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, typically the term refers to food sold in a restaurant or store with low quality preparation 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 fast food restaurants (also known as quick service restaurants). Franchise operations which are part of restaurant chains have standardized foodstuffs shipped to each restaurant from central locations. The capital requirements involved in opening 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 casual restaurants.

History
The concept of ready-cooked food for sale is closely connected with urban development. In Ancient Rome cities had street stands that sold bread and wine. A fixture of East Asian cities is the noodle shop. Flatbread and falafel are today ubiquitous in the Middle East. Popular Indian fast food dishes include vada pav, panipuri and dahi vada. In the French-speaking nations of West Africa, roadside stands in and around the larger cities continue to sell—as they have done for generations—a range of ready-toeat, char-grilled 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 rapid 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 "drivethrough" 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 premises. 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 has been designed to be eaten "on the go", often does not require traditional cutlery, and is eaten as a finger food. Common menu items at fast food outlets include 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 hamburgers and fries, there are many other forms of fast food that enjoy widespread popularity in the West. Chinese takeaways/takeout restaurants are particularly popular. They normally offer a wide variety of Asian food which has normally been 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 created 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 traditional 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, Australia and New Zealand. Fish is battered and then deep fried.The Dutch have their 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 Association forecasted that fast food restaurants in the U.S. would reach US$142 billion in sales in 2006, a 5% increase over 2005. In comparison, the full-service restaurant segment of the food industry is expected to generate $173 billion in sales.

Jobs and labor issues
Today, more than 10 million workers are employed in the areas of food preparation and food servicing including fast food in the world. Employees are the backbone 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 year. With such a turnover, owneroperators of franchise and non-franchise restaurants have the daunting task of constantly training an entirely new workforce. Policies 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 billion and a volume of 80.3 billion transactions. In India alone the fast food industry 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 25 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 shown to increase calorie intake, promote weight gain, and elevate risk for diabetes. 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 preventable 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 foodservice of total consumer expenditure on food has increased from a very low base to stand at 2.6% in 2001. Eating at home remains very much ingrained in Indian culture 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.

MARKET SIZE & MAJOR PLAYERS a) Dominated by McDonalds having as many as 75 outlets. c) Pizza hut is also catching up and it has planned to establish 125 outlets at the end of 2005. Because of the availability of raw material for fast food.FACTS AND FIGURES Fast food is one of the world’s largest growing food type. a strength that they have developed over years of experience around the world. it claims to cater 50.The multinational segment of Indian fast food industry is up to Rs. COFFEE DAY BARISTA. India’s fast food industry is growing by 40% a year and is expected to generate a billion dollars in sales by 2005. By 2005. 6 billion.000 guests every day. sourcing practices. 3600 million which is about one-fourth of total investment made in this sector. b) Domino’s pizza is present in around 100 locations. In last 6 years. d) Subways have established around 40 outlets. The home grown chains have in the past few years of competition with the MNCs. 00. e) Nirulas is established at Delhi and Noida only. Major players in fast food are: • • • • • • MCDONALDS KFC PIZZA HUT DOMINOS PIZZA. . foreign investment in this sector stood at Rs.1. the value of Indian dairy products is expected to be Rs.70 billion by 2005. Global chains are flooding into the country.000 million. service levels and standardized operating procedures in their restaurants. However. The main reason behind the success of the multinational chains is their expertise in product development. learnt a few things but there is still a lot of scope for improvement. a figure expected to zoom to Rs. quality standards.

Customer Sophistication and Confidence: consumers are becoming more sophisticated now. Eating meat is not explicitly prohibited. Hindus avoid all foods that are believed to inhibit physical and spiritual development. This results into entry of large number of fast food players in the country. CHALLENGES FOR THE INDUSTRY Social and cultural implications of Indians switching to western breakfast food: Generally. This helped significantly the MNC’s to enter in the country. Working Women: working women have no time for cooking. Now people have more disposable income so they can spend easily in fast food and other activities. They do not want to prepare food and spend their time and energy in house hold works. Double Income Group: emergence of double income group leads to increase in disposable income.REASON FOR EMERGENCE Gender Roles: gender roles are now changing. 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 children’s. they have no time for their home and cooking food. Females have started working outside. Fast food is an easy way out because these can be prepared easily. Large population: India being a second largest country in terms of population possesses large potential market for all the products/services. Relaxation in rules and regulations: with the economic liberalization of 1991. but many Hindus are vegetarian because they adhere to the concept of . and if they have then also they don’t want to cook. Most of the time either people work or want to enjoy with their family. So. They are building their confidence more on ‘ready to eat and easy to serve’ kind of foods Paucity of Time: people have no time for cooking. burgers and other type of fast foods. Menu diversification: increase in consumption of pizzas. most of the tariff and non tariff barriers from the Indian boundaries are either removed or minimized. Because of emergence of working women and also number of other entertainment items.

