The quick service restaurant industry is a significant and growing aspect of the overall restaurant industry. For long-term success, quick service restaurants must be perceived as offering sufficient value for consumers. Stepping into this never ending and growing sector can lead to profitability if implemented accordingly. But before stepping into this, one must first determine what consumers’ value in a quick service restaurant experience. As such, this study explores consumers’ service quality preferences in the quick service restaurant industry and opening of a new fast food chain keeping in mind the preferences. Based on the research conducted, the results found in this study indicated that consumers are highly price sensitive, but also place high importance on the speed of service, brand, quality of food, and cleanliness. Further, discussion is provided for how these results can be used to develop effective marketing strategies for opening our new quick service restaurant.

1. DELIGHT
Live D experience as you dine !!!
Professor Dhruva Chak 2/14/17 Services Marketing

2. ACKNOWLEDGEMENT
“It is not possible to prepare a project report without the assistance &
encouragement of other people. This one is certainly no exception.”
On the very outset of this report, we would like to extend our sincere & heartfelt
obligation towards all the personages who have helped us in this endeavor. Without
their active guidance, help, cooperation & encouragement, we would not have made
headway in the project.
We are extremely thankful and pay our gratitude to our faculty Prof. Dhruva Chak
for his valuable guidance and support on completion of this project.
We extend our gratitude to Birla Institute of Management Technology for giving
us this opportunity.
At last but not least gratitude goes to all of our friends who directly or indirectly
helped us to complete this project report.
Any omission in this brief acknowledgement does not mean lack of gratitude.
Thank You
Anshul Masih 032
Arihant Golchha 041
Arindam Chowdhury 042
Ayush Agrawal 056
Bhavik Singh Minhas 057
Devendra Thenuan 064

3. Abstract:
The quick service restaurant industry is a significant and growing aspect of the
overall restaurant industry. For long-term success, quick service restaurants must be
perceived as offering sufficient value for consumers. Stepping into this never ending
and growing sector can lead to profitability if implemented accordingly. But before
stepping into this, one must first determine what consumers’ value in a quick service
restaurant experience. As such, this study explores consumers’ service quality
preferences in the quick service restaurant industry and opening of a new fast food
chain keeping in mind the preferences. Based on the research conducted, the results
found in this study indicated that consumers are highly price sensitive, but also place
high importance on the speed of service, brand, quality of food, and cleanliness.
Further, discussion is provided for how these results can be used to develop
effective marketing strategies for opening our new quick service restaurant.
Introduction:
The quick service restaurant industry was designed around the concept of providing
fast and convenience dining experiences at a relatively low cost.
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
is typically 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. Even with a contribution of just ~2.3%to India’s GDP, the
Food Services market is worth INR 247,680 Cr (USD 48 billion). It comprises food
services in the organized sector (i.e. chain and licensed standalone players across
quick service restaurants, full-service casual and fine dining restaurants, hotels, bars
and lounges, cafés, and frozen dessert formats) as well as the unorganized sector
(dhabaas, street stalls, halwais (sweet shops), roadside vendors, food carts, etc.).
Further, the market is projected to grow to INR 408,040 Cr (USD 78 billion) in the
next 5 years.

4. Objective:
To examine the noticed gaps between the customer perception and expectations
regarding a QSR service, and the study was based on the factors associated with
the RATER and SERVQUAL model.
The survey was conducted with around 60 people, aged between 15-35, through
Questionnaire, in order to understand and analyze their expectation out of
performance of service delivery and its effect on their experience and satisfaction,
hence helping to open a new fast food chain.
Questionnaire:
In regard to the QSR, we asked the customers to rate on the following:
i. The ease of payment and acceptance of all modes of payment at restraint.
ii. The variety of options to choose from the menu
iii. Provision of timely service and good assistance
iv. The comfort and appeal of ambience in the restaurant they visit
v. The quality and taste of food and consistency in maintaining the same
vi. The popularity of the brand or the restaurant
Survey Analysis:
The survey was conducted in the vicinity of Sector 62 Noida and responses of 60
customers and providers were recorded and studied.
56%
44%
male
female
15
29
5
6
2-3 times
4-5 times
never
daily

5. The responses under each dimension were as follows:
 The survey reveals that the service quality offered does not meet the
customers’ expectations on many aspects. On the other hand, it was
observed the lowest gap and good internal inconsistency was majorly
observed in Food quality where the perception of both customers and
providers share an equal thought such that they both believe that food quality
is the most important parameter in the Fast food business industry. The
results further revealed that Variety and Price were the next most important
parameters for all the customers and Brand Name was the least important
parameter.
 Fast food chains should give more careful and personalized attention to the
customers. Though the customers don’t expect a high degree of service, but
being more attentive and interactive with customers could help in reducing
this gap.
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
Ambience Variety Food Qaulity Service Brand Payment
Survey Analytics
Customers
Response

