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

 

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

 

Major players in fast food are: • • MCDONALDS KFC PIZZA HUT DOMINOS PIZZA. REASON FOR EMERGENCE .1. c) Pizza hut is also catching u p and it has planned to establish 125 outlets at the end of 2005. a figure expected to zoom to Rs. service levels and standardized operating procedures in their restaurants. 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. However.Fast food is one of the world’s largest growing food type. COFFEE DAY BARISTA.70 billion by 2005. By 2005. • • • • The main reason behind the success of the multinational chains is their expertis e in product development. b) Domino’s pizza is present in around 100 locations. learnt a few things bu t there is still a lot of scope for improvement. the value of Indian dairy products is expected to be Rs. d) Subways have established around 40 outlets. it claims to cater 50.The multinational segment of Indian fast food industry is up to Rs. MARKET SIZE & MAJOR PLAYERS a) Dominated by McDonalds having as many as 75 outlets. e) Nirulas is established at Delh i and Noida only. quality standards. 6 billion. a strength that they have developed over years of experience around the world. 00. 3600 million which is about one -fourth of total investment made in this sector. In last 6 years . foreign investment in this sector stood at Rs. Global chains are flooding into the country. The home grown chains have in the past few years of competition with the MNCs.000 guests every day. Because of the availability of raw material for fast food.000 million. sourcing practices.

Double Income Group: emergence of double income gr oup leads to increase in disposable income. Fast food is an easy w ay out because these can be prepared easily. Relaxation in r ules and regulations: with the economic liberalization of 1991. Large population: India being a second largest country in terms of populat ion possesses large potential market for all the products/services. Most of the time either people work or wan t to enjoy with their family. but many Hindus ar e vegetarian because they adhere to the concept of ahimsa. burgers and other type of fast foods. Those seeking spiritu al unity may avoid garlic and onions. Menu diversifi cation: increase in consumption of pizzas. This helped significantly the MNC’s to enter in the country. Because of emergence of working women and also number of other entertainment items. Hindus avoid all foods that are believed to inhibit physical and spi ritual development. they have no time for their home and cooking food. They do not want to prepare food and spend their time and energy in house hold works. most of the tari ff and non tariff barriers from the Indian boundaries are either removed or mini mized. CHALLENGES FOR THE INDUSTRY Social and cultural implications of Indians switching to western breakfast food: Generally. So. 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. and if they have then also they don’t want t o cook. They do not want to confine themselves to household work and upbringing of chil dren’s. Because they want to come out of the traditionally defined gender roles.Gender Roles: gender roles are now changing. This results into entry of large number of fast food players in the country. Females have started working outsid e. The . Now people have more disposable inco me so they can spend easily in fast food and other activities. Customer Sophistication and Confide nce: consumers are becoming more sophisticated now. Working Women: wo rking women have no time for cooking. Eating meat is not explicitly prohibited.

PROBLEMS OF INDUSTRY . Some foods. Indian s are switching to fast food that contain all those things that are considered i mpure or against there beliefs. drinking cartons or PET (poly ethylene terephthalate) bottles are used. plastic cups and tableware. or even worse. This burdens nature unnecessarily and squanders raw materials. yogurt. And that is what happened when McDonald’s deci ded to enter the complexity of Indian business landscape. But now. Profit repatriation: Repatriation of profi ts is another area of concern for Indian economy. 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. 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. In order to reduce soil and water pollution. whic h have more workers. plates and cloth napkins are never provided with fast food. silverware. Retrenchment of employees: Most o f new industries will be capital intensive and may drive local competitors. and these are all disposable. with the multinational operation. ghee-clarified butter) are considered pure. counting only on its “fa st food global formula”.g. paper plates and napkins. people and government hope that it will increase the employmen t rate and result in economic growth. po lyurethane containers. such as be ef or alcohol. merely thrown on the ground. mil k.. government now emphasis more on the usage of bio-degradable products. Pure foods can improve th e purity of impure foods when they are prepared together. out of business. As when multinational enters t he any countries. Products from cows (e. are innately polluted and can never be made pure. Instead. Emphasis on the usage of bio-degradable products: Glasses. without any apparent previous cultural training. However.concept of purity influences Hindu food practices. host country experiences these benefits for a short time period. Many of these items are tossed in the garbage instead of being recycled.

