This action might not be possible to undo. Are you sure you want to continue?
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.
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.
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 .
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.
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.
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.
it claims to cater 50. COFFEE DAY BARISTA.The multinational segment of Indian fast food industry is up to Rs.70 billion by 2005.FACTS AND FIGURES Fast food is one of the world’s largest growing food type. quality standards. India’s fast food industry is growing by 40% a year and is expected to generate a billion dollars in sales by 2005. e) Nirulas is established at Delhi and Noida only. . The home grown chains have in the past few years of competition with the MNCs. b) Domino’s pizza is present in around 100 locations. • • • • 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. 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. a strength that they have developed over years of experience around the world. 3600 million which is about one-fourth of total investment made in this sector.000 million. However. the value of Indian dairy products is expected to be Rs. d) Subways have established around 40 outlets. By 2005. 6 billion. MARKET SIZE & MAJOR PLAYERS a) Dominated by McDonalds having as many as 75 outlets.1. sourcing practices. foreign investment in this sector stood at Rs. Major players in fast food are: • • MCDONALDS KFC PIZZA HUT DOMINOS PIZZA.000 guests every day. 00. Global chains are flooding into the country. service levels and standardized operating procedures in their restaurants. In last 6 years.
REASON FOR EMERGENCE Gender Roles: gender roles are now changing. and if they have then also they don’t want to cook. Large population: India being a second largest country in terms of population possesses large potential market for all the products/services. Menu diversification: increase in consumption of pizzas. Eating meat is not explicitly prohibited. Relaxation in rules and regulations: with the economic liberalization of 1991. Customer Sophistication and Confidence: consumers are becoming more sophisticated now. CHALLENGES FOR THE INDUSTRY Social and cultural implications of Indians switching to western breakfast food: Generally. Hindus avoid all foods that are believed to inhibit physical and spiritual development. Fast food is an easy way out because these can be prepared easily. So. most of the tariff and non tariff barriers from the Indian boundaries are either removed or minimized. 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. They do not want to prepare food and spend their time and energy in house hold works. They do not want to confine themselves to household work and upbringing of children’s. Working Women: working women have no time for cooking. Because of emergence of working women and also number of other entertainment items. they have no time for their home and cooking food. This results into entry of large number of fast food players in the country. but many Hindus are vegetarian because they adhere to the concept of . burgers and other type of fast foods. Because they want to come out of the traditionally defined gender roles. Most of the time either people work or want to enjoy with their family. Now people have more disposable income so they can spend easily in fast food and other activities. This helped significantly the MNC’s to enter in the country. Double Income Group: emergence of double income group leads to increase in disposable income. Females have started working outside.
without any apparent previous cultural training. Instead. Emphasis on the usage of bio-degradable products: Glasses. Some foods. paper plates and napkins. host country experiences these benefits for a short time period. such as beef or alcohol. This burdens nature unnecessarily and squanders raw materials. ghee-clarified butter) are considered pure. However. milk. As when multinational enters the any countries. Those seeking spiritual unity may avoid garlic and onions. In order to reduce soil and water pollution. Many of these items are tossed in the garbage instead of being recycled.ahimsa. The concept of purity influences Hindu food practices. counting only on its “fast food global formula”. Indians are switching to fast food that contain all those things that are considered impure or against there beliefs. 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. are innately polluted and can never be made pure. plastic cups and tableware. Profit repatriation: Repatriation of profits is another area of concern for Indian economy. government now emphasis more on the usage of bio-degradable products. people and government hope that it will increase the employment rate and result in economic growth.g. drinking cartons or PET (polyethylene terephthalate) bottles are used. plates and cloth napkins are never provided with fast food. Products from cows (e. But now. merely thrown on the ground.. Retrenchment of employees: Most of new industries will be capital intensive and may drive local competitors. or even worse. silverware. polyurethane containers. PROBLEMS OF INDUSTRY . yogurt. which have more workers. Pure foods can improve the purity of impure foods when they are prepared together. Some traditional and fundamentalist are against this transformation of food habit and number of times they provoke their counterparts to revolt against such foods. and these are all disposable. with the multinational operation. And that is what happened when McDonald’s decided to enter the complexity of Indian business landscape. out of business.
