While, other retail majors such as HMS Host, Blue Foods Private Ltd, Caf Coffee Day and Hard Rock Caf have set up shops at the new Hyderabad airport, McDonalds and Hog Dog brands will open at New Delhi airport along with Caf Coffee Day and Cookie-Man.
Pattabhi Rama Rao, president, Australian Foods India Private Ltd, told FE, We are planning to set up CookieMan kiosks in upcoming airports.
We also wanted to set up acounter in Mumbai, but could not do so owing to lack of space.
An official from the Airports Authority of India said, With real estate prices touching new highs in these cities, airports offer a viable option for retail players. Duty free is the biggest potential revenue generator for airports as well as retaillers.
These airports are relying on commercial activities to raise additional resources.
The GMR Group is developing the Hyderabad and Delhi airports.However, both airports expect nearly Rs 500 crore revenue, 60% of which would be from non-aeronautical ventures.
Analysts say that the aviation market in India is maturing and revenues for an airport are coming more and more from commercial activities.
The reason why airports are looking at commercial ventures is owing to escalating fuel prices and the resultant pressure from airlines to reduce aircraft landing fees, said an expert.