PROJECT REPORT AND MARKET
SURVEY OF MCDONALD’S
Name of the school :
NAME OF THE STUDENT :
CBSE ROLL NO. :
ACADEMIC YEAR :
TEACHER IN CHARGE : MR. JAMES THOMAS
TITLE SOURCE OF THE
2 FAST FOOD
4 HISTORY OF
5 LIST OF PRODUCTS www.wikipedia.org
7 MARKETING MIX www.marketing91.com
8 SWOT ANALYSIS www.slideshare.net
BALANCE SHEET OF
10 QUESTIONNAIRE www.slideshare.net
11 SURVEY RESULT
12 THE TOP FIVE
MCDONALD’S IS SO
I have taken efforts in this project. However, it would not have been
possible without the kind support and help of many individuals and
organizations. I would like to extend my sincere thanks to all of them.
I thank my God for providing me with everything that I required in
completing this project.
I am highly indebted to the Teacher in Charge Mr. James Thomas for his
guidance and constant supervision as well as for providing necessary
information regarding the project & also for his support in completing the
I would like to express my gratitude towards my parents for their kind co-
operation and encouragement which helped me in the completion of this
I would like to express my special gratitude and thanks to industry persons
for giving me such attention and time.
My thanks and appreciations also go to my classmates in developing the
project and to the people who have willingly helped me out with their
FAST FOOD RESTAURANT
A fast food restaurant, also known as a quick service restaurant
(QSR) within the industry itself, is a specific type of restaurant
characterized both by its fast food cuisine and by minimal table
Food served in fast food restaurants typically caters to a "meat-sweet
diet" and is offered from a limited menu; is cooked in bulk in advance
and kept hot; is finished and packaged to order; and is usually
available ready to take away, though seating may be provided.
Fast food restaurants are usually part of a restaurant chain or franchise
operation, which provisions standardized ingredients and/or partially
prepared foods and supplies to each restaurant through controlled
Arguably the first fast food restaurants originated in the United
States with A&W in 1916 and White Castle in 1921. Today, American-
founded fast food chains such as
McDonald's and KFC are multinational corporations with outlets
across the globe.
Variations on the fast food restaurant concept include fast casual
restaurants and catering trucks. Fast casual restaurants have higher sit-
in ratios, and customers can sit and have their orders brought to them.
Catering trucks often park just outside worksites and are popular with
Some trace the modern history of fast food in America to July 7, 1912,
with the opening of a fast food restaurant called the Automat in New
York. The Automat was a cafeteria with its prepared foods behind
small glass windows and coin-operated slots. Joseph Horn and Frank
Hardart had already opened the first Horn & Hardart Automat in
Philadelphia in 1902, but their “Automat” at Broadway and 13th
Street, in New York City, created a sensation. Numerous Automat
restaurants were built around the country to deal with the
demand. Automats remained extremely popular throughout the 1920s
and 1930s. The company also popularized the notion of “take-out”
food, with their slogan “Less work for Mother”.
Modern commercial fast food is highly processed and prepared on a
large scale from bulk ingredients using standardized cooking and
production methods and equipment. It is usually rapidly served in
cartons or bags or in a plastic wrapping, in a fashion which reduces
operating costs by allowing rapid product identification and counting,
promoting longer holding time, avoiding transfer of bacteria, and
facilitating order fulfilment. In most fast food operations, menu items
are generally made from processed ingredients prepared at a central
supply facilities and then shipped to individual outlets where they are
cooked (usually by grill, microwave, or deep-frying) or assembled in a
short amount of time either in anticipation of upcoming orders (i.e.,
"to stock") or in response to actual orders (i.e., "to order"). Following
standard operating procedures, pre-cooked products are monitored for
freshness and disposed of if holding times become excessive. This
process ensures a consistent level of product quality, and is key to
delivering the order quickly to the customer and avoiding labour and
equipment costs in the individual stores.
To make quick service possible and to ensure accuracy and security,
many fast food restaurants have incorporated hospitality point of sale
systems. This makes it possible for kitchen crew people to view orders
placed at the front counter or drive through in real time. Wireless
systems allow orders placed at drive through speakers to be taken by
cashiers and cooks. Drive through and walk through configurations
will allow orders to be taken at one register and paid at another.
Modern point of sale systems can operate on computer networks using
a variety of software programs. Sales records can be generated and
remote access to computer reports can be given to corporate offices,
managers, trouble-shooters, and other authorized personnel.
The aim of this project is to conduct a market study on a thriving
fast food restaurant, going deep into its formation, history and
growth; then to analyse the reason that make it so popular.
In this project we will be conducting a market study on the global fast
food giant McDonald’s.
McDonald's Corporation (NYSE: MCD) is the world's largest chain
of hamburger fast food restaurants, serving around 68 million
customers daily in 119 countries.
Headquartered in the United States, the company began in 1940 as a
barbecue restaurant operated by Richard and Maurice McDonald; in
1948 they reorganized their business as a hamburger stand using
production line principles. Businessman Ray Kroc joined the company
as a franchise agent in 1955.
Ray Kroc subsequently purchased the chain from the McDonald
brothers and oversaw its worldwide growth.
A McDonald's restaurant is operated either by a franchisee, or an
affiliate, or the corporation itself. The corporation's revenues come
from the rent, royalties and fees paid by the franchisees, as well as
sales in company-operated restaurants.
McDonald's revenues grew 27 percent over the three years ending in
2007 to $22.8 billion, and 9 percent growth in operating income to
McDonald's primarily sells hamburgers, cheese burgers,
chicken, French fries, breakfast items, soft drinks, milkshakes
and desserts. In response to changing consumer tastes, the company
has expanded its menu to include salads, wraps, smoothies and fruits.
In July 2011, McDonald's announced that their largest restaurant in
the world will be built on the 2012 London Olympics site. The
restaurant will contain over 1,500 seats and is half the length of an
American Football field. Over 470 staff will be employed serving on
average (during the 2012 Olympics) 100,000 portions of fries, 50,000
Big Macs and 30,000 Milkshakes. This restaurant will overshadow the
current largest McDonald's in the world in Moscow, Russia. In
January 2012, the company announced revenue for 2011 reached an
all-time high of $27 billion, and that 2400 restaurants would be
updated and 1300 new ones opened worldwide.
HISTORY OF MCDONALD’S
The McDonald's restaurant concept was introduced in San Bernardino,
California by Dick and Mac McDonald of Manchester, New Hampshire.
It was modified and expanded by their business partner, Ray Kroc,
of Oak Park, Illinois, who later bought out the business interests of the
McDonald brothers in the concept and went on to found McDonald's
In 1937, Patrick McDonald opened "The Airdrome", an octagonal food
stand, on Huntington Drive in Monrovia, California. In 1940, his two
sons, Maurice and Richard ("Mac" and " Dick"), moved the entire
building to 1398 North E Streets in San Bernardino, California. The
restaurant was renamed "McDonald's Famous Barbeque" and served
over forty barbequed items.
In 1953, the McDonald brothers began to franchise their successful
restaurant, starting in Phoenix, Arizona and Downey and California.
The McDonald brothers created Speedee to symbolize the quick and
efficient service system that they had devised. Downey's Speedee is
one of only a few remaining and Downey’s restaurant is the oldest
operating McDonald's in the world.
Recognizing the historic and nostalgic value of the intact 1953
structure, the McDonald's Corporation acquired the store in 1990 and
rehabilitated it to a modern but nearly original condition.
In 1954, Ray Kroc, suggested that they franchise their restaurants
throughout the country. He got the rights to set up McDonald's
restaurants throughout the country, except in a handful of territories
in California and Arizona already licensed by the McDonald brothers.
Kroc's first McDonald's restaurant opened in Des Plaines, Illinois,
near Chicago, on April 15, 1955, the same day that Kroc incorporated
his company as McDonald's Systems, Inc. (which he would later
rename McDonald's Corporation).
By 1958, there were 34 restaurants. In 1959, however, Kroc opened 68
new restaurants, bringing the total to 102 locations.
Phenomenal growth in the 1960s and 1970s
In 1960, the McDonald's advertising campaign "Look for the Golden
Arches" gave sales a big boost In 1962, McDonald's introduced its
now world-famous Golden Arches logo. A year later, the company
sold its billionth hamburger and introduced Ronald McDonald, a red-
haired clown with particular appeal to children.
In the early 1960s, McDonald's really began to take off. In 1961 Kroc
bought out the McDonald brothers for $2.7 million, aiming at making
McDonald's the number one fast-food chain in the country.
In 1965, McDonald's Corporation went public. In 1985, McDonald's
Corporation became one of the 30 companies that make up the Dow
Jones Industrial Average.
McDonald's success in the 1960s was in large part due to the
company's skilful marketing and flexible response to customer
demand. In 1968 the now legendary Big Mac made its debut, and in
1969 McDonald's sold its five billionth hamburger. Two years later,
McDonald's restaurants had reached all 50 states.
In 1968, McDonald's opened its 1,000th restaurant; Kroc became
chairman and remained CEO until 1973.
By the late 1960s, many of the candy-striped Golden Arches stores had
been modified with enclosed walk-up order areas and limited indoor
seating. By June 1969, "mansard roof" building design featuring
indoor seating became the standard for McDonald's restaurants.
The company pioneered breakfast fast food with the introduction of
the Egg McMuffin in 1972 and five years later McDonald's added a
full breakfast line to the menu.
In 1975, McDonald's opened its first drive-thru window in Sierra
Vista, Arizona. This service gave Americans a fast, convenient way to
procure a quick meal. Drive-thru sales eventually accounted for more
than half of McDonald's systemwide sales.
