You are on page 1of 32

Chapter 1

Acknowledgement

A successful project can never be prepared by the single effort or the person
to whom project is assigned , but it also demand the help and guardianship
of some conversant person who helps in the undersigned actively or
passively in the completion of successful project.
With great pleasure we express our gratitude to Dr. Nishith Bhat, and other
faculties as without their help this would not have been completed. They
have given their precious suggestions and constructive guidance which have
been indispensable in the completion of this project work.
I would also like to thank to my classmates for their help. They have
supported me in this endeavor, and appreciated me in my efforts during my
project. Last but not the least I would also like to thank all the respondents.
Who directly and indirectly supported to me during my project work, without
the help of whom this project would not have been possible.

Abstract
The young consumers form an important segment for the marketers. As
members of a highly consumption oriented society, youngsters have become
increasingly aware of new products and brands. It is well known that organized
fast food services have already made their presence felt in a big way in almost
all the major cities of India. The fast food outlets attract customers with their
unique blend of tasty food, music, aroma, colorful images and other aesthetic
appeals. Hence, these fast food services try to lure its customers through
sensory appeals. Customers belonging to different age groups flock towards
these outlets to satisfy their taste buds and hedonistic needs. Out of all the age
groups, the youngsters are considered to be the primary target by the fast food
service industry.
Fast food service is a very fast growing industry in the world as well as in India
especially in urban areas. However, not much research literature is available on
fast food preferences of consumers especially young consumers in India (Goyal
and Singh, 2007). Hence, this study attempts to understand the fast food
consumption behavior and perceptions of young consumers towards organized
fast food outlets.

Introduction: Indian Fast food industry

The fast food industry in India has evolved with the changing lifestyles of the
young Indian population. The sheer variety of gastronomic preferences
across the regions, hereditary or acquired, has brought about different
modules across the country. It may take some time for the local enterprise to
mature to the level of international players in the field.
Many of the traditional dishes have been adapted to suit the emerging fast
food outlets. The basic adaptation is to decrease the processing and serving
time. For example, the typical meal which called for being served by an ever
alert attendant is now offered as a Mini-Meal across the counter. In its
traditional version, a plate or a banana leaf was first laid down on the floor or
table. Several helpers then waited on the diner, doling out different dishes
and refilling as they got over in the plate.
In the fast food version, a plate already arranged with a variety of cooked
vegetables and curries along with a fixed quantity of rice and Indian
flatbreads is handed out across the counter against a prepaid coupon. The
curries and breads vary depending on the region and local preferences. The
higher priced ones may add a sweet to the combination. Refills are generally
not offered.
The diversity of Indian cuisine poses logistical problems when it comes to
handling. Hence it is common to serve different cuisines at different counters
within the same premises. Presence of a large vegetarian population, who
eschew non-vegetarian food, has given rise to outlets which exclusively
serve vegetarian fast food. Also, different variety of food may be served
depending on the times of the day. Beverages such coffee, tea, soft drinks
and fruit juices may also be served in such outlets. Some outlets may
additionally have specially designed counters for ice-cream, chaats etc.

Popular formats of fast food business in India have the following


features in common:

Wide opening on the road side

Easy to maintain and durable dcor

A cash counter where food coupons are sold

A food delivery counter which invariably is granite topped

Additional counters for Ice Creams, Chaats, Beverages etc.

A well fitted kitchen located so as to be visible to the customers

Tall tables, usually of stainless steel, where one can eat while standing

A drinking water fountain adorned with a water filter

Rust-proof and non-breakable crockery

Most of the fast food outlets in India are stand alone establishment, few of them
having more than one branch.

Background
McDonalds opens its first drive-thru restaurant on Mehsana Highway Expands
their footprint in Gujarat by adding the 22 nod restaurant Mehsana, May, 2014:
Hard castle Restaurants Private Limited (HRPL), a Master Franchisee for west &
south India operations of McDonalds Restaurants and a subsidiary of the BSE
listed West life Development Limited (BSE: 505533), today announced the launch of
its first restaurant on Mehsana Highway. Mehsana is one of the most prosperous and
busy industrial areas of Gujarat with a rich cultural history. McDonalds Family
Restaurant, the worlds leading food service retailer will open its doors on the
Mehsana highway for the customers to indulge their taste buds with McDonalds
iconic products specially created for the Indian palate including the popular
McAdoo Tike-h, mcspicy Pander, besides our world famous French Fries and the
newest addition in our menu mcpaneer Royale. McDonalds has added to its
network of 22 restaurants in Gujarat. Situated on Mehsana highway, Plot No.2,
Revenue survey No.-34, behind Essay Petrol Pump, Village Jabalpur the restaurant
will employ approximately 60 people zlocally and will have a seating capacity of 120
people. The ground floor will seat 48 people and the first floor will have over 62