Thus. In this line McDona ld has a plan to introduce all white meat chicken Mcnuugget with less fat and fe wer calories. 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. TRENDS IN INDIAN MARKET Marketing to children s: fast food outlets in India targ et children’s as their major customers. Health related issues: obesity: I. thereby making it a arm wrestling and mind boggli ng exercise. \ II. 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. 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. 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 .   . one can see that one side pushes for higher standards and other side tr ies to beat the standard back. this industry faces low level customer commitment. But associated with this issue is the problem that fast food player faces .the cost associated with the environment friendly product. Low calories food: Emphasis is now more on low calorie food.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.

called a "concept" of Yum! Brands since 1997 when that compa ny was spun off from PepsiCo as Tricon     . 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. income group etc can come and become a cust omer of their food line. Ma ny women or both parents now work 2. There are increased numbers of single-paren t households 3. or to cook and eat with one s family. Long distances to school and work are common 4. Kentucky.Value added technology services: There is continuous improvement in the technolo gy as far as fast food market in India is considered. Kentucky Fried Chicken About the Company KFC Corporation. or KFC. lunch t imes are short 5. sex. The success of fast foods arose from the changes in our living conditions: 1. is a chain of fast food restaurants based in Louisville. class. Earlier. Especially on weekdays. Usually. There s often not enough time or opportunity to shop carefully for groceries. They are introducing all categories of product so that people of all age. fa st food outside the home is the only solution. founded and also known as Kentucky Fried Chicken. 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. 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. KFC is a brand and operating segment.

the company began using its original name. side dishes and desserts. KFC primarily sells chicken in form of pieces. Additionally. While its primary focus is fried chicken. The other chicken         . Outside North America. Yum! Continues to use the abbreviated name freely in its adv ertising. 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. for its signage. S tarting in April 2007. 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. however. KFC s primary product is pressure-fried pieces of chicken made with original recipe . the chain is known as KFC. The company adopted the abbreviated form of its name in 1991. KFC offers beef based products such as hamburgers or kebabs. KFC also offers a line of roasted ch icken products. wraps. salads and sandwiches . pork based products such as ribs a nd other regional fare. 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. Menu items KFC s specialty is fried chicken served in various forms. though the idea of KFC s fried chicken actually go es back to 1930.Global Restaurants Inc. His reaso ning behind using the paper packaging was that it helped keep the chicken crispy by wicking away excess moisture. The company was founded as Kentucky Fried Chicken by Col onel Harland Sanders in 1952. Kentucky Fried Chicken. In France. Thomas was originally a franchisee of the original Kentucky Fried Chicken and operated several outlets in the Columbus. Ohio area. The restaurants are known as Poulet Frit Kentucky or PFK in the province of Quebec in Canada.

Sanders recipe. and a healthier mindset of the general public avoid ing fried food. c ustomers were given quarter roasted chicken pieces. KFC announced that it would begin frying its chicken in trans f at-free oil.           . and sodium than the Original Recipe fried chicken. is made using a garlic marinade and double dipping the c hicken in flour before deep frying in a standard industrial kitchen type machine . It features marinated breasts. or "Tender Roast". Instead of whole and half birds. Nutritional value KFC formerly used partially hydrogenated oil in its fried foods. Smokey Chip otle – Introduced in April 2008. "Extra Tasty Crispy". customers could request chicken "original". The Center for Science in the Public Interest (CSPI) filed a court case again st KFC. It has less fat. This would also apply to their potato wedges and other fried foods. For a time. a nd wings that are coated with the Original Recipe seasonings before being grille d. the biscuits. 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. which increases the risk of heart diseas e. The chicken was dipped in chipotle sauce then dou bled breaded and fried.[28] Tender Roast Chicken – This product was an off-shoot of The Colonel s Rotisserie Gold . however. thighs. In October 2006. This oil contai ns relatively high levels of trans fat. It has been discontinued since August 2008. extra crispy. 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.This marinated grilled chicken is targeted towards health-conscious customers. Introduced in April 2009. Kentucky Grilled Chicken .offering. drumsticks. calories. it was sold as a whole roaster or a half bird. Purportedly made from a "lost" Col.

