The document discusses the fast food industry in India and provides details about the operations of McDonald's, Domino's, and Pizza Hut in India. It summarizes the history and growth of each company, their supply chain management involving procurement, distribution, and outsourcing of ingredients from various locations in India and abroad, as well as their focus on quality, logistics, and using data to enhance customer experience. The conclusion is that McDonald's has been able to balance quality and cost effectively through superior cold chain supply chain management.
It's a fast food favourite that got off to a slow start, but India is finally flipping on burgers. Over the last few Years some companys like mcdonalds, dominos, KFC capture the markets rapidly in this presentation show the performance of this three company along with future market potential for new entry & expansion of present company. Before some day five of the top burger chains in the world, including Burger King, Fatburger, Johnny Rockets and Wendy's, have announced their entry into the country.
Fast food war begins in India
In the post horsegate era as professor Chris Elliott's final report is about to be published HACCP Now's Jim Flynn gives a thought provoking and challenging presentation at the REHIS (Royal Environmental Health Institute for Scotland) annual conference 2014. With key industry figures such as Charles Milne from the Food Standards Agency Scotland both presenting and in the room it was an ideal opportunity to float some concepts that industry experts are not talking about.
It's a fast food favourite that got off to a slow start, but India is finally flipping on burgers. Over the last few Years some companys like mcdonalds, dominos, KFC capture the markets rapidly in this presentation show the performance of this three company along with future market potential for new entry & expansion of present company. Before some day five of the top burger chains in the world, including Burger King, Fatburger, Johnny Rockets and Wendy's, have announced their entry into the country.
Fast food war begins in India
In the post horsegate era as professor Chris Elliott's final report is about to be published HACCP Now's Jim Flynn gives a thought provoking and challenging presentation at the REHIS (Royal Environmental Health Institute for Scotland) annual conference 2014. With key industry figures such as Charles Milne from the Food Standards Agency Scotland both presenting and in the room it was an ideal opportunity to float some concepts that industry experts are not talking about.
This module is for use by community educators. It is meant to be used with general consumers or those who cook for groups such as religious instututions. It is not meant for food service.
This presentation slides are strictly for education purposes.
Please do not download this presentation template and try to make money out of it. Contact me if you want to have your very own business presentation.
This module is intended for community educators to teach their clients about cross-contamination. It is appropriate for general consumers and anyone that cooks for groups including religous institutions. It is not meant for commercial food service.
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mc donalds-dominos-pizza-hut
1.
2. FAST FOOD
INDUSTRY
World’s largest growing food
type.
Industrial growth is 40% a year.
The organized pizza market in
India is
worth about Rs.675 crore.
Foreign investments are worth
Rs.3600
million (1/4th
total investment in
this
sector)
5. McDonald’s History
It started as a drive-in-restaurant
in the
late 1940’s.
In 1966, McDonald’s was listed on
the
New York Stock Exchange.
In June 1967, McDonald’s opened
its first
restaurant outside U.S in Canada.
In 1996, McDonald’s entered India
in a
joint venture.
6. McDonald’s System – the World’s Best QSR
experience
World Market Leader in the QSR
area
(Quick Service Restaurant)
Franchise System (75%)
System employees: 1.6 million
Customers Per Day: 58 million
Corporate Strategy:
QSC&V: Quality, Service,
Cleanliness and Value
Plan To Win -> Successful
business revitalization
11. McDonald’s SUPPLY
CHAIN
McDonald’s Supply chain is based on
the three-legged stool concept :
Company – Franchisees – Suppliers
Logistics
100 sales items in the restaurant
400 SKUs in the warehouse
200 restaurants per DC (~180 DCs
globally)
Delivery frequency: ~3/wk, higher in
urban areas
2-3 stops per route
Exclusive distributors (3PL)
Strong quality focus (Cold Chain,
HACCP, QIP)
12. McDonald’s took 4 years
and
around Rs 450 crores to set
up
the food supply chain even
before opening its 1st
restaurant.
McD India has pioneered
the
cold chain management
system.
13. SUPPLIERS
1. Dynamix Dairy
Industries (Supplier of
Cheese)
Fully automatic international
standard processing facility.
Network of milk collection centres
equipped with bulk coolers.
Dedicated quality program.
Dedicated R&D centre
14. 2. Trikaya Agriculture
(Supplier of Iceberg
Lettuce)
Specialized nursery with a team of
agricultural experts
Drip and sprinkler irrigation in
raised farm beds with fertilizer
mixing plant.
The pack house, pre-cooling and
cold room are located at the farms
itself to ensure no delay.
15. 3) Vista Processed Foods Pvt.