seats. It is spread over an area of 2600 Sq Ft on ground floor & 2000 Sq Ft on first
floor, in addition to 600 Sq Ft of open seating. The drive-thru restaurant will
welcome the guests travelling on the highway for 24 hours. Commenting on the
opening of the restaurant, Mr. Ramjet Palliate, Vice President - Business Operations,
Hard castle Restaurants Pvt. Ltd. Said, McDonalds has grown from strength to
strength in Gujarat in last 10 years. We started working with the farmers of
Mehsana in Gujarat well over 6 years, to cultivate the Shaped potato variety to be
used for our 100% vegetarian Fries. McDonalds India joined hands with McCain
Foods Pvt. Ltd to impart training on new agri-technology; enabling farmers to
produce better quality and higher yields of potatoes. We believe in empowering
farmers with latest farming know-how and equipment.

Products

Hamburgers, chicken, french fries, soft


drinks, coffee,milkshakes, salads, desserts

Reasons for such fast adaptation:


Familys first preference
Gone are the days when families used to dine out in a typical restaurant that
serves food of their choice. With changing times, we see many of the
youngsters and kids influencing the decision of the family and thereby end
up going to a joint which serves Fast food. About 86 % of consumers prefer
Food from Quick Service restaurants over homemade food, thereby,
contributing to increasing the items on the menu comprising pizza, burger,
sandwiches, etc are gaining wider acceptance from the Indian consumers.

Cox and Foster 1985 observed major shift in the trend of consumers eating
out in a restaurant and making use of the convenient options in the mid
1980s.
A similar study by Kant and Graubard 2004 had stated that between 1987
and 2000, the number of meals that a consumer has had at Fast food
restaurants have increased by 11% per week.

Changes in Lifestyle
With increasing work pressure, individuals, barely get time for a peaceful
talk. Therefore there is plenty of room for fast food restaurants that come up
with innovative ambience, making one feel at home, by creating a peaceful
atmosphere and serving quick and tasty food.
The use of public space expresses an individuals values for the culture,
societal norms, rituals and festivals.Such public spaces are meant to increase
the Social interface of an individual thereby enhancing the Social bondings.
Many of the conventional relationships are built and nurtured around
informally.
As per the research report of Indian Fast Food Market Analysis, the Indian
Fast Food Industry is expected to grow at a CAGR of about 34% by 2014.
With FDI there will be tremendous potential for the Food industry in the
domestic market as well. Foreign Investors have anticipated this substantial
growth and have their plans to enter the domestic markets.

Consumers first choice


As far as products are concerned, instant noodles and pasta are at a nascent
stage but are fast evolving in the Indian fast food business. Demand for
these food items are growing as consumers with hectic lifestyles do not want
to spend much time in cooking. Besides, a variety of noodles and pasta is
easily available in the international fast food makers menu at an attractive
price range, pulling various consumers to add these delicious foods into their
palates. The instant noodles and pasta segment has thus turned out to be a

big hit among fast food lovers, resulting in the entry of many leading players
into this segment.
As per an ongoing study on the Indian fast food industry, there has been a
major shift in food habits in the metropolitan cities encouraging the
manufacturers to introduce innovative flavors in noodles and pastas to suit
Indian consumers. Further, the enhancement of fried instant noodles
condiment, good performance of non-fried noodles, and the subsequent
release of coarse cereal noodles are some of the main trends currently
prevailing in the Indian market. About 86 per cent of households prefer to
consume instant food over traditional food due to steep rise in dual income
level & standard of living, convenience and influence of Western countries.
As a result, fast food menus comprising pizza, burger, sandwiches, etc are
gaining wider acceptance from the Indian consumers.

