Financial Daily from THE HINDU group of publications Tuesday, May 11, 2004 |
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Marketing
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Channels and Franchises Logistics - Railways Well-known chains to set up more food plazas at railway stations Gaurav Raghuvanshi
New Delhi , May 10 TRAIN travellers across the country can look forward to a quality meal at Hot Breads, McDonalds, Comesum, Wimpy's and Food World as the Indian Railway Catering and Tourism Corporation (IRCTC) has tied up with well-known food chains to set up food plazas at railway stations across the country. While 22 such outlets already operate on a franchisee basis, another 50 will be added during the current year, IRCTC Managing Director, Mr M.N. Chopra, told Business Line. The eating joints on Railway premises are at present operational at several locations that include Delhi (Nizamuddin and Old Delhi), Mumbai, Chennai, Hyderabad, Pune, Bangalore and Chennai. "We hope that by providing clean and hygienic food at a reasonable price to a passenger, we will help the Railways improve its image. To achieve this, we ensure strict quality control at these restaurants," Mr Chopra said. The private franchisee pays user charges to the Railways for the premises and shares a part of the turnover. "The revenue share of each location is decided through bidding. The franchisee also has to take prior approval from us for the menu and rates for the food served," he said. The restaurants are open round the clock and have been attracting a large number of people who are not even travelling. "Due to the good ambience, low prices and 24-hour service, these restaurants get much higher foot-falls," Mr Chopra said.
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