Ltd.
(Supplier of Chicken and
Vegetable
products)
World class infrastructure
and support services.
Separate processing lines for
chicken and vegetable
foods.
Hi-tech refrigeration plants
for manufacture of frozen
food at temperatures as low
as -35 C.⁰
17. OUTSOURCING THE
INGREDIENTS
ITEM PLACE
Cheese Dynamix Dairy Industries Ltd., Pune
Dehydrated onions Jain Foods, Jalgaon
Iceberg lettuce Trikaya Agriculture, Pune
Chicken patty Vista Foods, Taloja
Veg. Patty, Veg. Nuggets, Pie’s Kitran Foods, Taloja
Chicken (dressed) Riverdale, Talegaon
Buns Cremica Industries, Phillaur
Eggless mayonnaise Quaker Cremica Pvt. Ltd., Phillaur
Sesame seeds Ghaziabad
Fish fillet patties Amalgam Foods Ltd., Kochi.
Vegetable for the patties
Finns Frozen Foods, Nasik and Jain
Foods, Jalgaon
Mutton and Mutton Patties Al Kabeer, Hyderabad
18. Quality Inspection Programme
(QIP)
carried out in the Cold Chain
system.
Hazard Analysis Critical Control
Point (HACCP)
Based on HACCP guidelines,
control
points and critical control points
for all
McDonald's major food
21. OVERVIEW
Founded in 1965 by Tom
Monaghan.
Second-largest Pizza chain in the
United
States.
about 8,500 corporate and
franchised stores in 55 countries.
Domino's Pizza outlet in India
opened in
1996.
Close to 274 outlets in 55 cities of
India.
22. CORPORATE
STRATEGY
“ Exceptional people on a
mission to be
the best pizza delivery company
in the
world! "
'Think global and act local’
Fun, happiness and
convenience
24. OPERATIONS
Indian operations are ranked
number one
for the past 3 years.
Delivers an average of 1 million
pizzas
per day.
Over the last 2 years, they opened
stores
in 15 new cities.
The company operates in three
segments:
1. Domestic stores
2. Domestic supply chain
25. 1. Domestic Stores
uses its company-owned stores
as a testing ground for new
products and technologies which
may then be passed onto
franchisees.
generates income from company-
owned stores in the form of store
profits.
2. Domestic Supply Chain
Vertically integrated supply
system
automatic delivery of raw
materials cuts out a lot of the
"back of-store" activities.
26. 3. International
consists of 3,469
franchised
stores outside the United
States.
operates six supply chain
centers
which manufacture dough
and
distribute food and
supplies.
27. DOMINOS SUPPLY
CHAIN
1. Procurement of raw
materials
Raw materials like wheat, baby corn,
tomatoes and spices are got, out of
which wheat was bought in from
jalandhar and then sent to the
commissaries in refrigerated trucks.
4 commissaries (Regional Centralized
Facilities)
1. Delhi
2. Bangalore
3. Kolkata
4. Mumbai
28. 2.Distribution
Pizza dough processed from the
wheat is then sent to the retail
outlets again in refrigerated
trucks.
Logistics requirement for sending
frozen
foods, at a temperature of ₋18 C⁰
and of
refrigerated trucks in which food
is sent
at a temperature range of
between 1 to
29. 3. Retail Outlets
1. Regular stores
2. Super stores : High
traffic, More counters
3. Express stores : those
where people were
expected to walk in and
order rather than ask
for home delivery.
31. Outsourcing the
Ingredients
ITEM PLACE
Wheat Jalandhar (Punjab)
Cheese Karnal, Haryana
Tomatoes Bhubaneshwar, Orissa
Spice South India
Baby Corn Nepal
Exotic Vegetables Sri Lanka
Pepperoni Australia
Jalapeno Spain
32.
33. OVERVIEW
one of the flagship brands of Yum!
Brands, Inc.
Frank and Dan Carney opened
Pizza hut
in 1958
12,500 restaurants across 91
countries
Indian outlet opened in June 1996
in
Bangalore.
147 restaurants across 36 cities in
India.
34. CORPORATE
STRATEGY
“We want to satisfy our
customer by
offering them the best”
C.H.A.M.P.S
(Cleanliness, Hospitality,
Accuracy,
Maintenance, Product quality
and
Speed)
37. COLD CHAIN
LOGISTICS
Snowman Frozen Foods provides cold
storage facility
16 warehouses and 110 trucks
Equipped with Carrier and Thermo
King transport temperature control
units.
Cold storage capacity is between 100
tonnes and 1,200 tonnes.