Franchise outlets
On the strategic front, it has been found that the franchising concept in India
is continuously rising, with the increase in the number of international
players opening more franchise outlets in India. The increasing revenue
figures from franchise outlets encourage the players to opt for the concept.
As a result, many international fast food giants are opening up their franchise
outlets in India to grab the huge untapped potential in a fast emerging
market. In a recent development, Nando, South Africa-based AfroPortuguese, global restaurant chain is starting up around 35 outlets by 2013
in various parts of India through the franchise route. The company expects to
expand enormously in the northern parts of India.

Varying consumer behavior


Talking about consumers, it has been a noticeable trend that food
consumption pattern of urban Indian families has changed dramatically with
times owing to the growing influence of Western culture. Indians have
started dining out and moved on to accept different varieties of delicious

food from the world. Further, studies indicate a radical change in the
consumption patterns of Indian consumers, who have traditionally been
known for their price sensitiveness.
Middle-class families as well as the youth prefer to have a burger worth ` 25
rather than that worth ` 50-75. This reveals that despite looking for taste and
brand, consumers in India are still inclined to low-price and health issues. As
per a survey conducted in 2010, nearly 80 per cent of the fast food
consumers expect the fast food owners to implement required measures for
reducing the harmful impact of fast food. To tackle this issue, these owners
have adopted
innovative cooking styles, such as baking and grilling that retain the flavor of
food and also require lesser quantity of oil. Besides, major retailers in this
area are now providing all necessary information like ingredients, nutrition
and fat contained on the product pack.
These measures have helped Indian fast food consumers select healthy and
nutritious meal as well as protect them from the dangerous effect of
unhealthy fast food.

Chapter 2

Some more reasons for popularity of Instant Food Products

1. Emergence of Industrial society Development of the metropolitancities


due to increase in population, emergence of industries, evolution of various
newfactors, time factor, etc., created the need for instant foods in the
market.
2. Reduced domestic servants Due to industrialization, the labour category
is gettingattracted to it because of better emoluments and hence there is a
shortage of homemaids-servants. Due to this, the housewives in order to
save time started using instantfoods.
3. Womenfolk taking to job- As the literacy rate is increasing among women,
a large numberof them in our country are taking up jobs to setup their own
status in the society and touse the extra income generated. These are
creating the need for ready-to-eat foods.
4. Emergence of nuclear families- Earlier times, a single family consisted of
many people i.e.,a group of several nuclear families were living in a single
place. Hence larger quantitiesof the food were used to be prepared. But as
these joint families started disappearingdue to various reasons, each single
family started using these instant foods in order tosave time and energy.
5. Prices of raw materials- This form44s one of the major factors for the use
of instant foods inthe present world. As the prices of some of the raw
materials are continuously increasing,the purchases of these foods formed
more economical.
6. New products- As there are different new products coming up in the
markets daily that arevery cheap and easy for using and preparing, the
popularity of instant foods is increasing.
7. Drudgery of work- In order to award the heavy laborious work like grinding
manually andother drudging works, people opt for instant foods, which are
easy to prepare and eat.
8. Convenience- Instant foods are convenient to prepare and are economical.
This increasedits usage by the people as it saves the time, energy and
money.

9. Increasing income- Due to establishments of multi-national companies in


India, the lady ofthe house also started working, because of which there is no
time to prepare food athome. Hence this created the need to opt for instant
foods.
10. Standard of living- The standard of living is also changing due to raise in
income level,influence of western countries, more global trade, traveling etc.,
Hence, people arechanging their taste to instant foods more compared to the
old traditionally preparedfoods.
11. Media- In the modern era, the media, particularly electronic and print
media, are playingan important role in creating awareness of the products
manufactured and released inthe market.