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.the cost associated with the environment friendly product. 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.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. Thus. They cost much higher than the normal products that companies uses for packaging or wrapping their products. Health related issues: obesity: I. thereby making it a arm wrestling and mind boggling exercise. \ II. In this line McDonald has a plan to introduce all white meat chicken Mcnuugget with less fat and fewer calories. Low calories food: Emphasis is now more on low calorie food. . one can see that one side pushes for higher standards and other side tries to beat the standard back. TRENDS IN INDIAN MARKET Marketing to children's: fast food outlets in India target children’s as their major customers. But associated with this issue is the problem that fast food player faces .
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. lunch times are short 5. The success of fast foods arose from the changes in our living conditions: 1. Many women or both parents now work 2. this industry faces low level customer commitment. There's often not enough time or opportunity to shop carefully for groceries. income group etc can come and become a customer of their food line. Earlier. sex. There are increased numbers of single-parent households 3. They are introducing all categories of product so that people of all age. Value added technology services: There is continuous improvement in the technology as far as fast food market in India is considered. 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. Usually. 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. Long distances to school and work are common 4. or to cook and eat with one's family. class. Kentucky Fried Chicken About the Company .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. fast food outside the home is the only solution. Especially on weekdays.
founded and also known as Kentucky Fried Chicken. While its primary focus is fried chicken.KFC Corporation. salads and sandwiches. Ohio area. Thomas was also responsible for the creation of the . the chain is known as KFC. Kentucky. 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. 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. Starting in April 2007. Yum! Continues to use the abbreviated name freely in its advertising. KFC is a brand and operating segment. however. wraps. Kentucky Fried Chicken. His reasoning behind using the paper packaging was that it helped keep the chicken crispy by wicking away excess moisture. side dishes and desserts. or KFC. The company adopted the abbreviated form of its name in 1991. KFC primarily sells chicken in form of pieces. the company began using its original name. KFC offers beef based products such as hamburgers or kebabs. Additionally. is a chain of fast food restaurants based in Louisville. Thomas was originally a franchisee of the original Kentucky Fried Chicken and operated several outlets in the Columbus. for its signage. pork based products such as ribs and other regional fare. KFC also offers a line of roasted chicken products. In France. 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 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. Outside North America.
with the aim of making it use other types of oils or . KFC's primary product is pressure-fried pieces of chicken made with original recipe. it was sold as a whole roaster or a half bird. It features marinated breasts. customers were given quarter roasted chicken pieces. Nutritional value KFC formerly used partially hydrogenated oil in its fried foods. Smokey Chipotle – Introduced in April 2008. which increases the risk of heart disease. and sodium than the Original Recipe fried chicken. customers could request chicken "original". is made using a garlic marinade and double dipping the chicken in flour before deep frying in a standard industrial kitchen type machine. Purportedly made from a "lost" Col. "Extra Tasty Crispy". or "Tender Roast". It has been discontinued since August 2008. The chicken was dipped in chipotle sauce then doubled breaded and fried. thighs.famous rotating bucket sign that came to be used at most KFC locations in the US. and wings that are coated with the Original Recipe seasonings before being grilled. Instead of whole and half birds. The other chicken offering. Introduced in April 2009. It has less fat. Menu items KFC's specialty is fried chicken served in various forms. extra crispy. For a time. calories. and a healthier mindset of the general public avoiding fried food. The Center for Science in the Public Interest (CSPI) filed a court case against KFC. 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. drumsticks. Kentucky Grilled Chicken . Sanders recipe. This oil contains relatively high levels of trans fat. Tender Roast Chicken – This product was an off-shoot of 'The Colonel's Rotisserie Gold'.This marinated grilled chicken is targeted towards health-conscious customers.