PROBLEMS OF INDUSTRY . merely thrown on the ground.. yogurt. Emphasis on the usage of bio-degradable products: Glasses. and these are all disposable. Profit repatriation: Repatriation of profits is another area of concern for Indian economy. polyurethane containers. host country experiences these benefits for a short time period. However. In order to reduce soil and water pollution. Instead. And that is what happened when McDonald’s decided to enter the complexity of Indian business landscape. But now. Many of these items are tossed in the garbage instead of being recycled. Products from cows (e. silverware. such as beef or alcohol. Those seeking spiritual unity may avoid garlic and onions. Indians are switching to fast food that contain all those things that are considered impure or against there beliefs. without any apparent previous cultural training. or even worse. As when multinational enters the any countries. Retrenchment of employees: Most of new industries will be capital intensive and may drive local competitors. government now emphasis more on the usage of bio-degradable products.ahimsa. people and government hope that it will increase the employment rate and result in economic growth. plates and cloth napkins are never provided with fast food. In long run neither employment increases (because of capital intensive nature of MNC’s) nor it increases the GDP or GNP because whatever MNC’s earn they repatriate that profit back to their home country. with the multinational operation. counting only on its “fast food global formula”. milk. This burdens nature unnecessarily and squanders raw materials. are innately polluted and can never be made pure. paper plates and napkins. out of business.g. Pure foods can improve the purity of impure foods when they are prepared together. plastic cups and tableware. drinking cartons or PET (polyethylene terephthalate) bottles are used. Some foods. ghee-clarified butter) are considered pure. Some traditional and fundamentalist are against this transformation of food habit and number of times they provoke their counterparts to revolt against such foods. which have more workers. The concept of purity influences Hindu food practices.

They introduce varieties of things that will attract the children’s attention and by targeting children’s they automatically target their parents because Children’s are always accompanied by their parents. \ II.the cost associated with the environment friendly product. Health related issues: obesity: I. one can see that one side pushes for higher standards and other side tries to beat the standard back.Environmental friendly products cost high: government is legislating laws in order to keep check on the fast food industry and it is emphasizing more on the usage of bio-degradable and environment friendly products. They cost much higher than the normal products that companies uses for packaging or wrapping their products. TRENDS IN INDIAN MARKET Marketing to children's: fast food outlets in India target children’s as their major customers. Low calories food: Emphasis is now more on low calorie food. But associated with this issue is the problem that fast food player faces . Thus. . 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. Balance between societal expectation and companies economic objectives: To balance a society’s expectation regarding environment with the economic burden of protecting the environment. In this line McDonald has a plan to introduce all white meat chicken Mcnuugget with less fat and fewer calories. thereby making it a arm wrestling and mind boggling exercise.

Many women or both parents now work 2. Long distances to school and work are common 4. lunch times are short 5. They are introducing all categories of product so that people of all age. Especially on weekdays. Indian people prefer eating at home but now with the change in trend there is also need for improvement and up gradation of technology in food sector. Value added technology services: There is continuous improvement in the technology as far as fast food market in India is considered. this industry faces low level customer commitment. class. Kentucky Fried Chicken About the Company . or to cook and eat with one's family. Attracting different segments of the market: Fast food outlets are introducing varieties of products in order to cater the demands of each and every segment of the market. The reason behind that is food is a perishable item and in order to ensure that it remain fresh for a longer period of time. There are increased numbers of single-parent households 3.Low 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. Earlier. income group etc can come and become a customer of their food line. fast food outside the home is the only solution. sex. There's often not enough time or opportunity to shop carefully for groceries. Usually. The success of fast foods arose from the changes in our living conditions: 1.

Thomas was also responsible for the creation of the famous rotating bucket sign that came to be used at most KFC locations in the US. KFC offers beef based products such as hamburgers or kebabs. Starting in April 2007. While its primary focus is fried chicken. side dishes and desserts. salads and sandwiches. for its signage. is a chain of fast food restaurants based in Louisville. wraps. Outside North America. In France. His reasoning behind using the paper packaging was that it helped keep the chicken crispy by wicking away excess moisture.KFC Corporation. pork based products such as ribs and other regional fare. Ohio area. KFC primarily sells chicken in form of pieces. The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952. . The restaurants are known as Poulet Frit Kentucky or PFK in the province of Quebec in Canada. however. KFC also offers a line of roasted chicken products. or KFC. the company began using its original name. Kentucky. founded and also known as Kentucky Fried Chicken. Thomas was originally a franchisee of the original Kentucky Fried Chicken and operated several outlets in the Columbus. Additionally. the chain is known as KFC. Yum! Continues to use the abbreviated name freely in its advertising. Kentucky Fried Chicken. 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 founder Dave Thomas. KFC is a brand and operating segment. 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 signage. called a "concept" of Yum! Brands since 1997 when that company was spun off from PepsiCo as Tricon Global Restaurants Inc. though the idea of KFC's fried chicken actually goes back to 1930. The company adopted the abbreviated form of its name in 1991.