6. OBSERVATIONS:
 The study revealed that the perceived performance on all dimensions fell
short of expectations. There is a need to reduce the gap between
expectations and perception dimensions in the Quality and Prices offered.
 Knowing how customers perceive the service quality and being able to
measure service quality can benefit industry professionals in both the
quantitative and qualitative way.
 Hence assessing service quality and better understanding how various
dimensions affect overall service quality would enable organizations to
effectively design the service delivery process.
 QSR could collect customer feedback about the service they received in real
time; furthermore, they could trace the customers in accordance with their
evaluations, particularly those complaining about the service quality.
 Another proposed factor of customer satisfaction, perceived value, is not
significant in this study. This does not suggest perceived value is not
important for satisfaction. Rather, we believe that this characteristic is
relatively homogenous among the restaurants in this study and as a result
perceived value does not exhibit significant variation relative to the other
factors.
Five Dimensions of Service Quality:
1. Reliability - Ability to perform the promised service dependably and
accurately.
2. Assurance - Knowledge and courtesy of employees and their ability to inspire
trust and confidence.
3. Tangibles - Physical facilities, equipment, and appearance of personnel.
4. Empathy - Caring, individualized attention the firm provides its customers.
5. Responsiveness - Willingness to help customers and provide prompt
service.

7. Services Strategy Framework:
Make and serve the freshest, most delicious burgers and shakes quickly and
courteously in modern, well-merchandised stores with happy faces.
Service Blueprint:
Our Proposal:
We plan to open a restaurant that focuses on satisfying the customers’ need for a
quick nutritious bite in Noida, Sector 62 with a premises of 1100 sq. ft. with an initial
investment of Rs.60,00,000 (estimated) along with manpower of 15 employees
(approximately).

8. Seven P’s of Delight:
Product: Core product offering would be a variety of burgers, milkshakes, Mexican
rolls and finger foods like French fries, exotic continental salads. Our product line is
so framed that it suits our customer’s needs for western fast foods which nutritious,
fat-free and has a very subtle Indian flavour to it. The products would also be
customized with changing seasons and festivals.
Price: Our pricing is very competent as compared to our counterparts such as
McDonald’s, KFC etc. With the burgers and rolls being priced in the range of Rs. 30-
80 depending upon the type and blend of the filling .Shakes have a standard price of
Rs. 35 with a few comprising of more than one flavours like Cashew-chocolate blast,
almond-coffee flurry having a price of Rs.50 and finger foods having a price bracket
of Rs. 40-80.
Place: Initially we just plan to implement our operations in Sector-62 of Noida
because that area has a large number of potential customers being a hub for many
educational institutes and IT cyber parks consisting of companies like TCS, HCL,
Barclays, Tech Mahindra to name a few. Even the proximity to large housing
societies in the nearby areas would be of added advantage to the sale and popularity
of the restaurant.
Promotion: Our first and foremost step would be to exploit all the social media
handles with interactive pages on Facebook, Twitter, and Instagram, corporate
discounts, gift coupons, kid’s meal, special promotional events and sponsoring.
Attractive hoardings and banners would be placed at strategically chosen point of
sector 62 which could catch maximum attention during peak hours along with
personally distributed pamphlets in nearby areas.
People: Nearly 40% of our staff would comprise of especially abled (deaf and
dumb) people. They would be trained along with our normal operators in striving
hard at every step to satisfy the needs of the customers. Our employees are an
indispensable part of the Delight family, and it is our responsibility to help realize and
channel their productivity so that the customer leaves our doors with a smile.

