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FAST FOOD INDUSTRY Introduction Fast food is the term given to food that can be
prepared and served very quickly . While any meal with low preparation time can
be considered to be fast food, ty pically the term refers to food sold in a
restaurant or store with low quality p reparation and served to the customer in
a packaged form for take-out/take-away. Outlets may be stands or kiosks, which
may provide no shelter or seating, or fa st food restaurants (also known as
quick service restaurants). Franchise operati ons which are part of restaurant
chains have standardized foodstuffs shipped to each restaurant from central
locations. The capital requirements involved in ope ning up a fast food
restaurant are relatively low. Restaurants with much higher sit-in ratios, where
customers tend to sit and have their orders brought to them in a seemingly more
upscale atmosphere may be known in some areas as fast casua l restaurants.
History The concept of ready-cooked food for sale is closely connected with
urban develo pment. In Ancient Rome cities had street stands that sold bread and
wine. A fixt ure of East Asian cities is the noodle shop. Flatbread and falafel
are today ubi quitous in the Middle East. Popular Indian fast food dishes
include vada pav, pa nipuri and dahi vada. In the French-speaking nations of
West Africa, roadside st ands in and around the larger cities continue to
sell as they have done for genera tions a range of ready-to-eat, chargrilled
meat sticks known locally as brochettes . The Start of Fast Food Culture
The concept of fast food pops up during 1920s.The 1950s first witnessed their ra
pid proliferation. Several factors that contributed to this explosive growth in
50 s were: (1) America s love affair with the automobiles. (2) The
construction of a major new highway system. (3) The development of sub-urban
communities. (4) The baby boom subsequent to world war second.  Fast-food
chains initially catered to automobile owners in suburbia. On the go Fast food
outlets are take-away or take-out providers, often with a "drivethroug h"
service which allows customers to order and pick up food from their cars; but
most also have a seating area in which customers can eat the food on the premis
es. People eat there more than five times a week and often, one or more of those
five times is at a fast food restaurant. Nearly from its inception, fast food h
as been designed to be eaten "on the go", often does not require traditional cut
lery, and is eaten as a finger food. Common menu items at fast food outlets incl
ude fish and chips, sandwiches, pitas, hamburgers, fried chicken, French fries,
chicken nuggets, tacos, pizza, hot dogs, and ice cream, although many fast food
restaurants offer "slower" foods like chili, mashed potatoes, and salads.
Variants Although fast food often brings to mind traditional American fast food
such as h amburgers and fries, there are many other forms of fast food that
enjoy widespre ad popularity in the West. Chinese takeaways/takeout restaurants
are particularl y popular. They normally offer a wide variety of Asian food
which has normally b een fried. Most options are some form of noodles, rice, or
meat.
Sushi has seen rapidly rising popularity in recent times. A form of fast food cr
eated in Japan. sushi is normally cold sticky rice served with raw fish.Pizza is
a common fast food category in the United States, with chains such as Domino s
Pizza, Sbarro and Pizza Hut. Menus are more limited and standardized than in tra
ditional pizzerias, and pizza delivery, often with a time commitment, is offered
. Fish and chip shops are a form of fast food popular in the United Kingdom, Aus
tralia and New Zealand. Fish is battered and then deep fried.The Dutch have thei
r own types of fast food. A Dutch fast food meal often consists of a portion of
French fries . Business In the United States alone, consumers spent about US$110
billion on fast food in 2000 (which increased from US$6 billion in 1970). The
National Restaurant Assoc iation forecasted that fast food restaurants in the
U.S. would reach US$142 bill ion in sales in 2006, a 5% increase over 2005. In
comparison, the full-service r estaurant segment of the food industry is
expected to generate $173 billion in s ales. Jobs and labor issues Today, more
than 10 million workers are employed in the areas of food preparatio n and food
servicing including fast food in the world. Employees are the backbon e of the
fast food industry. Proper training is crucial to the orderly and quick service
customers expect. Yet, employee turnover can be as high as 200% per yea r. With
such a turnover, owneroperators of franchise and non-franchise restauran ts have
the daunting task of constantly training an entirely new workforce. Poli cies
and procedures need to be explained to each new employee. Globalization
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In 2006, the global fast food market grew by 4.8% and reached a value of 102.4 b
illion and a volume of 80.3 billion transactions. In India alone the fast food i
ndustry is growing by 40% a year. McDonald s is located in 120 countries and on
6 continents and operates over 31,000 restaurants worldwide. KFC is located in 2
5 countries. Subway has 29,186 restaurants located in 86 countries, Pizza Hut is
located in 26 countries, Taco Bell has 278 restaurants located in 12 countries
besides the United States. Health issue Tran s fats which are commonly found
in fast food have been shown in many tests to have a negative health effect on
the body. The fast food consumption has been s hown to increase calorie intake,
promote weight gain, and elevate risk for diabe tes. The Centers for Disease
Control and Prevention ranked obesity as the number one health threat for
Americans in 2004. It is the second leading cause of prev entable death in the
United States and results in 400,000 deaths each year. FAST FOOD INDUSTRY IN
INDIA INDIA   EMERGING MARKET FOR GLOBAL PLAYERS The percentage share held by
foodservic e of total consumer expenditure on food has increased from a very low
base to st and at 2.6% in 2001. Eating at home remains very much ingrained in
Indian cultur e and changes in eating habits are very slow moving with barriers
to eating out entrenched in certain sectors of Indian society.. The growth in
nuclear families , particularly in urban India, exposure to global media and
Western cuisine and an increasing number of women joining the workforce have had
an impact on eating out trends. FACTS AND FIGURES
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Fast food is one of the world s largest growing food type. India s fast food
industr y is growing by 40% a year and is expected to generate a billion dollars
in sale s by 2005.The multinational segment of Indian fast food industry is up
to Rs. 6 billion, a figure expected to zoom to Rs.70 billion by 2005. By 2005,
the value of Indian dairy products is expected to be Rs.1, 00,000 million. In
last 6 years , foreign investment in this sector stood at Rs. 3600 million which
is about one -fourth of total investment made in this sector. Because of the
availability of raw material for fast food, Global chains are flooding into the
country. MARKET SIZE & MAJOR PLAYERS a) Dominated by McDonalds having as many as
75 outlets. b) Domino s pizza is present in around 100 locations. c) Pizza hut
is also catching u p and it has planned to establish 125 outlets at the end of
2005. d) Subways have established around 40 outlets. e) Nirulas is established
at Delh i and Noida only. However, it claims to cater 50,000 guests every day.
Major players in fast food are: • • MCDONALDS KFC PIZZA HUT DOMINOS PIZZA.
COFFEE DAY BARISTA. • • • • The main reason behind the success of the
multinational chains is their expertis e in product development, sourcing
practices, quality standards, service levels and standardized operating
procedures in their restaurants, a strength that they have developed over years
of experience around the world. The home grown chains have in the past few years
of competition with the MNCs, learnt a few things bu t there is still a lot of
scope for improvement. REASON FOR EMERGENCE
Gender Roles: gender roles are now changing. Females have started working outsid
e. So, they have no time for their home and cooking food. Fast food is an easy w
ay out because these can be prepared easily. Customer Sophistication and Confide
nce: consumers are becoming more sophisticated now. They do not want to prepare
food and spend their time and energy in house hold works. They are building thei
r confidence more on  ready to eat and easy to serve  kind of foods Paucity
of Time: people have no time for cooking. Because of emergence of working women
and also number of other entertainment items. Most of the time either people
work or wan t to enjoy with their family. Double Income Group: emergence of
double income gr oup leads to increase in disposable income. Now people have
more disposable inco me so they can spend easily in fast food and other
activities. Working Women: wo rking women have no time for cooking, and if they
have then also they don t want t o cook. Because they want to come out of the
traditionally defined gender roles. They do not want to confine themselves to
household work and upbringing of chil dren s. Large population: India being a
second largest country in terms of populat ion possesses large potential market
for all the products/services. This results into entry of large number of fast
food players in the country. Relaxation in r ules and regulations: with the
economic liberalization of 1991, most of the tari ff and non tariff barriers
from the Indian boundaries are either removed or mini mized. This helped
significantly the MNC s to enter in the country. Menu diversifi cation:
increase in consumption of pizzas, burgers and other type of fast foods.
CHALLENGES FOR THE INDUSTRY Social and cultural implications of Indians
switching to western breakfast food: Generally, Hindus avoid all foods that are
believed to inhibit physical and spi ritual development. Eating meat is not
explicitly prohibited, but many Hindus ar e vegetarian because they adhere to
the concept of ahimsa. Those seeking spiritu al unity may avoid garlic and
onions. The
concept of purity influences Hindu food practices. Products from cows (e.g., mil
k, yogurt, ghee-clarified butter) are considered pure. Pure foods can improve th
e purity of impure foods when they are prepared together. Some foods, such as be
ef or alcohol, are innately polluted and can never be made pure. But now, Indian
s are switching to fast food that contain all those things that are considered i
mpure or against there beliefs. Some traditional and fundamentalist are against
this transformation of food habit and number of times they provoke their counter
parts to revolt against such foods. And that is what happened when McDonald s
deci ded to enter the complexity of Indian business landscape, counting only on
its  fa st food global formula , without any apparent previous cultural
training. Emphasis on the usage of bio-degradable products: Glasses, silverware,
plates and cloth napkins are never provided with fast food. Instead, paper
plates and napkins, po lyurethane containers, plastic cups and tableware,
drinking cartons or PET (poly ethylene terephthalate) bottles are used, and
these are all disposable. Many of these items are tossed in the garbage instead
of being recycled, or even worse, merely thrown on the ground. This burdens
nature unnecessarily and squanders raw materials. In order to reduce soil and
water pollution, government now emphasis more on the usage of bio-degradable
products. Retrenchment of employees: Most o f new industries will be capital
intensive and may drive local competitors, whic h have more workers, out of
business. Profit repatriation: Repatriation of profi ts is another area of
concern for Indian economy. As when multinational enters t he any countries,
people and government hope that it will increase the employmen t rate and result
in economic growth. However, with the multinational operation, host country
experiences these benefits for a short time period. In long run ne ither
employment increases (because of capital intensive nature of MNC s) nor it i
ncreases the GDP or GNP because whatever MNC s earn they repatriate that
profit ba ck to their home country. PROBLEMS OF INDUSTRY
Environmental friendly products cost high: government is legislating laws in ord
er to keep check on the fast food industry and it is emphasizing more on the usa
ge of bio-degradable and environment friendly products. But associated with this
issue is the problem that fast food player faces - the cost associated with the
environment friendly product. They cost much higher than the normal products th
at companies uses for packaging or wrapping their products. Balance between soci
etal expectation and companies economic objectives: To balance a society s
expecta tion regarding environment with the economic burden of protecting the
environmen t. Thus, one can see that one side pushes for higher standards and
other side tr ies to beat the standard back, thereby making it a arm wrestling
and mind boggli ng exercise. Health related issues: obesity: I. Studies have
shown that a typical fast food has very high density and food with high density
causes people to eat more then they usually need.  II. Low calories food:
Emphasis is now more on low calorie food. In this line McDona ld has a plan to
introduce all white meat chicken Mcnuugget with less fat and fe wer calories.
TRENDS IN INDIAN MARKET Marketing to children s: fast food outlets in India targ
et children s as their major customers. They introduce varieties of things
that wi ll attract the children s attention and by targeting children s they
automatically t arget their parents because Children s are always accompanied
by their parents. Lo w level customer commitment: Because of the large number of
food retail outlets and also because of the tendency of customer to switch from
one product to other , this industry faces low level customer commitment.
