FAST

FOOD
INDUSTRY


By
Aparna Parthasarathy
Arun Senthil Kumar
Binto Varghese Paul
C M Kamalesh
Deepu G
Muthukumarasamy
FAST FOOD INDUSTRY
Worlds largest growing food type.
Industrial growth is 40% a year.
The organized pizza market in India is
worth about Rs.675 crore.
Foreign investments are worth Rs.3600
million (1/4
th
total investment in this
sector)
McDonalds India is the market leader
in this industry.
MAJOR PLAYERS
McDonalds History
It started as a drive-in-restaurant in the
late 1940s.
In 1966, McDonalds was listed on the
New York Stock Exchange.
In June 1967, McDonalds opened its first
restaurant outside U.S in Canada.
In 1996, McDonalds entered India in a
joint venture.
McDonalds now has a network of over
160 restaurants across the country

McDonalds System the
Worlds Best QSR experience
World Market Leader in the QSR area
(Quick Service Restaurant)
Franchise System (75%)
System employees: 1.6 million
Customers Per Day: 58 million
Corporate Strategy:
QSC&V: Quality, Service, Cleanliness
and Value
Plan To Win -> Successful business
revitalization

Products
Vegetarian Menu

Non-Veg Menu

McCafe

Desserts

McDonalds SUPPLY CHAIN
McDonalds Supply chain is based on the
three-legged stool concept : Company
Franchisees Suppliers

Logistics
100 sales items in the restaurant
400 SKUs in the warehouse
200 restaurants per DC (~180 DCs globally)
Delivery frequency: ~3/wk, higher in urban
areas
2-3 stops per route
Exclusive distributors (3PL)
Strong quality focus (Cold Chain, HACCP, QIP)

McDonalds took 4 years and
around Rs 450 crores to set up
the food supply chain even
before opening its 1
st
restaurant.

McD India has pioneered the
cold chain management system.

They provided assistance in the
Selection of high quality seeds
Drip-irrigation technology
Refrigerated transportation system



SUPPLIERS
1. Dynamix Dairy Industries (Supplier of Cheese)
Fully automatic international standard
processing facility.
Network of milk collection centres equipped
with bulk coolers.
Dedicated quality program.
Dedicated R&D centre



2. Trikaya Agriculture
(Supplier of Iceberg Lettuce)
Specialized nursery with a team of
agricultural experts

Drip and sprinkler irrigation in raised
farm beds with fertilizer mixing plant.

The pack house, pre-cooling and cold
room are located at the farms itself to
ensure no delay.


3) Vista Processed Foods Pvt. Ltd.
(Supplier of Chicken and Vegetable
products)
World class infrastructure
and support services.
Separate processing lines for
chicken and vegetable
foods.
Hi-tech refrigeration plants
for manufacture of frozen
food at temperatures as low
as -35C.
DISTRIBUTION
Radhakrishna Foodland
Ltd.
Specialized in providing
services
procurement
quality inspection
storage
inventory management
deliveries
data collection
recording and reporting
Dry and cold storage facility
Transportation trucks
maintained at 22 C
Implemented ERP software.

OUTSOURCING THE INGREDIENTS
ITEM PLACE
Cheese Dynamix Dairy Industries Ltd., Pune
Dehydrated onions Jain Foods, Jalgaon
Iceberg lettuce Trikaya Agriculture, Pune
Chicken patty Vista Foods, Taloja
Veg. Patty, Veg. Nuggets, Pies Kitran Foods, Taloja
Chicken (dressed) Riverdale, Talegaon
Buns Cremica Industries, Phillaur
Eggless mayonnaise Quaker Cremica Pvt. Ltd., Phillaur
Sesame seeds Ghaziabad
Fish fillet patties Amalgam Foods Ltd., Kochi.
Vegetable for the patties
Finns Frozen Foods, Nasik and Jain
Foods, Jalgaon
Mutton and Mutton Patties Al Kabeer, Hyderabad
Quality Inspection Programme (QIP)
carried out in the Cold Chain system.

Hazard Analysis Critical Control Point
(HACCP)

Based on HACCP guidelines, control
points and critical control points for all
McDonald's major food processing
plants and restaurants in India have
been identified.

