Mint Explainer | Why Indian Railways is opening its stations to big QSR chains now

Subscribe to enjoy similar stories. Indian Railways is preparing for one of its biggest shifts in decades: opening its 7,000-plus stations—through which 3.5 crore passengers move every day—to national quick-service restaurant (QSR) chains for the first time. A recent change in IRCTC’s catering rules has created a new category of “Premium Brand Catering Outlets," allowing large QSR chains to bid for space through e-auctions rather than rely on the traditional, small-vendor-dominated system.

The move signals a strategic reimagining of stations as commercial assets, not just transit points. For the Railways, branded outlets promise higher non-fare revenue and a cleaner, more standardized passenger experience. For QSR chains grappling with a 12-18 month demand slowdown, especially in metros, stations represent a rare growth frontier: guaranteed footfall, zero customer acquisition cost and none of the typical real-estate hurdles that constrain expansion.

But the shift also raises questions about how small vendors, long a fixture of the station economy, will fit into this more premium landscape. Mint breaks down why the Railways is making this move now, and what it could mean for QSR chains struggling with sluggish demand in key urban markets. What is the new catering policy, and what exactly has changed? The Railways has amended its catering policy to introduce a dedicated fourth category—the “Premium Brand Catering Outlet." Until now, stations offered only tea stalls, milk booths, fruit counters, and small snack kiosks, all operated under long-standing vendor classifications.