Kentucky Grilled Chicken . it was sold as a whole roaster or a half bird. For a time. calories. and wings that are coated with the Original Recipe seasonings before being grilled. It features marinated breasts. which increases the risk of heart disease. Nutritional value KFC formerly used partially hydrogenated oil in its fried foods. Smokey Chipotle – Introduced in April 2008. the biscuits. [28] Tender Roast Chicken – This product was an off-shoot of 'The Colonel's Rotisserie Gold'. and sodium than the Original Recipe fried chicken. The chicken was dipped in chipotle sauce then doubled breaded and fried. The Center for Science in the Public Interest (CSPI) filed a court case against 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. drumsticks. is made using a garlic marinade and double dipping the chicken in flour before deep frying in a standard industrial kitchen type machine. "Extra Tasty Crispy". This oil contains relatively high levels of trans fat. Purportedly made from a "lost" Col. thighs. . It has been discontinued since August 2008. Introduced in April 2009. Discontinued products The Colonel's Rotisserie Gold – This product was introduced in the 1990s as a response to the Boston Market chain's roasted chicken products. KFC's primary product is pressure-fried pieces of chicken made with original recipe. Instead of whole and half birds.Menu items KFC's specialty is fried chicken served in various forms. Sanders recipe. customers were given quarter roasted chicken pieces. however. extra crispy. It has less fat. This would also apply to their potato wedges and other fried foods. In October 2006. The other chicken offering. customers could request chicken "original".This marinated grilled chicken is targeted towards health-conscious customers. or "Tender Roast". and a healthier mindset of the general public avoiding fried food. KFC announced that it would begin frying its chicken in trans fat-free oil.

selling Taco Bell. KFC is part of the two . Pizza Hut. and KFC. the lead singer then swallows fire.Advertising One of KFC's latest advertisements is a commercial advertising its "wicked crunch box meal". the original. and a divestiture of PepsiCo restaurant division. non-acronymic Kentucky Fried Chicken name was resurrected and began to reappear on company marketing literature and food packaging.800 outlets located in 77 countries. KFC restaurants are not restricted from locating within close proximity of other KFC restaurants. In marketing. as well as some restaurant signage. John Hill is Chief Financial Officer and Colin Moore is the head of Marketing. David Novak is president of KFC. Some major threats include the changing attitudes of society toward healthier eating habits. The first strategy involves keeping PepsiCo beverage division and snack foods division together. The commercial then shows the lead singer at a KFC eating the "wicked crunch box meal" and saying "Oh man that is hot". The commercial features a fictional black metal band called "Hellvetica" performing live. Peter Waller is head of franchising while Olden Lee is head of Human Resources. Present Situation The organization is currently structured with two divisions under PepsiCo. There are two alternative strategies for KFC. In 2007. KFC has more than 9. KFC Business Strategy KFC fast-food chains are currently under the restaurant division of PepsiCo Incorporated.

By the time PepsiCo bought KFC in 1986. the KFC logo was the only one which significantly enhance the brand's image . PepsiCo used many of the same promotional strategies that it has used to market soft drinks and snack food. done by The Schecter Group. in the fourth annual LogoValue Survey. KFC's early entrance into the fast-food industry in 1954 allowed KFC to develop strong brand name recognition and a strong foothold in the industry. 3. PepsiCo's success with the management of fast food chains. PepsiCo acquired Pizza Hut in 1977. just before McDonald's. both in the U. In fact. KFC's secret recipe. The strengths identified are as follows: 1. Also. KFC was the first chain to enter the fast-food industry. Traditional employee loyalty. 4. Both of these divisions of PepsiCo are based in Dallas. and allowed KFC to set itself apart. in their new logo. which are PepsiCo Worldwide Restaurants and PepsiCo Restaurants International. Name recognition and reputation.S. the company already dominated two of the four largest and fastest-growing segments of the fast food industry. . and Taco Bell in 1978.PepsiCo divisions. 2. The secret recipe has long been a source of advertising. and internationally. The Colonel is KFC's original owner and a very recognizable figure. Strengths Strengths can be found internally in a company and can be used to the company’s advantage. and the "secret recipe" was the initial home replacement strategy. which opened its first store a year later.