In 2007. The commercial features a fictional black metal band called "Hellve tica" performing live. KFC is part of the two PepsiCo divisions. Present Situation The organization is currently structur ed with two divisions under PepsiCo. non-acronymic Kentucky Fried Chicken n ame was resurrected and began to reappear on company marketing literature and fo od packaging. 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 marketing. and KFC. John Hill is Chief Financial Officer and Colin Moore is the head of Marketing. as well as some restaurant signage.Advertising One of KFC s latest advertisements is a commercial advertising its "wicked crunc h box meal". and a divestiture of PepsiCo restaurant division. KFC has more than 9.800 outlets located in 77 countries. Pizza Hut. There are two alternative strategies for KFC. KFC restaurants are not restricted from locating within close prox imity of other KFC restaurants. Th e first strategy involves keeping PepsiCo beverage division and snack foods divi sion together. the lead singer then swallows fire. selling Taco Be ll. Some major threats include the changing attitudes of society toward he althier eating habits. the original. Peter Walle r is head of franchising while Olden Lee is head of Human Resources. which are PepsiCo Worldwide Restaurants and Pepsi Co   . KFC Business Strategy KFC fast-food chains are currently under the restaurant division of PepsiCo Inco rporated. David Novak is president of KFC.

Strengths Strengths can be found internally in a company and can be used to the company’s ad vantage. PepsiCo s suc cess with the management of fast food chains. The strengths identified are as follows: 1. PepsiCo used many of the same promotional strategies th at it has used to market soft drinks and snack food. In fact. KFC was the first chain to enter the fast-food industry. just befo re McDonald s.S. The se cret recipe has long been a source of advertising. and allowed KFC to set itself apart. and internationally. the company already dominated two of the four largest and fastest-g rowing segments of the fast food industry. done by The Schecter Group. and Taco Bell in 1978. 3. By the time PepsiCo bought KFC in 1986. both in the U. PepsiCo acquired Pizza Hut in 1977 . 2. Traditional employee loyalty. 4. KFC s secret recipe. Name recognition and reputation.Restaurants International. which opened its first store a year later.             . 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 of these divisions of PepsiCo are based in Dalla s. in their new logo. the KFC logo w as the only one which significantly enhance the brand s image . i n the fourth annual LogoValue Survey. and the "secret recipe " was the initial home replacement strategy. Also.

however. other fast food chains. left the company largely autonomous. can limit a company’s potential. and continu ed highquality products."KFC s culture was built largely on Colonel Sanders laid back approach to manag ement" (Wright. Before the acquisition of KFC by PepsiCo. KFC was sold three times. faster and friendlier service. The first two sales. It wasn t until th e sale to PepsiCo in 1986 that changes in top management started to take place. The weaknesses for KFC are identified as follows: 1.J. and could receive help with other non-incom e needs. 2. such as McDonald s. Many of the chains are turning to operating efficiencies to increase profit. employees at K FC enjoyed good benefits. Because of the nature of the chicken segment of th e fast food industry. Weaknesses. This kind of "personal" human resources management makes for a loyal wo rkforce. 5. Due to the strong competition in the US. The many sales of KFC lead to a confusing corporate direction. a pension. Betw een 1971 and 1986. p. These changes happened almost immediately after the sale. Improving operating efficiencies by reducing overhead and other oper ating costs can directly affect operating profit. the fast-food chains are reluctant to raise prices to increase profit . Weaknesses Weaknesses are also found internally like strengths. However. I nc and to R. Reynolds. to Heublein. cleaner restaurants.433). innovation was never a primary strategy for KFC. operating efficiencies are achieved through improvements in c ustomer service. KFC has a long time to market with new products. during the late 1980 s. began to off er chicken as a           . F or many companies.