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Value added technology services: There is continuous improvement in the technolo
gy as far as fast food market in India is considered. The reason behind that is
food is a perishable item and in order to ensure that it remain fresh for a long
er period of time. Earlier, Indian people prefer eating at home but now with the
change in trend there is also need for improvement and up gradation of technolo
gy in food sector. Attracting different segments of the market: Fast food outlet
s are introducing varieties of products in order to cater the demands of each an
d every segment of the market. They are introducing all categories of product so
that people of all age, sex, class, income group etc can come and become a cust
omer of their food line. The success of fast foods arose from the changes in our
living conditions: 1. Ma ny women or both parents now work 2. There are
increased numbers of single-paren t households 3. Long distances to school and
work are common 4. Usually, lunch t imes are short 5. There s often not enough
time or opportunity to shop carefully for groceries, or to cook and eat with one
s family. Especially on weekdays, fa st food outside the home is the only
solution. Kentucky Fried Chicken About the Company KFC Corporation, or KFC,
founded and also known as Kentucky Fried Chicken, is a chain of fast food
restaurants based in Louisville, Kentucky. KFC is a brand and operating segment,
called a "concept" of Yum! Brands since 1997 when that compa ny was spun off
from PepsiCo as Tricon
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Global Restaurants Inc. The restaurants are known as Poulet Frit Kentucky or PFK
in the province of Quebec in Canada. In France, however, the chain is known as
KFC. KFC primarily sells chicken in form of pieces, wraps, salads and sandwiches
. While its primary focus is fried chicken, KFC also offers a line of roasted ch
icken products, side dishes and desserts. Outside North America, KFC offers beef
based products such as hamburgers or kebabs, pork based products such as ribs a
nd other regional fare. The company was founded as Kentucky Fried Chicken by Col
onel Harland Sanders in 1952, though the idea of KFC s fried chicken actually go
es back to 1930. The company adopted the abbreviated form of its name in 1991. S
tarting in April 2007, the company began using its original name, Kentucky Fried
Chicken, for its signage, packaging and advertisements in the United States as
part of a new corporate rebranding program newer and remodeled restaurants will
have the new logo and name while older stores will continue to use the 1980s sig
nage. Additionally, Yum! Continues to use the abbreviated name freely in its adv
ertising. Products The famous paper bucket that KFC uses for its larger sized
orders of chicken and has come to signify the company was originally created by
Wendy s restaurants f ounder Dave Thomas. Thomas was originally a franchisee of
the original Kentucky Fried Chicken and operated several outlets in the
Columbus, Ohio area. His reaso ning behind using the paper packaging was that it
helped keep the chicken crispy by wicking away excess moisture. Thomas was also
responsible for the creation o f the famous rotating bucket sign that came to be
used at most KFC locations in the US. Menu items KFC s specialty is fried
chicken served in various forms. KFC s primary product is pressure-fried pieces
of chicken made with original recipe . The other chicken
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offering, extra crispy, is made using a garlic marinade and double dipping the c
hicken in flour before deep frying in a standard industrial kitchen type machine
. Kentucky Grilled Chicken - This marinated grilled chicken is targeted towards
health-conscious customers. It features marinated breasts, thighs, drumsticks, a
nd wings that are coated with the Original Recipe seasonings before being grille
d. It has less fat, calories, and sodium than the Original Recipe fried chicken.
Introduced in April 2009. Discontinued products The Colonel s Rotisserie Gold
  T his product was introduced in the 1990s as a response to the Boston Market
chain s roasted chicken products, and a healthier mindset of the general public
avoid ing fried food. Purportedly made from a "lost" Col. Sanders recipe, it was
sold as a whole roaster or a half bird.[28] Tender Roast Chicken   This
product was an off-shoot of The Colonel s Rotisserie Gold . Instead of whole and
half birds, c ustomers were given quarter roasted chicken pieces. For a time,
customers could request chicken "original", "Extra Tasty Crispy", or "Tender
Roast". Smokey Chip otle   Introduced in April 2008. The chicken was dipped in
chipotle sauce then dou bled breaded and fried. It has been discontinued since
August 2008. Nutritional value KFC formerly used partially hydrogenated oil in
its fried foods. This oil contai ns relatively high levels of trans fat, which
increases the risk of heart diseas e. The Center for Science in the Public
Interest (CSPI) filed a court case again st KFC, with the aim of making it use
other types of oils or make sure customers know about Trans fat content
immediately before they buy food. In October 2006, KFC announced that it would
begin frying its chicken in trans f at-free oil. This would also apply to their
potato wedges and other fried foods, however, the biscuits.
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Advertising One of KFC s latest advertisements is a commercial advertising its
"wicked crunc h box meal". The commercial features a fictional black metal band
called "Hellve tica" performing live, the lead singer then swallows fire. The
commercial then s hows the lead singer at a KFC eating the "wicked crunch box
meal" and saying "Oh man that is hot". In 2007, the original, non-acronymic
Kentucky Fried Chicken n ame was resurrected and began to reappear on company
marketing literature and fo od packaging, as well as some restaurant signage.
KFC Business Strategy KFC fast-food chains are currently under the restaurant
division of PepsiCo Inco rporated. Some major threats include the changing
attitudes of society toward he althier eating habits, KFC has more than 9,800
outlets located in 77 countries. In marketing, KFC restaurants are not
restricted from locating within close prox imity of other KFC restaurants. There
are two alternative strategies for KFC. Th e first strategy involves keeping
PepsiCo beverage division and snack foods divi sion together, and a divestiture
of PepsiCo restaurant division; selling Taco Be ll, Pizza Hut, and KFC. Present
Situation The organization is currently structur ed with two divisions under
PepsiCo. David Novak is president of KFC. John Hill is Chief Financial Officer
and Colin Moore is the head of Marketing. Peter Walle r is head of franchising
while Olden Lee is head of Human Resources. KFC is part of the two PepsiCo
divisions, which are PepsiCo Worldwide Restaurants and Pepsi Co
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Restaurants International. Both of these divisions of PepsiCo are based in Dalla
s. Strengths Strengths can be found internally in a company and can be used to
the company s ad vantage. The strengths identified are as follows: 1. KFC s
secret recipe. The se cret recipe has long been a source of advertising, and
allowed KFC to set itself apart. Also, KFC was the first chain to enter the
fast-food industry, just befo re McDonald s, which opened its first store a year
later, and the "secret recipe " was the initial home replacement strategy. 2.
Name recognition and reputation. KFC s early entrance into the fast-food indu
stry in 1954 allowed KFC to develop strong brand name recognition and a strong f
oothold in the industry. The Colonel is KFC s original owner and a very recogniz
able figure, both in the U.S. and internationally, in their new logo. In fact, i
n the fourth annual LogoValue Survey, done by The Schecter Group, the KFC logo w
as the only one which significantly enhance the brand s image . 3. PepsiCo s suc
cess with the management of fast food chains. PepsiCo acquired Pizza Hut in 1977
, and Taco Bell in 1978. PepsiCo used many of the same promotional strategies th
at it has used to market soft drinks and snack food. By the time PepsiCo bought
KFC in 1986, the company already dominated two of the four largest and fastest-g
rowing segments of the fast food industry. 4. Traditional employee loyalty.
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"KFC s culture was built largely on Colonel Sanders laid back approach to manag
ement" (Wright, p.433). Before the acquisition of KFC by PepsiCo, employees at K
FC enjoyed good benefits, a pension, and could receive help with other non-incom
e needs. This kind of "personal" human resources management makes for a loyal wo
rkforce. 5. Improving operating efficiencies by reducing overhead and other oper
ating costs can directly affect operating profit. Due to the strong competition
in the US, the fast-food chains are reluctant to raise prices to increase profit
. Many of the chains are turning to operating efficiencies to increase profit. F
or many companies, operating efficiencies are achieved through improvements in c
ustomer service, cleaner restaurants, faster and friendlier service, and continu
ed highquality products. Weaknesses Weaknesses are also found internally like
strengths. Weaknesses, however, can limit a company s potential. The
weaknesses for KFC are identified as follows: 1. The many sales of KFC lead to a
confusing corporate direction. Betw een 1971 and 1986, KFC was sold three times.
The first two sales, to Heublein, I nc and to R.J. Reynolds, left the company
largely autonomous. It wasn t until th e sale to PepsiCo in 1986 that changes in
top management started to take place. These changes happened almost immediately
after the sale. 2. KFC has a long time to market with new products. Because of
the nature of the chicken segment of th e fast food industry, innovation was
never a primary strategy for KFC. However, during the late 1980 s, other fast
food chains, such as McDonald s, began to off er chicken as a
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Menu option. During this time, McDonald s had already introduced the McChicken w
hile KFC was still testing its own chicken sandwich. This delay significantly in
creased the cost of developing consumer awareness for the KFC sandwich. 3. Confl
icting cultures of KFC and Pepsi Co. While KFC s culture was largely based on th
e Colonel s laid back approach to management, while PepsiCo s culture is more of
a "fast track" attitude. Employees do not have the same level of job security t
hat they enjoyed before the PepsiCo acquisition Problems Through an analysis of
the strengths, weaknesses, opportunities, and threats of KFC, the following pote
ntial problem areas were identified: 1. No defined target market. The
advertising campaign of KFC does not specifical ly appeal to any segment. It
does not appear to have a consistent long-term appr oach. The U.S. has enormous
changes in its demographics. Single-person household s have increased from 12%
in 1970 to 25% in 1995. With this kind of dramatic cha nge, KFC does not have a
proper approach to its target market. 2. Health Conscio us Consumers. There has
been a trend toward an increasingly healthy diet in Amer ica. This put KFC at an
extreme disadvantage due to its fried product offering. 3. Increased Start Up
Costs. Prime locations have increased in cost due to limit ed room for
expansion. New technology has increased efficiencies, but resulted i n greater
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increased start up costs. Restaurant and equipment packages range from $500,000
to $1,000,000. Achievements: KFC is one of the most renowned world gastronomic b
rand names. Kentucky Fried Chicken products are currently offered in 80 countrie
s worldwide and in more than 11,000 restaurants which are visited on a daily bas
is by almost 8 million customers. Globally, KFC employs approximately 290,000 pe
ople, Worldwide, a new KFC restaurant is opened almost every day. In 2004 the
 KFC Excellent  range - three types of salad (Caesar, Garden and Mandarin)
obtained th e prize for  Worldwide Best Practice Award 2004  in the category
of best product and best marketing campaign and its implementation in the
restaurants. This prize i s distributed each year by YUM Restaurants
International.According to the rating s for  Most expensive world brands
2004  conducted by the American weekly  Business We ek , KFC was
positioned 54th place; currently valued at 5.1 billion USD. DOMINO S SIZE OF
THE MARKET Domino s Pizza is one of the biggest and fastest growing inte
rnational food joints in South Asia. The very first Domino s Pizza outlet in Ind
ia opened in Jan, 1996 at New Delhi. Today, Domino s Pizza India has become a wi
de network of Pizza delivery and food chain. There are close to 220 outlets in 4
2 cities of India and the brand is the top most among the food delivery business
. Domino s Pizza outlets can be seen at major locations
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of Delhi and NCR. Their home delivery is free with a guarantee of  Thirty
Minutes Nahi to Free . Although they are expert in delivering Pizzas on time,
their eating joints and outlets are also good. We plan to have a total of 500
stores in 75-8 0 cities by 2010 to 2011. It would entail an investment of Rs 200
million during the period MARKET GROWTH During last four months, dominoes have
opened outlets in Jammu, Panipat, Surat, Baroda, Nashik, Trivandum, Meerut and
Patiala. While e arlier, 70 percent of our business used to be in metros and
mini-metros, now the ratio is 50:50 between big cities and smaller Tier II and
III cities. Domino s Pi zza is expanding its base in India by opening 500
outlets to add to its current tally of 156 outlets, across 50 cities in India by
2011 with an investment of Rs .1, 000 crore. MARKET STRATEGIES Promotional and
Advertisement Campaigns(Coupons and discounts) The 30 Minutes Promise Use of
Technology(Digital interactive T elevision, Internet on the PC, Mobile
telephony) Premium Pricing Strategy Indian fast food industry and entry of
multinational players Distribution strategies o f fast food chains in India
MARKET SHARE The organized pizza market in India is worth Rs.500 crore and
Domino s has a substantial 45% market share, and registered a healthy growth
of 60% over last year. The main target for new outlets shall b e metro cities
though Tier II cities would also receive a fair amount of attenti on. Currently
Domino s sells around 35,000 pizza every day, of which around 1% are given
free on account of its  30 minutes or free  model. 65
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percent of its revenue comes from home delivery service; around 35 percent is fr
om sales in premise. COMPETITORS Fast food is one of the world s fastest growing
food types. It now accounts for roughly half of all restaurant revenues in the
developed countries and continues to expand there and in many other industrial c
ountries in the coming years. But some of the most rapid growth is occurring in
the developing world; where it s radically changing the way people eat. People b
uy fast food because it s cheap, easy to prepare, and heavily promoted. This pap
er aims at providing information about fast food industry, its trend, reason for
its emergence and several other factors that are responsible for its growth. In
dia is a developing country with 2 percent of organized and 98 percent of unorga
nized sector. So most of the fast foods came into Indian market as India has a h
igh growth in every sector. Some of the competitors of domino s are McDonald s
za Hut Barista Coffee Day MC Donald s McDonald s is the leading global
foodservice retailer with more than 31,000 loca l restaurants serving more than
58 million people in 118
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countries each day. More than 75% of McDonald s restaurants worldwide are owned
and operated by independent local men and women. The strong foundation that he b
uilt continues today with McDonald s vision and the commitment of our talented e
xecutives to keep the shine on McDonald s Arches for years to come. To read more
about McDonald s history, vision and executives, click on their links in the le
ft menu. We drive our business momentum by focusing on what matters most to cust
omers. Our owner/operators, suppliers and employees work together to meet custom
er needs in uniquely McDonald s ways. The powerful combination of entrepreneuria
l spirit and System wide alignment around our Plan to Win enables us to execute
the best ideas with both large-scale efficiency and local flair. Products
McDonald s predominantly sells hamburgers, various types of chicken sandwiches a
nd products, French fries, soft drinks, breakfast items, and desserts. In most m
arkets, McDonald s offers salads and vegetarian items, wraps and other localized
fare. Portugal is the only country with McDonald s restaurants serving soup. Th
is local deviation from the standard menu is a characteristic for which the chai
n is particularly known, and one which is employed either to abide by regional f
ood taboos (such as the religious prohibition of beef consumption in India) or t
o make available foods with which the regional market is more familiar (such as
the sale of McRice in Indonesia). Advertising McDonald s has for decades
maintained an extensive advertising campaign. In addi tion to the usual media
(television, radio, and
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newspaper), the company makes significant use of billboards and signage, sponsor
s sporting events ranging from Little League to the Olympic Games, and makes coo
lers of orange drink with their logo available for local events of all kinds. No
netheless, television has always played a central role in the company s advertis
ing strategy. To date, McDonald s has used 23 different slogans in United States
advertising, as well as a few other slogans for select countries and regions. A
t times, it has run into trouble with its campaigns. BARISTA
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Barista coffee was establishes in 1999 with the aim of identifying growth opport
unities in the coffee business. Increasing disposable incomes and global trends
in coffee indicate immense growth potential in one particular segment. Barista C
offee is a chain of espresso bars in India. Headquartered in Delhi, Barista curr
ently has espresso bars across India, Sri Lanka and the Middle East. It was foun
ded in 1997 by Amit Judge and was part of his group of companies. He sold part o
f the equity to first Tata Coffee. Then after he and Tata Coffee fell apart, Ste
rling then bought over the firm. In 2007, Sterling divested all their stake to L
avazza. Barista Coffee Company is currently owned by Lavazza, Italy s largest
coff ee company At Barista Lavazza, we do all we can to make every guest feel
comfort able and welcome. We serve nothing but the finest Arabica coffees and
cuisine at great value prices. We have friendly and efficient brew masters who
believe in service with a smile. And provide a cheerful, interactive ambience
that makes gu ests wish their coffee breaks lasted just a little bit longer. To
share our cup of joy, we have always stuck to our Italian roots, guarding them
zealously to en sure that our espresso bars reflect the warmth and character of
traditional Ital ian coffee houses. And in the process, make Barista Lavazza the
place  where the w orld meets . Our aim is to passionately deliver the
highest levels of experiential services. Maintain consistency in serving the
highest quality products and beco me a globally competitive organization   one
that is driven by an insatiable thirs t for excellence.