Surviving the 1980s "Burger Wars"
In the late 1970s, competition from other hamburger chains such
as Burger King and Wendy's began to intensify. A period of
aggressive advertising campaigns and price slashing in the early 1980s
became known as the "burger wars." Burger King suggested to
customers: "have it your way"; Wendy's offered itself as the "fresh
alternative". But McDonald's sales and market share continued to
During the 1980s, McDonald's further diversified its menu to suit
changing consumer tastes. The company introduced the McChicken in
1980. It proved to be a sales disappointment and was replaced with
series of different chicken sandwiches a year later. Chicken
McNuggets were invented in 1979. By the end of 1983, McDonald's
was the second largest retailer of chicken in the world. In 1985, ready-
to-eat salads were introduced to lure more health-conscious
consumers. The 1980s were the fastest-paced decade yet. Efficiency,
combined with an expanded menu, continued to draw customers.
McDonald's, already entrenched in the suburbs, began to focus on
urban centres and introduced new architectural styles.
Despite experts' claims that the fast-food industry was saturated,
McDonald's continued to expand. The first generation raised on
restaurant food had grown up. Eating out had become a habit rather
than a break in the routine, and McDonald's relentless marketing
continued to improve sales.
McDonald's growth in the United States was mirrored by its stunning
growth abroad. By 1991, 37 percent of system wide sales came from
restaurants outside the United States. McDonald's opened its first
foreign restaurant in British Columbia, Canada, in 1967. By the early
1990s the company had established itself in 58 foreign countries and
operated more than 3,600 restaurants outside the United States,
through wholly owned subsidiaries, joint ventures, and franchise
agreements. Its strongest foreign markets
were Japan, Canada, Germany, Great Britain, Australia, and France.
Braille menus were introduced in 1979, and picture menus in 1988.
Experiments were conducted to find new technology and to research
new markets to keep McDonald's in front of its competition. New
locations such as hospitals and military bases were tapped as sites for
1990s: Growing pains
The 10,000th unit was opened in April 1988.It took McDonald's 33
years to open its first 10,000 restaurants. Incredibly, the company
reached the 20,000-restaurant mark in only eight more years, in mid-
1996. By the end of 1997 the total had surpassed 23,000, and by that
time McDonald's was opening 2,000 new restaurants each year, an
average of one every five hours.
In 1993, a new region was added to the empire when the first
McDonald's in the Middle opened in Tel Aviv, Israel.
As the company entered new markets, it showed increasing flexibility
with respect to local food preferences and customs. In Israel, for
example, the first kosher McDonald's opened in a Jerusalem suburb in
1995. In Arab countries, the restaurant chain used "Halal" menus.
McDonald's entered India for the first time in 1996, where it
offered a Big Mac made with lamb called the Maharaja Mac.
Overall, the company derived increasing percentages of its revenue
and income from outside the United States. In 1992 about two-thirds
of systemwide sales came from U.S. McDonald's, but by 1997 that
figure was down to about 51 percent. Similarly, the operating income
numbers showed a reduction from about 60 percent derived from the
United States in 1992 to 42.5 percent in 1997.
The company made several notable blunders in the United States in the
A seemingly weakened McDonald's was the object of a Burger King
offensive when the rival fast-food maker launched the Big
King sandwich, a Big Mac clone. Meanwhile, internal taste tests
revealed that customers preferred the fare at Wendy's and Burger
In response to these difficulties, McDonald's drastically cut back on
its U.S. expansion. Plans to open hundreds of smaller restaurants
in Wal-Mart and gasoline stations were abandoned because test sites
did not meet targeted goals.
Failed turnaround: late 1990s
Following the difficulties of the early and mid-1990s, several moves
in 1998 seemed to indicate a reinvigorated McDonald's.
Announcements were made that McDonald's would improve the taste
of several sandwiches and introduce several new menu items.
McDonald's also said that it would overhaul its food preparation
system in every U.S. restaurant. The new just-in-time system, dubbed
"Made for You," was in development for a number of years and aimed
to deliver to customers "fresher, hotter food"; enable patrons to
receive special-order sandwiches (a perk long offered by rivals Burger
King and Wendy's); and allow new menu items to be more easily
introduced thanks to the system's enhanced flexibility.
Refurbishing and creating a healthier image: Early 2000s
McDonald's was sued in 2001 after it was revealed that for flavoring
purposes a small amount of beef extract was being added to the
vegetable oil used to cook the french fries.
McDonald's soon apologized for any "confusion" that had been caused
by its use of the beef flavouring, and in mid-2002 it reached a
settlement in the litigation, agreeing to donate $10 million to Hindus,
vegetarians, and other affected groups.
McDonald's also had to increasingly battle its public image as a
purveyor of fatty, unhealthy food. McDonald's responded by
introducing low-calorie menu items and switching to a more healthful
cooking oil for its French fries.
McDonald's continued to curtail store openings in 2004 and to
concentrate on building business at existing restaurants. McDonald's
also aimed to pay down debt by $400 million to $700 million and to
return approximately $1 billion to shareholders through dividends
and share repurchases
With the new "Forever Young" design (adopted in 2006), the first
major redesign since 1969, McDonald's turned a new page for itself.
Most of new and remodelled restaurants feature dining zones with
three sections or zones. Free wifi access points were also granted.
Also, harsh colours and hard plastics have been replaced with custom
earth tones and flexible padded fabric. The McDonald's menu has been
tweaked to offer a larger variety of what the corporation refers to as
more healthy food.
In July 2011, McDonald's announced that their largest restaurant in
the world will be built on the 2012 London Olympics site. The
restaurant will contain over 1,500 seats and is half the length of an
American Football field. Over 470 staff will be employed serving on
average (during the 2012 Olympics) 100,000 portions of fries, 50,000
Big Macs and 30,000 Milkshakes. This restaurant will overshadow the
current largest McDonald's in the world in Moscow, Russia. In
January 2012, the company announced revenue for 2011 reached an
all-time high of $27 billion, and that 2400 restaurants would be
updated and 1300 new ones opened worldwide.
LIST OF PRODUCTS
All beef patties are seasoned, consisting primarily of salt and black
Big Mac: Along with the Quarter Pounder with cheese, this is one of
the two McDonald's signature menu items, introduced in 1967 as a
response to the flagship burger at Big Boy restaurants. Two 1.6-ounce
ground beef patties, special Big Mac sauce, shredded iceberg lettuce,
cheese, two gherkin slices, and re-hydrated onions on a toasted sesame
seed bun, with an additional middle bun separating both beef patties.
Big N' Tasty: The Big N' Tasty consists of a seasoned quarter-pound
beef patty with ketchup, mayonnaise, slivered onions, two dill pickle
slices, leaf lettuce, and one tomato slice on a sesame seed bun.
Quarter Pounder: Along with the Big Mac, this is one of the two
McDonald's signature menu items. 4-ounce of ground beef patty with
ketchup, mustard, slivered onions, two gherkin slices, and two slices
Hamburger and cheeseburger: A 45 g ground beef patty, with
ketchup, mustard, a single dill pickle, re-hydrated onions, on a toasted
bun. Also sold as a double or triple, adding an extra pickle slice for
each beef patty added
Double Cheeseburger: It has two 45 g ground beef patties, with
ketchup, mustard, two slices of dill pickle, re-hydrated onions, and
two pieces of cheese on a toasted bun.
McDouble: It similar to a Double Cheeseburger, but with just one
slice of cheese. It was reintroduced as a permanent dollar-menu item
in December 2008.
Daily Double: Similar to the double cheeseburger, however the
toppings are different. The Daily Double is made with lettuce, tomato,
slivered onions, and mayonnaise. It also has only one slice of cheese,
rather than the two slices that are on the double cheeseburger.
The Big N' Tasty: It was introduced in 1997 and has beef patty with
ketchup, cheese, mayonnaise with a grill flavouring, diced onions, two
pickles, leaf lettuce, kebab meat and a tomato slice, on a toasted bun.
It was devised to resemble Burger King's Whopper sandwich.
McFeast: A hamburger with lettuce, tomato, and mayonnaise, the
McFeast contains a quarter pounder patty, lettuce, and modified
mayonnaise with lemon juice, ketchup, onion and tomato.
Chicken, Fish, Pork
McChicken: It is a mildly spicy chicken sandwich. Made from ground
white meat chicken, mayonnaise, and shredded lettuce, on a toasted
bun. It still remains one of the biggest sellers, just behind the Big
Premium chicken sandwiches: The Classic is a rebranding of the
Crispy Chicken and Chicken McGrill sandwiches, with mayonnaise,
leaf lettuce, and a tomato slice. All are served on a whole-grain roll,
with either a grilled or crispy chicken breast.
Southern Style Chicken Sandwich: A southern-style fried chicken
breast filet, on a steamed bun, dressed with butter and two pickles.
Snack Wrap: McDonald's version of a wrap made with white
meat chicken breast, lettuce, shredded Cheddar cheese and Monterey
Jack cheese, and a sauce, wrapped in a soft flour tortilla. There is also
a Mac Snack Wrap which features the fixings of the Big Mac, but
without the bun and wrapped in a tortilla shell, and uses one half of a
piece of quarter meat.
Chicken Fajita: Chicken, cheese, red and green bell peppers, and
diced onions in a flour tortilla. Comes with Picante sauce packets on
request, which is available in mild and spicy.
Chicken McNuggets: Introduced in 1980 as a replacement for the
McChicken, these are small chicken chunks served with dipping
sauces of Barbecue, Sweet n' Sour, Honey, and Hot Mustard. In 2011,
4 new dipping sauces were introduced and added to the lineup: Sweet
Chili, Honey Mustard, Spicy Buffalo, and Creamy Ranch.
Chicken Selects: McDonald's version of chicken strips. They include
choices of spicy buffalo, creamy ranch, Honey Mustard,
and Chipotle barbecue dipping sauces; sauce selections in the UK are
Smokey barbecue, sour cream and sweet chilli sauce.
Filet-O-Fish: It is a whitefish fillet with tartar sauce and a half slice
of cheese, on a steamed bun.
McRib: It is a sandwich featuring boneless pork with barbecue sauce,
slivered onions, and pickles.
McArabia: There are two versions of the McArabia: Grilled chicken
and grilled kofta (beef with spices). Both are served with lettuce,
tomatoes, onions, and garlic mayonnaise in addition to two small
patties of grilled chicken or kofta, all wrapped in an Arabic style pita
bread. The McArabia has been very well received throughout the
Chicken McBites: They are Popcorn chicken breast with "home-style
seasoning”. Dipping sauces include ranch, Sweet n' Sour, Tangy BBQ,
Chipotle BBQ, and Honey Mustard.