The advertising campaign of KFC does not specifical ly appeal to any segment. weaknesses. This delay significantly in creased the cost of developing consumer awareness for the KFC sandwich. the following pote ntial problem areas were identified: 1. Prime locations have increased in cost due to limit ed room for expansion. During this time. This put KFC at an extreme disadvantage due to its fried product offering. There has been a trend toward an increasingly healthy diet in Amer ica. 2. 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. 3. Single-person household s have increased from 12% in 1970 to 25% in 1995. opportunities. New technology has increased efficiencies. and threats of KFC. has enormous changes in its demographics. No defined target market. while PepsiCo s culture is more of a "fast track" attitude. 3. Confl icting cultures of KFC and Pepsi Co. KFC does not have a proper approach to its target market.Menu option. Health Conscio us Consumers.S. McDonald s had already introduced the McChicken w hile KFC was still testing its own chicken sandwich. but resulted i n greater         . The U. With this kind of dramatic cha nge. It does not appear to have a consistent long-term appr oach. While KFC s culture was largely based on th e Colonel s laid back approach to management. Increased Start Up Costs.

Globally. Restaurant and equipment packages range from $500. 1996 at New Delhi.1 billion USD. KFC employs approximately 290. KFC was positioned 54th place. Today. The very first Domino s Pizza outlet in Ind ia opened in Jan. Domino s Pizza India has become a wi de network of Pizza delivery and food chain. Kentucky Fried Chicken products are currently offered in 80 countrie s worldwide and in more than 11.000. DOMINO’S SIZE OF THE MARKET Domino s Pizza is one of the biggest and fastest growing inte rnational food joints in South Asia. This prize i s distributed each year by YUM Restaurants International.000 restaurants which are visited on a daily bas is by almost 8 million customers. 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. In 2004 the “KFC Excellent” range . Domino’s Pizza outlets can be seen at major locations       . Achievements: KFC is one of the most renowned world gastronomic b rand names.According to the rating s for “Most expensive world brands 2004” conducted by the American weekly ‘Business We ek’.three types of salad (Caesar. There are close to 220 outlets in 4 2 cities of India and the brand is the top most among the food delivery business . a new KFC restaurant is opened almost every day.000. currently valued at 5.000 to $1. Worldwide.000 pe ople.increased start up costs.

and registered a healthy growth of 60% over last year. their eating joints and outlets are also good. Domino’s Pi zza is expanding its base in India by opening 500 outlets to add to its current tally of 156 outlets. MARKET STRATEGIES Promotional and Advertisement Campaigns(Coupons and discounts) The 30 Minutes Promise Use of Technology(Digital interactive T elevision.500 crore and Domino’s has a substantial 45% market share. Baroda. Although they are expert in delivering Pizzas on time. Their home delivery is free with a guarantee of “Thirty Minutes Nahi to Free”. 000 crore. of which around 1% are given free on account of its “30 minutes or free” model. Nashik. The main target for new outlets shall b e metro cities though Tier II cities would also receive a fair amount of attenti on. It would entail an investment of Rs 200 million during the period MARKET GROWTH During last four months. 65     . Trivandum.000 pizza every day. We plan to have a total of 500 stores in 75-8 0 cities by 2010 to 2011. While e arlier. 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. across 50 cities in India by 2011 with an investment of Rs .of Delhi and NCR. Surat. dominoes have opened outlets in Jammu. 70 percent of our business used to be in metros and mini-metros. Internet on the PC. now the ratio is 50:50 between big cities and smaller Tier II and III cities. Currently Domino’s sells around 35. Panipat.1. Meerut and Patiala.

percent of its revenue comes from home delivery service. But some of the most rapid growth is occurring in the developing world. This pap er aims at providing information about fast food industry. reason for its emergence and several other factors that are responsible for its growth. around 35 percent is fr om sales in premise.000 loca l restaurants serving more than 58 million people in 118         Piz   . 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. where it s radically changing the way people eat. 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. 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. People b uy fast food because it s cheap. its trend. COMPETITORS Fast food is one of the world s fastest growing food types. and heavily promoted. easy to prepare.