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

weaknesses. 3. McDonald's had already introduced the McChicken while KFC was still testing its own chicken sandwich. opportunities. and threats of KFC. During this time. There has been a trend toward an increasingly healthy diet in America. No defined target market. It does not appear to have a consistent long-term approach. the following potential problem areas were identified: 1. has enormous changes in its demographics.S. 3. The U. New technology has increased efficiencies. This put KFC at an extreme disadvantage due to its fried product offering. but resulted in greater . Employees do not have the same level of job security that they enjoyed before the PepsiCo acquisition Problems Through an analysis of the strengths. while PepsiCo's culture is more of a "fast track" attitude. With this kind of dramatic change. While KFC's culture was largely based on the Colonel's laid back approach to management.Menu option. The advertising campaign of KFC does not specifically appeal to any segment. Health Conscious Consumers. KFC does not have a proper approach to its target market. 2. Single-person households have increased from 12% in 1970 to 25% in 1995. Conflicting cultures of KFC and Pepsi Co. Increased Start Up Costs. This delay significantly increased the cost of developing consumer awareness for the KFC sandwich. Prime locations have increased in cost due to limited room for expansion.

KFC was positioned 54th place.000 restaurants which are visited on a daily basis by almost 8 million customers. currently valued at 5. This prize is distributed each year by YUM Restaurants International.000. Restaurant and equipment packages range from $500. Domino's Pizza India has become a wide network of Pizza delivery and food chain. Globally. Worldwide. There are close to 220 outlets in 42 cities of India and the brand is the top most among the food delivery business.000 to $1.1 billion USD.000 people. KFC employs approximately 290. Achievements: KFC is one of the most renowned world gastronomic brand names. Today.000.According to the ratings for “Most expensive world brands 2004” conducted by the American weekly ‘Business Week’. 1996 at New Delhi. DOMINO’S SIZE OF THE MARKET Domino's Pizza is one of the biggest and fastest growing international food joints in South Asia.increased start up costs.three types of salad (Caesar. The very first Domino's Pizza outlet in India opened in Jan. Garden and Mandarin) obtained the prize for “Worldwide Best Practice Award 2004” in the category of best product and best marketing campaign and its implementation in the restaurants. Domino’s Pizza outlets can be seen at major . In 2004 the “KFC Excellent” range . Kentucky Fried Chicken products are currently offered in 80 countries worldwide and in more than 11. a new KFC restaurant is opened almost every day.

Although they are expert in delivering Pizzas on time. Domino’s Pizza is expanding its base in India by opening 500 outlets to add to its current tally of 156 outlets. their eating joints and outlets are also good. We plan to have a total of 500 stores in 75-80 cities by 2010 to 2011. MARKET STRATEGIES  Promotional and Advertisement Campaigns(Coupons and discounts)  The '30 Minutes' Promise  Use of Technology(Digital interactive Television. and registered a healthy growth of 60% over last year.locations of Delhi and NCR. It would entail an investment of Rs 200 million during the period MARKET GROWTH During last four months. Panipat. now the ratio is 50:50 between big cities and smaller Tier II and III cities. Currently Domino’s sells around 35. dominoes have opened outlets in Jammu. 000 crore. While earlier. Mobile telephony)  Premium Pricing Strategy  Indian fast food industry and entry of multinational players  Distribution strategies of fast food chains in India MARKET SHARE The organized pizza market in India is worth Rs. Internet on the PC. across 50 cities in India by 2011 with an investment of Rs. Baroda. Their home delivery is free with a guarantee of “Thirty Minutes Nahi to Free”. Meerut and Patiala. The main target for new outlets shall be metro cities though Tier II cities would also receive a fair amount of attention. 70 percent of our business used to be in metros and mini-metros. Surat.1.500 crore and Domino’s has a substantial 45% market share. Nashik.000 pizza every day. Trivandum. of which around .

But some of the most rapid growth is occurring in the developing world. and heavily promoted. So most of the fast foods came into Indian market as India has a high growth in every sector. COMPETITORS Fast food is one of the world's fastest growing food types. India is a developing country with 2 percent of organized and 98 percent of unorganized sector. 65 percent of its revenue comes from home delivery service. easy to prepare. This paper aims at providing information about fast food industry. where it's radically changing the way people eat. People buy fast food because it's cheap. Some of the competitors of domino’s are  McDonald's  Pizza Hut  Barista  Coffee Day MC Donald’s .1% are given free on account of its “30 minutes or free” model. its trend. reason for its emergence and several other factors that are responsible for its growth. around 35 percent is from sales in premise. It now accounts for roughly half of all restaurant revenues in the developed countries and continues to expand there and in many other industrial countries in the coming years.