Fish McBites: Similar to the Chicken McBites, these are small pieces
of flaky whitefish dipped in batter and fried until golden brown, and
served with tartar sauce for dipping.
Salads and side orders
McDonald's first introduced salads to its menu in 1985. The Premium
Salads all are a mixture of iceberg lettuce and a special lettuce
assortment, with cherry tomatoes and different toppings to
differentiate them; additionally all salads can be topped with warm
grilled or crispy chicken. All of its salads are part of McDonald's
move towards creating a healthier image.
McDonald's sells French fries as its primary side order. They also sell
potato wedges, a type of French fry that is thick cut and wedge
shaped, fried onion pieces and onion rings.
Facts and figures
McDonald's restaurants are found in 119 countries and territories
around the world and serve 58 million customers each day.
McDonald’s operates over 31,000 restaurants worldwide, employing
more than 1.5 million people. The companies also operate other
restaurant brands, such as Piles Café.
Focusing on its core brand, McDonald's began divesting itself of other
chains it had acquired during the 1990s. The company owned a
majority stake in Chipotle Mexican Grill until October 2006, when
McDonald's fully divested from Chipotle through a stock
exchange. Until December 2003, it also owned Donatos Pizza. On
August 27, 2007, McDonald's sold Boston Market to Sun Capital
Partners. Notably, McDonald's has increased shareholder dividends for
25 consecutive years, making it one of the S&P 500 Dividend
Types of restaurants
Most standalone McDonald's restaurants offer both counter service
and drive-through service, with indoor and sometimes outdoor seating.
Drive-Thru, Auto-Mac, Pay and Drive, or "McDrive" as it is known in
many countries, often has separate stations for placing, paying for,
and picking up orders, though the latter two steps are frequently
combined; it was first introduced in Arizona in 1975, following the
lead of other fast-food chains. The first such restaurant in Britain
opened at Fallowfield, Manchester in 1986.
In some countries, "McDrive" locations near highways offer no
counter service or seating. In contrast, locations in high-density city
neighbourhoods often omit drive-through service. There are also a few
locations, located mostly in downtown districts that offer Walk-Thru
service in place of Drive-Thru.
To accommodate the current trend for high quality coffee and the
popularity of coffee shops in general, McDonald's introduced McCafé,
a café-style accompaniment to McDonald's restaurants in the style
of Starbucks. McCafé is a concept created by McDonald's Australia,
starting with Melbourne in 1993. Today, most McDonald's in Australia
have McCafés located within the existing McDonald's restaurant.
In Tasmania, there are McCafés in every store, with the rest of the
states quickly following suit. After upgrading to the new McCafé look
and feel, some Australian stores have noticed up to a 60% increase in
sales. As of the end of 2003 there were over 600 McCafés worldwide.
Some locations are connected to gas stations/convenience stores, while
others called McExpress have limited seating and/or menu or may be
located in a shopping mall. Other McDonald's are located in Wal-Mart
stores. McStop is a location targeted at truckers and travellers which
may have services found at truck stops.
Since 1997, the only Kosher McDonald's in the world that is not
in Israel is located in the "Abasto de Buenos Aires", Argentina.
McDonald's has become emblematic of globalization, sometimes
referred to as the "McDonaldization" of society.
The Economist newspaper uses the "Big Mac Index": the comparison
of a Big Mac's cost in various world currencies can be used to
informally judge these currencies' purchasing power parity. Norway
has the most expensive Big Mac in the world as of July 2011, while
the country with the least expensive Big Mac is India .
Some observers have suggested that the company should be given
credit for increasing the standard of service in markets that it enters.
A group of anthropologists in a study entitled Golden Arches
East looked at the impact McDonald's had on East Asia, and Hong
Kong in particular.
When it opened in Hong Kong in 1975, McDonald's was the first
restaurant to consistently offer clean restrooms, driving customers to
demand the same of other restaurants and institutions.
McDonald's has taken to partnering up with Sinopec, the second
largest oil company in the People's Republic of China, as it takes
advantage of the country's growing use of personal vehicles by
opening numerous drive-thru restaurants.
McDonald's has opened a McDonald's restaurant and McCafé on the
underground premises of the French fine arts museum, the Louvre.
The company stated it will open vegetarian-only restaurants in India
In 2006, McDonald's introduced its "Forever Young" brand by
redesigning all of its restaurants, the first major redesign since the
1970s. McDonald's has invested $1 billion to redesign nearly all of the
14,000 restaurants by 2015.
The goal of the redesign is to be more like a coffee shop, similar to
Starbucks. The design includes wooden tables, faux-leather chairs, and
muted colours; the red is muted to terra cotta, the yellow was turned
golden for a more "sunny" look, and olive and sage green were also
To warm up its look, the restaurants have less plastic and more brick
and wood, with modern hanging lights to produce a softer glow.
Many restaurants now feature free Wi-Fi and flat screen TVs. Other
upgrades include double drive-thrus, flat roofs instead of the angled
red roofs, and replacing fibre glass with wood. Also, instead of the
familiar golden arches, the restaurants now feature "semi-swooshes"
(half of a golden arch), similar to the Nike swoosh.
McDonald's Corporation earns revenue as an investor in properties, a
franchiser of restaurants, and an operator of restaurants.
Approximately 15% of McDonald's restaurants are owned and operated
by McDonald's Corporation directly. The remainder are operated by
others through a variety of franchise agreements and joint ventures.
The McDonald's Corporation's business model is slightly different
from that of most other fast-food chains. In addition to
ordinary franchise fees and marketing fees, which are calculated as a
percentage of sales, McDonald's may also collect rent, which may also
be calculated on the basis of sales.
As a condition of many franchise agreements, which vary by contract,
age, country, and location, the Corporation may own or lease the
properties on which McDonald's franchises are located. In most, if not
all cases, the franchisee does not own the location of its restaurants.
The United Kingdom and Ireland business model is different than the
U.S, in that fewer than 30% of restaurants are franchised, with the
majority under the ownership of the company. McDonald's trains its
franchisees and others at Hamburger University in Oak Brook, Illinois.
In other countries, McDonald's restaurants are operated by joint
ventures of McDonald's Corporation and other, local entities or
As a matter of policy, McDonald's does not make direct sales of food
or materials to franchisees, instead organizing the supply of food and
materials to restaurants through approved third party logistics
According to Fast Food Nation by Eric Schlosser, nearly one in eight
workers in the U.S. have at some time been employed by McDonald's.
It also states that McDonald's is the largest private operator of
playgrounds in the U.S., as well as the single largest purchaser
of beef, pork, potatoes, and apples. The selection of meats McDonald's
uses varies with the culture of the host country.
The marketing mix of a company consists of the various elements as
follows which form the core of a company’s marketing system and hence
helps to achieve marketing objectives. The marketing mix of
McDonald’s is as follows:-
Product: - McDonald’s places considerable emphasis on developing a
menu which customers want. Market research establishes exactly what
this is. However, customers’ requirements change over time. In order to
meet these changes, McDonald’s has introduced new products and
phased out old ones, and will continue to do so. Care is taken not to
adversely affect the sales of one choice by introducing a new choice,
which will cannibalise sales from the existing one (trade off).
McDonald’s knows that items on its menu will vary in popularity. Their
ability to generate profits will vary at different points in their cycle. In
India McDonalds has a diversified product range focussing more on the
vegetarian products as most consumers in India are primarily vegetarian.
The happy meal for the children is a great seller among others.
Price: - The customer’s perception of value is an important determinant
of the price charged. Customers draw their own mental picture of what a
product is worth. A product is more than a physical item; it also has
psychological connotations for the customer. The danger of using low
price as a marketing tool is that the customer may feel that quality is
being compromised. It is important when deciding on price to be fully
aware of the brand and its integrity.
In India McDonalds classifies its products into 2 categories namely the
branded affordability (BA) and branded core value products (BCV). The
BCV products mainly include the McVeggie and McChicken burgers that
cost Rs 50-60 and the BA products include McAloo tikki and Chicken
McGrill burgers which cost Rs20-30. This has been done to satisfy
consumers which different price perceptions.
Promotion :- The promotions aspect of the marketing mix covers all
types of marketing communications .One of the methods employed is
advertising, Advertising is conducted on TV, radio, in cinema, online,
using poster sites and in the press for example in newspapers and
magazines. Other promotional methods include sales promotions, point
of sale display, merchandising, direct mail, loyalty schemes, door drops,
etc. The skill in marketing communications is to develop a campaign
which uses several of these methods in a way that provides the most
effective results. For example, TV advertising makes people aware of a
food item and press advertising provides more detail. This may be
supported by in-store promotions to get people to try the product and a
collectable promotional device to encourage them to keep on buying the
At McDonalds the prime focus is on targeting children. In happy meals
too which are targeted at children small toys are given along with the
meal. Apart from this, various schemes for winning prices by way of
lucky draws and also scratch cards are given when an order is placed on
the various mean combos.
Place: - Place, as an element of the marketing mix, is not just about the
physical location or distribution points for products. It encompasses the
management of a range of processes involved in bringing products to the
end consumer. McDonald’s outlets are very evenly spread throughout the
cities making them very accessible. Drive in and drive through options
make McDonald’s products further convenient to the consumers.
Other than the main four elements mentioned above there are a few
other elements too in the marketing mix, which are as follows:-
People:-The employees in McDonald’s have a standard uniform and
McDonald’s specially focuses on friendly and prompt service to its
customers from their employees.
Process:-The food manufacturing process at McDonald’s is completely
transparent i.e. the whole process is visible to the customers. In fact, the
fast food joint allows its customers to view and judge the hygienic
standards at McDonald’s by allowing them to enter the area where the
process takes place. The customers are invited to check the ingredients
used in food.
Physical evidence: - McDonalds focuses on clean and hygienic interiors
of is outlets and at the same time the interiors are attractive and the fast
food joint maintains a proper decorum at its joints.