CAFÀ COFFEE DAY Café Coffee Day is a chain of coffee shops in India having its
headquarters in Chi kkamagaluru, Karnataka. A division of Amalgamated Bean
Coffee Trading Company Lt d. (ABCTCL), it is commonly known as Coffee Day or
CCD. It opened its first cafe in 1996 on Brigade Road in Bangalore, and today
has the largest cafe retail cha in in India   with over 800 cafes in 112
cities. Large number of coffee day cafes are located in Bangalore. The cafe
chain has had much success riding, and to som e extent creating, the cafe
culture wave that swept across metropolitan India fo llowing strong economic
growth resulting in an increase in youth spending power. It has even tied up
with World Space and Micro sense to enable its cafes with s atellite radio and
Wi-Fi, respectively. Its first Wi-Fi cafe was opened on Lavel le Road,
Bangalore. Café Coffee Day sources coffee from 5000 acres of coffee estat es,
the second largest in Asia, that is owned by a sister concern and from 11,00 0
small growers. It is one of India s leading coffee exporters, with clients
acros s the USA, Middle East, Europe and Japan. With its roots in Chikmagalur,
the hom e to some of the best Indian coffees, Coffee Day has its business
spanning the e ntire value chain of coffee consumption in India. Its different
divisions includ e: Coffee Day Fresh n Ground (which owns 450 coffee bean and
powder retail out lets), Coffee Day Xpress (which owns 730 Coffee Day kiosks),
Coffee Day Takeaway (which owns 9000 vending machines), Coffee Day Exports and
Coffee Day Perfect ( FMCG Packaged Coffee) division. It is entering the European
market by opening tw o Cafés in Austria as well, making forays into Pakistan
and Germany to set up cafe s abroad. The strategy CCD has adapted is to place a
cafe in every possible loca tion where some business can be generated. So in
Bangalore, in the main shopping district, there are six outlets in a 2 km radius
and overall 120 cafes in Banga lore alone. Another model which CCD has adapted
is to be present in educational institutions and corporate campuses either in
the form of detailed cafes or its economical model of CCD express.
 Â
These innovative strategies have ensured that the competition is at bay and ensu
red CCD s dominance in the Indian market though many of its outlets are incurrin
g losses. Cafe Coffee Day competitors include but are not limited to • • •
• Barista Cafe Mocha Costa Coffee The Coffee Bean & Tea Leaf LITERATURE REVIEW
Â
Zenk, S. et al.  Neighborhood Racial Composition, Neighborhood Poverty and the
Spa tial Accessibility of Fast Food Stores in Metropolitan Detroit . American
Journal of Public (2005); 95(4). Abstract: Residential environment is clearly
related to health, specifically dietary health. In fact, many of the most
serious chronic illnesses in the United States are associated with dietary
deficiencies. Proper access to nutritious foods is essential to decreasing
dietary related chronic il lness. Supermarkets provide dietary health resources
through higher quality and lower costs of nutritious foods. This study examines
the spatial accessibility o f supermarkets for 869 neighborhoods within
Metropolitan Detroit with relation t o community s poverty and racial
composition. The percentage of residents below the poverty line serves as the
measure of neighborhood poverty for the study. Su permarkets are defined as
either a Supercenter such as Super Kmart or a full-lin e grocery store
associated with a national or regional grocery chain such as Kro ger. Spatial
accessibility is equivalent to a Manhattan block. The study found t hat the
distance to the nearest Supermarket increased with increasing levels of
neighborhood poverty. While the distance to the nearest Supermarket was similar
among the most impoverished neighborhoods, African American communities averaged
1.1 mile greater distance to the nearest supermarket than predominantly white n
eighborhoods. Relevant Data: Literature now associates residence in economically
disadvantaged neighborhoods, after controlling for socioeconomic status, with a
variety of adverse diet-related health outcomes. Disparities in Supermarket acc
essibility on the basis of race were evident among the most impoverished neighbo
rhoods: the most impoverished neighborhoods, in which African-Americans resided,
were on average were 1.1 miles farther from the nearest supermarket than the mo
st impoverished white neighborhoods. Mean distance to the nearest supermarket in
creased with each successive tertile of percentage poor for neighborhoods with a
high proportion of
Â
African Americans but remained approximately the same across all tertiles of per
centage poor for neighborhoods with a low proportion of African Americans (predo
minantly white) . Inadequate accessibility to supermarkets may contribute to les
s nutritious diets and hence to greater risk for chronic diet related disease. A
ffordable public transportation needs to be improved integrating transportation
routes with supermarket locations . Powell, Lisa M. et al.  Food store
availabilit y and neighborhood characteristics in the United States . American
lifestyle(2007 Mar); 44(3):189-195. Abstract: A 2006 study of the United States
linked zip code s to census data, finding various statistics about the
availability of grocery s tores in accordance to neighborhood descriptions and
demographics. There are dis tinct disparities between the access of blacks,
whites and Hispanics to supermar kets, with a definite correlation in location,
socioeconomic status, and race. R elevant Data: Low-income neighborhoods have
fewer chain supermarkets with only 7 5% (p < 0.01) of that available in middle-
income neighborhoods . Even after cont rolling for income and other covariates,
the availability of chain supermarkets in African American neighborhoods is only
52% (p < 0.01) of that in White neighb orhoods with even less relative
availability in urban areas . Hispanic neighborh oods have only 32% (p < 0.01)
as many chain supermarkets compared to non-Hispani c neighborhoods. Larger sized
food stores such as supermarkets versus smaller st ores and chain versus non-
chain supermarkets have been shown to be more likely t o stock healthful foods
and to offer foods at a lower cost. Furthermore, given t hat low-income
populations are less likely to have private means of transportati on and given
that the nature of food shopping involves either transporting multi ple shopping
bags or making
more frequent shopping trips, the mobility strategies for food shopping among lo
w-income families will exacerbate the barriers to a limited number of available
local area supermarkets, in particular chain supermarkets. Indeed, several studi
es have highlighted the mobility constraints faced by low-income households in t
heir daily activities including food shopping . A recent report finds that Afric
an Americans prefer to shop in chain supermarkets and that one of the key factor
s that influence these shoppers is transportation and location. Proximity is imp
ortant 37% of African American shoppers travel one mile or less to their
primary g rocery store . Grengs, Joe.  Does Public Transit Counteract the
Segregation of Car less Households? Measuring Spatial Patterns of
Accessibility . Transportation Rese arch Board of the National Academies
(2007); Abstract: This study researched Geo graphic Information Systems,
technology that measures transit use on smaller sca les, to address the problem
of urban populations that depend on public transport ation but have a lack of
access to their everyday needs, including food. Relevan t Data/Quotations: The
analysis finds that over 7,500 households, representing 1 2 percent of New York
City s households, do not have reasonable access to superm arkets. The study
provides statistically significant evidence that poor accessib ility is
associated both with with low-income neighborhoods high populations and of with
African neighborhoods Americans. Service Quality: An investigation into
Malaysian Fast food consumers using DINES ERV Keang Meng Tang, University of
Newcastle Ursula Bougoure, Queensland Univers ity of Technology
disproportionately As noted by Doran (2002), it is imperative that we seek to
examine commonly acce pted, western-based marketing theory in the context of
Â
different countries to see whether such concepts explain the same phenomena in c
onsumers from different countries. Whilst extensive research has been conducted
on service quality over the past two decades (e.g. Bitner, 1990; Cronin and Tayl
or, 1992, Parasuraman, Zeithaml and Berry, 1988), relatively little attention ha
s been paid to issues surrounding service quality in non-western countries, like
the Asian region and in particular, Malaysia. Of the knowledge gained in the se
rvice quality literature, the work of Parasuraman, Zeithaml and Berry (1988) pro
vides an approach to defining and measuring service quality, known as SERVQUAL.
Incorporating five service quality dimensions of tangibles, reliability, respons
iveness, assurance and empathy, SERVQUAL has been well utilised within the liter
ature. This being said however, it is important to note that SERVQUAL has been f
ound to possess certain limitations, particularly when applied across different
service industries (eg: Babakus and Boller, 1992; Schneider and White, 2004). Fo
r example, DINESERV for restaurants was developed by Stevens, Knutson and Patton
(1995), in response to findings that SERVQUAL was inadequate for the
 unique  resta urant environment (Dube, Renaghan and Miller, 1994). Prior
research suggests tha t not all service quality elements (within tools such as
SERVQUAL, DINESERV) are able to predict a consumer s overall service quality
perceptions or (OSQ) (Oliva, Oliver and MacMillan, 1992). Therefore, it is
important to identify the importa nce of service quality and its dimensions in
determining overall service quality (OSQ), as perceived by customers. By
addressing this issue, firms can gain an u nderstanding of the areas they should
concentrate on when seeking to improve the ir overall service quality provisions
(Oliva, Oliver and MacMillan, 1992). In th e context of the fast food industry,
it appears likely that service quality dime nsions from DINESERV will positively
effect overall service quality (OSQ) percep tions by Malaysian consumers. Thus,
H1: Service quality (DINESERV) will positive ly effect Overall Service Quality
perceptions (OSQ) for Malaysian fast food cons umers.