Indian Fast Food Industry on a Quick Growth


The foray of multinational fast food retailers into India has impacted the
taste buds of Indian consumers significantly. Instant food is scoring over
traditional food due to influence of Western countries, and rise in income &
subsequent standard of living, convenience, etc. As a result, fast food menus
are gaining wider acceptance from the Indian consumers.
The Indian fast Food Industry Dryer has witnessed high growth strides in the
past years, with increasing disposable income; exposure to a number of
cuisines; and consumers willingness to experiment a mix of both Western
and local menu. It has not only provided convenience to people who shuttle
between home and work for a bigger part of the day but also eliminated the
requirement of conventional cutlery. This industry at the moment thrives on
international appeal endorsed by niche chains. The development of nutritious
and healthier replacements for the traditional servings at fast food
restaurants has transformed into mass promotion of portable foods.
As per a new research report titled Indian Fast Food Market Analysis,
currently the Indian fast food industry stands at a massive size of ` 47 billion,
driven by a growing number of working professionals and increasing
westernization. Apart from this, busy life schedule, standardized food, and
less time consuming processes are also fuelling the demand from domestic
consumers in the industry. As demand for all types of fast food items are
consistently on the rise, pizza, burger, and French fries have become the all
time favorite among young Indians, more so with some of the well-known
burger and pizza restaurants like McDonalds, Dominos, KFC, Pizza Hut,
Nirulas etc, operating in India.

Government inventiveness
As far as the role of government is concerned, various initiatives in the
recent past have resulted in theentry of many international Fast Food
Retailers in the country. With the economic liberalization in 1991,nearly all
tariff and non-tariff barriers have been removed or minimized from the Indian
boundary that hashelped many retailers to enter the growing Indian fast food
industry.As per the Food Safety and Standards Authority of India, the new
rules and standards will make itmandatory for street food vendors to register
with state health departments that are into policing hygiene.It requires the
food authority to issue licenses to food vendors only after ensuring that their
products aresafe and hygienic. Vendors with products that are found
unhygienic or unsafe will face monetarypenalties. Moreover, user friendly
and IT-enabled licensing system will be created to improve governanceand
compliance.
To try to ensure that India has the capacity to implement the new law, the
government has increased thenumber of state laboratories for testing
eatables and appointed more food safety officers to check foodquality &
hygiene instead of merely monitoring adulteration.
Besides, the Indian government has also directed state governments to
prohibit sales of fast food andcarbonated drinks on school premises & check
out all such items that lead to unhealthy eating fromcafeteria within a 1,500
feet radius of schools.In addition, the countrys regulators have ordered food
chains to provide product nutritional labeling at thetime of sale, so that
customers can know about what they are eating and what effect it can have
on theirhealth. This step is a result of various studies that have shown that a
typical fast food has very highdensity that causes people to eat more than
they usually require, causing people to fall ill with manyhealth-related
problems like obesity, diabetes and heart diseases.

Shortfalls
India has witnessed a massive increase in the consumption of fast food over
the past few years. Indeed, the country has come out as one of the rapidly
growing fast food markets in the world. Although the country offers lucrative
opportunities to new entrants due to rapid urbanization and changing
lifestyles, there still exist some roadblocks, which may hinder the exponential
growth route of this industry in future. Competition from local street vendors
remains the biggest threat to the growth of the fast food industry in the
country. There is an increase in raw materials cost and fuel charges, which is
causing a lot of strain to the players in this segment. Lack of proper
infrastructural facilities, with respect to roads and electricity, has also
hampered the development of fast food market in India. Besides, the
industry will have to tackle a number of roadblocks including the rising
consumer concerns regarding obesity and health consciousness to maintain
the ongoing trend.

Major players:
McDonalds Formed in 1954,mcd brand is the leading global food service
retailer with more than30,000 local restaurants serving nearly 50million
people in more than 120 countries QUICK FACTS mcd was started as a drivein-restaurant by two brothers, Richard and Maurice McDonald in californiums
in the year 1937
Ray Kroc, distributor of milk shake machine, expressed interest in the
business, and he finalized a deal for franchising with the McDonalds brother
in 1954 He established a franchising company, the McDonald system inc. In
1961,he bought out the McDonald brothers share for $2.7 million and
changed the name of the company to McDonalds Corporation
In India 1996 - First restaurant opens in India, at Basant Lok ,Vihar, New
Delhi. McDonalds India is a 50 50 JV partnership between McDonalds
Corporation (U.S.A) and two Indian businessman Amit Jatia (Hardcastle
Restaurants Private Limited, Mumbai)and Vikram Bakshi (Connaught Plaza
Restaurants Private Limited, Delhi). Two separate operations in Northern &
Western India.