McDonald’s holds a very strong brand name worldwide.
They have large partnerships with other companies that provide
them with their desired products; this increases the goodwill of the
McDonald’s is one of the most reputed firms who are socially
Loyal employees & management & customer are their biggest
McDonald’s makes sure that cultural & regional barriers are kept in
mind while providing food to different countries.
Clean environment and play areas for children where they can enjoy
The weakness that hits the list of employee turnover rate. Every
year many of their employees are fired out of the restaurant.
McDonalds mostly advertises products and food items that targets
Health conscious people often complain that they do not provide us
with the organic and healthy food. This becomes their weakness
when they get in the complaints.
They also face quality issue at times. This affects the business as
they are running the outlet worldwide, if one franchise gets affected
others also get a bad name.
It can open up online services for their customers so that they can
easily order their desired meals sitting at home.
Discounts given on every food item may help them gain more
They can go for a joint venture with the retailers they work with.
They can introduce healthy hamburgers and healthy drinks for the
people who are health conscious.
In order to be environment friendly, they can use packing material
which can be recycled later or material that does not create
Emerging competition of similar outlets is becoming a problem for
Health issue also becomes a problem when it comes to food.
As it is a multinational food outlet, fluctuations in the currency of
other countries becomes a problem for such companies.
Recession in any country would definitely affect the whole outlet
People facing heart problems and obesity accuse McDonalds for not
providing them with the healthy food.
They have a threat of local food outlets in different countries.
McDonalds is operating in a fully fledged economy where
competition is increasing day by day therefore they should work
effectively to overcome their drawbacks because of the recession.
COMPANY’S FINANCIAL INFORMATION
Company Name: McDonald's Corporation
Ticker Symbol: MCD
Web Address: www.mcdonalds.com
CEO: Mr. Donald Thompson
No. of Employees: 420,000
Common Issue Type: CS
Business Description: McDonald's Corporation franchises and operates McDonald's
restaurants in the food service industry. The Company and its
franchisees purchase food, packaging, equipment and other
goods from numerous independent suppliers.
Industry Information: LEISURE - Restaurants
Price Day Change Bid Ask Open High Low Volume
87.18 -0.02 - - 87.43 87.43 86.76 3658828
Market Cap (mil) Shares Outstanding (mil) Beta EPS DPS P/E Yield 52-Wks-Range
87,526.7 1,004.0 0.39 5.27 2.53 16.4 3.5 102.22 - 83.31
KEY FIGURES (Latest Twelve Months -
Yesterday's Close 87.06 $
PE Ratio - LTM 16.4
Market Capitalisation 87,526.7 mil
Latest Shares Outstanding 1,004.0 mil
Earnings pS (EPS) 5.27 $
Balance Sheet (at a glance) in Millions
Dividend pS (DPS) 2.53 ¢
Dividend Yield 3.5 %
Dividend Payout Ratio 48 %
Revenue per Employee 64,300 $
Effective Tax Rate 31.3 %
Float 1,015.3 mil
Float as % of Shares Outstanding 99.9 %
Foreign Sales 18,478 mil
Domestic Sales 8,528 mil
Selling, General & Adm/tive (SG&A) as %
Research & Devlopment (R&D) as % of
Gross Profit Margin 44.7 %
EBITDA Margin 35.6 %
Pre-Tax Profit Margin 29.1 %
Assets Turnover 0.8 %
Return on Assets (ROA) 16.1 %
Return on Equity (ROE) 39.2 %
Return on Capital Invested (ROCI) 20.4 %
Current Ratio 1.0
Leverage Ratio (Assets/Equity) 2.4
Interest Cover 16.6
Total Debt/Equity (Gearing Ratio) 0.96
LT Debt/Total Capital 48.0 %
Working Capital pS 0.06 $
Cash pS 2.17 $
Book-Value pS 13.83 $
Tangible Book-Value pS 11.10 $
Cash Flow pS 6.89 $
Free Cash Flow pS 1.25 $
KEY FIGURES (LTM): Price info
Price/Book Ratio 6.30
Price/Tangible Book Ratio 7.85
Price/Cash Flow 12.6
Price/Free Cash Flow 69.9
P/E as % of Industry Group 42.0 %
P/E as % of Sector Segment 77.0 %
Dividend Declared Date 09/20/2012
Dividend Ex-Date 11/28/2012
Dividend Record Date 12/02/2012
Dividend Pay Date 12/16/2012
Dividend Amount 770
Type of Payment Cash Payment
Dividend Rate 3.08
Current Dividend Yield 3.5
5-Y Average Dividend Yield 3.1
Payout Ratio 48.0
5-Y Average Payout Ratio 53.0
Share price performance previous 3 years
Share price performance intraday
PRICE/VOLUME High Low Close % Price Chg % Price Chg vs. Mkt. Avg. Daily Vol Total Vol
1 Week - - - 0.0 101 54,041 66,217
4 Weeks 87.43 83.31 84.74 2.7 101 57,129 856,929
13 Weeks 94.16 83.31 91.02 -4.4 98 61,288 3,554,700
26 Weeks 94.16 83.31 87.75 -0.8 93 59,419 7,189,758
52 Weeks 102.22 83.31 98.03 -11.2 79 59,272 14,521,666
YTD 102.22 83.31 - -13.2 77 59,774 13,807,695
Moving Average 5-Days 10-Days 10-Weeks 30-Weeks 200-Days Beta (60-Mnth) Beta (36-Mnth)
86.61 86.31 88.25 89.31 91.74 0.39 0.31
R² of 5-Year Growth
Revenue 3.81 77.6 6.66
Income 20.17 81.1 9.78
Dividend 15.36 94.7 10.16
Capital Spending 6.97 NA 10.52
R&D 0.00 NA 0.00
Normalized Inc. 11.58 NA 9.79
Curr Qtr vs.
Qtr 1-Yr ago
Revenue % 2.1 -0.2 12.2
Earnings % -1.4 -3.5 11.3
EPS % 1.0 -1.4 15.1
EPS $ 0.04 -0.02 0.69
SHORT-TERM SOLVENCY RATIOS
Net Working Capital Ratio 2.71
Current Ratio 1.3
Quick Ratio (Acid Test) 1.0
Liquidity Ratio (Cash) 0.67
Receivables Turnover 21.5
Average Collection Period 17
Working Capital/Equity 6.2
Working Capital pS 0.88
Cash-Flow pS 6.77
Free Cash-Flow pS 2.09
FINANCIAL STRUCTURE RATIOS
Altman's Z-Score Ratio 4.85
Financial Leverage Ratio (Assets/Equity) 2.3
Debt Ratio 56.4
Total Debt/Equity (Gearing Ratio) 0.87
LT Debt/Equity 0.84
LT Debt/Capital Invested 56.9
LT Debt/Total Liabilities 65.2
Interest Cover 17.3
Interest/Capital Invested 1.67
Attn: Replace this page with the 30th page (as displayed on
the pdf reader and pg no.27 as displayed in the doc) of the
Consolidated Balance Sheet of McDonald’s, which you can
find on the link below.
QUESTIONNAIRE (Attn: Attach minimum 5 copies)
Name: ____________________ age: ________
Gender: _________ occupation: _______________
Please spare a few minutes of your valuable time to answer this
1. How often do you visit fast food restaurants?
Everyday Alternatedays Weekends Onceinamonth Onceeverythreemonths
2. Which of the following fast food chain do you visit the most?
Subway McDonald’s KFC PizzaHut BurgerKing
3. Are you satisfied with the services provided by them
Yes Sometimes Notatallsatisfied
4. How often do you eat at McDonald’s?
Everyday Alternatedays Weekends Onceinamonth Onceeverythreemonths
5. Which among the following is your favourite product at McDonald’s?
BigMacBurger MacVeggie BigMacChickenBurger MaharajMac MacFiletoFish
6. Is the product line of McDonald’s adequate?
Yes No Haven’tThoughtAboutThat
7. What time of the day do you prefer to eat at McDonald’s?
Morning Noon Evening Night
8. What is the main problem you faced at McDonald’s?
Longqueues Wrongorders Hygienicproblems Other problems Noproblems
9. What are the unique selling prepositions of McDonald’s?
Productvariety Hygiene Ambience Quickservice Location Other
10.Do you think McDonald’s will be triumphant over all its competitors?
Yes Maybe Haven’tThoughtAboutThat Never
SURVEY RESPONSE ANALYSIS
Frequency of visits made to fast food
Once in a month
Fast food chain visited the most
Favourite product at Macdonald’s
Big Mac Burger
Mac Fileto Fish
Time of the day prefered to eat at
Main problem faced at McDonald’s
THE TOP FIVE REASONS WHY MCDONALD’S
IS SO POPULAR
1. The System
This is the first thing that makes McDonald's so successful, by having
an effective and efficient system in place, which exploits the minimum
wage labour available, in the form of young teenagers who are just
looking to make some cash or pick up fundamental job skills.
The second reason why McDonald's is so popular is because it's
everywhere. There a McDonald's at every corner of the map, at every
major shopping centre, district, highway, freeway, every place which
attracts even, remotely more than 10 people, will have a McDonald's
restaurant not too far from them. McDonald's is having the best Real
Estate locations around the world which makes it so popular around the
The unique selling prepositions of
3. Likability and Familiarity The
Golden Arches, the Big M. Ronald McDonald, happiness and fun; all these are the
associations with McDonald’s which makes it so familiar by being so familiar to all
age groups and to everybody.
4. The Menu
McDonald's has one of the most diverse menus, targeting all ages from
little kids to old pensioners, and everyone else in between. There's Big
Macs for the big kids and junior burgers for the little. The menu's
versatility is accentuated when they introduced the "healthy tick"
concept, which target those people who wants to watch what they
eat (even though it doesn't make sense to go to a fast food restaurant to
The last reason is, McDonald's is so successful because of its consistency. The
expectations that we have about everything surroundin g the store are fulfilled in
almost every store nationwide, worldwide. So everybody knows what they're
getting into before they come to McDonald's, and by being so consistent, it has a
solid reputation to uphold.
