1.

1 INTRODUCTION

Fast food is generally food or a meal which is pre-prepared, or which can be quickly cooked
when you order it. You can buy fast food almost anywhere. Although fast food trend is quite new
in Pakistan yet it is growing very fast, this indicate that such type of fast food restaurant have a
very bright future in Pakistan .The two major fast food restaurants that have their outlets in the
whole world, are giving tough competition to each other in Pakistan. Our research is based on the
hypothesis that why people in Pakistan prefer KFC over Macdonald and we found that due to
good quality and taste of food people prefer KFC .When KFC was introduced in Pakistan the
prices was not affordable by people but now they have lower their prices. One reason was also
the impressive packages due to which people prefer KFC over McDonald’s. While conducting
our research we also came to know that KFC is more advertised this is one of the reasons that
people prefer KFC over McDonald’s. We are going to discuss all of this in our research.

1.2 HYPOTHESIS
KFC is a spot light and McDonald’s is a side show.

1.3 AIMS AND OBJECTIVES

The trend of fast food is increasing day by day in Pakistan, this research is designed to generate
knowledge about fast food restaurant in Pakistan, and hence this research is based upon two
leading fast food brands in Pakistan. The main objective is to know that which brand is popular
among majority. Which among the two brands is of higher quality. Which brand is more
economical .Hence in general we conducted this research because we wanted to know that which
brand is preferred and what is the reason behind it.

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1.4 SAMPLING

In sampling plan we draw sample, sample is basically a segment of the population selected for
research to represent the population as a whole. In our research we targeted people from 18 to
30 .So we approached people who visit KFC and McDonald’s .Our sample size is 40 from the
whole population .Our research instrument for collecting primary data is Questionnaire in
which we ask twenty questions, all are close ended for accessing people’s preference.

1.5 METHODOLOGY
The empirical analysis of the “International fast food chains in Pakistan” was based on the
primary data collected through personal observations by visiting KFC and McDonald’s located
in the twin cities of Rawalpindi and Islamabad. The data were collected by filling questionnaire
during rush hours in the afternoon between 12:00 noon to 2:00 p.m. In all, 40 customers were
accounted for during the survey time period in KFC and McDonald’s. The data were collected
during the first week of January 2010.
1.6 LITERATURE REVIEW

First we will take into account the history of KFC. The company was founded as Kentucky Fried
Chicken by Colonel Harland Sanders in 1952, though the idea of KFC's fried chicken actually
goes back to 1930. The company adopted the abbreviated form of its name in 1991. Perfecting its
secret recipe of 11 herbs and spices in 1939, KFC has come a long way. With over 10,000 outlets
in the world, KFC has maintained its title, for the last 60 years, of being the chicken Experts.

Now we will discuss the history of McDonald .At one time it was the largest global restaurant
chain, but it has since been surpassed by multi-brand operator, in the competitor KFC is on top
of the list. The business began in 1940, with a restaurant opened by brothers Dick and Mac
McDonald in San Bernardino, California. The present corporation dates its founding to the
opening of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois, on April 15, 1955. Now
McDonald's is present in 120 countries with about 32000 outlets.

Market entry in Pakistan was not a big problem for KFC as it is a well-known international
brand. In that stage they did promoted through their own brand. Their promotion statement was
“KFC in Pakistan”. Opening the first KFC outlet in Gulshan-e- Iqbal in 1997. KFC wore the

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title of being the market leader in its industry. Serving delicious and hygienic food in a relaxing
environment made KFC everyone’s favorite. Since then, KFC has been constantly introducing
new products and opening new restaurants for its customers. Presently KFC is branched out in
nine major cities of Pakistan (Karachi, Lahore, Gujranwala, Sukkur & Muree) with more than 45
outlets nation-wide. Apart from fulfilling our commitment of serving delicious, fresh and
hygienic food and at the same time providing our customer with the ultimate entertainment; KFC
also plays in the economics development of our country. Presently KFC has provided to over
1200 Pakistanis, which adds up to 6000 individuals directly dependent in KFC Pakistan.
In introduction stage KFC entered the market using market-skimming strategy. Their products
were high price and targeted only upper class. Later they introduced packages which were
affordable by many people.