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). suppliers and employees work together to meet custom er needs in uniquely McDonald s ways. vision and executives. 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. Portugal is the only country with McDonald s restaurants serving soup. French fries. radio. and                   . and desserts. To read more about McDonald s history. soft drinks. We drive our business momentum by focusing on what matters most to cust omers. various types of chicken sandwiches a nd products. Advertising McDonald s has for decades maintained an extensive advertising campaign. Th is local deviation from the standard menu is a characteristic for which the chai n is particularly known. wraps and other localized fare. Our owner/operators.countries each day. Products McDonald s predominantly sells hamburgers. McDonald s offers salads and vegetarian items. In addi tion to the usual media (television. 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. click on their links in the le ft menu. In most m arkets. More than 75% of McDonald s restaurants worldwide are owned and operated by independent local men and women. breakfast items.

television has always played a central role in the company s advertis ing strategy. and makes coo lers of orange drink with their logo available for local events of all kinds. A t times.newspaper). sponsor s sporting events ranging from Little League to the Olympic Games. McDonald s has used 23 different slogans in United States advertising. as well as a few other slogans for select countries and regions. it has run into trouble with its campaigns. To date. BARISTA     . No netheless. the company makes significant use of billboards and signage.

In 2007. Ste rling then bought over the firm. To share our cup of joy. interactive ambience that makes gu ests wish their coffee breaks lasted just a little bit longer. we do all we can to make every guest feel comfort able and welcome. It was foun ded in 1997 by Amit Judge and was part of his group of companies. we have always stuck to our Italian roots. We have friendly and efficient brew masters who believe in service with a smile. Sterling divested all their stake to L avazza. He sold part o f the equity to first Tata Coffee. Our aim is to passionately deliver the highest levels of experiential services. Barista curr ently has espresso bars across India. make Barista Lavazza the place ‘where the w orld meets’. Headquartered in Delhi. We serve nothing but the finest Arabica coffees and cuisine at great value prices. Barista C offee is a chain of espresso bars in India. And provide a cheerful.Barista coffee was establishes in 1999 with the aim of identifying growth opport unities in the coffee business. And in the process. Barista Coffee Company is currently owned by Lavazza. Then after he and Tata Coffee fell apart. . Sri Lanka and the Middle East. guarding them zealously to en sure that our espresso bars reflect the warmth and character of traditional Ital ian coffee houses. 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. Italy’s largest coff ee company At Barista Lavazza. Increasing disposable incomes and global trends in coffee indicate immense growth potential in one particular segment.

with clients acros s the USA. 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. Karnataka. there are six outlets in a 2 km radius and overall 120 cafes in Banga lore alone. Coffee Day has its business spanning the e ntire value chain of coffee consumption in India. Café Coffee Day sources coffee from 5000 acres of coffee estat es. it is commonly known as Coffee Day or CCD. The cafe chain has had much success riding. in the main shopping district.CAFÉ COFFEE DAY Café Coffee Day is a chain of coffee shops in India having its headquarters in Chi kkamagaluru.     . With its roots in Chikmagalur. (ABCTCL). The strategy CCD has adapted is to place a cafe in every possible loca tion where some business can be generated. It has even tied up with World Space and Micro sense to enable its cafes with s atellite radio and Wi-Fi. respectively. 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. the second largest in Asia. Coffee Day Takeaway (which owns 9000 vending machines). It is one of India’s leading coffee exporters. Its first Wi-Fi cafe was opened on Lavel le Road. Large number of coffee day cafes are located in Bangalore. A division of Amalgamated Bean Coffee Trading Company Lt d. the hom e to some of the best Indian coffees. Europe and Japan. and to som e extent creating. Bangalore. and today has the largest cafe retail cha in in India – with over 800 cafes in 112 cities.00 0 small growers. Its different divisions includ e: Coffee Day Fresh n Ground (which owns 450 coffee bean and powder retail out lets). So in Bangalore. that is owned by a sister concern and from 11. It opened its first cafe in 1996 on Brigade Road in Bangalore. making forays into Pakistan and Germany to set up cafe s abroad. Coffee Day Xpress (which owns 730 Coffee Day kiosks). the cafe culture wave that swept across metropolitan India fo llowing strong economic growth resulting in an increase in youth spending power. Middle East.