Partners and their management teamstrained extensively in Indonesia & the


U.S. Approximately 75% of the menu available inMcDonalds in India is
Indianized andspecifically designed to woo Indian customers.
THE 3 LEGGED STOOL The strength of the alignment between theCompany
and its employees, franchisees and suppliershas been critical to McDonalds
success. This businessmodel enables McDonalds to consistently
providecustomers locally-relevant restaurant experiences andbe an integral
part of the communities we serve. Franchisees own and operate the
majority of ourrestaurantsSuppliers provide food and packagingCompany
employees support and deliver restaurantoperations around the world
McDonalds supply chain Also have large no. ofMcds supply indirect
suppliers,farmschain is large and and facilities thad growcomplex and
process the ingredient to direct suppliersHave numerousdirect suppliersthat
make ordeliver finalproducts for therestaurants

Mcd indian supply chain SUPPLIERSTrikaya Agriculture Supplier of Iceberg


LettuceVista Processed Foods Pvt. Ltd. Supplier of Chicken and Vegetable
range of products (including Fruit Pies)Dynamix Diary Supplier of
CheeseAmrit Food Supplier of long life UHT Milk and Milk Products for Frozen
Desserts
DISTRIBUTORS Radhakrishna FoodlandDistribution Centres and cold
storages.Completely dedicated distribution and supply chain.Matching
supplier production with deliveries using ERP.Quality inspection Program,
quality check at 20different points in supply chain.HACCP(Hazard analysis
critical control points) foodsafety standards emphasizing prevention of faults.
DISTRIBUTORS Radhakrishna FoodlandDistribution Centres and cold
storages.Completely dedicated distribution and supply chain.Matching
supplier production with deliveries using ERP.Quality inspection Program,
quality check at 20different points in supply chain.HACCP(Hazard analysis
critical control points) foodsafety standards emphasizing prevention of faults.

DOMINOS Dominos Pizza, Inc. is an international pizza delivery corporation


headquartered in Ann Arbor, Michigan, United States. Founded in 1960,
Dominos is the second-largest pizza chain in the United States and has
nearly 9,000 corporate and franchised stores in 60 international markets
The menu features pizza, pasta, oven-baked sandwiches, wings, boneless
chicken, salads, breadsticks, cheese sticks, and a variety of dessert items.
Beginning of dominos pizza The Dominos franchise started out as just one
tiny store. It was purchased and started by brothers Tom and James
Monaghan in 1960. At that time, the restaurant was known, not as
"Dominos," but as "Dominicks Pizza" and was located in Ypsilanti, MI. The
two brothers only worked as a team until 1961, when James traded his half of
the business to his brother for the price of a Volkswagen Beetle. In 1965, the
name "Dominicks" was traded for "Dominos."
In India Dominos pizza opened its first store in India in January 1996, at New
Delhi. Today Dominos pizza India has grown into a country wide network of
more than 300 stores with a team of 9000 people. According to India retail
report 2009, dominos is the largest Pizza chain in India.

Dominos 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:
The company operates in three segments: 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.
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 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 Dominos store sales
worldwide.
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) Delhi Bangalore Kolkata
Mumbai
Distribution Pizza dough processed from the wheat is then sent to the retail
outlets again in refrigerated trucks. Logistics requirement for sending frozen
foods, at a temperature of 18:C and of refrigerated trucks in which food is
sent at a temperature range of between 1 to 4:C.
Retail Outlets Regular stores Super stores : High traffic, More counters
Express stores : those where people were expected to walk in and order
rather than ask for home delivery.
Outsourcing ITEM PLACE Wheat Jalandhar Cheese Karnal, Haryan
Tomatoes Bhubaneshwar Spice South India Baby Corn Nepal Exotic
Vegetables Sri Lanka Pepperoni Australia Jalapeno Spain

Kachi king

Dabeli masala, which is the main ingredient of the dish, is readily available in most of the
cities

all over India, sold under various brand names mainly manufactured and packed in Kutch.
The dabeli masala made from Mandvi andBhuj are preferred by people for their taste and
ethnicity. This dabeli masala is a dry-paste made from dried red-chillies, black-pepper powder,
dried coconut, salt, clove, cinnamon, coriander, cumin, turmeric, elachi, badiyan, black-salt, tejpatta and other garam masalas is a specially prepared masala. The debeli masala once made or
purchased from shops can be stored and used for over a period of six to twelve months.

Chutney is an essential part of almost all type of Indian cuisine and these type of chutneys
can be prepared in advance and stored and used for at least a fortnight. Now-a-days specially
preserved chutney packets are available also in shops in major cities of India and are exported
to other countries by some Indian food companies.

