Indian fast food industry• India is blessed with one of the fastest growing fast food market of the world• The Indian fast food market is growing at the rate of 30-35% per annum• Foreign fast food chains are aggressively increasing their presence in India for e.g.. -Dominos has planed to open 60-65 outlets every year till 2010-2012 -yum brand inc. planning to open 1000 fast food outlets by 2015
About McDonald’s Formed in 1954,mcd brand is the leadingglobal food service retailer with more than30,000 local restaurants serving nearly 50million people in more than 120 countries QUICK FACTSmcd was started as a drive-in-restaurant bytwo brothers, Richard and Maurice McDonaldin californiums in the year 1937
Ray kroc,distributor of milk shakemachine,expressed interest in the business, andhe finalized a deal for franchising with theMcDonalds brother in 1954 He established a franchising company, theMcDonald system inc. In 1961,he bought out the McDonald brother’sshare for $2.7 million and changed the name ofthe company to McDonald’s Corporation
In India 1996 - First restaurant opens in India, at BasantLok ,Vihar, New Delhi. McDonalds India is a 50 – 50 JV partnershipbetween McDonald’s Corporation (U.S.A) andtwo Indian businessman Amit Jatia (HardcastleRestaurants Private Limited, Mumbai)and VikramBakshi (Connaught Plaza Restaurants PrivateLimited, Delhi). Two separate operations in Northern & WesternIndia.
Partners and their management teamstrained extensively in Indonesia & the U.S. Approximately 75% of the menu available inMcDonald’s in India is Indianized andspecifically designed to woo Indian customers.
THE 3 LEGGED STOOL The strength of the alignment between theCompany and its employees, franchisees and suppliershas been critical to McDonald’s success. This businessmodel enables McDonald’s to consistently providecustomers locally-relevant restaurant experiences andbe an integral part of the communities we serve.Franchisees – own and operate the majority of ourrestaurantsSuppliers – provide food and packagingCompany employees – support and deliver restaurantoperations around the world
McDonald’s supply chain Also have large no. ofMcd’s supply indirect suppliers,farmschain is large and and facilities thad growcomplex and process the ingredient to direct suppliersHave numerousdirect suppliersthat make ordeliver finalproducts for therestaurants
mcd indian supply chain SUPPLIERSTrikaya Agriculture Supplier of Iceberg LettuceVista Processed Foods Pvt. Ltd. Supplier of Chicken and Vegetable range of products (including Fruit Pies)Dynamix Diary Supplier of CheeseAmrit Food Supplier of long life UHT Milk and Milk Products for Frozen Desserts
DISTRIBUTORS Radhakrishna FoodlandDistribution Centres and cold storages.Completely dedicated distribution and supply chain.Matching supplier production with deliveries using ERP.Quality inspection Program, quality check at 20different points in supply chain.HACCP(Hazard analysis critical control points) foodsafety standards emphasizing prevention of faults.
Outsourcing the ingredients• ITEM PLACECheese dynamic dairy industries ltd , puneDehydrated onions jain foods , jalgaonIceberg lettuce trikaya agriculture,puneChicken patty vista foods,talojaVeg. patty,veg nuggets, pies kitran foods,talojaChicken(dressed) riverdale,talegaonBuns cremica industries,phillaurEggless mayonnaise quaker cremica pvt ltd,phillaurSesame seeds ghaziabadFish fillet patties amalgam foods ltd,kochiVegetables for the patties finns frozen foods,nasik and jain foods,jalgaonMutton and mutton patties al kabeer,hyderabad
logisticsDistributor Quality Management ProcessOperations and Customer RelationsQuality Control (HACCP/QIP)Cold Chain StandardsHygiene RegulationsProduct Handling StandardsEmergency and contingency planRisk and Crisis managementContinuous unannounced internal and 3rd party auditsfor DCs result in superior quality scores regularly
DOMINOS• Dominos Pizza, Inc. is an international pizza delivery corporation headquartered in Ann Arbor, Michigan, United States. Founded in 1960,• Dominos is the second-largest pizza chain in the United States and has nearly 9,000 corporate and franchised stores in 60 international markets• The menu features pizza, pasta, oven-baked sandwiches, wings, boneless chicken, salads, breadsticks, cheese sticks, and a variety of dessert items.
Beginning of dominos pizza• The Dominos franchise started out as just one tiny store. It was purchased and started by brothers Tom and James Monaghan in 1960. At that time, the restaurant was known, not as "Dominos," but as "Dominicks Pizza" and was located in Ypsilanti, MI. The two brothers only worked as a team until 1961, when James traded his half of the business to his brother for the price of a Volkswagen Beetle. In 1965, the name "Dominicks" was traded for "Dominos."
In india• Domino’s pizza opened its first store in India in January 1996, at New Delhi. Today Domino’s pizza India has grown into a country wide network of more than 300 stores with a team of 9000 people. According to India retail report 2009, domino’s is the largest Pizza chain in India.
Dominos operations• Indian operations are ranked number one for the past 3 years.• Delivers an average of 1 million pizzas per day.• Over the last 2 years, they opened stores in 15 new cities.• The company operates in three segments:
• The company operates in three segments: – Domestic stores :• Uses its company-owned stores as a testing ground for new products and technologies which may then be passed onto franchisees.• Generates income from company-owned stores in the form of store profits.
– Domestic supply chain :• Vertically integrated supply system automatic delivery of raw materials cuts out a lot of the "back of-store" activities.• Helps in keeping down food costs International : – consists of 3,469 franchised stores outside the United States. – operates six supply chain centers which manufacture dough and distribute food and supplies. – International segment accounts for about 41% of Dominos store sales worldwide.
• Procurement of raw materials• Raw materials like wheat, baby corn, tomatoes and spices are got, out of which wheat was bought in from jalandhar and then sent to the commissaries in refrigerated trucks.• 4 commissaries (Regional Centralized Facilities)• Delhi• Bangalore• Kolkata• Mumbai
• Distribution• Pizza dough processed from the wheat is then sent to the retail outlets again in refrigerated trucks.• Logistics requirement for sending frozen foods, at a temperature of ₋18:C and of refrigerated trucks in which food is sent at a temperature range of between 1 to 4:C.
• Retail Outlets – Regular stores – Super stores : High traffic, More counters – Express stores : those where people were expected to walk in and order rather than ask for home delivery.
QUESTION:1• What are the key changes which have made supply chain management a critical function to succeed in present day business world?
To remain successful companies need supply chain excellence and some will need to re-evaluate theircurrent processes and performance with these key trends in mind:• Demand planning• Globalization• Increased competition and price pressures• Outsourcing• Shortened and more complex life cycles• Collaboration between stakeholders and extended supply chain
QUESTION:2• How does an efficient supply chain lead to strategic competitive advantage?(McDonald’s)