Rail Retail – The next big thing?

Among the few exciting assignments that I have worked all my life, one of the most interesting ones was setting up commercial opportunities at the first greenfield private airport in India at Bangalore in 2006. I was among the first few to join BIAL, the company which was helmed by Zurich Airport along with L&T and Siemens as Private Partners and the Union Government of India & Government of Karnataka providing the necessary statutory support. I was solely responsible for conceptualising, designing, leasing and later managing the Retail areas at the Airport which included Duty Free Retailing in the International Departures & Arrivals, Domestic Retail in all other areas, F&B outlets including Cafes, Restaurants, Pubs and ForEx outlets keeping in mind the convenience of passengers as well as increasing the non-Aero revenues for the airport company. What was then (in 2006) – Travel Retail, a national industry of Rs. 300 Crores pa is now over Rs. 3,000 Crores, thanks to upgraded Airport Terminals at Delhi, Mumbai, Chennai, Bangalore, Kolkata, Hyderabad and Kochi over the past decade. 

I have been an avid traveller all my life and after flying two times a week, forty times a year for a decade in work, I took to rail travel over the past half-decade ever since I turned an Entrepreneur due my business interests largely being achievable by train and more so saving travel time (during night) as well lower cost of travel and transportation, save the cost of F&B at Airports. I just got in to yet another Shatabdi trip and I ain’t surprised I know by platform number already and a clear plan of what to munch when I arrive at Bangalore as well, at the Adigas outlet where the train would drop me. Similarly, the F&B outlets at various stations are familiar to regular passengers like me and those who plan their travel around food & snacks (your’s truly included) know how early to reach the station for the last grub or drink before boarding. 

Shatabdi has been a revolutionary product (sounds like a software product from Infosys or ICICI, hic!) from Indian Railways and with faster drive time as well as complimentary meal on board. What used to be an exciting array of food items before is now a simple breakfast and a simpler meal with a beverage or two in between. The not so great thing is that there is no possibility for passengers to purchase food items even if they wish to do so. Sounds familiar to the scenario a decade and half back when low cost carriers like Air Deccan started off leaving passengers stranded ob=n board with no possibility of even buying water or snacks. Last week, I was traveling in the much touted and recently inaugurated Tejas Express from Chennai to Madurai which was inaugurated by none other than the man of the moment, the Hon’ble Prime Minister of India, Shri Narendra Modi.The train covers a distance of over 450 kms in 6.5 hours compared to other trains which take 90 mins more than this. With traffic on rails (yeah, more trains you see) having grown manifold over the years, it’s an awesome feat by Indian Railways that they have managed to cover this distance in the said duration. While the train has several exciting features such as an access controlled door, CCTv cameras and personalised entertainment, the F&B scenario is the same as a Shatabdi. 

The Railways could help themselves by offering “Travel Retail” on board akin to the Airlines which not only opens up an array of incremental income to the agency but also provide passengers a break from monotony in travelling seated all day (or evening). Way back in 2010 when I was responsible for setting up new cafes for Café Coffee Day, India’s largest coffee chain with over 1,600 outlets today, I charted a plan to set-up a mini-café on board Rajdhani and Shatabdi Trains. The proposal was to have a portion of the pantry car culled in to a café – a café on the move with outstanding visuals even as the train cruises at 90-110 kms between cities. The proposal was rejected by the then Head of IRCTC, the agency which was and is responsible for the commercialisation of the Railway network for reasons best known to him. Even as I was walking up to my train this morning, I saw this tuck shop selling Railway merchandise and once again I am intrigued by the immense possibilities and opportunities that beckon in Travel Retail at Railways. With the elections ahead, I don’t see any new initiatives until June 2019 but am hoping the new Ministry would take this up more seriously. For the love of travelling. 

Sleep Matters

It’s been an eternal debate if it makes sense to fly business class or first class while the seats in the Economy Class also take us to the same destination. The arguments in favour and against this topic have been featured in various magazines, articles and even International symposiums and Travel Seminars worldwide, some of which I have personally attended. 

I have had so many memorable trips within India and outside. The first stamping on my passport was a Swiss Visa when I joined BIAL in 2006. I was sent for a study tour and orientation of Zurich Airport towards Travel Retail which was also one of the shareholders of BIAL, India’s first private airport built on a PPP model. Between 2006 – 2009, I travelled 10 countries including China, speaking about Indian Aviation at Conferences in Singapore & Malaysia. My most memorable trip has been the one on Singapore Airlines in 2007 on First Class, up and down for one of those Travel Retail Conferences where I was representing Indian Aviation and presented the masterplan for BIAL. Since then, I have taken hundreds of flights and especially between 2009 – 2014, I would travel 3 days a week, over 40 times a year and would live out of my Samsonite. Almost.

Ever since becoming an Entrepreneur in 2014, I started embracing Train Travel for two reasons; obviously it saves a lot of money (and associated pangs such as taxi fares, exorbitant coffee & food costs, etc). But most importantly, I started valuing my health and time. My retail venture Smiling Baby had its first Franchise store in Coimbatore, some 500 kms south west of Chennai; a few of my clients in my consulting business “Miles2Go Advisory Services” were located across various parts of Tamil Nadu such as Madurai, Ramanathapuram, Trichy, Salem, etc. And of course, on and off trips to Bangalore as well, mostly on work. I still travel by a flight when required – but my travel plans are clear; all journeys under 500 kms (typically overnight) would be by rail and all travel upwards of 500 kms would be on a flight. Been at it for a few years now and trust me, it’s worked so well.