Sev referred above is a type of Indian farsan, which is readily available in farsan shops in all
over India and also in other countries, where it is being exported by companies
like Haldiram's and others.

Dabeli literally means "pressed" in Gujarati language.[1] It is said to be invented by one Keshavji
Gabha Chudasama alias Kesha Malam, resident of Mandvi, Kutch in the 1960s. When he started

business he sold a dabeli at one anna or six paisa. His shop is still there in Mandvi and business is
now carried by his next generations.[2]
Dabeli thus has its origin in Mandvi, a city of the Kutch region and even today dabeli masala made in
the city are said to be most authentic. The dabeli is also, therefore, known as Kachchhi dabeli or
Kutchi dabeli taking its cue from the region of its origin. Bhuj and Nakhatrana towns of Kutch are
also known for authentic dabeli apart from Mandv

Kutchi King is the success story of the dream of a young entrepreneur, Mr. Vipul
Patel who shifted track from studying chemical engineering to a trend setter in
the food fraternity His hard work and perseverance in polishing his culinary
skills and turning the desi Gujju burger into the most famous Dabeli is the
essence of his experience and creative innovation
Dabeli literally means pressed in gujarati language. It is a spicy snack made
by mixing boiled potatoes with a dabeli masala and putting the mixture between
pav (burger bun) and served with chutneys made from tamarind, date, garlic,
red chilies, etc. and garnished with pomegranate and roasted peanuts
and Kutchi King is the benchmark between tradition and modernity. Not only
Dabeli but Vadapav also served hot at these outlets are truly amazing.
The Kutchi King group in their professional approach towards enhancement of
business has set up a training centre in Thaltej where the prospective
franchisees and their staff has to individually attend a training so that they can
run the outlet smoothly once a franchise is allocated to them.
As a standardization process, a bakery unit has been setup at Narol so that
every Kutchi King outlet in and around Gujarat gets the best quality dabeli buns
manufactured as per the companys standard recipe.Smt. Patel herself handles
the central kitchen located at Sola Area in Ahmedabad and keeps a strict vigil on
the quality of the masalas and gravies that are manufactured for the use at the
outlets.A central store located in Ahmedabad is always ready for the support to

the company and the franchisee stores which ensures smooth functioning of the
Kutchi King outlets.
Having captured the entire Gujarat market, the brand now intends expanding
their reach in entire India. Continuously a dedicated team of professionals is
exploring the possibilities of intelligent use of ingredients, techniques &
technology and enhancing the products served at the outlets.

LITERATURE REVIEW
Researchers in the past have tried to understand the perception of consumers
and their consumption behavior towards fast food services offered in different
parts of the world. Dunn, Mohr, Wilson and Wittert (2008) examined the
variables influencing fast food consumption in an Australian sample.
Findings suggested that convenience, satisfaction, family and friends, busy life
styles, cravings for fast food, not knowing how to cook, working long hours and
eating alone influenced the fast food consumption among the respondents.
Akbay, Tiryaki and Gul (2007) investigated the relationship between Turkish

consumers fast food consumption frequency and their socio-economic,


demographic and attitudinal characteristics.
The results indicated that age, income, education, household size, presence of
children and consumer attitude towards price of fast food, health concerns and
child preference significantly influenced the frequency of fast food consumption.
Oyewole (2007) examined the frequency of patronizing fast food restaurants by
African American consumers. Results showed that hygiene and reliability,
expeditiousness, availability and courtesy were the four dimensions of
service quality considered as most important by these consumers.
Makgosa and Mabalane (2011) investigated the consumers perceptions of fast
food restaurants in Botswana. Ten factors emerged in this study. They were
labeled as follows: Hygiene, Empathy, Comfort of facilities, Availability,
Nutritional value, unique experience, Price, Reliability, Social outing and
Nutritional awareness. Researchers Lee and Ulgado (1997) studied the cross
cultural implications of customer evaluations of US fast-food services. The study
sample involved customers from US and South Korea.
The above reviews reveal that researchers across the world have conducted
studies on different aspects of consumption behavior and perception of
consumers towards fast food services. It could also be understood that fast food
companies need to have a proper understanding of the consumers they plan to
target and serve. Such a thorough understanding could be achieved by
investigating the fast food consumption behavior and perceptions of the
prospective consumers towards the concerned fast food service.