McDonald's Pakistan opened its doors in September 1998 at Lahore and presently operating in
seven major cities with a network of 20 restaurants. With a strong belief in the Ray Krock phrase
when you are green you are growing, McDonald's Pakistan has an aggressive plan to expand in
all other cities of Pakistan and is rapidly growing with the focus to provide friendly and quick
service restaurant experience to their customers. Today millions of Pakistanis place their trust in
McDonald's everyday to provide them with food of a very high standard as well as good service.
In the past five years, the response to McDonald’s coming to Pakistan has been overwhelming.
McDonald’s located in Pakistan are currently employing about 1,000 Pakistanis and each store
is managed by Pakistani managers. They have also
contributed in other ways than food service. McDonalds has
KFC & McDonald's
investment of over Rs 300 crore in the country and payment
Growth Rate In
of taxes and duties amounting to more than Rs 100 crore.
Since McDonald’s is doing so well in Pakistan they will
Pakistan
100
continue to grow and add more stores in more cities in the
80
future. But in Pakistan McDonald’s is facing a tough 60
competition by KFC. 40
20
KFC and McDonald’s serve to dominate the fast food 0
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008

business in Pakistan. Both fast food chains serve all their
customers effectively, given the different categories and KFC McDonald's

3
factors that determine the success of restaurants and fast food chains in Pakistan. However, based
on the findings of the previous research, it can be perceived that KFC is running a more
successful business in Pakistan, compared to the business run by McDonald’s. This was given
proof in the article, based on the many and varied responses of customers to surveys, which
involve their evaluation of both fast food restaurants, based on a number of factors, namely,
food, service, environment, price, convenience, brand, and promotion.

In terms of food, although both fast food restaurants almost have the same varieties, certain
differences can still be recognized. Both KFC and McDonald’s offer chicken and hamburger
meals including snacks, desserts, and drinks. However, only KFC offers a wide range of healthy
side dishes, such as mashed potato, carrot muffin, and lotus fresh vegetable side dishes. In this
sense, KFC aims to uphold healthy eating and nutrition of their customers. In addition, it has
been emphasized in the case study that KFC appeared to have the upper hand over McDonald’s
in terms of introducing new products in the market. Most of the new products of KFC, such as its
lunch items, suit the tastes of the Pakistani. KFC has also been introducing new products in the
market in a regular rate. In terms of environment and service, although both fast food restaurants
appeal to their market due to their convenient lighting, cleanliness, music, and decorations, still,
KFC serves to have the upper hand over McDonald’s. Based on the survey, more customers are
“Very Satisfied” with the services and environment of KFC over McDonald’s. This is because
the waiting time in McDonald’s is too long, compared to KFC. In addition, it can also be
perceived that KFC has more advantage than McDonald’s, as the employees in KFC have less
time to interact with customers than its counterpart, as the volume of its business is larger.

The prices of food offered by both restaurants equally serve each other. However, the food
offered by KFC is slightly higher, being able to offer some meals that are not offered by
McDonald’s, such as the Family Bucket, Garden Chicken Burger Meal, and Hot & Spicy Wing
Meal. Nevertheless, the volume of customers in all given times of day, in both weekdays and
weekends is still higher in KFC than in McDonald’s.

The daily customer volume on weekdays for KFC is
3,549 and for McDonald’s is 2,191.On the other hand,
the daily customer volume on weekends for KFC is
4,266 and 3,749 for McDonald’s. (Hameed Rehman, 2005, 12)

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Given such figures, it can be perceived that more customers prefer KFC to McDonald’s, thus,
indicative of the fact that KFC runs a more successful business than its counterpart does.
Moreover, the findings of the study indicate

“More low income and high income customers prefer KFC to McDonald’s, while average
income customers prefer McDonald’s more than KFC” (Hameed Rehman, 2005, 12)

In this sense, it can be observed that KFC has a wider range of customers compared to
McDonald’s, thus, indicating that more customers patronizes KFC. Furthermore, for the finale,
the proof that KFC is running a more successful business than McDonald’s is indicated that not
just in Pakistan KFC has an upper hand but in all over the world.

1.7 DELIMITATIONS

The problem which we faced while conducting our research are firstly the people were not
very co operative in order to fill our questionnaire and we have to convince them. Another
problem was that people were hesitating to fill our questionnaire.

1.8 DATA COLLECTION

Q1) What is your age group?
As we have taken our sample between 18-32. So the people who have filled the form have age
between 18 to 32.

Q2) What is the reason of eating fast food?

13%
5%
Convenience
Price
Taste
82%

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Q3) How often do you use fast-food services?

12% 5% 12%
17% Once a weak
Twice a weak
Once a month
Once a year
54% Never

Q4) What’s your favorite fast food place?

20%
KFC
80% McDonalds

Q5) Rate the fast food you have visited the most? (3 being high and 1 being low)

KFC McDonald’s

16% 15%
3
3
22% 60% 25%
62% 2

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Q6) Which one is your favorite meal?

KFC McDonald's

5%

43% Burger 30%
45% Burger
chicken pieces
52% Chicken piece
salad
25% salad

Q7) What fast food restaurants do you think is most advertised?

43%
KFC
57%
McDonalds

Q8) Which fast food chain is in your opinion is more healthy?