Customer satisfaction has long been recognised as a process (Oliver, 1981) and i
s the difference between consumers  perceived and expected performance of a
produc t or service. In other words, customer satisfaction occurs when
performance is h igher than expected, while dissatisfaction occurs when
performance is lower than expected. Overall, to gain customer satisfaction, some
argue that organisations need to exceed predictive expectations of customers,
rather than just satisfy e xpectations (Spreng and Mackoy, 1996). Service
quality and customer satisfaction are inarguably fundamental concepts within
services marketing theory (Spreng an d Mackoy, 1996) and their relationship has
seen increasing research interest ove r the years (Bitner, 1990; Dabholkar,
1995; Spreng and Taylor, 1997; Mohsin, 200 3). While it is generally accepted
that a positive relationship exists between s ervice quality and customer
satisfaction, there is debate (Shemwell, Yavas and B ilgin, 1998) with proposals
of a causal link from customer satisfaction to servi ce quality (Bitner, 1990),
service quality to customer satisfaction (Bolton and Drew, 1991; Spreng and
Mackoy, 1996; Parasuraman, Zeithaml and Berry, 1994); sug gestions that
directionality varies according to the service situation (Dabholka r 1995) and
even that there is no relationship under particular circumstances (P arasuraman,
Zeithaml and Berry, 1985). Such contention within the literature has lead to
repeated calls for further examination of this relationship (e.g. Rust and
Oliver, 1994; Anderson and Fornell, 1994). In the case of fast food, however ,
it seems likely that high service quality will lead to increased satisfaction
for consumers. Thus, H2: Service quality (DINESERV) will positively effect custo
mer satisfaction for Malaysian fast food consumers. Intention to repurchase is a
n individual s judgment about re-buying a designated service, taking into
account their current situation and likely circumstances (Hellier et al., 2003).
Within the literature, repurchase behaviour is seen as a form of loyalty, which
accordi ng to Law, Hui and Zhao, (2004) and Oliver (1997) is a deeply held
commitment to consistently repatronise a service in the future. Repurchase
intentions
have a powerful effect on potential business profit with some reports arguing as
much as 95 percent of profit arises from repeat purchases (Hoffman et al.,
2003 ). As such, loyal customers are valuable marketing tools, telling friends
and fa milies of their positive experiences and creating new business and
increased rev enue for successful service organisations. Service quality is tied
to desirable business outcomes, such as customer loyalty, which ultimately lead
to increased profits (Schneider and White, 2004). As argued by Rust, Zahorik and
Keiningham ( 1995), service quality generates consumer intention to return,
which can transla te into actual behaviours that may lead to increased revenues
and profits. In th e extant literature however, there are mixed findings as to
the relationship bet ween overall service quality and behaviors that are
indicative of customer loyal ty. For example, while Boulding et al (1993) and
Rust and Zahorik (1993) provide empirical support that higher perceptions of
service quality increases loyalty intention, Cronin and Taylor (1992) found that
overall service quality did not e ffect repurchase intentions. Overall however,
results tend to support this relat ionship and it seems likely that this will be
the case for Malaysian consumers o f the fast food industry. Thus, H3: Overall
service quality (OSQ) will positivel y effect repurchase intentions for
Malaysian fast food consumers. According to S chneider and White (2004),
satisfied customers most likely will become loyal whi ch can then translate into
higher profits organizations. As such, the relationsh ip between customer
satisfaction and repurchase intentions has been examined wit h results implying
that satisfied customers are more likely to intend to repurch ase (Taylor and
Baker, 1994; Patterson and Spreng, 1997). According to such find ings, it
appears likely that this will also be the case for Malaysian consumers in the
fast food industry. Thus, H4: Customer satisfaction will positively effec t
repurchase intentions for Malaysian fast food consumers.
Sample and Research design A descriptive research design was adopted to do the
survey with the help of the questionnaire. The study used non probability
convenience sampling. The methodol ogy of study is the interview method survey.
The study is completely based on th e primary data which is collected from
different Fast food stores and the sample size taken for study is 100 people.
Tools and Methods of Data Collection: The interview is conducted for about 15
minutes with each person and collected t he data. The tool for the collection of
data is a questionnaire. The questionnai re has 15 questions. Data Processing
and Analysis: The data processing consists of coding the data collected in the
form of questio nnaire. The data collected with the help of questionnaire is
having the closed r eplies. One open ended replies have been taken for that if
any problems they are facing and for the close ended the replies are measured
using scales. ANALYSIS & INTERPRETATION 1) VISIT
Frequency Daily Weekly Fortnightly Monthly Total 14 38 19 9 100 visit 40 35 30
25 20 15 10 5 0 Daily Weekly Fortnightly Monthly 14 9 19 38 Interpretation:From
the above table and graph, it says that majority of the cust omers visit the
fast food retail store weekly (i.e. 38%) and minority of them (1 9%) visit
fortnightly 2) PRICE RANGE
Range 100-200 200-500 Above 500 Total Frequency 24 60 16 100 price range 70 60
50 40 30 20 10 0 100-200 200-500 Above 500 Interpretation:From the above table
and graph, it says that majority of the cust omers are willing to spend money of
price range 200-500 (i.e. 60%) and minority of them says that they will spend
money of price range 100-200 (i.e. 24%) in the fast food retail store 3)
Preference Frequency Brand image 21
Easy accessibility Special offer Total 29 50 100 preference of store 60 50 40 30
20 10 0 Brand image Easy accessibility Special offer Interpretation:From the
above table and graph, it says that majority of the customers (i.e. 50% ) prefer
special offers in the store and minority of them (i.e. 29%) prefer easy
accessibility 4) Visiting hours Frequency
Morning Afternoon Evening Total 40 29 31 100 45 40 35 30 25 20 15 10 5 0 Morning
Afternoon Evening Interpretation:From the above table and graph it says that
majority of the custo mers are willing (i.e. 40% ) to visit the store on morning
session and minority of them (i.e.31% ) of them visit the store on evening
session 5) Preference of store due to friendliness of staff Response Strongly
disagree Disagree Frequency 2 5
Neutral Agree Strongly agree Total 44 40 9 100 50 45 40 35 30 25 20 15 10 5 0
Strongly agree Disagree Neutral Agree Strongly ag ree Interpretation:From the
above table and graph it says that majority of the customers (i.e. 44%) of them
are neutral to prefer the store for friendliness of staff and minority of them
(i.e. 40% ) of them agree that they will prefer the store for friendline ss of
staff 6) Preference of store due the variety of menu available in the store
Response Strongly Disagree Disagree Frequency 5 15
Neutral Agree Strongly agree Total 100 21 39 15 preference due to variety of
menu 45 40 35 30 25 20 15 10 5 0 Strongly agree Disagree Neutral Agree Strongly
agree Interpretation From the above table and graph it says that majority of the
custo mers ( i.e. 39%) of them agree that they will prefer the store due to the
variet y of menu and minority of them (i.e. 21% ) of them neutral about the
variety of menu in the store 7) Preference of store due the service speed
Response Strongly disagree Disagree Neutral Agree Strongly agree Frequency 5 20
39 15 20
Total 100 preference due to service speed 45 40 35 30 25 20 15 10 5 0 Strongly
agree Disagree Neutral Agree Strongly agree Interpretation:From the above table
and graph it says that majority of the custo mers (i.e. 39%) are neutral about
the preference of store due to service speed a nd minority of them are disagree
that (i.e. 20%) of them prefer the store due to service speed 8) Preference of
store due to good calorie content exist in the food Response Strongly disagree
Disagree Neutral Agree Strongly agree Frequency 9 33 19 31 20
Total 100 preference for calorie content 35 30 25 20 15 10 5 0 Strongly agree
Disagree Neutral Agree Strongly agree Interpretation:From the above table and
graph it says that majority of the custo mers (i.e. 33%) of them disagree that
they will prefer the store due to the calo rie content in the food and minority
of them (i.e. 31%) agree that they will pre fer the store due to the calorie
content in the food 9) Preference of store due to the cleanliness and store
atmosphere Response Strongly disagree Disagree Neutral Agree Strongly agree
Total Frequency 2 7 25 40 26 100
preference due to ambience 45 40 35 30 25 20 15 10 5 0 Strongly disagree
Disagree Neutral Agree Strongly ag ree Interpretation: From the above table and
graph it says that majority of the cust omers (i.e. 40% ) of them agree that
they will prefer the store for ambience pro vided in the store 10) Preference
store due the delivery speed offer by the store Response Strongly disagree
Disagree Neutral Agree Strongly agree Total Frequency 4 20 15 41 20 100
preference due to delivary speed 45 40 35 30 25 20 15 10 5 0 Strongly disagree
Disagree Neutral Agree Strongly ag ree Interpretation:From the above table and
graph it says that majority of the custo mers (i.e. 41%) of them prefer the
store due to delivery speed that is offered 11) Satisfaction with the menu offer
for my family Response Strongly disagree Disagree Neutral Agree Strongly agree
Total Frequency 7 16 34 35 6 100
preference of menu for my family 40 35 30 25 20 15 10 5 0 Strongly disagree
Disagree Neutral Agree Strongly agree Interpretation:From the above table and
graph it says that majority of the custo mers (i.e. 35% ) of them agree that
they are satisfied with the menu that was of fered in the fast food store and
followed by some of them are neutral about the menu for their family 12)
Preference of store due to facilities offered Response Strongly disagree
Disagree Neutral Agree Strongly agree Total Frequency 11 20 41 14 14 100
preference due to facilites 45 40 35 30 25 20 15 10 5 0 Strongly disagree
Disagree Neutral Agree Strongly ag ree Interpretation:From the above table and
graph it says that majority of the custo mers (i.e. 41% ) of them says that they
are neutral about preferring the store d ue to the facilities 13) Preference of
store due to easy accessibility and locational advantage Response Strongly
disagree Disagree Neutral Agree Strongly agree Total Frequency 4 18 15 45 15 100
50 45 40 35 30 25 20 15 10 5 0 Strongly disagree Disagree Neutral Agree Strongly
agree Interpretation:From the above table and graph it says that majority of the
custo mers (i.e. 45%) of them agree that they will prefer the store due to easy
access ibility and locational advantage 14) advertising strategy Response
Strongly disagree Disagree Neutral Agree Strongly agree Total Frequency 9 20 33
28 10 100
35 30 25 20 15 10 5 0 Strongly disagree Disagree Neutral Agree Strongly agree
Interpretation:From the above table and graph it says that majority of the custo
mers (i.e. 33%) of them are neutral about the advertising strategy provided by t
he store and followed by that customers agree the store for the advertising stra
tegy 15) preference of store due to special offer and discounts Response
Strongly disagree Disagree Neutral Agree Strongly agree Total Frequency 4 20 15
41 20 100
45 40 35 30 25 20 15 10 5 0 Strongly disagree Disagree Neutral Agree Strongly ag
ree Interpretation:From the above table and graph it says that majority of the
custo mers (i.e. 41% ) agree that they will prefer the store because of special
offers and discounts. Major Findings • This study indicates that majority of
the customers visit the fast food retail s tore weekly (i.e. 38%) and minority
of them (19%) visit fortnightly • This study indicates that majority of the
customers are willing to spend money o f price range 200-500 (i.e. 60%) and
minority of them says that they will spend money of price range 100-200 (i.e.
24%) in the fast food retail store • This study indicates that majority of the
customers (i.e. 50%) prefer special of fers in the store and minority of them
(i.e. 29%) prefer easy accessibility • This study indicates that majority of
the customers (i.e. 44%) of them are neutr al to prefer the store for
friendliness of staff and minority of them (i.e. 40% ) of them agree that they
will prefer the store for friendliness of staff
• This study indicates that majority of the customers ( i.e. 39%) of them
agree th at they will prefer the store due to the variety of menu and minority
of them (i .e. 21% ) of them neutral about the variety of menu in the store •
This study indicates that majority of the customers (i.e. 33%) of them disagree
that they will prefer the store due to the calorie content in the food and minor
ity of them (i.e. 31%) agree that they will prefer the store due to the calorie
content in the food • This study says that majority of the customers (i.e. 40%
) of them agree that th ey will prefer the store for ambience provided in the
store • This study says that majority of the customers (i.e. 35% ) of them
agree that th ey are satisfied with the menu that was offered in the fast food
store and follo wed by some of them are neutral about the menu for their family
• This study indicates that majority of the customers (i.e. 45%) of them agree
tha t they will prefer the store due to easy accessibility and locational
advantage • This study indicates that majority of the customers (i.e. 33%) of
them are neutr al about the advertising strategy provided by the store and
followed by that cus tomers agree the store for the advertising strategy •
This study indicates that majority of the customers (i.e. 41% ) agree that they
will prefer the store because of special offers and discounts. Major
suggestions: As majority of customers (38 percent) visit the store weekly
especially weekends . So it is suggest to stores give special offers and
discounts to capture more c ustomers and retain loyal customers. As study refers
more customers are looking for the special offers ,so it suggest stores to more
concentrate on the special offers but no compromise in the quality of food. It
is found that majority of cu stomers are not fully satisfied with the
friendliness of staff. So it is suggest that the stores should conduct soft
skill training and make them give more customer service .Regular monitoring of t
he staff behavior towards customers is also suggest here. Customers are happy wi
th the MENU verities available in the stores .But it is suggested that add more
customized menu and review the menu for every 3 months. As study shows that cust
omers are not aware of the calorie contents exist in the food. So it is suggest
that stores should display the calorie contents available in a particular food.