Cafe Coffee Day competitors include but are not limited to • • • • Barista Cafe Mocha Costa Coffee The Coffee Bean & Tea Leaf LITERATURE REVIEW   .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.

While the distance to the nearest Supermarket was similar among the most impoverished neighborhoods. Supermarkets provide dietary health resources through higher quality and lower costs of nutritious foods. In fact. specifically dietary health. Relevant Data: Literature now associates residence in economically disadvantaged neighborhoods. Disparities in Supermarket acc essibility on the basis of race were evident among the most impoverished neighbo rhoods: the most impoverished neighborhoods. 95(4). The percentage of residents below the poverty line serves as the measure of neighborhood poverty for the study. were on average were 1. in which African-Americans resided. after controlling for socioeconomic status.1 mile greater distance to the nearest supermarket than predominantly white n eighborhoods. Neighborhood Poverty and the Spa tial Accessibility of Fast Food Stores in Metropolitan Detroit”.1 miles farther from the nearest supermarket than the mo st impoverished white neighborhoods. et al. Proper access to nutritious foods is essential to decreasing dietary related chronic il lness. Mean distance to the nearest supermarket in creased with each successive tertile of percentage poor for neighborhoods with a high proportion of   . many of the most serious chronic illnesses in the United States are associated with dietary deficiencies. 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.Zenk. African American communities averaged 1. American Journal of Public (2005). with a variety of adverse diet-related health outcomes. The study found t hat the distance to the nearest Supermarket increased with increasing levels of neighborhood poverty. Spatial accessibility is equivalent to a Manhattan block. 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. Abstract: Residential environment is clearly related to health. “Neighborhood Racial Composition. S.

whites and Hispanics to supermar kets. socioeconomic status. Furthermore. Hispanic neighborh oods have only 32% (p < 0. There are dis tinct disparities between the access of blacks.01) of that available in middle-income neighborhoods . A ffordable public transportation needs to be improved integrating transportation routes with supermarket locations . Abstract: A 2006 study of the United States linked zip code s to census data. with a definite correlation in location. finding various statistics about the availability of grocery s tores in accordance to neighborhood descriptions and demographics. “Food store availabilit y and neighborhood characteristics in the United States”. 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. R elevant Data: Low-income neighborhoods have fewer chain supermarkets with only 7 5% (p < 0. 44(3):189-195. and race.01) as many chain supermarkets compared to non-Hispani c neighborhoods. Powell.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) . American lifestyle(2007 Mar).01) of that in White neighb orhoods with even less relative availability in urban areas . the availability of chain supermarkets in African American neighborhoods is only 52% (p < 0. 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 . Even after cont rolling for income and other covariates. et al. Lisa M. Inadequate accessibility to supermarkets may contribute to les s nutritious diets and hence to greater risk for chronic diet related disease.

more frequent shopping trips. Grengs. Service Quality: An investigation into Malaysian Fast food consumers using DINES ERV Keang Meng Tang. “Does Public Transit Counteract the Segregation of Car less Households? Measuring Spatial Patterns of Accessibility”. Transportation Rese arch Board of the National Academies (2007).500 households. University of Newcastle Ursula Bougoure. to address the problem of urban populations that depend on public transport ation but have a lack of access to their everyday needs. Indeed. western-based marketing theory in the context of   . several studi es have highlighted the mobility constraints faced by low-income households in t heir daily activities including food shopping . Proximity is imp ortant—37% of African American shoppers travel one mile or less to their primary g rocery store . technology that measures transit use on smaller sca les. Joe. 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. 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. Queensland Univers ity of Technology disproportionately As noted by Doran (2002). Relevan t Data/Quotations: The analysis finds that over 7. representing 1 2 percent of New York City s households. Abstract: This study researched Geo graphic Information Systems. 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. including food. do not have reasonable access to superm arkets. it is imperative that we seek to examine commonly acce pted.

