By Christopher Sargunam, Founder and CEO, Vallaham
Urbanisation is no longer a distant trend—it’s our reality. Today, over 60% of the world’s population lives in cities. But this isn’t just a statistic. It’s a shift that forces us to rethink how food reaches our tables. In today’s cities, the journey from rent to roti has become both an everyday need and a constant challenge. As a food entrepreneur, I see this not just as a supply chain issue, but a call to action.
The Urban Food Challenge
Rising urban incomes and evolving lifestyles are triggering demand for diverse and often premium food options. Fresh produce, gourmet dairy, high-protein alternatives, ready-to-eat meals—urban consumers want it all, and fast. But this surge is placing massive pressure on retail formats and supply chains, which are already strained by the realities of limited space and skyrocketing commercial rents.
More city dwellers are living in homes with smaller kitchens—or none at all. Eating out has moved from being a luxury to a necessity. But when every square foot of urban real estate is so expensive, even something as simple as an idli becomes a premium offering. Think about it: a ₹20 idli on the street becomes ₹120 inside an airport terminal. Why? Rent!
When Real Estate Dictates Retail
We often talk about the food industry’s evolution, but we don’t talk enough about what fuels—or chokes—it. It’s real estate. And it’s high time we acknowledged that the cost of renting retail space is one of the biggest drivers behind food pricing today.
If we want a fair, accessible, and thriving food ecosystem, we must address the very foundation it stands on—rent. The same way that the organised food sector grew by introducing formats for high-income and upper-middle-income groups, the rental economy around food retail must evolve too.
Just as we saw different cuisine formats—QSRs, fine dining, and delivery kitchens—serve various income groups, we need rental models that do the same. Affordable, flexible rental spaces for small vendors, pop-ups, and community kitchens must be encouraged to serve low and middle-income segments.
The growth of the food industry is intrinsically linked to the growth of rental categories. Today, we talk about cloud kitchens and food courts. Tomorrow, we need to talk about modular kiosks, mobile food stations, community kitchen rentals, and shared cold-storage pods—each with different rental structures, time-based usage models, and payment flexibility.
Innovations Driven by Necessity
Urban pressures have led to remarkable innovation. We now have micro-fulfilment centres, hyperlocal sourcing models, and AI-powered inventory tracking. Automated pods at metro stations, food lockers at tech parks, and dark stores in residential pockets are becoming the norm.
But innovation must go deeper—it must democratise access to food retail. This is where the rental model needs to diversify, just like the food menu has. Why should only premium restaurant brands afford flexible rental terms while small vendors are burdened with month-long deposits and rigid contracts?
Think of the food truck boom or the rise of vending machines and ghost kitchens. These are not just novel formats—they’re born from the need to escape the chokehold of conventional rentals.
A Tale of Two Markets
Let’s not forget the stark income segmentation. Today, the organised food industry is designed to cater largely to the upper-middle class and high-income groups. The lower-income segment is left with few options, mostly informal or unregulated. This is a massive missed opportunity, and worse, an ethical blind spot.
What we need now is structured support for the informal sector. Street vendors and local markets are the backbone of urban food access for the underserved. They need fair rent models, hygiene support, and digital enablement, not eviction drives.
If the government and private players can collaborate to provide affordable, modular rental models tailored to these vendors—daily or weekly kiosks, shared cooking spaces, hygiene-certified vending zones—we can bridge the affordability gap without compromising on quality or dignity.
The Way Forward: Rental as a Policy Tool
Rental isn’t just a cost; it’s a policy instrument. We can use it to direct the flow of urban retail growth, include the excluded, and decentralise access. The future of food retail must be built around tiered, flexible, and inclusive rental categories that match the diversity of consumers we serve.
We need growth in rental categories, just as we witnessed growth in food categories. Just as biryani, burgers, and millet bowls coexist in the same market, so should ₹1000/month kiosks, ₹10,000/month kitchens, and ₹1,00,000/month flagships.
This is the only way to ensure that the food system keeps pace with the evolving, layered fabric of urban life.
Conclusion: Beyond Innovation—Towards Equity
The journey from rent to roti is no longer linear. It’s a web of interdependent systems shaped by space, economy, and intent. As we innovate, let’s not forget inclusion. As we digitise, let’s not overlook decentralisation.
The food retail revolution must be powered by tech, yes—but also by empathy and equity. Only then can we build a food system that’s resilient, inclusive, and deeply human.