It is suggest the stores to concentrate on the areas of ambience and locational
strategy. Advertising strategy of the stores are not making attention the custom
ers .So it is suggest the stores to think of the design of different innovative
advertising campaigns.
119575608 19018679-fast-food-industry-in-india-a-study
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119575608 19018679-fast-food-industry-in-india-a-study

  • 1. Homework Help https://www.homeworkping.com/ Research Paper help https://www.homeworkping.com/ Online Tutoring https://www.homeworkping.com/ click here for freelancing tutoring sites FAST FOOD INDUSTRY Introduction Fast food is the term given to food that can be prepared and served very quickly . While any meal with low preparation time can be considered to be fast food, ty pically the term refers to food sold in a restaurant or store with low quality p reparation and served to the customer in a packaged form for take-out/take-away. Outlets may be stands or kiosks, which may provide no shelter or seating, or fa st food restaurants (also known as quick service restaurants). Franchise operati ons which are part of restaurant chains have standardized foodstuffs shipped to each restaurant from central locations. The capital requirements involved in ope ning up a fast food restaurant are relatively low. Restaurants with much higher sit-in ratios, where customers tend to sit and have their orders brought to them in a seemingly more upscale atmosphere may be known in some areas as fast casua l restaurants. History The concept of ready-cooked food for sale is closely connected with urban develo pment. In Ancient Rome cities had street stands that sold bread and wine. A fixt ure of East Asian cities is the noodle shop. Flatbread and falafel are today ubi quitous in the Middle East. Popular Indian fast food dishes include vada pav, pa nipuri and dahi vada. In the French-speaking nations of West Africa, roadside st ands in and around the larger cities continue to sell as they have done for genera tions a range of ready-to-eat, chargrilled meat sticks known locally as brochettes . The Start of Fast Food Culture
  • 2. The concept of fast food pops up during 1920s.The 1950s first witnessed their ra pid proliferation. Several factors that contributed to this explosive growth in 50 s were: (1) America s love affair with the automobiles. (2) The construction of a major new highway system. (3) The development of sub-urban communities. (4) The baby boom subsequent to world war second.  Fast-food chains initially catered to automobile owners in suburbia. On the go Fast food outlets are take-away or take-out providers, often with a "drivethroug h" service which allows customers to order and pick up food from their cars; but most also have a seating area in which customers can eat the food on the premis es. People eat there more than five times a week and often, one or more of those five times is at a fast food restaurant. Nearly from its inception, fast food h as been designed to be eaten "on the go", often does not require traditional cut lery, and is eaten as a finger food. Common menu items at fast food outlets incl ude fish and chips, sandwiches, pitas, hamburgers, fried chicken, French fries, chicken nuggets, tacos, pizza, hot dogs, and ice cream, although many fast food restaurants offer "slower" foods like chili, mashed potatoes, and salads. Variants Although fast food often brings to mind traditional American fast food such as h amburgers and fries, there are many other forms of fast food that enjoy widespre ad popularity in the West. Chinese takeaways/takeout restaurants are particularl y popular. They normally offer a wide variety of Asian food which has normally b een fried. Most options are some form of noodles, rice, or meat.
  • 3. Sushi has seen rapidly rising popularity in recent times. A form of fast food cr eated in Japan. sushi is normally cold sticky rice served with raw fish.Pizza is a common fast food category in the United States, with chains such as Domino s Pizza, Sbarro and Pizza Hut. Menus are more limited and standardized than in tra ditional pizzerias, and pizza delivery, often with a time commitment, is offered . Fish and chip shops are a form of fast food popular in the United Kingdom, Aus tralia and New Zealand. Fish is battered and then deep fried.The Dutch have thei r own types of fast food. A Dutch fast food meal often consists of a portion of French fries . Business In the United States alone, consumers spent about US$110 billion on fast food in 2000 (which increased from US$6 billion in 1970). The National Restaurant Assoc iation forecasted that fast food restaurants in the U.S. would reach US$142 bill ion in sales in 2006, a 5% increase over 2005. In comparison, the full-service r estaurant segment of the food industry is expected to generate $173 billion in s ales. Jobs and labor issues Today, more than 10 million workers are employed in the areas of food preparatio n and food servicing including fast food in the world. Employees are the backbon e of the fast food industry. Proper training is crucial to the orderly and quick service customers expect. Yet, employee turnover can be as high as 200% per yea r. With such a turnover, owneroperators of franchise and non-franchise restauran ts have the daunting task of constantly training an entirely new workforce. Poli cies and procedures need to be explained to each new employee. Globalization Â
  • 4. In 2006, the global fast food market grew by 4.8% and reached a value of 102.4 b illion and a volume of 80.3 billion transactions. In India alone the fast food i ndustry is growing by 40% a year. McDonald s is located in 120 countries and on 6 continents and operates over 31,000 restaurants worldwide. KFC is located in 2 5 countries. Subway has 29,186 restaurants located in 86 countries, Pizza Hut is located in 26 countries, Taco Bell has 278 restaurants located in 12 countries besides the United States. Health issue Tran s fats which are commonly found in fast food have been shown in many tests to have a negative health effect on the body. The fast food consumption has been s hown to increase calorie intake, promote weight gain, and elevate risk for diabe tes. The Centers for Disease Control and Prevention ranked obesity as the number one health threat for Americans in 2004. It is the second leading cause of prev entable death in the United States and results in 400,000 deaths each year. FAST FOOD INDUSTRY IN INDIA INDIA   EMERGING MARKET FOR GLOBAL PLAYERS The percentage share held by foodservic e of total consumer expenditure on food has increased from a very low base to st and at 2.6% in 2001. Eating at home remains very much ingrained in Indian cultur e and changes in eating habits are very slow moving with barriers to eating out entrenched in certain sectors of Indian society.. The growth in nuclear families , particularly in urban India, exposure to global media and Western cuisine and an increasing number of women joining the workforce have had an impact on eating out trends. FACTS AND FIGURES Â
  • 5. Fast food is one of the world s largest growing food type. India s fast food industr y is growing by 40% a year and is expected to generate a billion dollars in sale s by 2005.The multinational segment of Indian fast food industry is up to Rs. 6 billion, a figure expected to zoom to Rs.70 billion by 2005. By 2005, the value of Indian dairy products is expected to be Rs.1, 00,000 million. In last 6 years , foreign investment in this sector stood at Rs. 3600 million which is about one -fourth of total investment made in this sector. Because of the availability of raw material for fast food, Global chains are flooding into the country. MARKET SIZE & MAJOR PLAYERS a) Dominated by McDonalds having as many as 75 outlets. b) Domino s pizza is present in around 100 locations. c) Pizza hut is also catching u p and it has planned to establish 125 outlets at the end of 2005. d) Subways have established around 40 outlets. e) Nirulas is established at Delh i and Noida only. However, it claims to cater 50,000 guests every day. Major players in fast food are: • • MCDONALDS KFC PIZZA HUT DOMINOS PIZZA. COFFEE DAY BARISTA. • • • • The main reason behind the success of the multinational chains is their expertis e in product development, sourcing practices, quality standards, service levels and standardized operating procedures in their restaurants, a strength that they have developed over years of experience around the world. The home grown chains have in the past few years of competition with the MNCs, learnt a few things bu t there is still a lot of scope for improvement. REASON FOR EMERGENCE
  • 6. Gender Roles: gender roles are now changing. Females have started working outsid e. So, they have no time for their home and cooking food. Fast food is an easy w ay out because these can be prepared easily. Customer Sophistication and Confide nce: consumers are becoming more sophisticated now. They do not want to prepare food and spend their time and energy in house hold works. They are building thei r confidence more on  ready to eat and easy to serve  kind of foods Paucity of Time: people have no time for cooking. Because of emergence of working women and also number of other entertainment items. Most of the time either people work or wan t to enjoy with their family. Double Income Group: emergence of double income gr oup leads to increase in disposable income. Now people have more disposable inco me so they can spend easily in fast food and other activities. Working Women: wo rking women have no time for cooking, and if they have then also they don t want t o cook. Because they want to come out of the traditionally defined gender roles. They do not want to confine themselves to household work and upbringing of chil dren s. Large population: India being a second largest country in terms of populat ion possesses large potential market for all the products/services. This results into entry of large number of fast food players in the country. Relaxation in r ules and regulations: with the economic liberalization of 1991, most of the tari ff and non tariff barriers from the Indian boundaries are either removed or mini mized. This helped significantly the MNC s to enter in the country. Menu diversifi cation: increase in consumption of pizzas, burgers and other type of fast foods. CHALLENGES FOR THE INDUSTRY Social and cultural implications of Indians switching to western breakfast food: Generally, Hindus avoid all foods that are believed to inhibit physical and spi ritual development. Eating meat is not explicitly prohibited, but many Hindus ar e vegetarian because they adhere to the concept of ahimsa. Those seeking spiritu al unity may avoid garlic and onions. The
  • 7. concept of purity influences Hindu food practices. Products from cows (e.g., mil k, yogurt, ghee-clarified butter) are considered pure. Pure foods can improve th e purity of impure foods when they are prepared together. Some foods, such as be ef or alcohol, are innately polluted and can never be made pure. But now, Indian s are switching to fast food that contain all those things that are considered i mpure or against there beliefs. Some traditional and fundamentalist are against this transformation of food habit and number of times they provoke their counter parts to revolt against such foods. And that is what happened when McDonald s deci ded to enter the complexity of Indian business landscape, counting only on its  fa st food global formula , without any apparent previous cultural training. Emphasis on the usage of bio-degradable products: Glasses, silverware, plates and cloth napkins are never provided with fast food. Instead, paper plates and napkins, po lyurethane containers, plastic cups and tableware, drinking cartons or PET (poly ethylene terephthalate) bottles are used, and these are all disposable. Many of these items are tossed in the garbage instead of being recycled, or even worse, merely thrown on the ground. This burdens nature unnecessarily and squanders raw materials. In order to reduce soil and water pollution, government now emphasis more on the usage of bio-degradable products. Retrenchment of employees: Most o f new industries will be capital intensive and may drive local competitors, whic h have more workers, out of business. Profit repatriation: Repatriation of profi ts is another area of concern for Indian economy. As when multinational enters t he any countries, people and government hope that it will increase the employmen t rate and result in economic growth. However, with the multinational operation, host country experiences these benefits for a short time period. In long run ne ither employment increases (because of capital intensive nature of MNC s) nor it i ncreases the GDP or GNP because whatever MNC s earn they repatriate that profit ba ck to their home country. PROBLEMS OF INDUSTRY
  • 8. Environmental friendly products cost high: government is legislating laws in ord er to keep check on the fast food industry and it is emphasizing more on the usa ge of bio-degradable and environment friendly products. But associated with this issue is the problem that fast food player faces - the cost associated with the environment friendly product. They cost much higher than the normal products th at companies uses for packaging or wrapping their products. Balance between soci etal expectation and companies economic objectives: To balance a society s expecta tion regarding environment with the economic burden of protecting the environmen t. Thus, one can see that one side pushes for higher standards and other side tr ies to beat the standard back, thereby making it a arm wrestling and mind boggli ng exercise. Health related issues: obesity: I. Studies have shown that a typical fast food has very high density and food with high density causes people to eat more then they usually need. II. Low calories food: Emphasis is now more on low calorie food. In this line McDona ld has a plan to introduce all white meat chicken Mcnuugget with less fat and fe wer calories. TRENDS IN INDIAN MARKET Marketing to children s: fast food outlets in India targ et children s as their major customers. They introduce varieties of things that wi ll attract the children s attention and by targeting children s they automatically t arget their parents because Children s are always accompanied by their parents. Lo w level customer commitment: Because of the large number of food retail outlets and also because of the tendency of customer to switch from one product to other , this industry faces low level customer commitment. Â
  • 9. Value added technology services: There is continuous improvement in the technolo gy as far as fast food market in India is considered. The reason behind that is food is a perishable item and in order to ensure that it remain fresh for a long er period of time. Earlier, Indian people prefer eating at home but now with the change in trend there is also need for improvement and up gradation of technolo gy in food sector. Attracting different segments of the market: Fast food outlet s are introducing varieties of products in order to cater the demands of each an d every segment of the market. They are introducing all categories of product so that people of all age, sex, class, income group etc can come and become a cust omer of their food line. The success of fast foods arose from the changes in our living conditions: 1. Ma ny women or both parents now work 2. There are increased numbers of single-paren t households 3. Long distances to school and work are common 4. Usually, lunch t imes are short 5. There s often not enough time or opportunity to shop carefully for groceries, or to cook and eat with one s family. Especially on weekdays, fa st food outside the home is the only solution. Kentucky Fried Chicken About the Company KFC Corporation, or KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky. KFC is a brand and operating segment, called a "concept" of Yum! Brands since 1997 when that compa ny was spun off from PepsiCo as Tricon  Â