it appears likely that service quality dime nsions from DINESERV will positively effect overall service quality (OSQ) percep tions by Malaysian consumers.g. known as SERVQUAL. Prior research suggests tha t not all service quality elements (within tools such as SERVQUAL. Of the knowledge gained in the se rvice quality literature. 1992. H1: Service quality (DINESERV) will positive ly effect Overall Service Quality perceptions (OSQ) for Malaysian fast food cons umers. Fo r example. particularly when applied across different service industries (eg: Babakus and Boller. In th e context of the fast food industry. Zeithaml and Berry. Schneider and White. Whilst extensive research has been conducted on service quality over the past two decades (e. 1992. 1994). Parasuraman. as perceived by customers. 2004). respons iveness. in response to findings that SERVQUAL was inadequate for the ‘unique’ resta urant environment (Dube.different countries to see whether such concepts explain the same phenomena in c onsumers from different countries. Malaysia. 1992). it is important to identify the importa nce of service quality and its dimensions in determining overall service quality (OSQ). Knutson and Patton (1995). Oliver and MacMillan. relatively little attention ha s been paid to issues surrounding service quality in non-western countries. 1990. This being said however. 1992). Incorporating five service quality dimensions of tangibles. 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. like the Asian region and in particular. assurance and empathy. Therefore. it is important to note that SERVQUAL has been f ound to possess certain limitations. Thus. Cronin and Tayl or. Zeithaml and Berry (1988) pro vides an approach to defining and measuring service quality. Renaghan and Miller. reliability. the work of Parasuraman. Oliver and MacMillan. DINESERV for restaurants was developed by Stevens. Bitner. SERVQUAL has been well utilised within the liter ature. 1988). DINESERV) are able to predict a consumer’s overall service quality perceptions or (OSQ) (Oliva.

(2004) and Oliver (1997) is a deeply held commitment to consistently repatronise a service in the future. Rust and Oliver. 1997. 1996). 1996) and their relationship has seen increasing research interest ove r the years (Bitner. Zeithaml and Berry. 1996. Spreng and Taylor. 200 3). 1991. 1995. H2: Service quality (DINESERV) will positively effect custo mer satisfaction for Malaysian fast food consumers. 1990). 1994). it seems likely that high service quality will lead to increased satisfaction for consumers. however . Parasuraman. 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. rather than just satisfy e xpectations (Spreng and Mackoy. Intention to repurchase is a n individual’s judgment about re-buying a designated service. Overall.Customer satisfaction has long been recognised as a process (Oliver. which accordi ng to Law. 1998) with proposals of a causal link from customer satisfaction to servi ce quality (Bitner. In other words. In the case of fast food. repurchase behaviour is seen as a form of loyalty.g. Within the literature.. to gain customer satisfaction. Spreng and Mackoy. Service quality and customer satisfaction are inarguably fundamental concepts within services marketing theory (Spreng an d Mackoy. Thus. Dabholkar. while dissatisfaction occurs when performance is lower than expected. 1990. Anderson and Fornell. customer satisfaction occurs when performance is h igher than expected. While it is generally accepted that a positive relationship exists between s ervice quality and customer satisfaction. service quality to customer satisfaction (Bolton and Drew. 1981) and i s the difference between consumers’ perceived and expected performance of a produc t or service. some argue that organisations need to exceed predictive expectations of customers. 1985). taking into account their current situation and likely circumstances (Hellier et al. Hui and Zhao. there is debate (Shemwell. 2003). Such contention within the literature has lead to repeated calls for further examination of this relationship (e. 1994. Repurchase intentions . Yavas and B ilgin. 1994). Mohsin. Zeithaml and Berry.

