Along with its sister brands Chalu Aapna Desi Chinese is redefining the transit retail space by tapping into the growing demand for quick yet quality food options in bustling, transit-heavy locations.
New Delhi: Leveraging a strategic transit retail model, Bhopal-based food and beverage company Chalu Aapna Desi Chinese has established a strong presence in high-traffic locations like metro stations, meeting the needs of busy commuters and travellers.
Founded in 2020, Chalu Chinese is now present in 11 states and 27 cities, boasting over 250 outlets, making it the only Indo-Chinese brand to achieve such rapid expansion without external funding. With sister brands like Wh-eat Burger and The Indian Momo Co., Chalu Aapna Desi Chinese is redefining the transit retail space by tapping into the growing demand for quick, quality food options in bustling, transit-heavy locations.
The company clocked a revenue of `53 crore in the financial year (FY) 2023-2024 and plans to close this FY with a turnover of `90 crore.
Vibhanshu Mishra, CEO, of Chalu Chinese and Twenty1 Food Courts highlights the brand’s transit retail strategy and expansion plans.
Edited excerpts…
What motivated your brand to invest in transit retail spaces (metro stations), and how has the experience been so far?
Our brand’s core belief is to reach customers wherever they are, and transit hubs like airports and metro stations offer the ideal setting. These high-traffic areas guarantee consistent visibility and connect us with a wide-ranging customer base, from daily commuters to global travellers.
The experience so far has been highly rewarding, as it challenges us to continuously innovate in speed, convenience, and product offerings.
How has consumer behaviour in transit retail evolved in recent years?
Consumers in transit spaces have become more discerning and expect a higher level of convenience and quality. While convenience is still a top priority, we have noticed an increasing demand for healthier and more premium options. Travellers today are also more focused on having a quick yet quality experience—something we are adapting to with specialised product offerings and streamlined services.
How do transit retail spaces in India compare to more traditional retail environments in terms of customer engagement and sales?
In transit retail, customer engagement is often more fast-paced and requires quick decision-making. The customer’s mindset in a metro station or at an airport is different from that in a mall or high street; they are more time-conscious and focused on convenience.
This means our sales strategies need to focus on impulse buys and easy-to-consume products. Interestingly, we see higher conversion rates in transit retail, though the basket size may be smaller compared to traditional retail spaces.
What are the key challenges faced in operating transit retail outlets?
The biggest challenge is securing prime retail spots, as these are highly competitive. Leasing costs are also significantly higher in these high-traffic areas, and navigating regulatory hurdles can be time-consuming. Even licensing was a big challenge. Additionally, operational logistics in airports and metros, such as maintaining stock levels and staffing for 24/7 operations, require precise coordination.
What strategies do you use to cater to a wide array of consumers in transit retail locations?
We have tailored our offerings to meet the needs of different customer segments. For frequent travellers, we focus on consistency, quality, and quick service. For tourists, we offer more local and exotic flavours that rel etc the region. We also keep our pricing
and menu diverse to appeal to budget-conscious consumers and those seeking a premium experience.
What are your plans for further expanding in transit retail spaces?
With the rapid expansion of airports and metro systems in India, we see immense growth potential. Our goal is to establish a presence in every major transit hub across the country
and eventually move into international airports as well.
As we expand to Canada and other global markets, transit retail will be a key area of focus for us.
How do you differentiate your brand in the highly competitive environment of transit retail?
Our focus on transparency, with no artificial colours, MSG, or palm oil, sets us apart from competitors. Additionally, we ensure that our products cater to the evolving preferences of consumers—whether it is healthier options, faster service, or localised flavours.
What innovations do you foresee shaping the future of transit retail?
The future is heading towards more experiential retail, even in transit spaces. We are exploring concepts like pop-up stores, interactive digital kiosks, and augmented reality experiences to engage travellers. Additionally, sustainability is becoming increasingly
important, and we are looking at eco-friendly packaging and waste-reduction initiatives.
How does revenue from transit retail compare to that of other stores?
While transit outlets tend to have a higher volume of transactions due to foot traffic, the average transaction size is often smaller compared to our mall or high street stores. However, the revenue from these outlets is more consistent year-round because transit
hubs do not follow the same seasonal sales cycles as traditional retail.
In how many transit retail platforms are you present currently?
We are currently present in several major metro stations across India, with plans to expand into more transit hubs domestically and internationally. We are targeting new locations that align with our vision of expanding into key urban centres and global transit hubs.
The post Transit Retail will be a key area of focus for Chalu Chinese: CEO Vibhanshu Mishra appeared first on India Retailing.
from India Retailing https://ift.tt/TQ347DP
via IFTTT
Comments
Post a Comment