McDonald's offers salads and vegetarian items. suppliers and employees work together to meet customer needs in uniquely McDonald's ways. wraps and other localized fare.McDonald's is the leading global foodservice retailer with more than 31.000 local restaurants serving more than 58 million people in 118 countries each day. We drive our business momentum by focusing on what matters most to customers. . To read more about McDonald's history. This local deviation from the standard menu is a characteristic for which the chain is particularly known. and one which is employed either to abide by regional food taboos (such as the religious prohibition of beef consumption in India) or to make available foods with which the regional market is more familiar (such as the sale of McRice in Indonesia). Our owner/operators. Portugal is the only country with McDonald's restaurants serving soup. soft drinks. various types of chicken sandwiches and products. vision and executives. breakfast items. French fries. and desserts. The powerful combination of entrepreneurial 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. click on their links in the left menu. The strong foundation that he built continues today with McDonald's vision and the commitment of our talented executives to keep the shine on McDonald's Arches for years to come. More than 75% of McDonald's restaurants worldwide are owned and operated by independent local men and women. Products McDonald's predominantly sells hamburgers. In most markets.

the company makes significant use of billboards and signage. sponsors sporting events ranging from Little League to the Olympic Games.Advertising McDonald's has for decades maintained an extensive advertising campaign. In addition to the usual media (television. radio. At times. television has always played a central role in the company's advertising strategy. To date. McDonald's has used 23 different slogans in United States advertising. and makes coolers of orange drink with their logo available for local events of all kinds. and newspaper). . as well as a few other slogans for select countries and regions. it has run into trouble with its campaigns. Nonetheless.

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

It is one of India’s leading coffee exporters. that is owned by a sister concern and from 11. respectively. with clients across the USA. Karnataka. Café Coffee Day sources coffee from 5000 acres of coffee estates. and to some extent creating. Large number of coffee day cafes are located in Bangalore. (ABCTCL).000 small growers. the cafe culture wave that swept across metropolitan India following strong economic growth resulting in an increase in youth spending power. Middle East. making forays into Pakistan and Germany to set up cafes abroad. the second largest in Asia. it is commonly known as Coffee Day or CCD. It opened its first cafe in 1996 on Brigade Road in Bangalore. Bangalore.become a globally competitive organization – one that is driven by an insatiable thirst for excellence. and today has the largest cafe retail chain in India – with over 800 cafes in 112 cities. Its first Wi-Fi cafe was opened on Lavelle Road. Europe and Japan. the home to some of the best Indian coffees. It has even tied up with World Space and Micro sense to enable its cafes with satellite radio and Wi-Fi. Coffee Day has its business spanning the entire value chain of coffee consumption in India. Coffee Day Xpress (which owns 730 Coffee Day kiosks). Coffee Day Takeaway (which owns 9000 vending machines). CAFÉ COFFEE DAY Café Coffee Day is a chain of coffee shops in India having its headquarters in Chikkamagaluru. With its roots in Chikmagalur. A division of Amalgamated Bean Coffee Trading Company Ltd. Its different divisions include: Coffee Day Fresh 'n' Ground (which owns 450 coffee bean and powder retail outlets). Coffee Day Exports and Coffee Day Perfect (FMCG Packaged Coffee) division. It is entering the European market by opening two Cafés in Austria as well. The strategy CCD has adapted is to place a cafe in every possible location where . The cafe chain has had much success riding.

in the main shopping district. there are six outlets in a 2 km radius and overall 120 cafes in Bangalore 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. Cafe Coffee Day competitors include but are not limited to • • • • Barista Cafe Mocha Costa Coffee The Coffee Bean & Tea Leaf . So in Bangalore.some business can be generated. These innovative strategies have ensured that the competition is at bay and ensured CCD's dominance in the Indian market though many of its outlets are incurring losses.

many of the most serious chronic illnesses in the United States are associated with dietary deficiencies. 95(4).1 mile greater distance to the nearest supermarket than predominantly white neighborhoods.LITERATURE REVIEW Zenk. American Journal of Public (2005). In fact. S. African American communities averaged 1. The study found that the distance to the nearest Supermarket increased with increasing levels of neighborhood poverty. specifically dietary health. Supermarkets are defined as either a Supercenter such as Super Kmart or a full-line grocery store associated with a national or regional grocery chain such as Kroger. This study examines the spatial accessibility of supermarkets for 869 neighborhoods within Metropolitan Detroit with relation to community's poverty and racial composition. et al. While the distance to the nearest Supermarket was similar among the most impoverished neighborhoods. The percentage of residents below the poverty line serves as the measure of neighborhood poverty for the study. “Neighborhood Racial Composition. Abstract: Residential environment is clearly related to health. Neighborhood Poverty and the Spatial Accessibility of Fast Food Stores in Metropolitan Detroit”. Supermarkets provide dietary health resources through higher quality and lower costs of nutritious foods. Relevant Data: . Proper access to nutritious foods is essential to decreasing dietary related chronic illness. Spatial accessibility is equivalent to a Manhattan block.