What started as a simple food stand on Huntington drive, California in
1937, through the ages have become a billion Dollar corporation and
the world’s second largest fast-food chain. When analysed, one would
understand that McDonald’s had a stable growth in the past years.
The credits of building it into one of world’s largest fast food
operation can be given to Ray Kroc who took over McDonald’s from
its establishers, modernised and expanded it to suit the contemporary
trend. Today McDonald’s has a net worth of $15.15 billion.
Through this project report and market survey we saw the how
McDonald’s was formed, its history and the present position. We also
its list of various products offered and the corporate profile.
Through the marketing mix, we saw how they make use of their
product, price, place, promotion mixes. SWOT analysis showed us the
strengths and weakness of McDonald’s as well as the opportunities
and threats they have got.
The consolidated financial statement showed us the financial position
of the corporation as of 2011. The questionnaire survey provided us
with a clear picture of the needs, want and expectations of the
consumers of the fast food market in general and McDonald’s in
particular. The respondents also rated the services provided by the
corporation. At last we also saw the top five reasons that make
McDonald’s so popular.
I gladly hope that this project has met its aim.
Let me conclude by quoting this quote by Ray Kroc
"Perfection is very difficult to achieve, and perfection was what I
wanted in McDonald's. Everything else was secondary for me."
Attn: Pictures on the next page!!
Pictures to be attached
Attn: Attach these pictures on the backside of the page which
is adjacent to the relevant page.
Mc-Donald Vs Domino’s - Comparative Analysis
Determinant Of Choosing Fast Food Restaurant And Their Service Quality
BY:- ANUJ CHAUHAN (FINANCE + MARKETING)
ITM UNIVERSITY, SITHOLI, GWALIOR
Parasuraman et al. (1988) introduced a 22-item scale, called SERVQUAL, for
measuring service quality, the model has been widely adopted across industries.
The scale was tested in 4 service settings different from those of the original test: a
dental school patient clinic, a business school placement center, a tire store, and an
acute care hospital. In service industries, customer satisfaction is always influenced
by the quality of interactions between customers and the personnel involved in the
contact services (1994). In the last decade, the movement towards quality had
started to spread from the manufacturing sector to the service sector. The shift of
focus to quality is basic for the service business to survive the competition, get
acceptance from society, and be able to achieve its missions.
In principle, the two main things closely related to services are expected
quality and experienced or perceived quality. The first is the customers'
expectations of service quality and the latter is the customers' perceptions of
service quality. The customers will always assess the services they experienced by
comparing them with whatever they expected or wished to receive.
Services are behavioral rather than physical entities and have been described as
deeds, performances or effort (1966); deeds, acts or performances, (1980);
activities or processes (1991). (1988) defined services as "that broad class of
products characterized by intangibility, inseparability of production and
consumption, difficulty of standardization and perishability".
As (1986) notes, there is fairly widespread agreement in the literature concerning
the characteristics which tend to differentiate services from goods. These are
intangibility, perishability, inseparability of production and consumption, and
TABLE OF CONTENT
1. Industry Profile
2. Literature review
3. Need for study
4. Research methodology
5. Analysis of study
6. Finding and suggestions
In this comparative analysis of two fast food restaurants regarding their
In this, there are pair of determinant factors of Domino’s pizza and Mc-
Donald which identifies the service quality regarding their customers and how they
affect customer satisfaction.
Both are famous for their services as it explained in the abstract, it includes
the service delivered to their customers and what they perceived before getting
these services in terms of their service quality. There are two stages are forms, one
of them related to their perception and another are totally related to expectations,
which is observed by these fast food restaurants after service delivered to their
customers, and related too their satisfaction level of customers.
INDUSTRY PROFILE:- FAST FOOD RESTAURANT
A fast food restaurant, also known as a quick service restaurant (QSR) within the industry
itself, is a specific type of restaurant characterized both by its fast food cuisine and by
minimal table service. Food served in fast food restaurants typically caters to a "meat-sweet diet"
and is offered from a limited menu; is cooked in bulk in advance and kept hot; is finished and
packaged to order; and is usually available ready to take away, though seating may be provided.
Fast food restaurants are usually part of a restaurant chain or franchise operation, which
provisions standardized ingredients and/or partially prepared foods and supplies to each
restaurant through controlled supply channels. The term "fast food" was recognized in
a dictionary by Merriam–Webster in 1951.
Arguably the first fast food restaurants originated in the United States with A&W in 1916
and White Castle in 1921.Today, American-founded fast food chains such
as McDonald's and KFC are multinational corporations with outlets across the globe.
1872 Walter Scott of Providence, RI outfitted a horse-drawn lunch wagon with a
simple kitchen, bringing hot dinners to workers
1902 First Horn & Hardart Automat opened in Philadelphia
1912 Horn & Hardart opens a second Automat in Manhattan
1916 Walter Anderson built the first White Castle in Wichita, KS in 1916,
introducing the limited menu, high volume, low cost, high speed hamburger
1919 A&W Root Beer took its product out of the soda fountain and into a roadside
1921 A&W Root Beer began franchising its syrup
1921 White Castle opens its first restaurant
1926 Maid-Rite opened its first restaurant in Muscatine, Iowa.
1930s Howard Johnson's pioneered the concept of franchising restaurants, formally
standardizing menus, signage, and advertising
1948 In-N-Out Burger begins drive-through service utilizing call-box technology
1967 McDonald's opens its first restaurants outside the U.S.
1971 McDonald's begins serving breakfast, test-marketing the Egg McMuffin in the
1971 The first Starbucks store opens in Seattle, Washington in Pike Place Market to
sell high-quality coffee beans and equipment
1980 7-Eleven introduces the 32-US-fluid-ounce (950 ml) Big Gulp
1981 Arby's offers nutritional7-Eleven introduces the 32-US-fluid-ounce
1987 Howard Schultz leads purchase of the Starbucks brand from its founders (who
adopted the name Peet's) and begins offering coffee drinks modeled after those
sold in Italian coffee bars
1994 McDonald's begins "supersizing" Extra Value Meals
1994 Arctic Circle becomes the first fast food restaurant to sell Angus
1994 Arby's is first fast food restaurant to implement a no-smoking policy
2002 McDonald's cuts back on the amount of trans fat by 48 percent on French fries
2006 Arby's begins elimination of trans fat oils in French fries
Indian Fast food Industry
With rapidly growing middle class population and changing lifestyle, India is blessed with one of the
fastest growing fast food markets of the world. The Indian fast food market is growing at the rate of
30-35% per annum. Almost all big fast food brands of the world have succeeded in making their
presence felt in the country and most of them are posting appreciable growth.
Consequently, all the popular fast food chains have chalked out massive plans for expanding their
business and presence throughout the country. Moreover, foreign fast food chains are aggressively
increasing their presence in the country. For instance, Domino’s has planned to open 60-65 outlets
every year for the next three years (2010-2012) while Yum Brands Inc is also preparing for massive
expansion across the country with plans to open 1000 fast food outlets by 2015.
According to “Indian Fast Food Market Analysis”, although the market has witnessed a robust growth
in the past couple of years, it remains largely underpenetrated and concentrated into metropolitan
cities. However, there is large room for growth in tier-II cities and tier-III cities, which are mostly
untapped. Therefore, the future of Indian fast food industry lies in masses that live in tier-II and tier-III
The report provides extensive research and objective analysis on the fast expanding Indian fast food
market. The report analyzes all the vital industry trends and possible growth areas for future
expansion. It also analyzes important driving forces in detail, which will help clients to understand the
Moreover, we have also identified the important players operating in the sector and have made a
separate chapter which talks about their business expansion plans in detail. Most importantly, the
report also features forecast on fast food sales in the country. The forecast is based on the
correlation between past market growth and growth in base drivers such as growth in middle
class, urbanization, cultural shift and lifestyle changes.
McDonald's India Profile
A Locally Owned Company:
McDonald's is the world's leading food service retailer with more than 33,000 restaurants
in 118 countries serving more than 67 million customers each day. In India, McDonald's has two
Indian entrepreneurs: Amit Jatia, Vice Chairman, Hardcastle Restaurants Pvt. Ltd, which has
been awarded a Development Licensee status by McDonald's Corporation, U.S.A, spearheads
McDonald's operations in West & South India, while McDonald's restaurants in North & East
India is managed by Vikram Bakshi's Connaught Plaza Restaurants Private Limited, which is
still a Joint Venture with McDonald's Corporation.
For Hardcastle Restaurants Pvt. Ltd ('HRPL'), the transition to a Development Licensee
implies a higher level of commitment by McDonald's Corporation as it enhances its trust in the
Local partner. McDonald's ensures that the evolution to a Development Licensee takes place
only after the financial strength, viability, profitability and long - term sustainability of the
business is assured.
Celebrating over 15 years of leadership in food service retailing in India, McDonald's India
now has a network of over 250 restaurants across the country. McDonald's India is a leader in
the food retail space, with a presence of more than
250 restaurants serving more than 6.5 lakh
customers daily in India.
McDonald's India and HRPL in particular has an
aggressive expansion plan - including market
expansion, new customer outreach formats and
menu expansion. With HRPL becoming a
Development Licensee in the year 2010, there are
strong and robust commitments to investments,
expansion and growth. By 2014, HRPL plans to
double the number of restaurants it currently has.
HRPL is expanding its reach by expanding the
portfolio and access points with formats like from
kiosks, drive thrus, web-delivery and petrol
pumps in addition to the restaurants. In 2012,
HRPL plans to open another 35-40 McDonald's
restaurants in West and South India.
An Employer of Opportunity:
McDonald's India is an employer of
opportunity, providing quality employment and
long-term careers to professionals across the
country. The average McDonald's restaurant
employs 40-60 people from crew to restaurant
manager. McDonald's invests in its employees,
leveraging world class-training inputs to create
ambassadors of the brand and creating food service professionals with global outlook. The brand
currently has over 10,000 employees in India.