. which ultimately lead to increased profits (Schneider and White. 1997). 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. According to S chneider and White (2004). service quality generates consumer intention to return. As argued by Rust. According to such find ings. Service quality is tied to desirable business outcomes. As such. H3: Overall service quality (OSQ) will positivel y effect repurchase intentions for Malaysian fast food consumers. which can transla te into actual behaviours that may lead to increased revenues and profits. For example. H4: Customer satisfaction will positively effec t repurchase intentions for Malaysian fast food consumers. Overall however.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 ). 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. Cronin and Taylor (1992) found that overall service quality did not e ffect repurchase intentions. it appears likely that this will also be the case for Malaysian consumers in the fast food industry. 2004). As such. telling friends and fa milies of their positive experiences and creating new business and increased rev enue for successful service organisations. Zahorik and Keiningham ( 1995). such as customer loyalty. satisfied customers most likely will become loyal whi ch can then translate into higher profits organizations. Patterson and Spreng. there are mixed findings as to the relationship bet ween overall service quality and behaviors that are indicative of customer loyal ty. loyal customers are valuable marketing tools. 1994. In th e extant literature however. Thus. while Boulding et al (1993) and Rust and Zahorik (1993) provide empirical support that higher perceptions of service quality increases loyalty intention. Thus..

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.Sample and Research design A descriptive research design was adopted to do the survey with the help of the questionnaire. Data Processing and Analysis: The data processing consists of coding the data collected in the form of questio nnaire. 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. ANALYSIS & INTERPRETATION 1) VISIT . The methodol ogy of study is the interview method survey. The questionnai re has 15 questions. The study used non probability convenience sampling. 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. The data collected with the help of questionnaire is having the closed r eplies.

38%) and minority of them (1 9%) visit fortnightly 2) PRICE RANGE .e.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.

it says that majority of the cust omers are willing to spend money of price range 200-500 (i. 60%) and minority of them says that they will spend money of price range 100-200 (i.e.e.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. 24%) in the fast food retail store 3) Preference Frequency Brand image 21 .

e. it says that majority of the customers (i. 29%) prefer easy accessibility 4) Visiting hours Frequency . 50% ) prefer special offers in the store and minority of them (i.e.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.

e.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 .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. 40% ) to visit the store on morning session and minority of them (i.

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. 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 .e.

e.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 .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. 39%) of them agree that they will prefer the store due to the variet y of menu and minority of them (i.

e.e. 39%) are neutral about the preference of store due to service speed a nd minority of them are disagree that (i. 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 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.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. 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 . 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. 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 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.

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 .e.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.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. 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 .

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 .e.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.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. 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 .

e.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. 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 .

29%) prefer easy accessibility • This study indicates that majority of the customers (i.e.e. 50%) prefer special of fers in the store and minority of them (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. 41% ) agree that they will prefer the store because of special offers and discounts. 40% ) of them agree that they will prefer the store for friendliness of staff .e. Major Findings • This study indicates that majority of the customers visit the fast food retail s tore weekly (i.e.e. 60%) and minority of them says that they will spend money of price range 100-200 (i. 24%) in the fast food retail store • This study indicates that majority of the customers (i.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. 44%) of them are neutr al to prefer the store for friendliness of staff 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. Major suggestions: As majority of customers (38 percent) visit the store weekly especially weekends . 39%) of them agree th at they will prefer the store due to the variety of menu and minority of them (i . 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.e. 41% ) agree that they will prefer the store because of special offers and discounts.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.e. 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 is suggest that the stores should conduct soft . 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.so it suggest stores to more concentrate on the special offers but no compromise in the quality of food. 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.• 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. 33%) of them disagree that they will prefer the store due to the calorie content in the food and minor ity of them (i. It is found that majority of cu stomers are not fully satisfied with the friendliness of staff.e.

But it is suggested that add more customized menu and review the menu for every 3 months.So it is suggest the stores to think of the design of different innovative advertising campaigns.Regular monitoring of t he staff behavior towards customers is also suggest here. . It is suggest the stores to concentrate on the areas of ambience and locational strategy. As study shows that cust omers are not aware of the calorie contents exist in the food. Advertising strategy of the stores are not making attention the custom ers . So it is suggest that stores should display the calorie contents available in a particular food. Customers are happy wi th the MENU verities available in the stores .skill training and make them give more customer service .

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