9. Process: The process begins as soon as the customers enter our doors. It involves
both ordering on restaurant counter or on our application available for both google
play and IOS. The order along with the customer details when received and entered
in our ERP software would be systematically followed and converted and the billing
& payment process would be done simultaneously. We offer multiple payment
options ranging from E- wallets like Paytm, Free charge and also nearly all the Visa
and Debit cards. After the customer’s check-out, a feedback system comprising of a
free SMS to us rating or services would also be available. A mobile van would also
circulate in the nearby areas to deliver on spot hot food in late hours for people
working in night shifts.
Physical Evidence: Interactive signs on all the nearby crossroads would lead the
trail of an inquisitive and hungry customer to us to be welcomed by our restaurant
with its aura of light hues and dim lights contributing to the experience of the
customer. All the employees would be dressed in an identical outfit of a light blue
shirt with black trousers bearing the insignia of “Delight”. Our state of the art
furniture, seating area along with the latest cooking equipment used would depict the
quality we believe in.
S.T.P.
Segmentation: Basically our segmentation strategy involves 3 different types of
segmentation strategies-
1) Geographical Segmentation: Where we are just focusing on people in Noida
sector 62 and maybe some adjoining areas of sector 37, and Ghaziabad border.
2) Demographic Segmentation: People from age group 10-50 since everybody
loves fast-food from a kid to his grandmother with varying frequencies of intake
and middle to high level income groups.
3) Service Segmentation: a) eat in b) take out c) mobile vendors. We aim
to achieve all the above QSR service segments by developing a perfect blend of
services.

10. Targeting: We are targeting young teenagers and college students as our primary
market. Sector 62 has many spots to meet and hang out after school. Due to heavy
extra-curricular activities among Indian youth, it is common for high schoolers to
have lunch inside shopping malls, and not at home. They tend to flock around fast
food joints across the area.
Our second market segment is the "Working Professionals." With so many shopping
malls in the vicinity, this area is the heaven for shoppers and job seekers alike. For
example, in the Logix Cyber Park, there are more than 3500 workers currently
working as IT professionals and consulting staff. Third market segment are the
families living in the nearby housing societies of Indrapuram like Krishna Vristha
Society etc. who definitely need a change of taste from regular homemade recipes.
Positioning: “Live the experience as you dine”. This tagline reiterates our objective
of closing the gap between us and our customers. Our aim is not just to carve a
niche in the customer’s mind as a quick service restaurant synonymous to the likes
of KFC, Pizza hut etc. but to highlight the fine dining experience at the blink of an
eye. The first thing that comes to one’s mind when thinking about QSR is cluttered
restaurant with blustering crowd and cacophony all around. But we will be trying to
bring a change to this image by positioning ourselves as service providers where in
you enjoy the ambience as equally to the food. Extensive promotional activities on
social media and advertisements would help us to achieve that.
SWOT Analysis:
Strengths:
 Service style is new in the area
 Competitive prices compared to others
 Variety and uniqueness in offerings
Weakness:
 Our restaurant will be new and not established in the market
 Limited funds to invest in the new restaurant
 We are offering a product which is already available in the market

11. Opportunities: Noida Sector 62 being an urbanized sector will bring us lots of
opportunities-
 Increasing youth generation(15 to 35 years)
 Increasing middle class people
 Increasing IT hubs, schools & colleges, malls & multiplexes
 Increasing youth spending
Threats: Entering into food sector in an area which already has well established
local and popular QSRs bring us a number of threats to deal with-
 Food inflation
 Product imitation
 Price competition
 Local competition
Cost Analysis :
Expense overheads are shown in the table below
uniform expenses 25000
Furniture 643000
kitchen wares 300000
salaries 1332000
rent 1500000
miscellaneous 200000
delivery van 1000000
total annual expenses 5000000
total fixed cost 1943000
Assuming Rs. 10 margin per burger and sales = 2000 per month 240000
Assuming Rs.10 margin per shake and sales = 1500 per month 180000
Assuming Rs. 5 general margin on other items and sales of
1000 per month 60000

12. Assuming the 5% marginal growth in the sale each year, we are expecting to
achieve the break even in 3.87 years i.e. 3 years and 10 months.
Workforce:
Personnel Nos.
Head Chef 2
Co-helper 3
Counter-person 2
Waiter 2
Doorkeeper 1
Driver 2

13. DELIGHT
How Are We Doing?
We are committed to providing you with the best
experience possible, so we welcome your comments.
Please fill out this questionnaire and place it in the box
in our lobby. Thank you.
Please rate the quality of the service you received
from your host.
 1  2  3  4  5
Disappointing Exceptional
Please rate the quality of the service you received
from your server.
 1  2  3  4  5
Disappointing Exceptional
Was your server…
Courteous?  Yes |  No
Informative?  Yes |  No
Prompt and efficient?  Yes |  No
Please rate the quality of your entree.
 1  2  3  4  5
Disappointing Exceptional
Please rate the quality of your beverage.
 1  2  3  4  5
Disappointing Exceptional
Was our restaurant clean?
 1  2  3  4  5
Disappointing Exceptional
Please rate your overall experience.
 1  2  3  4  5
Disappointing Exceptional
How frequently do you visit our restaurant?
 3-5 times per month  1-2 times per month
 Once every 2 months  Other