Respect for Indian Customs and Culture:
McDonald's worldwide is well known for the high degree of respect for the local culture of each
market it operates in. In line with this respect for local culture, India is the first country in the
world where McDonald's does not offer any beef or pork items. McDonald's has developed a
menu especially for India with vegetarian selections to suit the Indian palate, and has also re-
engineered its operations to address the special requirements of vegetarians. Special care is taken
to ensure that all vegetable products are prepared separately, using dedicated equipment and
utensils. This separation of vegetarian and non-vegetarian food products is maintained
throughout the various stages of procurement, cooking and serving. So much so that the
mayonnaise and soft serves are also 100% vegetarian, and McDonald's uses only vegetable oil as
a cooking medium in India.
Quality, Service, Cleanliness & Value (QSC & V):
McDonald's is driven by the philosophy of Quality, Service, and Cleanliness &
Value for Money. This translates into a commitment to provide customers high
quality products, served quickly with a smile, in a clean and pleasant environment
at an affordable price. This effectively means that the McDonald's menu is priced
at a value that the largest segment of the Indian consumers can afford, while at the
same time ensuring that quality is not sacrificed for value - rather, McDonald's
leverages economies to minimize costs while maximizing value to customers.
McDonald's a Global Phenomenon
Formed in 1954, McDonald's brand is the leading global foodservice retailer with
more than 30,000 local restaurants serving nearly 50 million people in more than
120 countries each day. Our rich history began with the founder Ray Kroc's vision
and his commitment, transformed in our talented executives, and will keep the
shine on McDonald's arches for years to come.
McDonald's Corporation is the world's largest chain of hamburger fast food
restaurants, serving around 68 million customers daily in 119 countries.
Headquartered in the United States, the company began in 1940 as a barbecue
restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized
their business as a hamburger stand using production line principles. Businessman
Ray Kroc joined the company as a franchise agent in 1955. He subsequently
purchased the chain from the McDonald brothers and oversaw its worldwide
A McDonald's restaurant is operated by either a franchisee, an affiliate, or the
corporation itself. The corporation's revenues come from the rent, royalties and
fees paid by the franchisees, as well as sales in company-operated restaurants.
McDonald's revenues grew 27 percent over the three years ending in 2007 to $22.8
billion, and 9 percent growth in operating income to $3.9 billion.
McDonald's primarily sells hamburgers, cheeseburgers, chicken, french fries,
breakfast items, soft drinks, milkshakes and desserts. In response to changing
consumer tastes, the company has expanded its menu to include salads, wraps,
smoothies and fruit.
Quick Facts About McDonald’s
1. McDonald's was started as a drive-in restaurant by two brothers,
Richard and Maurice McDonald in California, US in the year
2. By mid-1950s, the restaurant's revenues had reached $350,000.
3. Ray Kroc, distributor for milkshake machines, expressed interest
in the business, and he finalized a deal for franchising with the
McDonald brothers in 1954.
4. He established a franchising company, the McDonald System Inc.
and appointed franchisees.
5. In 1961, he bought out the McDonald brothers' share for $2.7
million and changed the name of the company to McDonald's
Corporation. In 1965, McDonald's went public.
McDonald’s is a global foodservice retailer with more than 32,000 local
restaurants in 117 countries, serving more than 58 million customers each day. In
simpler terms, we’re a global brand of local restaurants. At the heart of
McDonald’s operations is a unique business model comprised of the Company, our
suppliers and franchisees (also called owner/operators). Often referred to as a
three-legged stool, all three parts of this business model are essential to
McDonald’s success around the world.
Domino's Pizza is an international pizza delivery
corporation headquartered in Ann Arbor Township, Michigan,
United States, near Ann Arbor.[
Founded in 1960, Domino's is the
second-largest pizza chain in the United States (after Pizza Hut)
and has more than 10,000 corporate and franchised stores in 70 countries and all 50
U.S. states. Domino's Pizza was sold to Bain Capital in 1998 and went public in
Domino's serves Coca-Cola products, and as of January 2012 is the only "Big
Four" pizza chain to do so. Rivals Papa John's Pizza and Little Caesars sold Coca-
Cola in the past (Pizza Hut, due to its previous ownership by PepsiCo, has a
lifetime contract to sell Pepsi products.), but both switched to Pepsi in 2012 and
2007, respectively. Domino's Pizza in Mexico switched to Pepsi in November
The Domino's 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 "Domino's," but as "Dominick's 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 "Dominick's" was traded for "Domino's."
The second Domino's pizza store was opened in Ypsilanti in 1967, officially
starting the Domino's franchise. Since that time, the chain has experienced record-
breaking growth: By 1978, 200 Domino's restaurants had been opened, and by
1983, the chain boasted 1,000 openings as well as restaurants in Australia and
Canada. By 1985, Domino's was the fastest-growing chain in the United States,
with additional locations in England and Japan.
As hugely successful as the Domino's pizza franchise has been, the chain's
history has been riddled with obstacles and troubles. In 1968, the company's
headquarters were destroyed in a fire. In 1975, Domino's entered, and eventually
won, a 5-year legal battle over trademark infringement claims posed by Domino
Sugar. In 1989, a man named Kenneth Noid created a hostage situation at an
Atlanta restaurant, angrily believing that the company's "Avoid the Noid" ad
campaign (featuring a pizza-stealing, stop-motion animation character known as
"The Noid") to be a personal insult. Luckily, Noid surrendered to police without
harming his hostages, though he did force them to make pizza for him.
From the early days of the company, Domino's has had a delivery-focused
business model. This approach helped the business gain a serious leg up during the
late 1960s when the store's East Lansing location gained massive popularity with
Michigan State University students wanting convenient food options without
having to have their own cars. The delivery-heavy model prompted the restaurant's
famous "30 minutes or it's free" guarantee. However, this guarantee was rescinded
in 1993 as a result of complaints about reckless driving and accidents caused by
delivery drivers in a rush to meet the requirements.
Nowadays, Domino's pizza continues to grow, with over 8,000 store
locations worldwide. The company has continued to develop its business model by
featuring many non-pizza menu items and incorporating new customer service
options such as online order. Domino's has also been listed in Entrepreneur
magazine's list of the top 10 best franchise opportunities.
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.
According to (1982), service quality is generally viewed as the output of the
service delivery system, especially in the case of pure service systems. Moreover,
service quality is linked to consumer satisfaction. Although there is no consensus
in the research community about the direction of causality relating quality and
satisfaction, the common assumption is that service quality leads to satisfied
customers (1994; 1990, 1989).
For example, customers leaving a restaurant or hotel are asked if they were
satisfied with the service they received. If they answer "no," we tend to assume
service was poor. Direct service providers, such as waitresses, also note that at
times the best service efforts are criticized because the customer's perceptions of
the service are clouded by being in a bad mood or having a disagreement with
someone just before arriving at the restaurant. These service providers recognize
that in practice the influence of service quality on customer satisfaction is affected
by other factors, one of which is the customers themselves.
In addition, (1989) and (1983) defined both service quality and customer
satisfaction as matching the expectation of the service with that which is actually
experienced by the customer. Therefore, when customers' experiences meet or
exceed their expectations, the service is viewed as a quality service and the
recipients are typically satisfied customers. On the other hand, when the service
experienced by consumers is less than their expectations, the perception of service
quality is diminished and customers are generally not satisfied.
Almost half of our food expenditure today is on food prepared away from home. And we all
know that food prepared away from home is far too often high in calories, unhealthy fat, and
sodium. So why are we eating out so much? The top three reasons for choosing fast foods are:
1. Rapid service
2. Convenient location
3. Good-tasting food
Researchers from Texas A&M University recently investigated whether additional explanations
for eating away from home exist. In particular, they looked at factors like: parental work
(whether one or both parents were working), family meal rituals (like who eats dinner together
and whether family members believe it is important to eat together), parenting style, and
mothers' worries and concerns regarding their children's weight3
. Researchers spoke with 312
families (parents and children ages 9-11 or 13-15), asking them about the factors above as well
as all of the foods they ate over a two-day period.
Some interesting findings included:
When both parents have a standard work schedule (8-5), father has a flexible schedule or
he feels that he has control at work, children use full service restaurants more.
Children whose mothers rank their job role as more important than their other roles,
including that of a parent, reported spending more time in fast food restaurants.
Time spent by children traveling in the car was directly related to use of fast food
restaurants and time spent in both fast food and full service restaurants.
Fathers who reported that the family dinner was a family ritual had children who
frequented fast food restaurants less.
Children with authoritative mothers (parenting style that consists of caring, clear
behavioral expectations and punishment by privilege withdrawal) used fast food
Children with neglectful parents (parenting style with lack of caring, lack of control, and
few punishments) spent more time in fast food restaurants.
Researchers concluded that eating away from home and the healthfulness of children's
diets are linked with the manner in which parents interact with their children (parenting
style), time available for family meals, and the role restaurants play in their lives.
Services are different from physical goods on some key dimensions or characteristics such as
intangibility, heterogeneity, inseparability and perishability (Lovelock and Wirtz, 2004). The
delivery and measurement of the high-quality service are difficult tasks for a service provider
because of the intangible nature of the services. Research has revealed that the consumers may
respond to more than just the tangible part of the product or service rendered when making a
purchase decision (Kotler, 1973; Milliman, 1986). A proper combination of tangible and
intangible aspects should result in a customer’s perception of high service quality (Ryu, 2005).
Physical evidence is one such instrument, which is widely used to visualize the intangible
aspects of the service delivery. It relates to the style and appearance of the physical surroundings
and other experiential elements encountered by customers at service delivery sites (Lovelock and
Wirtz, 2004). It is one of the additional Ps of services marketing mix and considered as a
powerful tool for those services in which customers and service providers have high degree of
involvement (high-contact) while delivering and receiving the service.