33%

67% KFC McDonalds

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Q 9) How favorable is your attitude towards the fast food brands you have eaten? (3 being
high and 1 being low)

KFC McDonald’s

8% 13%
3 3
37% 50%
55% 37%

Q10) How well the following brands satisfy your needs? (3 being high and 1 being low)

KFC McDonald’s

10%
3
15%
50% 3 50%
40% 35% 2

Q11) Which brand packaging has an attractive look? (3 being high and 1 being low)

KFC McDonald’s

5%
3 15% 3
27%
2 2
23%
68% 1 62% 1

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Q12) Which fast food restaurant has an eye-catching outlook?

37%
KFC
63% McDonalds

Q13) Which brand do you think bring pleasant memory? (3 being high and being low)

KFC McDonald’s

8%
35% 37%
3 3
32% 2
60% 2 28%
1 1

Q14) Which brand do you think earns pleasant money?

45%
KFC
55%
McDonalds

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Q15) On Average how much would you expect to pay for a fast food meal?

15% 500
1000
30% 55%
1500

Q16) Apart from food which place is more enjoyable?

47%
53% KFC
McDonald's

Q17) Which fast food restaurant is more accessible?

48% KFC
52%
McDonalds

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Q18) Which brand offer deals which have attractive prices?

45%
KFC
55%
McDonald's

Q19) If you owned your own fast food restaurant, then which fast food restaurant attribute
you want to follow-up?

25%
KFC
75% McDonald's

20) Do you think the future of international fast-food chains in Pakistan is bright?

10% 5%
Yes
No
85% I don’t know

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1.9 DATA ANALYSIS

Q1) What is your age group?
As we have taken our sample between 18-32. So the people who have filled the form have age
between 18 to 32.

Q2) what is the reason of eating fast food?

The main reason that people eat at fast food restaurants is because they like the taste. Customer
wouldn't keep coming back to a restaurant if the taste of food does not satisfy their tongue. As
pie graph shows that 82% prefer taste, 13% prefer convenience and 5% price, hence price and
convenience element occupies a very small part of it, only the good taste allows and agree people
to spend their money on food.
Q3) How often do you use fast-food services?

54% visit once a month 12% visit once a year and once a week. 17% twice a week and 5% visit
other time. It looks like most of the people go out and eat fast food once a month. In a close
second place people visit fast food restaurants twice a week. So pie graph result shows that
people like to eat fast food, but just at different interval of time.

Q4) What’s your favorite fast food place?

There are tons of different fast food restaurants around the world, but we narrowed down the
choices to McDonald's and KFC. According to the people’s choice 80% people like KFC while
only 20% McDonald’s. KFC dominates over McDonald’s, other questions also represent that
people are more likely towards KFC services.

Q5) Rate the fast food you have visited the most? (3 being high and 1 being low)

62%of the people prefer to visit KFC while only 15% prefer McDonald’s. KFC are the first
movers of fast food restaurant in Pakistan hence they have first mover advantage. They were the
pioneer of fast food in Pakistan. The position of KFC in the mind of people is very strong.

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Q6) Which one is your favorite meal?

We gave various choices of food offered by both restaurants. We restrict people only to choose
one food item which is one of their most favorite According to the result 52% people like KFC
chicken and 43%burger and 5% salad. While McDonald’s salads were liked by 45%, 30% burger
and 25% chicken pieces.

Q7) What fast food restaurants do you think is most advertised?

The survey shows a slight difference between the advertisements of both restaurants. As they are
leading fast food restaurants in Pakistan so they advertised almost equally to make their roots
strong in promoting their service. According to the data 57% people think KFC is more
advertised and 43% found McDonald’s is more advertised.

Q8) Which fast food chain is in your opinion is more healthy?

67% people think that KFC is healthier. People have positive approach towards KFC because
KFC food has less chronic health risks because its meal involves appropriate amount of
nutrients.

Q9) How favorable is your attitude towards the fast food brands you have eaten?
(3 being high and 1 being low)

55% people rated KFC at 3 place, 37% people at second and 8% people at first place. But
MacDonald’s result differ 13% people rated KFC at 3 place, 37% people at second and 50%
people at first place.

As results undoubtedly shows the people have favorable attitude towards KFC.

Q10) How well the following brands satisfy your needs? (3 being high and 1 being low)

50% people are fully satisfied with KFC, 40% people satisfied and 10% people are just satisfied.
But MacDonald’s result differ 15% people are fully satisfied, 35% people are satisfied and 50%
people are just satisfied.

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Q11) Which brand packaging has an attractive look? (3 being high and 1 being low)

In brand packaging McDonald’s took prize over KFC. The surveys result shows that 62%people
like McDonald’s packaging style while only 27% people like KFC packaging style.

Q12) Which fast food restaurant has an eye-catching outlook?

Although in other aspects KFC has surpass McDonald’s but when it comes to the outlook of the
restaurant 63% people like the outlook of McDonald’s and only 37% people rated KFC.