Literature now associates residence in economically disadvantaged neighborhoods. Abstract: A 2006 study of the United States linked zip codes to census data. There are distinct disparities between the access of blacks. Even after controlling for income and other covariates. the availability of chain supermarkets in African American neighborhoods is only 52% (p < . Mean distance to the nearest supermarket increased with each successive tertile of percentage poor for neighborhoods with a high proportion of African Americans but remained approximately the same across all tertiles of percentage poor for neighborhoods with a low proportion of African Americans (predominantly white) . Disparities in Supermarket accessibility on the basis of race were evident among the most impoverished neighborhoods: the most impoverished neighborhoods.1 miles farther from the nearest supermarket than the most impoverished white neighborhoods. with a variety of adverse diet-related health outcomes. in which African-Americans resided. 44(3):189-195. “Food store availability and neighborhood characteristics in the United States”. Relevant Data: Low-income neighborhoods have fewer chain supermarkets with only 75% (p < 0. Powell. et al.01) of that available in middle-income neighborhoods . Lisa M. socioeconomic status. with a definite correlation in location. after controlling for socioeconomic status. finding various statistics about the availability of grocery stores in accordance to neighborhood descriptions and demographics. were on average were 1. whites and Hispanics to supermarkets. and race. Inadequate accessibility to supermarkets may contribute to less nutritious diets and hence to greater risk for chronic diet related disease. Affordable public transportation needs to be improved integrating transportation routes with supermarket locations . American lifestyle(2007 Mar).

Relevant Data/Quotations: The analysis finds that over 7. “Does Public Transit Counteract the Segregation of Carless Households? Measuring Spatial Patterns of Accessibility”. Indeed. Joe. Larger sized food stores such as supermarkets versus smaller stores and chain versus non-chain supermarkets have been shown to be more likely to stock healthful foods and to offer foods at a lower cost. Transportation Research Board of the National Academies (2007). several studies have highlighted the mobility constraints faced by low-income households in their daily activities including food shopping . to address the problem of urban populations that depend on public transportation but have a lack of access to their everyday needs. do not have reasonable access to supermarkets. Hispanic neighborhoods have only 32% (p < 0.01) of that in White neighborhoods with even less relative availability in urban areas . A recent report finds that African Americans prefer to shop in chain supermarkets and that one of the key factors that influence these shoppers is transportation and location. technology that measures transit use on smaller scales.0.01) as many chain supermarkets compared to non-Hispanic neighborhoods. representing 12 percent of New York City's households. Grengs. in particular chain supermarkets. Proximity is important—37% of African American shoppers travel one mile or less to their primary grocery store . . the mobility strategies for food shopping among low-income families will exacerbate the barriers to a limited number of available local area supermarkets. including food. Furthermore. Abstract: This study researched Geographic Information Systems. given that low-income populations are less likely to have private means of transportation and given that the nature of food shopping involves either transporting multiple shopping bags or making more frequent shopping trips.500 households.

Queensland University of Technology disproportionately As noted by Doran (2002). it is imperative that we seek to examine commonly accepted. Bitner. Zeithaml and Berry. 1990. Renaghan and Miller. Therefore. 1994). it is important to identify the importance of service quality and . relatively little attention has been paid to issues surrounding service quality in non-western countries. Service Quality: An investigation into Malaysian Fast food consumers using DINESERV Keang Meng Tang.The study provides statistically significant evidence that poor accessibility is associated both with with low-income neighborhoods high populations and of with African neighborhoods Americans. This being said however. For example. 1992).g. SERVQUAL has been well utilised within the literature. assurance and empathy. Cronin and Taylor. Oliver and MacMillan. like the Asian region and in particular. the work of Parasuraman. DINESERV) are able to predict a consumer’s overall service quality perceptions or (OSQ) (Oliva. Knutson and Patton (1995). Schneider and White. it is important to note that SERVQUAL has been found to possess certain limitations. 1988). Prior research suggests that not all service quality elements (within tools such as SERVQUAL. DINESERV for restaurants was developed by Stevens. western-based marketing theory in the context of different countries to see whether such concepts explain the same phenomena in consumers from different countries. particularly when applied across different service industries (eg: Babakus and Boller. reliability. in response to findings that SERVQUAL was inadequate for the ‘unique’ restaurant environment (Dube. 1992. Zeithaml and Berry (1988) provides an approach to defining and measuring service quality. Of the knowledge gained in the service quality literature. responsiveness. known as SERVQUAL. 1992. Malaysia. University of Newcastle Ursula Bougoure. 2004). Incorporating five service quality dimensions of tangibles. Parasuraman. Whilst extensive research has been conducted on service quality over the past two decades (e.