According to worldwatch.org, Indias fast-food industry is growing by 40


percent a year and supposed to generate over a billion dollars in sales in
2005 as per their estimates. Before the entry of multinational fast food
outlets, Nirulas was a popular domestic fast food provider for eating-out.
Nirulas started with ice-cream parlors and later moved on the range of fast
food including burgers, pizzas, sandwiches etc.
Established in 1934, Nirulas today is a diversified group having a chain of
Elegant Business Hotels, Waiter Service Restaurants, Family Style

Restaurants, Ice Cream Parlours, Pastry Shops and Food Processing Plants in
India. The chain with over 60outlets operating in five states successfully
caters to the Indian palate of over 50,000guest everyday for over 70 years.
Wimpy was another fast food provider besides Nirulas in Indian market.
Wimpy was the only multinational fast food outlet in India before 1990s with
one outlet in New Delhi. In the initial years of its operations, Wimpy used to
be visited by foreigners in India. Indians were occasional visitors. Today
Wimpy has 8 outlets in the capital city New Delhi and it is expanding its
menu with Indian dishes with a view to attract Indian consumer.
In 1995, Kentucky Fried Chicken (KFC) also entered the Indian market and
opened its first outlet in Delhi. In 1996, Dominos set up base in India by
entering into a long-term franchisee agreement with the Bhatia Brothers who
had businesses in chemicals and fertilizers. By 2000, Dominos had presence
in all the major cities and towns in India. Dominos had grown from one
outlet in 1995 to 101 outlets in April2001. Pizza Hut entered India in June
1996 with its first outlet in Bangalore. Initially, the company operated
company-owned outlets and then moved on the franchisee owned
restaurants.
McDonalds, Dominos, Pizza Hut and Nirulas are the most popular and
frequently visited fast food outlets. KFC has limited outlets and has faced
number of problems since entry in India. Besides these, there are Pizza
Express and Pizza Corner of which are not so popular. With changing life style
and aggressive marketing by fast food outlets, fast food is also becoming
popular in small towns; therefore, success of existing fast food outlets and
entry of more is inevitable (Gupta, 2003).

Fast food and consumption patterns


According to the findings of the recent online survey from AC Nielson, India
being at the seventh place, is among the top ten markets for weekly fast
food consumption among the countries of Asia-Pacific region. Over 70 per
cent of urban Indians consume food from take-away restaurants once a

month or more frequently. Survey indicates that Pizza Hut is the most
preferred fast food outlet in India. Identifying the drivers for preference of
one-brand over another, the survey results indicate that Indians (66 percent)
are amongst the consumers who consider hygiene and cleanliness their most
important criterion for selection.

Kara et al. (1995) has presented the consumers perceptions of and


preferences for fast-food restaurants in the US and Canada. According to
their study, the consumers in the age of 12 to 24 years look for variety,
price, delivery service and location in America and for price and novelties in
Canada. In the age group of 46 years to above 55 years cleanliness,
nutritional value, quality and taste are considered by Americans and
preference is given to nutritional value and seating capacity by Canadians
indentifying fast food restaurants. In the middle age group of 25 to 45 years,
Americans preferred for speed and friendly personnel whereas Canadians
looked for speed, quality and service.
Brown et al. (2000) emphasized the need for nutritional awareness and fastfood preferences of young consumers during adolescent years. Davies and
Smith (2004 )have analyzed the importance of nutritional values of fast food
and also information printed/disclosed by the fast food providers in London.
In addition to the factors considered for choosing a fast food outlet, there are
research studies towards the nutritional value of fast food. A survey of more
than 9,000consumers nationwide in US has shown that about 25 percent of
those who eat fast foods and drink sugary, carbonated soft drinks generally
consume more calories, fats, carbohydrates, added sugars and proteins than
those who do not (Bowman, 2005).According to the study of McNeal et al.
(1980), respondents felt that meals were moderately nutritious and a good
food buy, but they were fattening and contained harmful additives. These
findings further indicate that although the consumers perceive the nutritional
aspects of fast food meals to be important, they often ignore the aspects in
practice.
Adams (2005) paper outlines the bases for establishing fast food industry
responsible for obesity as articulated in litigation against fast food chains
insulin Indian context, there is high concern towards health in twenty-first
century. There are health related articles in daily newspapers, and health

shows on television. There are special health related magazines that are now
very popular. Health related articles do mention to consume more fruits,
vegetables, water and to consume less or nil of junk food including fast food
being high on fat and calories. Recent news article by Barker (2006)
indicates that Indians are facing the problem of obesity and among kinds of
food fast food is one of the reasons for the same. However, there is gap of
particular research in Indian context to have a link between the health
problems and fast food consumption. In future, genetically modified food
may take the place of fast-food of today (Onyango et al., 2004; Sharma,
2005).

