Travel Food Services Limited (MAINBOARD)

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Key Performance Indicators

Company Financials In Crore

About Company

Incorporated in 2007, Travel Food Services Limited is a leading Indian company operating in the airport quick service restaurant (Travel QSR) and lounge segments. As of June 30, 2024, the company manages a food and beverage (F&B) brand portfolio consisting of 117 in-house and partner brands, operating across 397 Travel QSR outlets in India and Malaysia.

Travel QSR Business
The company's Travel QSR segment features a wide variety of curated F&B concepts spanning multiple cuisines, formats, and brands. These are specifically tailored to meet the needs of travelers looking for speed, convenience, and quality within busy travel hubs.

 Lounge Business
Travel Food Services also operates premium lounges situated within airport terminals. These lounges are accessible primarily to:

• First and business-class passengers
• Airline loyalty program members
• Eligible credit and debit card holders
• Members of other designated loyalty schemes

 Geographic Presence
As of June 30, 2024, the company operates its QSR and Lounge businesses in 14 airports across India and 3 airports in Malaysia. Key Indian airports served include:

• Delhi
• Mumbai
• Bengaluru
• Hyderabad
• Kolkata
• Chennai

Operational History at Major Airports (as of June 30, 2024)

• Delhi Airport: 14 years
• Mumbai Airport: 15 years
• Bengaluru Airport: 5 years
• Chennai Airport: 11 years

Strength

Expertise in Navigating Airport Operations: With over 15 years of experience in the travel industry since launching its first QSR outlet in 2009, the company has developed strong operational capabilities tailored to the unique challenges of high-security, complex airport environments. These capabilities enhance execution efficiency and competitiveness in airport concession bids.

Long-Term Relationships with Major Airports: The company has a strong and proven track record of long-term partnerships with airport operators. As of June 30, 2024, it has maintained a presence for 14 years at Delhi Airport, 15 years at Mumbai Airport, 5 years at Bengaluru Airport, and 11 years at Chennai Airport. It is also the exclusive F&B and Lounge concessionaire at AAI-operated Chennai and Kolkata Airports since 2014.

Diverse and Balanced Brand Portfolio: The company operates a wide mix of 117 F&B brands, including 78 licensed international and Indian brands such as KFC, Pizza Hut, Subway, and Bikanervala, along with 39 in-house brands like Caféccino and Curry Kitchen. This portfolio allows customization of menus to suit local tastes and airport-specific needs, enhancing customer experience across various locations.

Weakness

Dependence on Lounge Partners:The success of the Company’s Lounge business is significantly dependent on maintaining strong relationships with Lounge Partners, including airlines, card issuers, loyalty programmes, and financial institutions. As most agreements with these partners are renewed annually, any inability to retain existing partners or attract new ones on favourable terms could materially impact the Company’s operations and financial performance.

Regulatory and Compliance Risks:Operating within airports and highways subjects the Company to extensive regulatory requirements related to food safety, security, environmental laws, and more. Any non-compliance with these regulations or adverse regulatory changes may result in penalties, litigation, termination of licenses or concession agreements, and potential shutdowns of outlets—negatively affecting the Company’s operations and reputation.

Intense Market Competition:The Travel QSR and Lounge segments in which the Company operates are highly competitive. The Company faces competition from both domestic and international players vying for airport and highway concessions. Competitors may offer more attractive pricing, stronger branding, or possess deeper relationships with airport authorities, potentially limiting the Company’s growth prospects and affecting its market share.