Q13) Which brand do you think bring pleasant memory? (3 being high and being low)

Pleasant memory associated with good environment of the place and taste of the food. After
analysis it was found that 60% people’s pleasant memory is associated with KFC. 32% people
have KFC. 8% do not have as much pleasant memories as others.

Q14) Which brand do you think earns pleasant money?

55% people views show that KFC earns pleasant money. And in a close second place 45%rated
McDonald’s.

Q15) On Average how much would you expect to pay for a fast food meal?

55% people expect to pay an amount of at least Rs.500 on fast food meal.30% agreed on paying
Rs.1000 while only 15% want to spend Rs.1500.

Q16) Apart from food which place is more enjoyable?

The popularity of any restaurant is just not dependent upon the taste and price of food but it also
depend upon the enjoyable environment which include play area for kids, happy meal and gifts.
52% people consider McDonald’s is more enjoyable but 48% people like the environment of
KFC.

Q17) Which fast food restaurant is more accessible?

The result of this question shows an even split among both options. The increasing trend of fast
food leads both restaurant branches to multiply in order to make them easy to get to. 53% people
think KFC is more accessible while 47% think that McDonald’s is more accessible.

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Q18) Which brand offer deals which have attractive prices?

The higher percentage of people found the prices of KFC more attractive than McDonald’s.
According to the data 55% people found prices of KFC affordable and attractive. While that of
45% found McDonald’s prices smart.

Q19) If you owned your own fast food restaurant, then which fast food restaurant
Attribute you want to follow-up?

The majority results show that KFC has won the race in our fast food survey. It is found that
KFC fulfill the needs of its customers to some extent, so considering KFC as their ideal people
would like to follow the success tracks of KFC in order to have bright future of their restaurant
ahead.75% people like to follow the attributes of KFC for their own restaurant and only 25%
consider McDonald’s as their ideal.
Q20) Do you think the future of International fast food chains in Pakistan is bright?
Based on people answers, 85%agreed with the statement that the future of international fast-food
chains in Pakistan is bright, 5% were not agreed on bright future and 10% people have no idea
about this. With today's hectic lifestyles, time-saving products are increasingly in demand; one of
the most obvious examples is fast food. People want quick and convenient meals as a result,
consumers rely on fast food .Knowing this, fast food providers are coming up with new ways to
market their products that save time for consumers. All that make sense though because that is
what "fast food" is supposed to mean... cheap, fast, and tasty.

1.10 CONCLUSION

The conclusion we have drawn after conducting our research is that the problem statement which
we consider in our research is confirmed .Our hypothesis that KFC is in spotlight and
McDonald’s is a side show was right and people prefer KFC over McDonald’s because of their
good quality food and their reasonable price, hence KFC capture a large market than
McDonald’s in Pakistan.

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1.11 RECOMMENDATION AND SUGGESTION

After conducting our research we come to a point that about 80% people prefer KFC over
McDonald’s here are some suggestions and recommendations to both the brands. Based on our
research we suggest that McDonald’s should improve the quality of their food because majority
of people found McDonald’s a less healthy option. It was also found that Macdonald’s satisfies
the need of people to lesser extent, so McDonald’s should try hard to make up to the expectations
of people. It was found by our research that although people prefer KFC over McDonald’s but
they found the packing of McDonald’s more attractive than that of KFC, so KFC should work on
their packing and make it more attractive. When it comes to outlook of the restaurant, majority of
people like the outlook of KFC, so McDonald’s should improve their outlook. It was also found
that KFC is better advertised; hence McDonald’s should work to promote their brand in order to
capture a large volume of customer. Pakistan is a price sensitive market for many items and
competition is intense, so McDonald’s should maintain their price packages.

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REFERENCES
 Haider Tayyab, KFC McDonald’s Food Quality Comparison, 12, 10, 2002
http://www.bandt.com.au/kfc-macdonald-food-quality-comparison/5d/0c01585d.asp

 Jekanowski Mark, McDonald’s versus KFC who will win, 7,6,2009,
http://movementarian.com/2009/06/07/mcdonalds-versus-kfc-who-will-win/
 Johnson Michel, McDonald’s History, 2,21,2003,
http://mcdonalds2.rozee.pk/content.php?lid=TWpJd09BPT0rQQ==
 Keems Jack, KFC and McDonald’s comparison, 11,22,2007
http://findarticles.com/p/articles/mi_m0887/is_11_22/ai_111023412
 Rehman Hameed, 2005, International Fast Food Chains Statistics, Khabarnama News
 Velazquez Allin, KFC and McDonald’s in Pakistan, 11, 11, 2009,
http://ivythesis.typepad.com/term_paper_topics/2009/11/kfc-and-mcdonalds-in-
pakistan.html

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