38. Teradata Warehouse
Miner
largest customer data
warehouse
Profile and segment customer
households
Track phone orders & online
orders
Increased ROI
Predict the success of a
campaign
Simplified data management
39.
40. CONCLUSION
Fast Food industry in India is growing
at a fast rate. From the study done
among the 3 fast food services –
McDonalds, Dominos and Pizza hut,
we can clearly come to the conclusion
that McD with its superior supply
chain management (cold chain) is
able to balance between its quality
and cost.
The setting up of cold chain has
enabled it to cut down on its
operational wastage.
Three Pillars of the Plan to Win
Brand direction Freedom within a framework Measurable milestones
More customers More often More brand loyalty More profitable
best ingredients, strict standards, and proven preparation procedures
value is defined as the total experience you receive for what you pay, and at McDonald’s, the total experience includes great food, friendly folks, a clean environment, as well as quick and accurate service.
each support the weight of McDonald’s equally. For one to prosper, we each must prosper. SCM starts from procuring raw materials, converting them efficiently into finished products and despatching them to the final destinations.
Cold chain refers vto the procurement warehousing transportation and retailing under controlled temp.
15 bulk cooling centres , is equipped with modern measuring and testing equipment , nearer to farmers farms, chilled immediately to two degrees Celsius to stop bacterial growth and preserve freshness. From this point onwards, until just before the burger is actually served in a McDonald’s restaurant hundreds of kilometers away, the temperature is never allowed to increase, . When the refrigerated milk arrives at the Dynamix plant at Baramati, the milk in every single tanker is thoroughly tested and rejected if found sub-standard, adulterated or contaminated. The sophisticated testing lab can check fat content with an accuracy of 0.1 per cent.
lettuce could only be grown during the winter months but with McDonald's expertise in the area of agriculture
provided assistance in the selection of high quality seeds, exposed the farms to advanced drip-irrigation technology, and helped develop a refrigerated transportation system allowing a small agri-business in Maharashtra to provide fresh, high-quality lettuce to McDonald's urban restaurant locations . pre-cooling room to remove field heat, a large cold room and a refrigerated van for transportation where the temperature and the relative humidity of the crop is maintained between 1º C and 4º C and 95% respectively. Vegetables are moved into the pre-cooling room within half an hour of harvesting. The pre-cooling room ensures rapid vacuum cooling to 2º C within 90 minutes
Capability to produce frozen foods at temperature as low as -35 Degree Cel. to retain total freshness.
Hi-tech refrigeration plants is to ensure that the frozen food retains it freshness for a long time and the 'cold chain' is maintained.
keeping cultural sensitivities in mind, both processing lines are absolutely segregated and utmost care is taken to ensure that the vegetable products do not mix with the non-vegetarian products.
The DCs have focused all their resources to meet McDonald's expectation of 'Cold, Clean, and On-Time Delivery' and plays a very vital role in maintaining the integrity of the products throughout the entire 'cold chain'. the DC receives items from different parts of the country. These items are stored in rooms with different temperature zones and are finally dispatched to the McDonald's restaurants on the basis of their requirements.
Ramco Systems pdt “Marshal” ERP Implementation-order processing, order fulfillment, shipping, invoicing
As the ingredients move from farms to processing plants to the restaurant, McDonald's Quality Inspection Programme (QIP) carries out quality checks at over 20 different points in the Cold Chain system. Setting up of the Cold Chain has also enabled it to cut down on operational wastage.
HACCP emphasizes prevention within its suppliers' facility and restaurants rather than detection through inspection of illness or presence of microbiological data. The HACCP verification is done at least twice in a year and certified.
About 90% of the company's 5,155 domestic stores are franchised.
First, automatic delivery of raw materials cuts out a lot of the "back-of-store" activities letting store operators focus more on sales and customer service.
the vertically integrated supply chain lets Domino's leverage the purchasing power of thousands of company-owned and franchised stores nationwide which can help keep down food costs
has a supply chain in a limited number of its international markets;
During 2007, Domino's international segment generated revenues of $126.9 million, of which approximately 52% resulted from the collection of franchise royalties and fees, accounting for 93% of the segment's $57.2 million in operating income
Commissary processed the wheat and prepared the pizza dough. The pizza dough and other items prepared in commissaries were then sent to the retail outlets again in refrigerated trucks. The temperature inside the truck was fixed based on the distance between the retail outlets and the commissaries. This was to set the dough at a particular level when it reached the outlets. The retail outlets had to use up the processed dough within three days of delivery. If they failed to do so for some reason the entire quantity was discarded.
Setting up of the Cold Chain has also enabled it to cut down on operational wastage