  • 10. Global Restaurants Inc. The restaurants are known as Poulet Frit Kentucky or PFK in the province of Quebec in Canada. In France, however, the chain is known as KFC. KFC primarily sells chicken in form of pieces, wraps, salads and sandwiches . While its primary focus is fried chicken, KFC also offers a line of roasted ch icken products, side dishes and desserts. Outside North America, KFC offers beef based products such as hamburgers or kebabs, pork based products such as ribs a nd other regional fare. The company was founded as Kentucky Fried Chicken by Col onel Harland Sanders in 1952, though the idea of KFC s fried chicken actually go es back to 1930. The company adopted the abbreviated form of its name in 1991. S tarting in April 2007, the company began using its original name, Kentucky Fried Chicken, for its signage, packaging and advertisements in the United States as part of a new corporate rebranding program newer and remodeled restaurants will have the new logo and name while older stores will continue to use the 1980s sig nage. Additionally, Yum! Continues to use the abbreviated name freely in its adv ertising. Products The famous paper bucket that KFC uses for its larger sized orders of chicken and has come to signify the company was originally created by Wendy s restaurants f ounder Dave Thomas. Thomas was originally a franchisee of the original Kentucky Fried Chicken and operated several outlets in the Columbus, Ohio area. His reaso ning behind using the paper packaging was that it helped keep the chicken crispy by wicking away excess moisture. Thomas was also responsible for the creation o f the famous rotating bucket sign that came to be used at most KFC locations in the US. Menu items KFC s specialty is fried chicken served in various forms. KFC s primary product is pressure-fried pieces of chicken made with original recipe . The other chicken    Â
  • 11. offering, extra crispy, is made using a garlic marinade and double dipping the c hicken in flour before deep frying in a standard industrial kitchen type machine . Kentucky Grilled Chicken - This marinated grilled chicken is targeted towards health-conscious customers. It features marinated breasts, thighs, drumsticks, a nd wings that are coated with the Original Recipe seasonings before being grille d. It has less fat, calories, and sodium than the Original Recipe fried chicken. Introduced in April 2009. Discontinued products The Colonel s Rotisserie Gold   T his product was introduced in the 1990s as a response to the Boston Market chain s roasted chicken products, and a healthier mindset of the general public avoid ing fried food. Purportedly made from a "lost" Col. Sanders recipe, it was sold as a whole roaster or a half bird.[28] Tender Roast Chicken   This product was an off-shoot of The Colonel s Rotisserie Gold . Instead of whole and half birds, c ustomers were given quarter roasted chicken pieces. For a time, customers could request chicken "original", "Extra Tasty Crispy", or "Tender Roast". Smokey Chip otle   Introduced in April 2008. The chicken was dipped in chipotle sauce then dou bled breaded and fried. It has been discontinued since August 2008. Nutritional value KFC formerly used partially hydrogenated oil in its fried foods. This oil contai ns relatively high levels of trans fat, which increases the risk of heart diseas e. The Center for Science in the Public Interest (CSPI) filed a court case again st KFC, with the aim of making it use other types of oils or make sure customers know about Trans fat content immediately before they buy food. In October 2006, KFC announced that it would begin frying its chicken in trans f at-free oil. This would also apply to their potato wedges and other fried foods, however, the biscuits.     Â
  • 12. Advertising One of KFC s latest advertisements is a commercial advertising its "wicked crunc h box meal". The commercial features a fictional black metal band called "Hellve tica" performing live, the lead singer then swallows fire. The commercial then s hows the lead singer at a KFC eating the "wicked crunch box meal" and saying "Oh man that is hot". In 2007, the original, non-acronymic Kentucky Fried Chicken n ame was resurrected and began to reappear on company marketing literature and fo od packaging, as well as some restaurant signage. KFC Business Strategy KFC fast-food chains are currently under the restaurant division of PepsiCo Inco rporated. Some major threats include the changing attitudes of society toward he althier eating habits, KFC has more than 9,800 outlets located in 77 countries. In marketing, KFC restaurants are not restricted from locating within close prox imity of other KFC restaurants. There are two alternative strategies for KFC. Th e first strategy involves keeping PepsiCo beverage division and snack foods divi sion together, and a divestiture of PepsiCo restaurant division; selling Taco Be ll, Pizza Hut, and KFC. Present Situation The organization is currently structur ed with two divisions under PepsiCo. David Novak is president of KFC. John Hill is Chief Financial Officer and Colin Moore is the head of Marketing. Peter Walle r is head of franchising while Olden Lee is head of Human Resources. KFC is part of the two PepsiCo divisions, which are PepsiCo Worldwide Restaurants and Pepsi Co Â
  • 13. Restaurants International. Both of these divisions of PepsiCo are based in Dalla s. Strengths Strengths can be found internally in a company and can be used to the company s ad vantage. The strengths identified are as follows: 1. KFC s secret recipe. The se cret recipe has long been a source of advertising, and allowed KFC to set itself apart. Also, KFC was the first chain to enter the fast-food industry, just befo re McDonald s, which opened its first store a year later, and the "secret recipe " was the initial home replacement strategy. 2. Name recognition and reputation. KFC s early entrance into the fast-food indu stry in 1954 allowed KFC to develop strong brand name recognition and a strong f oothold in the industry. The Colonel is KFC s original owner and a very recogniz able figure, both in the U.S. and internationally, in their new logo. In fact, i n the fourth annual LogoValue Survey, done by The Schecter Group, the KFC logo w as the only one which significantly enhance the brand s image . 3. PepsiCo s suc cess with the management of fast food chains. PepsiCo acquired Pizza Hut in 1977 , and Taco Bell in 1978. PepsiCo used many of the same promotional strategies th at it has used to market soft drinks and snack food. By the time PepsiCo bought KFC in 1986, the company already dominated two of the four largest and fastest-g rowing segments of the fast food industry. 4. Traditional employee loyalty.      Â
  • 14. "KFC s culture was built largely on Colonel Sanders laid back approach to manag ement" (Wright, p.433). Before the acquisition of KFC by PepsiCo, employees at K FC enjoyed good benefits, a pension, and could receive help with other non-incom e needs. This kind of "personal" human resources management makes for a loyal wo rkforce. 5. Improving operating efficiencies by reducing overhead and other oper ating costs can directly affect operating profit. Due to the strong competition in the US, the fast-food chains are reluctant to raise prices to increase profit . Many of the chains are turning to operating efficiencies to increase profit. F or many companies, operating efficiencies are achieved through improvements in c ustomer service, cleaner restaurants, faster and friendlier service, and continu ed highquality products. Weaknesses Weaknesses are also found internally like strengths. Weaknesses, however, can limit a company s potential. The weaknesses for KFC are identified as follows: 1. The many sales of KFC lead to a confusing corporate direction. Betw een 1971 and 1986, KFC was sold three times. The first two sales, to Heublein, I nc and to R.J. Reynolds, left the company largely autonomous. It wasn t until th e sale to PepsiCo in 1986 that changes in top management started to take place. These changes happened almost immediately after the sale. 2. KFC has a long time to market with new products. Because of the nature of the chicken segment of th e fast food industry, innovation was never a primary strategy for KFC. However, during the late 1980 s, other fast food chains, such as McDonald s, began to off er chicken as a     Â
  • 15. Menu option. During this time, McDonald s had already introduced the McChicken w hile KFC was still testing its own chicken sandwich. This delay significantly in creased the cost of developing consumer awareness for the KFC sandwich. 3. Confl icting cultures of KFC and Pepsi Co. While KFC s culture was largely based on th e Colonel s laid back approach to management, while PepsiCo s culture is more of a "fast track" attitude. Employees do not have the same level of job security t hat they enjoyed before the PepsiCo acquisition Problems Through an analysis of the strengths, weaknesses, opportunities, and threats of KFC, the following pote ntial problem areas were identified: 1. No defined target market. The advertising campaign of KFC does not specifical ly appeal to any segment. It does not appear to have a consistent long-term appr oach. The U.S. has enormous changes in its demographics. Single-person household s have increased from 12% in 1970 to 25% in 1995. With this kind of dramatic cha nge, KFC does not have a proper approach to its target market. 2. Health Conscio us Consumers. There has been a trend toward an increasingly healthy diet in Amer ica. This put KFC at an extreme disadvantage due to its fried product offering. 3. Increased Start Up Costs. Prime locations have increased in cost due to limit ed room for expansion. New technology has increased efficiencies, but resulted i n greater    Â
  • 16. increased start up costs. Restaurant and equipment packages range from $500,000 to $1,000,000. Achievements: KFC is one of the most renowned world gastronomic b rand names. Kentucky Fried Chicken products are currently offered in 80 countrie s worldwide and in more than 11,000 restaurants which are visited on a daily bas is by almost 8 million customers. Globally, KFC employs approximately 290,000 pe ople, Worldwide, a new KFC restaurant is opened almost every day. In 2004 the  KFC Excellent  range - three types of salad (Caesar, Garden and Mandarin) obtained th e prize for  Worldwide Best Practice Award 2004  in the category of best product and best marketing campaign and its implementation in the restaurants. This prize i s distributed each year by YUM Restaurants International.According to the rating s for  Most expensive world brands 2004  conducted by the American weekly  Business We ek , KFC was positioned 54th place; currently valued at 5.1 billion USD. DOMINO S SIZE OF THE MARKET Domino s Pizza is one of the biggest and fastest growing inte rnational food joints in South Asia. The very first Domino s Pizza outlet in Ind ia opened in Jan, 1996 at New Delhi. Today, Domino s Pizza India has become a wi de network of Pizza delivery and food chain. There are close to 220 outlets in 4 2 cities of India and the brand is the top most among the food delivery business . Domino s Pizza outlets can be seen at major locations   Â
  • 17. of Delhi and NCR. Their home delivery is free with a guarantee of  Thirty Minutes Nahi to Free . Although they are expert in delivering Pizzas on time, their eating joints and outlets are also good. We plan to have a total of 500 stores in 75-8 0 cities by 2010 to 2011. It would entail an investment of Rs 200 million during the period MARKET GROWTH During last four months, dominoes have opened outlets in Jammu, Panipat, Surat, Baroda, Nashik, Trivandum, Meerut and Patiala. While e arlier, 70 percent of our business used to be in metros and mini-metros, now the ratio is 50:50 between big cities and smaller Tier II and III cities. Domino s Pi zza is expanding its base in India by opening 500 outlets to add to its current tally of 156 outlets, across 50 cities in India by 2011 with an investment of Rs .1, 000 crore. MARKET STRATEGIES Promotional and Advertisement Campaigns(Coupons and discounts) The 30 Minutes Promise Use of Technology(Digital interactive T elevision, Internet on the PC, Mobile telephony) Premium Pricing Strategy Indian fast food industry and entry of multinational players Distribution strategies o f fast food chains in India MARKET SHARE The organized pizza market in India is worth Rs.500 crore and Domino s has a substantial 45% market share, and registered a healthy growth of 60% over last year. The main target for new outlets shall b e metro cities though Tier II cities would also receive a fair amount of attenti on. Currently Domino s sells around 35,000 pizza every day, of which around 1% are given free on account of its  30 minutes or free  model. 65  Â
  • 18. percent of its revenue comes from home delivery service; around 35 percent is fr om sales in premise. COMPETITORS Fast food is one of the world s fastest growing food types. It now accounts for roughly half of all restaurant revenues in the developed countries and continues to expand there and in many other industrial c ountries in the coming years. But some of the most rapid growth is occurring in the developing world; where it s radically changing the way people eat. People b uy fast food because it s cheap, easy to prepare, and heavily promoted. This pap er aims at providing information about fast food industry, its trend, reason for its emergence and several other factors that are responsible for its growth. In dia is a developing country with 2 percent of organized and 98 percent of unorga nized sector. So most of the fast foods came into Indian market as India has a h igh growth in every sector. Some of the competitors of domino s are McDonald s za Hut Barista Coffee Day MC Donald s McDonald s is the leading global foodservice retailer with more than 31,000 loca l restaurants serving more than 58 million people in 118     Piz Â
  • 19. countries each day. More than 75% of McDonald s restaurants worldwide are owned and operated by independent local men and women. The strong foundation that he b uilt continues today with McDonald s vision and the commitment of our talented e xecutives to keep the shine on McDonald s Arches for years to come. To read more about McDonald s history, vision and executives, click on their links in the le ft menu. We drive our business momentum by focusing on what matters most to cust omers. Our owner/operators, suppliers and employees work together to meet custom er needs in uniquely McDonald s ways. The powerful combination of entrepreneuria l spirit and System wide alignment around our Plan to Win enables us to execute the best ideas with both large-scale efficiency and local flair. Products McDonald s predominantly sells hamburgers, various types of chicken sandwiches a nd products, French fries, soft drinks, breakfast items, and desserts. In most m arkets, McDonald s offers salads and vegetarian items, wraps and other localized fare. Portugal is the only country with McDonald s restaurants serving soup. Th is local deviation from the standard menu is a characteristic for which the chai n is particularly known, and one which is employed either to abide by regional f ood taboos (such as the religious prohibition of beef consumption in India) or t o make available foods with which the regional market is more familiar (such as the sale of McRice in Indonesia). Advertising McDonald s has for decades maintained an extensive advertising campaign. In addi tion to the usual media (television, radio, and         Â
  • 20. newspaper), the company makes significant use of billboards and signage, sponsor s sporting events ranging from Little League to the Olympic Games, and makes coo lers of orange drink with their logo available for local events of all kinds. No netheless, television has always played a central role in the company s advertis ing strategy. To date, McDonald s has used 23 different slogans in United States advertising, as well as a few other slogans for select countries and regions. A t times, it has run into trouble with its campaigns. BARISTA Â Â
  • 21. Barista coffee was establishes in 1999 with the aim of identifying growth opport unities in the coffee business. Increasing disposable incomes and global trends in coffee indicate immense growth potential in one particular segment. Barista C offee is a chain of espresso bars in India. Headquartered in Delhi, Barista curr ently has espresso bars across India, Sri Lanka and the Middle East. It was foun ded in 1997 by Amit Judge and was part of his group of companies. He sold part o f the equity to first Tata Coffee. Then after he and Tata Coffee fell apart, Ste rling then bought over the firm. In 2007, Sterling divested all their stake to L avazza. Barista Coffee Company is currently owned by Lavazza, Italy s largest coff ee company At Barista Lavazza, we do all we can to make every guest feel comfort able and welcome. We serve nothing but the finest Arabica coffees and cuisine at great value prices. We have friendly and efficient brew masters who believe in service with a smile. And provide a cheerful, interactive ambience that makes gu ests wish their coffee breaks lasted just a little bit longer. To share our cup of joy, we have always stuck to our Italian roots, guarding them zealously to en sure that our espresso bars reflect the warmth and character of traditional Ital ian coffee houses. And in the process, make Barista Lavazza the place  where the w orld meets . Our aim is to passionately deliver the highest levels of experiential services. Maintain consistency in serving the highest quality products and beco me a globally competitive organization   one that is driven by an insatiable thirs t for excellence.