Fast food has been developed in the world economy over the past four
decades. Literature on fast food were started to be published in ancient time

in Rome. From the beginning of the 80s, somewhat a huge number of


publications have been published on fast food industry. The early
publications on fast food were basically about the positive and negative
aspect of fast food and the attitudes of the customers as a whole. School
students knew the good and bad attributes of fast food. They also inscribed
the difference in attitudes between male and female students. Female 109
students considered the fast food from the broad food chain context and
male considered fast eating and satiety. The study pointed out good and bad
attributes of fast food and attitudes of young students, but did not consider
the loyalty status of the student and overall customer service of the
restaurants. They also pointed out the differences in attitudes between men
and women in eating habits. They assessed the combined behavior of adults
that how eating low calorie food and physical activity are attached with the
weight loss maintenance. They described the dining out behavior and the
ability to engage in physical activity and the confidence to participate in that
kinds of activities lead to loss weight and maintain weight. Kruger, Blanck
and Gillespies study mentioned the overall behavior of adults who have a
desire to loss and maintain weight, did not describe the factors that influence
the overall behavior of the adults like quality of food, price, payment method,
menu, atmosphere of restaurants. (Farhana and islam, 2011)

Chepter 3

#3 RESEARCH METHODOLOGIES:
Research Methodology ill common parlance refers to a search for knowledge.
One can also define also research as a scientific and systematic research for
pertinent information a specific topic. Research is an art of systematic
investigation. Some people consider research as a movement, a movement
to the known to the unknown.

Main Objective:
To identify the Fast Food Consumption Behaviour and Perceptions of Young
Consumers towards Fast Food Outlets in the North Gujarat Region".

According to Clifford Woody: Research comprises defining and redefining problems, formulating
hypothesis or suggested solutions, collecting, organizing and evaluating
data, making deductions mil reaching conclusion, and at last carefully testing
the conclusion to determine whether they fit the formulating hypothesis.
Marketing research is defined as a systematic gathering and analysis of the
data concern with an objective. The whole activity is divided into various
parts and after compilation of that we reach at certain findings, which enable
us to marketing decision. It involves the diagnosis of information needed and
the selection of the relevant and interrelated variables.

Research Plan: Research Approach: SURVEY METHOD

Primary Source
Primary data consists of original information gathered for specific purpose.
The primary data is collected through questionnaire. The questionnaire is
through common instrument collecting primary collection. I collected the
data through questionnaire from different small eating joints.

Research Instrument
The research instruments used for collecting the primary data were the
questionnaire.

Questionnaire
The questionnaire was carefully developed tested and debugged before they
were administered on a large scale. Each questions contributed to the
research objective here questionnaire is structured types means there are
concrete, definite and predetermined questions.
The questions are presented are exactly same wording and in the same an
order to all respondents. The questionnaire had a mix type of open ended,
closed ended and multiple choice questions. The questions were limited in
numbers simple direct and unbiased technology was adopted.

Data Source:

Primary:
The data was collected through questionnaire comprising of 17 questions.

Secondary:
The data was collected through: internet, magazines and different research
papers.

Sampling Procedure:
1. Sample Unit: Consumer visited Small Eating Joints
2. Sample Size: 300 Respondents
3. Sampling Method: Random Sampling Method

Limitation of Research:

Limitation of the Area


The research is limited to North Gujarat Region only and attitudes of the
people in different area may be different from the people of another region.

Personal Bias
There may be possibilities of personal bias. It means that the people may
bias in giving the answers due to certain reasons.

Wrong information
It may be possible that respondents may have given wrong information.

Sample Size
Sample size for this research was 300. So, we cannot apply this results are
for entire population.

Limitation of Time
Time period of the research is limited as per the requirement. So, the time
period is not enough to do the complete research.

Chepter 4