AirAsia put its in-flight menu on the ground, betting Santan restaurants can franchise

Asia's budget-airline pioneer, which charges extra for food and runs non-airline arms BigPay (fintech) and AirAsia.com (travel).

That its in-flight menu — the punchline of budget flying — can win diners on the ground and scale to 100 outlets in 3–5 years, mostly franchised.

AirAsia pioneered the budget airline model in Asia, including charging extra for food, and named its meals Santan after the coconut milk staple of Southeast Asian cooking. On December 2, 2019 it opened the flagship Santan and T&CO restaurant at a Kuala Lumpur mall — its first foray into retail food.

A product team of five chefs and culinary-arts students spent nine months building the rest of the menu, testing dishes country by country — the Philippines team shortlisted local restaurants to replicate flavours, then vetted authenticity. Group CEO Tony Fernandes aimed to franchise internationally with a New York outlet as the ultimate goal: 'Our dream is to have one in Times Square.' The plan: five outlets in 2019 and 100 within three to five years, with franchising the bigger business — owning a few restaurants but harnessing 'young entrepreneurial talent around the region', per RedBeat Ventures group president Aireen Omar.

The bet flips the oldest joke in flying: the carrier that pioneered charging for meals in Asia now charges for them at 30,000 feet and on the ground.

Franchising-first design keeps it capital-light — a few owned showcase restaurants, the other 95-plus outlets licensed to regional entrepreneurs.

It is one leg of a deliberate post-2018 pivot: after selling the leasing arm for US$1B, AirAsia wants non-airline revenue that can rival the airline.

A captive-audience product can become a standalone consumer brand: airline food is a channel the airline already pays for — whether ground economics hold is what this bet answers next.

As of the December 2019 report, five outlets were planned for the year and 100 within three to five years, with international franchising intended. BigPay and AirAsia.com were targeted to be earnings-positive in 2021 and 2020 respectively.