Considerable research has been conducted in the area of physical evidence as it is one of the
determinants of service quality. Most of the previous studies related to physical evidence tried to
relate it with the perceived performances of the services and expectations of the service
customers, which in turn produces service quality perceptions. Such studies on the effect of
physical evidence on the perceived service quality and on store or outlet selection covered wide
range of service categories. Baker (1987) classified three fundamental factors that affect the
tangible portion of service quality dimensions: design, social, and ambient factors. Ambience
includes background factors such as lighting, aroma, and temperature. Design factor represents
the components of the environment that are more visual and tangible in nature. It includes color,
furnishings, and spatial layout. The design elements contain both the aesthetic aspects (e.g.,
beauty, décor) and the functional aspects (e.g., layout, ease of transaction, and waiting room
design) that facilitate high quality service. The social factors relate to an organization’s concern
for the people in the environment, including customers and employees.
Berman and Evans (1995) classified tangible quality clues into four categories: external,
general interior, layout, and point of purchase factors. External variables or factors include
exterior, signs, building size and color, location, and parking. General interior variables include
music, scent, lighting, temperature, and color scheme. The layout and design factors pertain to
the workstation placement, waiting facilities, and traffic flow. Finally, the point of purchase and
decoration variables relate to the displays, pictures, artwork, and product displays at point of
purchase. Environmental dimensions of the servicescape shapes the way customers and service
providers interact and behave (Zeithaml, et.al., 2006). Such environmental dimensions are the
basic constituents of the framework for understanding environment-user relationships in service
organizations. Ambient conditions (temperature, air quality, noise, music, odor), space (layout,
equipment, furnishings), signs, symbols and artifacts are included in these environmental
A multiple item scale has been developed by Raajpoot to determine tangible quality of
foodservice industry. The scale captures factors such as music and temperature; design factors
such as location and seating arrangement and service factors such as food presentation and food
variety (Raajpoot, 2002). In another study among the elderly citizens, Knutson and Patton (1993)
found that about one fourth of older diners named service quality as a strong motivator for
choosing a restaurant. According to this research, seniors want to eat in a welcoming, pleasant,
Determinant factors are:-
Accessibility:- according to Litman, 2003a Accessibility refers to the ability to
reach desired goods, services, activities and destinations (together called
opportunities). Accessibility depends on mobility, mobility substitutes and
opportunities as follows:
• Mobility - provided by walking, cycling, public transport, car sharing, taxi,
cars, and other modes. All else being equal, an increase in the speed, service
quality or affordability of a mode will improve access by that mode.
• Mobility substitutes - telecommunications and delivery services. These can
provide access to some types of goods and activities, particularly those
• Land uses - the geographic distribution of activities and destinations. The
dispersion of common destinations increases the amount of mobility needed
to access goods, services and activities, reducing accessibility. When real
estate experts say “location, location, location” they mean “accessibility,
• Other factors - information availability, affordability, convenience and
comfort, security and prestige.
Key responsibility for accessibility:-
“ All else being equal” – Responses to mobility changes can mean that things are usually not
“equal” and often complex behavioural responses need to be considered.
The need to consider information, availability, comfort, security, prestige, speed, modes
available, telecommunications, land uses and all potential activities emphasises that it is
important not to confuse detailed components of accessibility with the definition “the ability to
reach goods services, activities and destinations”.
Accessibility is a term often used in transport and land-use studies and the main aim of this
report is to survey the range of measures of accessibility that have been proposed. Accessibility
is seen as being concerned with the opportunity available to an individual or type of person at a
given location to take part in a particular activity or set of activities. However various other
interpretations of the term accessibility have been made and in order to survey the range of
indices to which the term accessibility measure has been applied it is necessary to consider also
the range of definitions that have been given to the term accessibility. The advantages and
disadvantages of the various measures are discussed. No single "best" measure is identified;
rather the choice depends on the type of problem being studied and the resources available. Some
consideration is given also to the areas of study in which accessibility may be a useful concept.
1. Price:- Pricing actually plays a vital role in the branding and image of your product.
Determining your price can be difficult, especially if you product is in a widely-variable
industry. You must determine pricing strategy, retail and wholesale pricing, possible
bundling, and any type of discounts.
2. Ambiance:- Eating takes place in a context of environmental stimuli known as ambience.
Various external factors such as social and physical surroundings, including the presence
of other people and sound, temperature, smell, color, time, and distraction affect food
intake and food choice. Food variables such as the temperature, smell, and color of the
food also influence food intake and choice differently. However, the influence of
ambience on nutritional health is not fully understood. This review summarizes the
research on ambient influences on food intake and food choice. The literature suggests
that there are major influences of ambience on eating behavior and that the magnitude of
the effect of ambience may be underestimated. Changes in intake can be detected with
different levels of the number of people present, food accessibility, eating locations, food
color, ambient temperatures and lighting, and temperature of foods, smell of food, time of
consumption, and ambient sounds. It is suggested that the manipulation of these ambient
factors as a whole or individually may be used therapeutically to alter food intake and
that more attention needs to be paid to ambience in nutrition-related research.
LITERATURE REVIEW:- Researchers have recently addressed the links between
customer satisfaction (CS) and restaurant performance, emphasizing the way that satisfaction
affects a customer’s repeat purchase practices (Sulek and Hensley 2004; Söderlund and
Öhman 2005; Cheng 2005). Several studies have identified some of the factors that
influence customer’s satisfaction of dining experience, including wait time, quality of
service, responsiveness of front-line employees, menu variety, food prices, food quality, food
consistency, ambience of the facilities, and convenience (Sulek and Hensley 2004; Iglesias
and Yague 2004; Andaleeb and Conway 2006).
In reality, the success of restaurant managers/owners depends on understanding their
customers’ needs and expectations, and then meeting these needs better than the competition.
While estimates vary, a National Restaurant Association report indicated that 60% of all new
restaurants fail within the first three years in business, and roughly half of those fail in the
first year (Parsa, Self, King, and Njite 2005). This high percentage of failure shows the
importance of ensuring customer satisfaction by providing excellent service, listening to
customers’ needs and complaints, and caring about the customer.
An additional benefit of customer satisfaction is the increased likelihood that diners will
repatronize the establishment. The majority of previous research has addressed the nonlinear
effects of antecedents on CS (Anderson and Mittal 2000; Mittal, Ross, and Baldasare 1998;
Oliver 1995). For example, Mittal et al. examined the nonlinear effects of attribute
performance on CS, and found support for an S-shaped function (which is steep in the middle
and flat at the extremes). These results question the commonly held belief of linear (positive
and direct) relationships between product attributes and consumer satisfaction. Only a few
studies have presented empirical evidence for nonlinear effects in the satisfaction-outcome
link (with dependent variables such as customer loyalty and complaining behavior), and no
examination of the functional structure for specific relationships have yet been undertaken.
3. Choice:- Currently healthy food choices are difficult. The food environment around us
is not conducive to healthy eating. In restaurants, people are offered large portion sizes,
value meals include French fries and soda, and there are limited healthy choices on
menus. That is, the default options are primarily unhealthy.
Studies consistently show that the default exerts a powerful influence on choice, and the default
option is more likely to be chosen. Behavioral economic interventions that make default options
healthy make the healthy choice the easy choice and mean that individuals must actively work to
engage in less desirable behaviors. The use of healthy default items as part of restaurant meals is
supported by studies in retail food chains and cafeterias, as well as from studies in the areas of
health insurance, 401(k) savings plans, and organ donation. Providing healthier default items on
menus could lead to healthier food choices and positive health benefits.
The fast food industry is on in an upward trend. The demand for fast food product is now
growing as it is convenience which suits the lifestyle of customers. With the changing lifestyle of
Malaysian consumers, more educated people and affluent, people tend to eating-out especially in
fast food restaurants. Along with the heavily promote through media and information technology
exposure, customers has variety choice of fast food pattern and restaurants. Therefore, local fast
foods restaurants have to be sensitive to these changing trends and to be innovative and get
prepare to change accordingly to avoid from losing their existing and future potential customers.
The aim of this study is to examine how the respondent’s perception will be influenced by
factors of customer loyalty towards preferred fast food restaurants. Malaysia is a multiracial and
multicultural country that made up by several dominant groups such as Malay, Chinese and
Indians. Malaysia is a rapidly developing country in Asia and economic growth is projected to
moderate to 5.2% in 2011. According to the World Bank Group, Malaysia GDP per capita is
US dollars 14, 215, which adjusted by purchasing power parity. This shows that the purchasing
power and standard of living of the population in Malaysia is growing adequately. Consequently,
Malaysians allocated largest amount of household expenditures to their food budgets. Owing to
the changing lifestyle of Malaysian households, the trend towards greater consumption of take-
away food outside the home is increasing. This gave birth to fast food sector. According to
Bender and Bender (2001), fast food is a general term used for a limited menu of foods that lend
themselves to production line techniques and that are typically hamburgers, pizzas, chicken or
sandwiches. According to ACNielsen (2005), there is 59% of adult population that eats at take-
away restaurants at least once a week. This is due to convenience concept of fast food restaurant
match the busy lifestyles and ease of access to a wide variety of fast food restaurants in the
Analysis of the global fast-food industry is enhanced by segmenting it into Quick Service
Restaurants (QSR, 65.5%), Takeaways (17.7%), Leisure Locations (13%), and Mobile and Street
Vendors (3.9%) (Datamonitor, 2005a). Global consumers generally perceive fast food as
characteristically similar to McDonald’s, Burger King, or Taco Bell. As noted earlier, the present
study was designed to examine consumer perceptions of fast food in the United States, Japan,
and China due to the continued growth rates of fast-food consumption in each of these three
The average American dines out four times weekly, with nearly half of adults consuming
at least one meal outside the home daily (Rubin, 2004). In 1970, away-from-home foods
accounted for 25 percent of total food spending. That amount increased to 47 percent by 1999
(Clauson, 2000). Fast-food accounts for 32 percent of America’s away from- home meals
Fast-food consumption among Chinese children appears to be increasing (Cheng, 2003).
