship lounge, and travellers who bank upon our quality and amenities are in for a treat as we look forward to setting the bars for premium hospitality and luxury airport experiences a notch higher. The Privé is the beginning, and a grand one that'll change how India perceives lounges," he added.

Experiential Retail and Entertainment

Airports are evolving into more than just travel hubs; they are becoming destinations in themselves. Beyond dining, airport F&B outlets are incorporating entertainment and experiential retail elements. This includes live cooking demonstrations, food and beverage pairing events, and interactive displays that educate travelers about the culinary heritage of the region. Additionally, the incorporation of entertainment options such as live music performances, themed dining experiences, and virtual reality showcases creates a vibrant and engaging atmosphere. Such initiatives not only cater to diverse preferences but also position airport F&B as an integral part of the overall travel experience.

Government Initiatives and Policy Support

The growth of the F&B sector in Indian airports is also influenced by government initiatives and policy support. Recognizing the economic potential of the aviation and hospitality sectors, authorities are streamlining regulatory processes to facilitate the establishment and operation of F&B outlets in airports. This includes providing incentives to attract investment, simplifying licensing procedures, and ensuring a conducive business environment. Government support extends to promoting tourism through gastronomic experiences, positioning Indian airports as gateways to the country's rich culinary heritage. Collaborations between airport authorities and tourism boards further amplify the promotional efforts, positioning airport F&B as an essential component of showcasing India's cultural and culinary diversity.

The Way Forward

The future of F&B in Indian airports looks promising, with a continuous evolution towards quality, diversity, and technological enhancement. The sector is poised to become a significant aspect of the travel experience, transcending beyond mere convenience dining to becoming a highlight of the journey itself. As airports continue to expand and modernize, the F&B sector within them is expected to grow in tandem, offering travelers not just a meal but a memorable gastronomic experience. The transformation of Indian airports into culinary destinations is an exciting journey, one that mirrors the country's diverse and rich food culture, while also embracing global trends and preferences.

The Indian aviation industry's transformation extends beyond infrastructure and airline services, significantly impacting the Food & Beverage (F&B) sector within airports. This evolution reflects a broader global trend where airports are no longer seen as mere transit points but as integral parts of the travel experience, offering unique dining and shopping experiences.

Expanded F&B Offerings

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