some argue that organisations need to exceed predictive expectations of customers. 1996). By addressing this issue. 1990. Overall. Customer satisfaction has long been recognised as a process (Oliver. . Service quality and customer satisfaction are inarguably fundamental concepts within services marketing theory (Spreng and Mackoy. 1994). 1995. Zeithaml and Berry. Oliver and MacMillan. 1996) and their relationship has seen increasing research interest over the years (Bitner. 1981) and is the difference between consumers’ perceived and expected performance of a product or service. Dabholkar. 1997. rather than just satisfy expectations (Spreng and Mackoy. service quality to customer satisfaction (Bolton and Drew. Such contention within the literature has lead to repeated calls for further examination of this relationship (e. 1990). H1: Service quality (DINESERV) will positively effect Overall Service Quality perceptions (OSQ) for Malaysian fast food consumers. While it is generally accepted that a positive relationship exists between service quality and customer satisfaction. Yavas and Bilgin. 1992). to gain customer satisfaction. 1991. 1996. as perceived by customers. it appears likely that service quality dimensions from DINESERV will positively effect overall service quality (OSQ) perceptions by Malaysian consumers. Parasuraman. Mohsin. Spreng and Taylor. 1994). suggestions that directionality varies according to the service situation (Dabholkar 1995) and even that there is no relationship under particular circumstances (Parasuraman. In the context of the fast food industry. 1985). firms can gain an understanding of the areas they should concentrate on when seeking to improve their overall service quality provisions (Oliva. In the case of fast food. Anderson and Fornell. 1994. 1998) with proposals of a causal link from customer satisfaction to service quality (Bitner. Spreng and Mackoy. Rust and Oliver. Zeithaml and Berry. Thus. In other words. while dissatisfaction occurs when performance is lower than expected. customer satisfaction occurs when performance is higher than expected.its dimensions in determining overall service quality (OSQ).g. there is debate (Shemwell. 2003).

2003). there are mixed findings as to the relationship between overall service quality and behaviors that are indicative of customer loyalty. Service quality is tied to desirable business outcomes. such as customer loyalty. According to Schneider and White (2004). As such. H2: Service quality (DINESERV) will positively effect customer satisfaction for Malaysian fast food consumers. 2003). repurchase behaviour is seen as a form of loyalty. which ultimately lead to increased profits (Schneider and White. As argued by Rust. In the extant literature however. while Boulding et al (1993) and Rust and Zahorik (1993) provide empirical support that higher perceptions of service quality increases loyalty intention. Zahorik and Keiningham (1995). results tend to support this relationship and it seems likely that this will be the case for Malaysian consumers of the fast food industry. service quality generates consumer intention to return. Thus. (2004) and Oliver (1997) is a deeply held commitment to consistently repatronise a service in the future. which can translate into actual behaviours that may lead to increased revenues and profits. For example. H3: Overall service quality (OSQ) will positively effect repurchase intentions for Malaysian fast food consumers. telling friends and families of their positive experiences and creating new business and increased revenue for successful service organisations.. 2004). Overall however. 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.. Intention to repurchase is an individual’s judgment about re-buying a designated service. satisfied customers most likely will become loyal which can then translate into higher profits . loyal customers are valuable marketing tools. taking into account their current situation and likely circumstances (Hellier et al. Hui and Zhao. it seems likely that high service quality will lead to increased satisfaction for consumers.however. Cronin and Taylor (1992) found that overall service quality did not effect repurchase intentions. Thus. Within the literature. which according to Law.

Patterson and Spreng. Data Processing and Analysis: The data processing consists of coding the data collected in the form of questionnaire. According to such findings. H4: Customer satisfaction will positively effect repurchase intentions for Malaysian fast food consumers. As such. the relationship between customer satisfaction and repurchase intentions has been examined with results implying that satisfied customers are more likely to intend to repurchase (Taylor and Baker. The study used non probability convenience sampling. The study is completely based on the primary data which is collected from different Fast food stores and the sample size taken for study is 100 people. The methodology of study is the interview method survey.organizations. The tool for the collection of data is a questionnaire. . Thus. 1997). 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. Tools and Methods of Data Collection: The interview is conducted for about 15 minutes with each person and collected the data. it appears likely that this will also be the case for Malaysian consumers in the fast food industry. 1994. The data collected with the help of questionnaire is having the closed replies. Sample and Research design A descriptive research design was adopted to do the survey with the help of the questionnaire. The questionnaire has 15 questions.

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:- .

e. it says that majority of the customers visit the fast food retail store weekly (i. 38%) and minority of them (19%) 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.

e.e. it says that majority of the customers 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. 24%) in the fast food retail store 3) Preference Frequency Brand image Easy accessibility Special offer Total 21 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.

50%) prefer special offers in the store and minority of them (i.From the above table and graph.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:- . it says that majority of the customers (i.e.

e.From the above table and graph it says that majority of the customers are willing (i.31% ) of them visit the store on evening session 5) Preference of store due to friendliness of staff Response Strongly disagree Disagree Neutral Agree Strongly agree Total Frequency 2 5 44 40 9 100 50 45 40 35 30 25 20 15 10 5 0 Strongly agree Disagree Neutral Agree Strongly agree .e. 40% ) to visit the store on morning session and minority of them (i.