Now that my preferred mode is chosen, I have experimented with the options and succeeded too; For all trips on business by Air, I have started opting for the first row or middle rows for an additional fee, thanks to my height at 6’2”. And I prefer seat “D” than any other; here’s why. When I am seated on Seat D, I get elbow space which is unhindered, so I can type on my MacBook – such as this article which I have written while flying Delhi to Mumbai one late evening; No other seat allows flawless movement of right elbow than this seat. Also, an extended legroom means I get more comfort while on the flight as well as when I land – which is paramount to having an efficient workday as well as to get some good sleep in the night. As much as I bemoan the atrocious additional charges of carriers, I still think God has been kind to me to take up these small mercies – after all, it’s me who benefits more than anyone else using these preferred seats once I land. The complimentary meal along with the additional cost means I get more time (mostly on ground before departure) so I wrap up as much as I can, including calls or responding to messages and short reply-emails.

Similarly, I avoid all flights that land after 9pm – most Indian airports have International movements in the nights and the ATC would give preference for landing & parking (near the Terminal Building) to them than the Domestic ones. So, when a domestic flight gets a remote parking bay – one which is far off, it takes double the time or more to even arrive at the Baggage area and then the subsequent processes of baggage retrieval, boarding a taxi, etc. While on Trains, I have become a big fan of 1^st A/c with just 4 berths; one there is that much less noise level; two, there are no side berths which again impact my sleep and the productivity next day. This, again is based on experiences travelling with 8 persons in a single bay (3^rd A/c), or getting a raw deal of a side berth even after paying a 2^nd a/c fare. Oh, so my car drives on work or pleasure – that’s for another post. 

For me, the journey is always as important as the destination. If the journey is not a happy one, the destination will not be charming, no matter where it is. Life is similar too, And I have Miles to Go…

Coffee Matters (Noun & Verb)

My former Boss at BIAL, Mr. Stephan Widrig, the then Chief Commercial Officer blocked his calendar and sent me a meeting request with the Title - “Coffee with Shriram”. I was stunned and confused at the same time. I was awaiting to have my annual performance review around that time with him and instead he sends me this. Most Indian employees (excuse my bias, please) are used to sitting nervously in front of their bosses during such sessions, with sweat falling profusely and continuously for the entire duration, what with the Boss is going to gag the employee with their non-performance of metrics and expectations. But this session turned out to be different. 

Stephan had done his homework (as always) and had just a single page with pencil notes on it. He invited me warmly to his cabin and we had a 45 minute discussion on what I have contributed to that particular FY as well as the 2 years I had spent with the company which was involved in setting up the first private Greenfield Airport in India. I was more critical about my performance than him, frankly. But he calmed me down often and suggested never to be so difficult on myself. The review went well and I came out with flying colours (as cliched as it sounds) and a hefty increment + bonus, but most importantly I walked out with so much satisfaction of working for such a person!

A recent study by John Bargh of Yale University suggests that a Coffee Meeting with the Boss can do wonders and this article is the reason for my outpour of my fondest professional memories.The study suggests that the “coffee meeting” can also work wonders when one is pitching new projects to Clients, raising an Investment or even discussing with Suppliers and Business Partners.

“What we found was that there was a significant difference between the two groups, such that participants who held the hot coffee cup saw person A as being more generous, more sociable.”

It’s common to see Starbucks and CCD outlets across India (and perhaps elsewhere in the world) filled with people engaged in discussions - as we reckon from the Food Retail Industry, cafes are the most preferred third choice of location for most of us after Home and Workplace. I am told Pubs are a great place to pitch Angel Investors by Startups in the West - and we have seen and heard enough stories how many Unicorns who raised their first round of funding over beer. Back in India, alcohol is still taboo - at least in most business occasions (well, Delhi and Mumbai could still be exceptions). Even some of the largest Indian corporations and business houses do not hold official Dinners with alcohol, thanks to an inherent cultural mindset. So cafes are the “go-to” places.

I recall when I was a student 2.5 decades back, the cafe culture was still setting in. Chennai had “Hot Breads” even before Cafe Coffee Day came up and there were similar such smaller joints where young couples would turn up for a “coffee date”. Even a conservative city like Kolkata had it’s brush with “Coffee Pai”, a speciality cafe with wonderful desserts and coffee to go with run by my friend Naveen back in the millennium year. Over the years, the cafe and coffee culture has outgrown with every important road across the top 30 cities in India doting a regional, national or International coffee shops. Such is the power of Coffee.

On the same note, a number of Tea joints have also sprung up in India over the past decade, with some having raised millions of US Dollars in Investment. My favourite in Chennai is “Chai Kings” which serves a wide variety of speciality Tea and have upgraded their outlets with a swanky indoor, with the recent one opened at Ramanujam Tech Park in Chennai. However, the value proposition for Coffee over Tea (Price being a differentiator) is way too high and hence Coffee chains can afford to charge much higher than Traditional Indian Tea. 

As the Indian spring begins this January, do plan a coffee meeting soon with someone important in your career and life - from an Ex-Colleague to your current Boss, long lost friends or your spouse. And remember to go for a Warm Coffee than a cold one. You will feel the difference, trust me. And write to me, if it did make a difference. Cheers.