  • 22. CAFÀ COFFEE DAY Café Coffee Day is a chain of coffee shops in India having its headquarters in Chi kkamagaluru, Karnataka. A division of Amalgamated Bean Coffee Trading Company Lt d. (ABCTCL), it is commonly known as Coffee Day or CCD. It opened its first cafe in 1996 on Brigade Road in Bangalore, and today has the largest cafe retail cha in in India   with over 800 cafes in 112 cities. Large number of coffee day cafes are located in Bangalore. The cafe chain has had much success riding, and to som e extent creating, the cafe culture wave that swept across metropolitan India fo llowing strong economic growth resulting in an increase in youth spending power. It has even tied up with World Space and Micro sense to enable its cafes with s atellite radio and Wi-Fi, respectively. Its first Wi-Fi cafe was opened on Lavel le Road, Bangalore. Café Coffee Day sources coffee from 5000 acres of coffee estat es, the second largest in Asia, that is owned by a sister concern and from 11,00 0 small growers. It is one of India s leading coffee exporters, with clients acros s the USA, Middle East, Europe and Japan. With its roots in Chikmagalur, the hom e to some of the best Indian coffees, Coffee Day has its business spanning the e ntire value chain of coffee consumption in India. Its different divisions includ e: Coffee Day Fresh n Ground (which owns 450 coffee bean and powder retail out lets), Coffee Day Xpress (which owns 730 Coffee Day kiosks), Coffee Day Takeaway (which owns 9000 vending machines), Coffee Day Exports and Coffee Day Perfect ( FMCG Packaged Coffee) division. It is entering the European market by opening tw o Cafés in Austria as well, making forays into Pakistan and Germany to set up cafe s abroad. The strategy CCD has adapted is to place a cafe in every possible loca tion where some business can be generated. So in Bangalore, in the main shopping district, there are six outlets in a 2 km radius and overall 120 cafes in Banga lore alone. Another model which CCD has adapted is to be present in educational institutions and corporate campuses either in the form of detailed cafes or its economical model of CCD express.  Â
  • 23. These innovative strategies have ensured that the competition is at bay and ensu red CCD s dominance in the Indian market though many of its outlets are incurrin g losses. Cafe Coffee Day competitors include but are not limited to • • • • Barista Cafe Mocha Costa Coffee The Coffee Bean & Tea Leaf LITERATURE REVIEW Â
  • 24. Zenk, S. et al.  Neighborhood Racial Composition, Neighborhood Poverty and the Spa tial Accessibility of Fast Food Stores in Metropolitan Detroit . American Journal of Public (2005); 95(4). Abstract: Residential environment is clearly related to health, specifically dietary health. In fact, many of the most serious chronic illnesses in the United States are associated with dietary deficiencies. Proper access to nutritious foods is essential to decreasing dietary related chronic il lness. Supermarkets provide dietary health resources through higher quality and lower costs of nutritious foods. This study examines the spatial accessibility o f supermarkets for 869 neighborhoods within Metropolitan Detroit with relation t o community s poverty and racial composition. The percentage of residents below the poverty line serves as the measure of neighborhood poverty for the study. Su permarkets are defined as either a Supercenter such as Super Kmart or a full-lin e grocery store associated with a national or regional grocery chain such as Kro ger. Spatial accessibility is equivalent to a Manhattan block. The study found t hat the distance to the nearest Supermarket increased with increasing levels of neighborhood poverty. While the distance to the nearest Supermarket was similar among the most impoverished neighborhoods, African American communities averaged 1.1 mile greater distance to the nearest supermarket than predominantly white n eighborhoods. Relevant Data: Literature now associates residence in economically disadvantaged neighborhoods, after controlling for socioeconomic status, with a variety of adverse diet-related health outcomes. Disparities in Supermarket acc essibility on the basis of race were evident among the most impoverished neighbo rhoods: the most impoverished neighborhoods, in which African-Americans resided, were on average were 1.1 miles farther from the nearest supermarket than the mo st impoverished white neighborhoods. Mean distance to the nearest supermarket in creased with each successive tertile of percentage poor for neighborhoods with a high proportion of Â
  • 25. African Americans but remained approximately the same across all tertiles of per centage poor for neighborhoods with a low proportion of African Americans (predo minantly white) . Inadequate accessibility to supermarkets may contribute to les s nutritious diets and hence to greater risk for chronic diet related disease. A ffordable public transportation needs to be improved integrating transportation routes with supermarket locations . Powell, Lisa M. et al.  Food store availabilit y and neighborhood characteristics in the United States . American lifestyle(2007 Mar); 44(3):189-195. Abstract: A 2006 study of the United States linked zip code s to census data, finding various statistics about the availability of grocery s tores in accordance to neighborhood descriptions and demographics. There are dis tinct disparities between the access of blacks, whites and Hispanics to supermar kets, with a definite correlation in location, socioeconomic status, and race. R elevant Data: Low-income neighborhoods have fewer chain supermarkets with only 7 5% (p < 0.01) of that available in middle- income neighborhoods . Even after cont rolling for income and other covariates, the availability of chain supermarkets in African American neighborhoods is only 52% (p < 0.01) of that in White neighb orhoods with even less relative availability in urban areas . Hispanic neighborh oods have only 32% (p < 0.01) as many chain supermarkets compared to non-Hispani c neighborhoods. Larger sized food stores such as supermarkets versus smaller st ores and chain versus non- chain supermarkets have been shown to be more likely t o stock healthful foods and to offer foods at a lower cost. Furthermore, given t hat low-income populations are less likely to have private means of transportati on and given that the nature of food shopping involves either transporting multi ple shopping bags or making
  • 26. more frequent shopping trips, the mobility strategies for food shopping among lo w-income families will exacerbate the barriers to a limited number of available local area supermarkets, in particular chain supermarkets. Indeed, several studi es have highlighted the mobility constraints faced by low-income households in t heir daily activities including food shopping . A recent report finds that Afric an Americans prefer to shop in chain supermarkets and that one of the key factor s that influence these shoppers is transportation and location. Proximity is imp ortant 37% of African American shoppers travel one mile or less to their primary g rocery store . Grengs, Joe.  Does Public Transit Counteract the Segregation of Car less Households? Measuring Spatial Patterns of Accessibility . Transportation Rese arch Board of the National Academies (2007); Abstract: This study researched Geo graphic Information Systems, technology that measures transit use on smaller sca les, to address the problem of urban populations that depend on public transport ation but have a lack of access to their everyday needs, including food. Relevan t Data/Quotations: The analysis finds that over 7,500 households, representing 1 2 percent of New York City s households, do not have reasonable access to superm arkets. The study provides statistically significant evidence that poor accessib ility is associated both with with low-income neighborhoods high populations and of with African neighborhoods Americans. Service Quality: An investigation into Malaysian Fast food consumers using DINES ERV Keang Meng Tang, University of Newcastle Ursula Bougoure, Queensland Univers ity of Technology disproportionately As noted by Doran (2002), it is imperative that we seek to examine commonly acce pted, western-based marketing theory in the context of Â
  • 27. different countries to see whether such concepts explain the same phenomena in c onsumers from different countries. Whilst extensive research has been conducted on service quality over the past two decades (e.g. Bitner, 1990; Cronin and Tayl or, 1992, Parasuraman, Zeithaml and Berry, 1988), relatively little attention ha s been paid to issues surrounding service quality in non-western countries, like the Asian region and in particular, Malaysia. Of the knowledge gained in the se rvice quality literature, the work of Parasuraman, Zeithaml and Berry (1988) pro vides an approach to defining and measuring service quality, known as SERVQUAL. Incorporating five service quality dimensions of tangibles, reliability, respons iveness, assurance and empathy, SERVQUAL has been well utilised within the liter ature. This being said however, it is important to note that SERVQUAL has been f ound to possess certain limitations, particularly when applied across different service industries (eg: Babakus and Boller, 1992; Schneider and White, 2004). Fo r example, DINESERV for restaurants was developed by Stevens, Knutson and Patton (1995), in response to findings that SERVQUAL was inadequate for the  unique  resta urant environment (Dube, Renaghan and Miller, 1994). Prior research suggests tha t not all service quality elements (within tools such as SERVQUAL, DINESERV) are able to predict a consumer s overall service quality perceptions or (OSQ) (Oliva, Oliver and MacMillan, 1992). Therefore, it is important to identify the importa nce of service quality and its dimensions in determining overall service quality (OSQ), as perceived by customers. By addressing this issue, firms can gain an u nderstanding of the areas they should concentrate on when seeking to improve the ir overall service quality provisions (Oliva, Oliver and MacMillan, 1992). In th e context of the fast food industry, it appears likely that service quality dime nsions from DINESERV will positively effect overall service quality (OSQ) percep tions by Malaysian consumers. Thus, H1: Service quality (DINESERV) will positive ly effect Overall Service Quality perceptions (OSQ) for Malaysian fast food cons umers.