SUPPLY CHAIN INTEGRATION
OVERVIEW
Founded in 1965 by Tom Monaghan.
Second-largest Pizza chain in the United
States.
about 8,500 corporate and franchised
stores in 55 countries.
Domino's Pizza outlet in India opened in
1996.
Close to 274 outlets in 55 cities of India.
70 percent of its revenue comes from
home delivery service & around 30
percent is over-the-counter sales.
CORPORATE STRATEGY

Exceptional people on a mission to be
the best pizza delivery company in the
world! "
'Think global and act local
Fun, happiness and convenience

PRODUCTS
Pizzas
Pastas
Breadsticks
Cheese Dips
Beverages
Chocolava
OPERATIONS
Indian operations are ranked number one
for the past 3 years.
Delivers an average of 1 million pizzas
per day.
Over the last 2 years, they opened stores
in 15 new cities.
The company operates in three segments:
1. Domestic stores
2. Domestic supply chain
3. International

1. Domestic Stores
uses its company-owned stores as a
testing ground for new products and
technologies which may then be passed
onto franchisees.
generates income from company-
owned stores in the form of store
profits.

2. Domestic Supply Chain
Vertically integrated supply system
automatic delivery of raw materials
cuts out a lot of the "back of-store"
activities.
Helps in keeping down food costs.



3. International
consists of 3,469 franchised
stores outside the United States.

operates six supply chain centers
which manufacture dough and
distribute food and supplies.

International segment accounts
for about 41% of Domino's store
sales worldwide.
DOMINOS SUPPLY CHAIN
1. Procurement of raw materials
Raw materials like wheat, baby corn, tomatoes
and spices are got, out of which wheat was
bought in from jalandhar and then sent to the
commissaries in refrigerated trucks.

4 commissaries (Regional Centralized
Facilities)
1. Delhi
2. Bangalore
3. Kolkata
4. Mumbai
2. Distribution
Pizza dough processed from the wheat is
then sent to the retail outlets again in
refrigerated trucks.

Logistics requirement for sending frozen
foods, at a temperature of 18C and of
refrigerated trucks in which food is sent
at a temperature range of between 1 to
4C.






3. Retail Outlets
1. Regular stores
2. Super stores : High traffic,
More counters
3. Express stores : those where
people were expected to
walk in and order rather
than ask for home delivery.

SUPPLY CHAIN DIAGRAM
WHEAT
REFRIGERATED
TRUCK
WAREHOUSE
DOUGH
RETAIL
OUTLET
Outsourcing the Ingredients
ITEM
PLACE
Wheat Jalandhar (Punjab)
Cheese Karnal, Haryana
Tomatoes Bhubaneshwar, Orissa
Spice South India
Baby Corn Nepal
Exotic Vegetables Sri Lanka
Pepperoni Australia
Jalapeno Spain
OVERVIEW
one of the flagship brands of Yum!
Brands, Inc.
Frank and Dan Carney opened Pizza hut
in 1958
12,500 restaurants across 91 countries
Indian outlet opened in June 1996 in
Bangalore.
147 restaurants across 36 cities in India.
27 per cent market share of the eating-
out market and over 70,000 footfalls per
day.
CORPORATE STRATEGY

We want to satisfy our customer by
offering them the best
C.H.A.M.P.S
(Cleanliness, Hospitality, Accuracy,
Maintenance, Product quality and
Speed)
3Fs ( Fun, Friendly and Familiar)

PRODUCTS
Sauteed Pastas
Beverages
Appetizers
Soups and Salads
Pizzas
Desserts

SUPPLIERS

Direct Suppliers
Pepsi
Cremica Group (Buns)

Indirect Suppliers
Meat market : Chicken from
Brazil
Vegetable market : Potatoes
from Australia
Sauce companies


COLD CHAIN LOGISTICS
Snowman Frozen Foods provides cold storage
facility
16 warehouses and 110 trucks
Equipped with Carrier and Thermo King
transport temperature control units.
Cold storage capacity is between 100 tonnes
and 1,200 tonnes.
Teradata Warehouse Miner
largest customer data warehouse
Profile and segment customer
households
Track phone orders & online orders
Increased ROI
Predict the success of a campaign
Simplified data management

CONCLUSION
Fast Food industry in India is growing at a fast
rate. From the study done among the 3 fast
food services McDonalds, Dominos and
Pizza hut, we can clearly come to the
conclusion that McD with its superior supply
chain management (cold chain) is able to
balance between its quality and cost.
The setting up of cold chain has enabled it to
cut down on its operational wastage.
Thank You