There are two alternative strategies for KFC. In October 2006. non-acronymic Kentucky Fried Chicken name was resurrected and began to reappear on company marketing literature and food packaging. KFC restaurants are not restricted from locating within close proximity of other KFC restaurants. Pizza Hut. KFC has more than 9. and a divestiture of PepsiCo restaurant division. The commercial features a fictional black metal band called "Hellvetica" performing live. KFC announced that it would begin frying its chicken in trans fat-free oil. In 2007. as well as some restaurant signage. the biscuits. Present Situation . the original. the lead singer then swallows fire. selling Taco Bell.make sure customers know about Trans fat content immediately before they buy food. however. The first strategy involves keeping PepsiCo beverage division and snack foods division together.800 outlets located in 77 countries. In marketing. Some major threats include the changing attitudes of society toward healthier eating habits. KFC Business Strategy KFC fast-food chains are currently under the restaurant division of PepsiCo Incorporated. The commercial then shows the lead singer at a KFC eating the "wicked crunch box meal" and saying "Oh man that is hot". and KFC. This would also apply to their potato wedges and other fried foods. Advertising One of KFC's latest advertisements is a commercial advertising its "wicked crunch box meal".
S. By the time PepsiCo bought KFC in 1986. and the "secret recipe" was the initial home replacement strategy. KFC's secret recipe. Strengths Strengths can be found internally in a company and can be used to the company’s advantage. In fact. 2. the . Both of these divisions of PepsiCo are based in Dallas.The organization is currently structured with two divisions under PepsiCo. and internationally. PepsiCo acquired Pizza Hut in 1977. in the fourth annual LogoValue Survey. The secret recipe has long been a source of advertising. PepsiCo's success with the management of fast food chains. which opened its first store a year later. KFC is part of the two PepsiCo divisions. both in the U. Also. which are PepsiCo Worldwide Restaurants and PepsiCo Restaurants International. Peter Waller is head of franchising while Olden Lee is head of Human Resources. 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. in their new logo. just before McDonald's. 3. David Novak is president of KFC. The strengths identified are as follows: 1. Name recognition and reputation. KFC was the first chain to enter the fast-food industry. John Hill is Chief Financial Officer and Colin Moore is the head of Marketing. and Taco Bell in 1978. 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. The Colonel is KFC's original owner and a very recognizable figure. done by The Schecter Group. and allowed KFC to set itself apart.
KFC was sold three times. Many of the chains are turning to operating efficiencies to increase profit. left the company largely autonomous. 5. faster and friendlier service. employees at KFC enjoyed good benefits. The first two sales. The weaknesses for KFC are identified as follows: 1. Reynolds. and could receive help with other non-income needs. Traditional employee loyalty. and continued highquality products. Before the acquisition of KFC by PepsiCo. "KFC's culture was built largely on Colonel Sanders' laid back approach to management" (Wright. p. operating efficiencies are achieved through improvements in customer service. to Heublein. Inc and to R. Due to the strong competition in the US. however. .company already dominated two of the four largest and fastest-growing segments of the fast food industry. It wasn't until the sale to PepsiCo in 1986 that changes in top management started to take place. These changes happened almost immediately after the sale. a pension.J.433). The many sales of KFC lead to a confusing corporate direction. For many companies. 4. Weaknesses. 2. cleaner restaurants. the fast-food chains are reluctant to raise prices to increase profit. can limit a company’s potential. Between 1971 and 1986. Improving operating efficiencies by reducing overhead and other operating costs can directly affect operating profit. Weaknesses Weaknesses are also found internally like strengths. KFC has a long time to market with new products. This kind of "personal" human resources management makes for a loyal workforce.
during the late 1980's.Because of the nature of the chicken segment of the fast food industry. However. It does not appear to have a consistent long-term approach. 3. Employees do not have the same level of job security that they enjoyed before the PepsiCo acquisition Problems Through an analysis of the strengths. This delay significantly increased the cost of developing consumer awareness for the KFC sandwich. innovation was never a primary strategy for KFC. . No defined target market. and threats of KFC. While KFC's culture was largely based on the Colonel's laid back approach to management. opportunities. has enormous changes in its demographics. the following potential problem areas were identified: 1. 2. began to offer chicken as a Menu option.S. other fast food chains. The U. Conflicting cultures of KFC and Pepsi Co. Single-person households have increased from 12% in 1970 to 25% in 1995. During this time. Health Conscious Consumers. weaknesses. KFC does not have a proper approach to its target market. McDonald's had already introduced the McChicken while KFC was still testing its own chicken sandwich. The advertising campaign of KFC does not specifically appeal to any segment. With this kind of dramatic change. while PepsiCo's culture is more of a "fast track" attitude. such as McDonald's.