  • 28. Customer satisfaction has long been recognised as a process (Oliver, 1981) and i s the difference between consumers  perceived and expected performance of a produc t or service. In other words, customer satisfaction occurs when performance is h igher than expected, while dissatisfaction occurs when performance is lower than expected. Overall, to gain customer satisfaction, some argue that organisations need to exceed predictive expectations of customers, rather than just satisfy e xpectations (Spreng and Mackoy, 1996). Service quality and customer satisfaction are inarguably fundamental concepts within services marketing theory (Spreng an d Mackoy, 1996) and their relationship has seen increasing research interest ove r the years (Bitner, 1990; Dabholkar, 1995; Spreng and Taylor, 1997; Mohsin, 200 3). While it is generally accepted that a positive relationship exists between s ervice quality and customer satisfaction, there is debate (Shemwell, Yavas and B ilgin, 1998) with proposals of a causal link from customer satisfaction to servi ce quality (Bitner, 1990), service quality to customer satisfaction (Bolton and Drew, 1991; Spreng and Mackoy, 1996; Parasuraman, Zeithaml and Berry, 1994); sug gestions that directionality varies according to the service situation (Dabholka r 1995) and even that there is no relationship under particular circumstances (P arasuraman, Zeithaml and Berry, 1985). Such contention within the literature has lead to repeated calls for further examination of this relationship (e.g. Rust and Oliver, 1994; Anderson and Fornell, 1994). In the case of fast food, however , it seems likely that high service quality will lead to increased satisfaction for consumers. Thus, H2: Service quality (DINESERV) will positively effect custo mer satisfaction for Malaysian fast food consumers. Intention to repurchase is a n individual s judgment about re-buying a designated service, taking into account their current situation and likely circumstances (Hellier et al., 2003). Within the literature, repurchase behaviour is seen as a form of loyalty, which accordi ng to Law, Hui and Zhao, (2004) and Oliver (1997) is a deeply held commitment to consistently repatronise a service in the future. Repurchase intentions
  • 29. have a powerful effect on potential business profit with some reports arguing as much as 95 percent of profit arises from repeat purchases (Hoffman et al., 2003 ). As such, loyal customers are valuable marketing tools, telling friends and fa milies of their positive experiences and creating new business and increased rev enue for successful service organisations. Service quality is tied to desirable business outcomes, such as customer loyalty, which ultimately lead to increased profits (Schneider and White, 2004). As argued by Rust, Zahorik and Keiningham ( 1995), service quality generates consumer intention to return, which can transla te into actual behaviours that may lead to increased revenues and profits. In th e extant literature however, there are mixed findings as to the relationship bet ween overall service quality and behaviors that are indicative of customer loyal ty. For example, while Boulding et al (1993) and Rust and Zahorik (1993) provide empirical support that higher perceptions of service quality increases loyalty intention, Cronin and Taylor (1992) found that overall service quality did not e ffect repurchase intentions. Overall however, results tend to support this relat ionship and it seems likely that this will be the case for Malaysian consumers o f the fast food industry. Thus, H3: Overall service quality (OSQ) will positivel y effect repurchase intentions for Malaysian fast food consumers. According to S chneider and White (2004), satisfied customers most likely will become loyal whi ch can then translate into higher profits organizations. As such, the relationsh ip between customer satisfaction and repurchase intentions has been examined wit h results implying that satisfied customers are more likely to intend to repurch ase (Taylor and Baker, 1994; Patterson and Spreng, 1997). According to such find ings, it appears likely that this will also be the case for Malaysian consumers in the fast food industry. Thus, H4: Customer satisfaction will positively effec t repurchase intentions for Malaysian fast food consumers.
  • 30. Sample and Research design A descriptive research design was adopted to do the survey with the help of the questionnaire. The study used non probability convenience sampling. The methodol ogy of study is the interview method survey. The study is completely based on th e primary data which is collected from different Fast food stores and the sample size taken for study is 100 people. Tools and Methods of Data Collection: The interview is conducted for about 15 minutes with each person and collected t he data. The tool for the collection of data is a questionnaire. The questionnai re has 15 questions. Data Processing and Analysis: The data processing consists of coding the data collected in the form of questio nnaire. The data collected with the help of questionnaire is having the closed r eplies. One open ended replies have been taken for that if any problems they are facing and for the close ended the replies are measured using scales. ANALYSIS & INTERPRETATION 1) VISIT
  • 31. Frequency Daily Weekly Fortnightly Monthly Total 14 38 19 9 100 visit 40 35 30 25 20 15 10 5 0 Daily Weekly Fortnightly Monthly 14 9 19 38 Interpretation:From the above table and graph, it says that majority of the cust omers visit the fast food retail store weekly (i.e. 38%) and minority of them (1 9%) visit fortnightly 2) PRICE RANGE
  • 32. Range 100-200 200-500 Above 500 Total Frequency 24 60 16 100 price range 70 60 50 40 30 20 10 0 100-200 200-500 Above 500 Interpretation:From the above table and graph, it says that majority of the cust omers are willing to spend money of price range 200-500 (i.e. 60%) and minority of them says that they will spend money of price range 100-200 (i.e. 24%) in the fast food retail store 3) Preference Frequency Brand image 21
  • 33. Easy accessibility Special offer Total 29 50 100 preference of store 60 50 40 30 20 10 0 Brand image Easy accessibility Special offer Interpretation:From the above table and graph, it says that majority of the customers (i.e. 50% ) prefer special offers in the store and minority of them (i.e. 29%) prefer easy accessibility 4) Visiting hours Frequency
  • 34. Morning Afternoon Evening Total 40 29 31 100 45 40 35 30 25 20 15 10 5 0 Morning Afternoon Evening Interpretation:From the above table and graph it says that majority of the custo mers are willing (i.e. 40% ) to visit the store on morning session and minority of them (i.e.31% ) of them visit the store on evening session 5) Preference of store due to friendliness of staff Response Strongly disagree Disagree Frequency 2 5
  • 35. Neutral Agree Strongly agree Total 44 40 9 100 50 45 40 35 30 25 20 15 10 5 0 Strongly agree Disagree Neutral Agree Strongly ag ree Interpretation:From the above table and graph it says that majority of the customers (i.e. 44%) of them are neutral to prefer the store for friendliness of staff and minority of them (i.e. 40% ) of them agree that they will prefer the store for friendline ss of staff 6) Preference of store due the variety of menu available in the store Response Strongly Disagree Disagree Frequency 5 15
  • 36. Neutral Agree Strongly agree Total 100 21 39 15 preference due to variety of menu 45 40 35 30 25 20 15 10 5 0 Strongly agree Disagree Neutral Agree Strongly agree Interpretation From the above table and graph it says that majority of the custo mers ( i.e. 39%) of them agree that they will prefer the store due to the variet y of menu and minority of them (i.e. 21% ) of them neutral about the variety of menu in the store 7) Preference of store due the service speed Response Strongly disagree Disagree Neutral Agree Strongly agree Frequency 5 20 39 15 20
  • 37. Total 100 preference due to service speed 45 40 35 30 25 20 15 10 5 0 Strongly agree Disagree Neutral Agree Strongly agree Interpretation:From the above table and graph it says that majority of the custo mers (i.e. 39%) are neutral about the preference of store due to service speed a nd minority of them are disagree that (i.e. 20%) of them prefer the store due to service speed 8) Preference of store due to good calorie content exist in the food Response Strongly disagree Disagree Neutral Agree Strongly agree Frequency 9 33 19 31 20
  • 38. Total 100 preference for calorie content 35 30 25 20 15 10 5 0 Strongly agree Disagree Neutral Agree Strongly agree Interpretation:From the above table and graph it says that majority of the custo mers (i.e. 33%) of them disagree that they will prefer the store due to the calo rie content in the food and minority of them (i.e. 31%) agree that they will pre fer the store due to the calorie content in the food 9) Preference of store due to the cleanliness and store atmosphere Response Strongly disagree Disagree Neutral Agree Strongly agree Total Frequency 2 7 25 40 26 100
  • 39. preference due to ambience 45 40 35 30 25 20 15 10 5 0 Strongly disagree Disagree Neutral Agree Strongly ag ree Interpretation: From the above table and graph it says that majority of the cust omers (i.e. 40% ) of them agree that they will prefer the store for ambience pro vided in the store 10) Preference store due the delivery speed offer by the store Response Strongly disagree Disagree Neutral Agree Strongly agree Total Frequency 4 20 15 41 20 100
  • 40. preference due to delivary speed 45 40 35 30 25 20 15 10 5 0 Strongly disagree Disagree Neutral Agree Strongly ag ree Interpretation:From the above table and graph it says that majority of the custo mers (i.e. 41%) of them prefer the store due to delivery speed that is offered 11) Satisfaction with the menu offer for my family Response Strongly disagree Disagree Neutral Agree Strongly agree Total Frequency 7 16 34 35 6 100
  • 41. preference of menu for my family 40 35 30 25 20 15 10 5 0 Strongly disagree Disagree Neutral Agree Strongly agree Interpretation:From the above table and graph it says that majority of the custo mers (i.e. 35% ) of them agree that they are satisfied with the menu that was of fered in the fast food store and followed by some of them are neutral about the menu for their family 12) Preference of store due to facilities offered Response Strongly disagree Disagree Neutral Agree Strongly agree Total Frequency 11 20 41 14 14 100
  • 42. preference due to facilites 45 40 35 30 25 20 15 10 5 0 Strongly disagree Disagree Neutral Agree Strongly ag ree Interpretation:From the above table and graph it says that majority of the custo mers (i.e. 41% ) of them says that they are neutral about preferring the store d ue to the facilities 13) Preference of store due to easy accessibility and locational advantage Response Strongly disagree Disagree Neutral Agree Strongly agree Total Frequency 4 18 15 45 15 100
  • 43. 50 45 40 35 30 25 20 15 10 5 0 Strongly disagree Disagree Neutral Agree Strongly agree Interpretation:From the above table and graph it says that majority of the custo mers (i.e. 45%) of them agree that they will prefer the store due to easy access ibility and locational advantage 14) advertising strategy Response Strongly disagree Disagree Neutral Agree Strongly agree Total Frequency 9 20 33 28 10 100
  • 44. 35 30 25 20 15 10 5 0 Strongly disagree Disagree Neutral Agree Strongly agree Interpretation:From the above table and graph it says that majority of the custo mers (i.e. 33%) of them are neutral about the advertising strategy provided by t he store and followed by that customers agree the store for the advertising stra tegy 15) preference of store due to special offer and discounts Response Strongly disagree Disagree Neutral Agree Strongly agree Total Frequency 4 20 15 41 20 100
  • 45. 45 40 35 30 25 20 15 10 5 0 Strongly disagree Disagree Neutral Agree Strongly ag ree Interpretation:From the above table and graph it says that majority of the custo mers (i.e. 41% ) agree that they will prefer the store because of special offers and discounts. Major Findings • This study indicates that majority of the customers visit the fast food retail s tore weekly (i.e. 38%) and minority of them (19%) visit fortnightly • This study indicates that majority of the customers are willing to spend money o f price range 200-500 (i.e. 60%) and minority of them says that they will spend money of price range 100-200 (i.e. 24%) in the fast food retail store • This study indicates that majority of the customers (i.e. 50%) prefer special of fers in the store and minority of them (i.e. 29%) prefer easy accessibility • This study indicates that majority of the customers (i.e. 44%) of them are neutr al to prefer the store for friendliness of staff and minority of them (i.e. 40% ) of them agree that they will prefer the store for friendliness of staff
  • 46. • This study indicates that majority of the customers ( i.e. 39%) of them agree th at they will prefer the store due to the variety of menu and minority of them (i .e. 21% ) of them neutral about the variety of menu in the store • This study indicates that majority of the customers (i.e. 33%) of them disagree that they will prefer the store due to the calorie content in the food and minor ity of them (i.e. 31%) agree that they will prefer the store due to the calorie content in the food • This study says that majority of the customers (i.e. 40% ) of them agree that th ey will prefer the store for ambience provided in the store • This study says that majority of the customers (i.e. 35% ) of them agree that th ey are satisfied with the menu that was offered in the fast food store and follo wed by some of them are neutral about the menu for their family • This study indicates that majority of the customers (i.e. 45%) of them agree tha t they will prefer the store due to easy accessibility and locational advantage • This study indicates that majority of the customers (i.e. 33%) of them are neutr al about the advertising strategy provided by the store and followed by that cus tomers agree the store for the advertising strategy • This study indicates that majority of the customers (i.e. 41% ) agree that they will prefer the store because of special offers and discounts. Major suggestions: As majority of customers (38 percent) visit the store weekly especially weekends . So it is suggest to stores give special offers and discounts to capture more c ustomers and retain loyal customers. As study refers more customers are looking for the special offers ,so it suggest stores to more concentrate on the special offers but no compromise in the quality of food. It is found that majority of cu stomers are not fully satisfied with the friendliness of staff. So it is suggest that the stores should conduct soft
  • 47. skill training and make them give more customer service .Regular monitoring of t he staff behavior towards customers is also suggest here. Customers are happy wi th the MENU verities available in the stores .But it is suggested that add more customized menu and review the menu for every 3 months. As study shows that cust omers are not aware of the calorie contents exist in the food. So it is suggest that stores should display the calorie contents available in a particular food. It is suggest the stores to concentrate on the areas of ambience and locational strategy. Advertising strategy of the stores are not making attention the custom ers .So it is suggest the stores to think of the design of different innovative advertising campaigns.