Interpretation:- From the above table and graph it says that majority of the customers (i. 44%) of them are neutral to prefer the store for friendliness of staff and minority of them (i.e.e. 40% ) of them agree that they will prefer the store for friendliness of staff 6) Preference of store due the variety of menu available in the store Response Strongly Disagree Disagree Neutral Agree Strongly agree Total Frequency 5 15 21 39 15 100 preference due to variety of menu 45 40 35 30 25 20 15 10 5 0 Strongly agree Disagree Neutral Agree Strongly agree Interpretation .

e. 39%) of them agree that they will prefer the store due to the variety of menu and minority of them (i. 39%) are neutral about the preference of store due to service speed and minority of them are disagree that (i.e.e. 20%) of them prefer the store due to service speed .e.From the above table and graph it says that majority of the customers ( i. 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 Total Frequency 5 20 39 15 20 100 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 customers (i.

31%) agree that they will prefer the store due to the calorie content in the food . 33%) of them disagree that they will prefer the store due to the calorie content in the food and minority of them (i.8) Preference of store due to good calorie content exist in the food Response Strongly disagree Disagree Neutral Agree Strongly agree Total Frequency 9 33 19 31 20 100 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 customers (i.e.e.

e.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 agree Interpretation: From the above table and graph it says that majority of the customers (i. 40% ) of them agree that they will prefer the store for ambience provided 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 agree Interpretation:From the above table and graph it says that majority of the customers (i. 41%) of them prefer the store due to delivery speed that is offered 11) Satisfaction with the menu offer for my family .e.

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 customers (i.e. 35% ) of them agree that they are satisfied with the menu that was offered 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 agree Interpretation:From the above table and graph it says that majority of the customers (i. 41% ) of them says that they are neutral about preferring the store due to the facilities 13) Preference of store due to easy accessibility and locational advantage .e.

e. 45%) of them agree that they will prefer the store due to easy accessibility and locational advantage 14) advertising strategy Response Frequency .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 customers (i.

Strongly disagree Disagree Neutral Agree Strongly agree Total 100 9 20 33 28 10 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 customers (i.e. 33%) of them are neutral about the advertising strategy provided by the store and followed by that customers agree the store for the advertising strategy 15) preference of store due to special offer and discounts Response Frequency .

41% ) agree that they will prefer the store because of special offers and discounts.e. Major Findings • This study indicates that majority of the customers visit the fast food retail store weekly (i. 38%) and minority of them (19%) visit fortnightly .Strongly disagree Disagree Neutral Agree Strongly agree Total 100 4 20 15 41 20 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 customers (i.e.

e.e. 50%) prefer special offers in the store and minority of them (i.e. 60%) and minority of them says that they will spend money of price range 100-200 (i. 41% ) agree that they will prefer the store because of special offers and discounts.e. 33%) of them are neutral about the advertising strategy provided by the store and followed by that customers agree the store for the advertising strategy • This study indicates that majority of the customers (i.e.• This study indicates that majority of the customers are willing to spend money of price range 200-500 (i.e. 33%) of them disagree that they will prefer the store due to the calorie content in the food and minority of them (i. 21% ) of them neutral about the variety of menu in the store • This study indicates that majority of the customers (i. 45%) of them agree that they will prefer the store due to easy accessibility and locational advantage • This study indicates that majority of the customers (i.e.e. 40% ) of them agree that they will prefer the store for friendliness of staff • This study indicates that majority of the customers ( i. 40% ) of them agree that they will prefer the store for ambience provided in the store • This study says that majority of the customers (i. 35% ) of them agree that they are satisfied with the menu that was offered in the fast food store and followed by some of them are neutral about the menu for their family • This study indicates that majority of the customers (i.e.e.e.e. 44%) of them are neutral to prefer the store for friendliness of staff and minority of them (i. 29%) prefer easy accessibility • This study indicates that majority of the customers (i. 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. Major suggestions: . 24%) in the fast food retail store • This study indicates that majority of the customers (i. 39%) of them agree that they will prefer the store due to the variety of menu and minority of them (i.e.e.e.

But it is suggested that add more customized menu and review the menu for every 3 months. 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 customers and retain loyal customers.  It is found that majority of customers are not fully satisfied with the friendliness of staff. So it is suggest that stores should display the calorie contents available in a particular food.  As study shows that customers are not aware of the calorie contents exist in the food.So it is suggest the stores to think of the design of different innovative advertising campaigns.  Advertising strategy of the stores are not making attention the customers . So it is suggest that the stores should conduct soft skill training and make them give more customer service . .so it suggest stores to more concentrate on the special offers but no compromise in the quality of food.  It is suggest the stores to concentrate on the areas of ambience and locational strategy.  Customers are happy with the MENU verities available in the stores .  As study refers more customers are looking for the special offers .Regular monitoring of the staff behavior towards customers is also suggest here.