Travel Food Services (TFS) is India’s leading operator in the airport-based Travel Quick Service Restaurant (Travel QSR) and Lounge segments, holding a dominant 26% share in Travel QSRs and 45% in airport lounges by revenue in FY25, as per CRISIL Report. Operating across 14 airports in India, 3 in Malaysia, and 1 in Hong Kong, TFS has strategically positioned itself to benefit from India’s growing air travel and infrastructure expansion.

Business Model

TFS primarily functions as a concessionaire, winning long-term airport contracts (average tenure ~8.2 years) to run multi-unit QSRs and lounges. It operates through its subsidiaries, joint ventures, and associates, collaborating with airport operators like GMR, Adani Airports, and DIAL, and benefiting from brand partnerships and its own in-house offerings.

Core Business Segments

1. Travel QSR Segment

i) 442 Travel QSR outlets (384 in Indian airports, 29 in Malaysia, 29 at highways)

ii) Offers food and beverage services through a diverse mix of 127 brands: 32 International Brands (KFC, Pizza Hut, Jamie Oliver’s Pizzeria, Krispy Kreme), 58 Regional Indian Brands (Hatti Kaapi, Bikanervala, Third Wave Coffee) and 37 In-House Brands (Caféccino, idli.com, Dilli Streat, Curry Kitchen)

iii) Adapts store layouts, menus, and packaging for travel environments. It Provides innovative services like self-order kiosks, Food@Gate™, and contactless payment.

2. Lounge Segment

i) Operates 37 Lounges globally (28 in Indian airports).
ii) Caters to airline loyalty program members, premium cardholders, and walk-ins.
iii) Lounges are enhanced with chef-curated menus, spas, live music, and sports zones.
iv) Plans to expand globally under its ARAYA Lounge brand with SSP Group as a strategic partner.

Competitive Strengths

i) Wide Reach: Present in 13 of India’s top 15 airports, covering 74% of air traffic.
ii) Operational Expertise: 16+ years in secure, regulated airport environments.
iii) Robust Brand Portfolio: Global, regional, and customizable in-house F&B brands.
iv) High Retention: 93.94% contract renewal rate.
v) Strong Backing: Supported by SSP Group and K Hospitality for brand, supply chain, and culinary strength.
vi) Innovation-Led: Offers tech-enabled ordering, smart packaging, and premium lounge experiences.

Market Opportunity & Future Outlook

India’s aviation and expressway sectors are on a growth trajectory, with airport passenger traffic projected to grow at 8–9% CAGR domestically and lounge access expected to surge due to credit card and loyalty program penetration. TFS is well-positioned to ride this wave:

i) Indian airport QSR market is projected to grow at 17–19% CAGR till FY34, reaching ₹170–180 billion.

ii) Indian Lounge sector to grow at 22–24% CAGR, hitting ₹155–165 billion by FY34.
iii) Backed by government initiatives like Vision 2047 to increase airport count to 300, and NHAI’s investment in 1,000 wayside amenities for highways, TFS has ample room to expand beyond airports.

To be updated shortly

To be updated shortly