Restaurant and equipment packages range from $500.000 to $1. 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. KFC employs approximately 290. This put KFC at an extreme disadvantage due to its fried product offering. In 2004 the “KFC Excellent” range . Kentucky Fried Chicken products are currently offered in 80 countries worldwide and in more than 11.There has been a trend toward an increasingly healthy diet in America.000. DOMINO’S SIZE OF THE MARKET .000 restaurants which are visited on a daily basis by almost 8 million customers.three types of salad (Caesar.1 billion USD. a new KFC restaurant is opened almost every day. KFC was positioned 54th place. Worldwide. currently valued at 5.000 people. Increased Start Up Costs. New technology has increased efficiencies. 3.According to the ratings for “Most expensive world brands 2004” conducted by the American weekly ‘Business Week’. This prize is distributed each year by YUM Restaurants International. Achievements: KFC is one of the most renowned world gastronomic brand names. Globally.000. but resulted in greater increased start up costs. Prime locations have increased in cost due to limited room for expansion.
The very first Domino's Pizza outlet in India opened in Jan. Although they are expert in delivering Pizzas on time. now the ratio is 50:50 between big cities and smaller Tier II and III cities. We plan to have a total of 500 stores in 75-80 cities by 2010 to 2011. Surat.1. Nashik. MARKET STRATEGIES Promotional and Advertisement Campaigns(Coupons and discounts) The '30 Minutes' Promise Use of Technology(Digital interactive Television. across 50 cities in India by 2011 with an investment of Rs. Baroda. Meerut and Patiala. Domino's Pizza India has become a wide network of Pizza delivery and food chain. Domino’s Pizza outlets can be seen at major locations of Delhi and NCR. Panipat.Domino's Pizza is one of the biggest and fastest growing international food joints in South Asia. Their home delivery is free with a guarantee of “Thirty Minutes Nahi to Free”. There are close to 220 outlets in 42 cities of India and the brand is the top most among the food delivery business. Mobile telephony) Premium Pricing Strategy Indian fast food industry and entry of multinational players Distribution strategies of fast food chains in India MARKET SHARE . While earlier. Domino’s Pizza is expanding its base in India by opening 500 outlets to add to its current tally of 156 outlets. Trivandum. 70 percent of our business used to be in metros and mini-metros. their eating joints and outlets are also good. dominoes have opened outlets in Jammu. It would entail an investment of Rs 200 million during the period MARKET GROWTH During last four months. 1996 at New Delhi. Today. Internet on the PC. 000 crore.
But some of the most rapid growth is occurring in the developing world. COMPETITORS Fast food is one of the world's fastest growing food types. So most of the fast foods came into Indian market as India has a high growth in every sector. Some of the competitors of domino’s are McDonald's Pizza Hut Barista Coffee Day . The main target for new outlets shall be metro cities though Tier II cities would also receive a fair amount of attention. People buy fast food because it's cheap. 65 percent of its revenue comes from home delivery service. and heavily promoted. its trend. and registered a healthy growth of 60% over last year. where it's radically changing the way people eat.000 pizza every day. around 35 percent is from sales in premise. Currently Domino’s sells around 35. India is a developing country with 2 percent of organized and 98 percent of unorganized sector. of which around 1% are given free on account of its “30 minutes or free” model. This paper aims at providing information about fast food industry.The organized pizza market in India is worth Rs. reason for its emergence and several other factors that are responsible for its growth. 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.500 crore and Domino’s has a substantial 45% market share. easy to prepare.
and desserts. wraps and other localized fare.MC Donald’s McDonald's is the leading global foodservice retailer with more than 31. 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. To read more about McDonald's history. Portugal is the only country with McDonald's restaurants serving soup. Products McDonald's predominantly sells hamburgers. 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 . McDonald's offers salads and vegetarian items. suppliers and employees work together to meet customer needs in uniquely McDonald's ways. In most markets. various types of chicken sandwiches and products. 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. soft drinks.000 local restaurants serving more than 58 million people in 118 countries each day. French fries. breakfast items. We drive our business momentum by focusing on what matters most to customers. Our owner/operators. This local deviation from the standard menu is a characteristic for which the chain is particularly known. vision and executives. click on their links in the left menu. More than 75% of McDonald's restaurants worldwide are owned and operated by independent local men and women.
