Indian Railways to Permit Premium Single-Brand Food Outlets Like McDonald’s, KFC at Stations

The Indian Railways has added a new category called Premium Brand Catering Outlet to its Catering Policy, 2017. As per the news reports, this change allows single-brand chains such as McDonald’s, KFC, Pizza Hut, Baskin Robbins, Haldiram’s and Bikanerwala to operate inside railway stations. Until now, stations were limited to stalls offering tea, milk, juice and basic snacks. 

How Space Will Be Allotted 

A circular issued on 13 November 2025 states that these outlets will be allotted only through the existing e-auction system. No direct or nomination-based allotment will be allowed. Each licence will run for 5 years, which is the same tenure currently followed for other catering stalls. Financial terms like the Minimum Licence Fee will continue under existing policy guidelines. 

Conditions for Setting Up Outlets 

Railway zones can approve these outlets only where there is adequate demand and space. The new category will not affect quotas reserved for SC, ST, OBC communities, freedom fighters, their widows and families displaced due to railway land acquisition. Zones will review footfall, layout and available commercial areas before inviting bids. 

Background and Recommendation 

The decision follows a proposal from South Central Railway, which suggested allowing well-known food chains at stations. The Railway Board has now included this suggestion in the wider catering policy. This is to bring in a structured system for premium-brand stalls without changing the existing categories reserved under quota-based rules. 

Link to Station Redevelopment Work 

More than 1,200 railway stations across the country are in different phases of redevelopment. Major hubs like Delhi, Mumbai and Ahmedabad are adding new commercial spaces, making it possible to host single-brand outlets. Stations with higher daily passenger footfall are expected to be the first to qualify under the updated guidelines. 

Effect on Current Catering Services 

IRCTC currently serves more than 10 lakh meals daily across the network. The new premium outlets will operate alongside existing services and add another set of food options for passengers, mainly at larger stations where demand assessments support the rollout. 

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Conclusion 

With the policy revised, zonal railways will now identify suitable spaces and begin the e-auction process. Implementation will depend on demand studies, available space and ongoing redevelopment timelines at individual stations. 

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