Consistent with this, Chinese generally perceive McDonald’s as representing youth, perhaps due
to the brand’s self-promotion as a children’s birthday party venue and “Uncle Ronald” as an icon
for Chinese children (Eckhardt and Houston, 2002). Elder Chinese
are commonly observed acquiescing to their children and grandchildren’s requests to be escorted
to McDonald’s, although they generally find the food’s taste and affordability to be lacking
People are willing to queue and pay to get food. Knowing peoples’ opinions on queuing
is of interest to restaurant stakeholders since it and related actions have a direct effect on
revenue. While most previous studies focused on dine-in restaurants, we observed queuing for
fast food restaurants. Specifically, we observed the actual waiting time of customers for a
number of fast food restaurants, and compared the metrics with waiting times that customers
expected. During lunch time peak hours, customers spent on average 5.4 minutes waiting before
they could get their orders. The 5.4 minutes consisted of 2.42 minutes of queuing time and 2.98
minutes of service time. This total waiting time is only slightly below the actual expected waiting
time of 5.42 minutes. How the fast food restaurants try to manage the perceived waiting time of
customers was also discussed.
In general, restaurants can be divided into five categories; quick service, family dining, casual
dining, dinner house and fine dining (Walker, 2011, p. 34-40). Quick service restaurants are
restaurants where the food and drink are paid for before being served. The critical points for this
type of restaurant are to have staff and food ready to serve the maximum number of customers in
the least amount of time. The menus offered are usually limited and include burgers, sandwiches,
hot dogs, tacos, burritos, fried chicken and so on. Family restaurants developed from coffee
shop-style restaurants, offering simple menus and providing service for the family market
segment. Due to their market type, most family restaurants do not serve alcoholic drinks. Casual
restaurants or casual dining offers a relaxing lifestyle, signature food items, wine service, bar and
comfortable décor. Fine dining is a type of restaurant that offers expensive cuisine and beverages
such as wine, elegant service and luxurious ambiance. The table turnover is usually only once an
Other sources (Jackson, 2011; Walker, 2011; Knutson, 2000) mention that the fast food
restaurant is often categorized under quick-service restaurant, even though not all quick-service
restaurants serve fast food. The main characteristics of quick-service restaurants are speedy
service, inexpensive food items, simple décor, limited menu normally displayed on a wall, and
convenience. This type of restaurant may also provide drive-thru, delivery, and take-out services.
Simplicity and limitation in a menu are important in a quick-service operation due to speed of
service and high turnover rates to achieve high sales volumes. To realize speed, several factors
are required: minimum food handling by food production staff, minimum handling by the service
staff, and the ability to withstand a holding temperature since most of the food items are
precooked (Drysdale and Galipeau, 2009, p. 207-208).
Restaurants fall into the category of a service industry. As such, researchers analyze the
efficiency of restaurant services. Hummel and Murphy (2011) mapped out an entire service
system to depict the impact of efficiency management on a restaurant and its industry. This
technique was termed service blueprinting. One of their findings was that optimizing the time to
serve the customers paying their bills would earn the restaurant three additional dining tables in a
peak hour. Hummel and Murphy highlighted that the difficulties in producing a conclusion were
due to service blueprinting requiring extensive research that observes larger samples than had
previously been utilized.
Restaurants balance efficiency-for-profitability with customer satisfaction. As defined by
Carbone and Haeckel (2002), customer satisfaction includes functional, mechanical, and
humanic clues. Kimes (2004) discussed that efficiency and profitability could be represented in
numbers, whereas customer satisfaction measurement was subjective. Sulek and Hensley (2004)
showed that choice of foods, restaurant atmosphere and the fairness of the seating contributed a
large part to a customer satisfaction model. Wall and Berry (2007) added performance,
appearance, and behavior of the employees to the above dimensions.
Literature shows that the entry decision to any market is significantly affected by the
Political (P), Economical (E) and Social (S) conditions (Whitelock & Jobber, 2004). The growth
rate of fast food industry is directly proportional to employment and consumer income. The
consumer spending at fast food outlets reflects the better life patterns of people according to
economics (Deane, 1987). According to Deane, these factors affect the growth of fast food
industry and with a better understanding of these factors managers can increase the profits and
remain up to date with time. A positive correlation was found between income of consumers and
visit of customers to some types of restaurants. Consumers with higher income visit restaurants
more frequently as compared to lower income consumers. Fast food has the negative effect on
the social habits of the people, as the gain in the mass (weight) is found to be directly
proportional to the fast food especially in Women (Jeffery & French, 1998). It is supposed that
both the technical and the legislative parties should sit together and find some solution to the
problems that are being faced in the environment to improve the quality of the fast food so that
the technical issues may be made the part of the policy (Tester, Stephanie A. Stevens et al.,
2010). Hazard analysis and critical control point (HACCP) is found to be the very good
technology to improve the speed of the safety implementation and the quality of the food in the
industry especially fast food industry (Sweet, Balakrishnan et al. 2010). The use of the
technology has increased the growth of the fast food industry, as the Burger King and the
Macdonald’ s has increased their budget for the TV advertisements, and as a result led to
increase in the sale (Harris, Schwartz et al. 2010). Poultry meat (One of the key ingredients
used in the fast food industry) quality insurance is the very key and primary issue for the fast
food industry, so for that purpose the PRP are introduced to manage the meat requirement and
supply efficiently (Manning & Chadd, 2006).
NEED FOR STUDY:-
Determinant of Service quality in response to fast food restaurants.
Research Methodology deals with, the procedure adopted to carry out
the study. According to GREEN AND TULL:“A research design is the
specification of methods and procedures acquiring the information needed. It
is the overall operational pattern or framework of the project that
stipulates which information is to be collected from which
sources by what procedures’’. For conducting the study, as a researcher
I adopted both primary as well as secondary method of data collection.
The purpose of research is to discover answer to
questions through the application of scientific procedures. The main
aim of research is to find out how much people an individual get aware and
go for those advertisement and collect more information about it. Though each
research study has its own specific purpose. The objective of study “To know the
impact of determinant factors on service quality and satisfaction of customer”.
1. To know an individual awareness about fast food industry.
2. To know how these determinant factors can affect one’s fast food industry.
1. There is null hypothesis of different determinant on service quality and
satisfaction level of customer.
2. There is positive hypothesis of different determinant on service quality and
satisfaction level of customer.
TYPES OF RESEARCH:-
Research refers to the search for knowledge. It can be defined as
scientific and systematic search for pertinent information on a specific topic. It is
careful investigation or enquiry especially through search for new facts of any
branch of knowledge. In this study I used Exploratory research, which
provides insights into and comprehension of an issue or situation. It helped me to
draw some definitive conclusions. Exploratory research is a type of research
Conducted when the problem has not been clearly defined. It helps in determine
the best research design, data collection method and selection of subjects. Given its
fundamental nature, exploratory research often concludes that a perceived
problem does not actually exist.
A research design or a structure is the process done before data collection or
analysis can commence. A research design is not just a work plan. A
work plan details what has to be done to complete the project but the function of a
research design is to ensure that the evidence obtained enables us to answer the
initial question as unambiguously as possible.
The primary data was collected with the help of questionnaire filled using
Interview method. As per the need of the study I formulated the questionnaire
with the help of the mentor’s guidance. This helped me to frame the required level
of questionnaire needed for the study of the service quality.
The secondary data was collected from the database, publications
and the websites of the company through Internet.
GROWTH OF FAST FOOD CHAINS IN INDIA
KFC, Pizza Hut and Domino’s are just three examples of the many fast food chains operating in
India. In the past few years, the food sector has taken a huge leap as far as the growth of the food
sector is concerned and especially in the fast food segment. Every corner of the street today has
stalls or shops, small or big, operating and growing.
As far as the huge food chains are concerned, they basically operate in malls in big cities or
metropolitan cities whereas in smaller cities like Lucknow, Jaipur, etc. they not only operate in
malls but they have actually opened up as dine in restaurants. “It wouldn’t make sense if we
positioned ourselves merely as a convenience, delivery brand,” explains Ajay Kaul, MD,
Domino’s India. Taking a cue from McDonald’s runaway success of Rs 20 burgers and Rs 7 ice-
cream cones, Pizza Hut too introduced a heavily Indian zed menu with prices starting as low as
Home delivery is another system which has started spreading branches in India with the facility
being made available at the speed of order delivery in half an hour. Nearly 65% of Domino’s
revenues come from home deliveries and the segments dominance is expected to continue. “As
our urban life continues to get busier, home deliveries will become more popular. But in smaller
markets dine-in will drive growth,” adds Ajay Kaul. All the major MNC fast food chains such as
McDonald’s, Yum! (which owns the KFC and Pizza Hut brands), and Domino’s are fast
changing their stripes and business models in India.
Such chains are targeting not only the non-vegetarians but also the vegetarians; earlier there was
nothing to allure them at places like KFC. But things changed accordingly.
“We found that the vegetarians in such groups were always finicky and as a result had the veto
power to decide where they should eat. We want KFC to appeal to everybody. Vegetarians and
non-vegetarians,” says Arvind Mediratta, chief marketing officer, Yum Brands India. Although
KFC still gets just about 15% of its revenues selling vegetarian items, it has significantly
increased the number of veg offerings on its menu.
Thus, the tremendous growth of such sectors do make one wonder whether there will be a point
when pizzas and burgers take over the rest of the Indian cuisines (including quick snacks) or is it
just that we are too busy to ape our western counterparts and satisfy ourselves with the feeling
that even we have an international taste that makes us at par with the rest of the crowd. There is
actually nothing wrong with having “International taste” but as wise people always say “One
should never forget one’s roots and should always go for a reality check time and again”.
Above we had taken into considered the fast food industry growth rate in India
Let us further take a look at the career opportunities in this industry and how in one of the
company training and development of crew members are conducted.
Tom Monaghan and his Brother James by “DomiNick's”, a pizza home delivery store located in
Ypsilanti, Michigan, in the north of the United States.
Tom Monaghan renames his company “Domino’s Pizza, Inc.”.
The 200th Domino’s Pizza store opens.
Domino’s Pizza sets out to conquer the world.
Domino's opens its 5,000th store.
Domino's Pizza establishes its presence on the Belgian market.
Domino's launches its Web site (www.dominos.com).