McDonald's has used 23 different slogans in United States advertising. and newspaper). Nonetheless. At times. and makes coolers of orange drink with their logo available for local events of all kinds. Advertising McDonald's has for decades maintained an extensive advertising campaign. To date.regional market is more familiar (such as the sale of McRice in Indonesia). radio. sponsors sporting events ranging from Little League to the Olympic Games. it has run into trouble with its campaigns. television has always played a central role in the company's advertising strategy. In addition to the usual media (television. the company makes significant use of billboards and signage. . as well as a few other slogans for select countries and regions.
Sterling divested all their stake to Lavazza. 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. Italy’s largest coffee company At Barista Lavazza. Barista Coffee Company is currently owned by Lavazza. And provide a cheerful. We have friendly and efficient brew masters who believe in service with a smile. And in the process. To share our cup of joy. In 2007. It was founded in 1997 by Amit Judge and was part of his group of companies. Barista Coffee is a chain of espresso bars in India. we do all we can to make every guest feel comfortable and welcome. Increasing disposable incomes and global trends in coffee indicate immense growth potential in one particular segment. Headquartered in Delhi. We serve nothing but the finest Arabica coffees and cuisine at great value prices. make Barista Lavazza the place ‘where the world meets’. interactive ambience that makes guests wish their coffee breaks lasted just a little bit longer. Sri Lanka and the Middle East. we have always stuck to our Italian roots. Barista currently has espresso bars across India. Then after he and Tata Coffee fell apart. He sold part of the equity to first Tata Coffee. Sterling then bought over the firm. .
It is one of India’s leading coffee exporters. 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. Large number of coffee day cafes are located in Bangalore. (ABCTCL). that is owned by a sister concern and from 11. Maintain consistency in serving the highest quality products and become a globally competitive organization – one that is driven by an insatiable thirst for excellence. A division of Amalgamated Bean Coffee Trading Company Ltd. Middle East. and to some extent creating. The cafe chain has had much success riding. with clients across the USA. the second largest in Asia. it is commonly known as Coffee Day or CCD. It has even tied up with World Space and Micro sense to enable its cafes with satellite radio and Wi-Fi. . It opened its first cafe in 1996 on Brigade Road in Bangalore.Our aim is to passionately deliver the highest levels of experiential services. Karnataka.000 small growers. the cafe culture wave that swept across metropolitan India following strong economic growth resulting in an increase in youth spending power. CAFÉ COFFEE DAY Café Coffee Day is a chain of coffee shops in India having its headquarters in Chikkamagaluru. Café Coffee Day sources coffee from 5000 acres of coffee estates. respectively. Bangalore.
Coffee Day has its business spanning the entire value chain of coffee consumption in India.With its roots in Chikmagalur. in the main shopping district. So in Bangalore. 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. Its different divisions include: Coffee Day Fresh 'n' Ground (which owns 450 coffee bean and powder retail outlets). making forays into Pakistan and Germany to set up cafes abroad. Cafe Coffee Day competitors include but are not limited to • • • • Barista Cafe Mocha Costa Coffee The Coffee Bean & Tea Leaf . The strategy CCD has adapted is to place a cafe in every possible location where some business can be generated. Coffee Day Exports and Coffee Day Perfect (FMCG Packaged Coffee) division. there are six outlets in a 2 km radius and overall 120 cafes in Bangalore alone. Coffee Day Xpress (which owns 730 Coffee Day kiosks). Coffee Day Takeaway (which owns 9000 vending machines). It is entering the European market by opening two Cafés in Austria as well. the home to some of the best Indian coffees. 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.
Proper access to nutritious foods is essential to decreasing dietary related chronic illness. American Journal of Public (2005). Supermarkets provide dietary health resources through higher quality and lower costs of nutritious foods. 95(4).LITERATURE REVIEW Zenk. Spatial . “Neighborhood Racial Composition. The percentage of residents below the poverty line serves as the measure of neighborhood poverty for the study. et al. many of the most serious chronic illnesses in the United States are associated with dietary deficiencies. This study examines the spatial accessibility of supermarkets for 869 neighborhoods within Metropolitan Detroit with relation to community's poverty and racial composition. 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. Abstract: Residential environment is clearly related to health. Neighborhood Poverty and the Spatial Accessibility of Fast Food Stores in Metropolitan Detroit”. S. specifically dietary health. In fact.
African American communities averaged 1. whites and Hispanics to . et al. in which African-Americans resided. 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) . There are distinct disparities between the access of blacks.accessibility is equivalent to a Manhattan block. Relevant Data: Literature now associates residence in economically disadvantaged neighborhoods. 44(3):189-195. Disparities in Supermarket accessibility on the basis of race were evident among the most impoverished neighborhoods: the most impoverished neighborhoods. with a variety of adverse diet-related health outcomes. finding various statistics about the availability of grocery stores in accordance to neighborhood descriptions and demographics.1 miles farther from the nearest supermarket than the most impoverished white neighborhoods. Powell. “Food store availability and neighborhood characteristics in the United States”.1 mile greater distance to the nearest supermarket than predominantly white neighborhoods. The study found that the distance to the nearest Supermarket increased with increasing levels of neighborhood poverty. Inadequate accessibility to supermarkets may contribute to less nutritious diets and hence to greater risk for chronic diet related disease. Abstract: A 2006 study of the United States linked zip codes to census data. American lifestyle(2007 Mar). Lisa M. after controlling for socioeconomic status. While the distance to the nearest Supermarket was similar among the most impoverished neighborhoods. Affordable public transportation needs to be improved integrating transportation routes with supermarket locations . were on average were 1.
01) as many chain supermarkets compared to non-Hispanic neighborhoods. Relevant Data: Low-income neighborhoods have fewer chain supermarkets with only 75% (p < 0. Proximity is important—37% of African American shoppers travel one mile or less to their primary grocery store . the availability of chain supermarkets in African American neighborhoods is only 52% (p < 0. several studies have highlighted the mobility constraints faced by low-income households in their daily activities including food shopping .supermarkets.01) of that in White neighborhoods with even less relative availability in urban areas . Furthermore. 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. 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. Transportation Research Board of the National Academies (2007). . with a definite correlation in location.01) of that available in middle-income neighborhoods . socioeconomic status. Even after controlling for income and other covariates. Joe. Grengs. Indeed. and race. 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. the mobility strategies for food shopping among low-income families will exacerbate the barriers to a limited number of available local area supermarkets. in particular chain supermarkets. Hispanic neighborhoods have only 32% (p < 0. “Does Public Transit Counteract the Segregation of Carless Households? Measuring Spatial Patterns of Accessibility”.
Bitner. Malaysia. to address the problem of urban populations that depend on public transportation but have a lack of access to their everyday needs. Cronin and Taylor. Zeithaml and Berry. relatively little attention has been paid to issues surrounding service quality in non-western countries.Abstract: This study researched Geographic Information Systems. reliability. Parasuraman. responsiveness. University of Newcastle Ursula Bougoure. Zeithaml and Berry (1988) provides an approach to defining and measuring service quality. do not have reasonable access to supermarkets. Queensland University of Technology As noted by Doran (2002). particularly when applied disproportionately . 1992. the work of Parasuraman. including food. known as SERVQUAL. Whilst extensive research has been conducted on service quality over the past two decades (e. it is imperative that we seek to examine commonly accepted. 1990. Of the knowledge gained in the service quality literature.g. Service Quality: An investigation into Malaysian Fast food consumers using DINESERV Keang Meng Tang. 1988). representing 12 percent of New York City's households. western-based marketing theory in the context of different countries to see whether such concepts explain the same phenomena in consumers from different countries. 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. SERVQUAL has been well utilised within the literature. assurance and empathy. technology that measures transit use on smaller scales. Incorporating five service quality dimensions of tangibles. like the Asian region and in particular.500 households. it is important to note that SERVQUAL has been found to possess certain limitations. This being said however. Relevant Data/Quotations: The analysis finds that over 7.
firms can gain an understanding of the areas they should concentrate on when seeking to improve their overall service quality provisions (Oliva. 1992). Knutson and Patton (1995). rather than just satisfy expectations (Spreng and Mackoy. Therefore. 1997. For example. 1994). DINESERV for restaurants was developed by Stevens. Spreng and Taylor. it is important to identify the importance of service quality and its dimensions in determining overall service quality (OSQ). 1996) and their relationship has seen increasing research interest over the years (Bitner. to gain customer satisfaction. 1992. in response to findings that SERVQUAL was inadequate for the ‘unique’ restaurant environment (Dube. 1992). Dabholkar. 1990. Overall. there is debate (Shemwell. Yavas and Bilgin. as perceived by customers. 1981) and is the difference between consumers’ perceived and expected performance of a product or service. it appears likely that service quality dimensions from DINESERV will positively effect overall service quality (OSQ) perceptions by Malaysian consumers. In other words. Prior research suggests that not all service quality elements (within tools such as SERVQUAL. Oliver and MacMillan. While it is generally accepted that a positive relationship exists between service quality and customer satisfaction. while dissatisfaction occurs when performance is lower than expected. By addressing this issue. 1995. customer satisfaction occurs when performance is higher than expected. DINESERV) are able to predict a consumer’s overall service quality perceptions or (OSQ) (Oliva. 2004). 1998) with proposals of a causal link from customer . 1996). 2003). Customer satisfaction has long been recognised as a process (Oliver.across different service industries (eg: Babakus and Boller. H1: Service quality (DINESERV) will positively effect Overall Service Quality perceptions (OSQ) for Malaysian fast food consumers. Thus. Renaghan and Miller. Mohsin. Oliver and MacMillan. Schneider and White. some argue that organisations need to exceed predictive expectations of customers. In the context of the fast food industry. Service quality and customer satisfaction are inarguably fundamental concepts within services marketing theory (Spreng and Mackoy.
Cronin and Taylor (1992) found . For example. Zeithaml and Berry. taking into account their current situation and likely circumstances (Hellier et al. 1985).. Parasuraman.. 1990). repurchase behaviour is seen as a form of loyalty. Rust and Oliver. suggestions that directionality varies according to the service situation (Dabholkar 1995) and even that there is no relationship under particular circumstances (Parasuraman. H2: Service quality (DINESERV) will positively effect customer satisfaction for Malaysian fast food consumers. which according to Law. Zahorik and Keiningham (1995). Anderson and Fornell. As argued by Rust. 1996. there are mixed findings as to the relationship between overall service quality and behaviors that are indicative of customer loyalty. 2004). while Boulding et al (1993) and Rust and Zahorik (1993) provide empirical support that higher perceptions of service quality increases loyalty intention. (2004) and Oliver (1997) is a deeply held commitment to consistently repatronise a service in the future. 1994). it seems likely that high service quality will lead to increased satisfaction for consumers. Such contention within the literature has lead to repeated calls for further examination of this relationship (e. which ultimately lead to increased profits (Schneider and White. As such. Within the literature. 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. Hui and Zhao. Zeithaml and Berry. Service quality is tied to desirable business outcomes.g. which can translate into actual behaviours that may lead to increased revenues and profits. Intention to repurchase is an individual’s judgment about re-buying a designated service. In the case of fast food. however. service quality to customer satisfaction (Bolton and Drew. 2003). Spreng and Mackoy. 1994). telling friends and families of their positive experiences and creating new business and increased revenue for successful service organisations. In the extant literature however. Thus. 2003).satisfaction to service quality (Bitner. loyal customers are valuable marketing tools. 1994. service quality generates consumer intention to return. 1991. such as customer loyalty.
The study used non probability convenience sampling. Sample and Research design A descriptive research design was adopted to do the survey with the help of the questionnaire. According to Schneider and White (2004). As such. The tool for the collection of data is a questionnaire. Thus. The methodology of study is the interview method survey. Data Processing and Analysis: The data processing consists of coding the data collected in the form of questionnaire. According to such findings. 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. Thus. The questionnaire has 15 questions. results tend to support this relationship and it seems likely that this will be the case for Malaysian consumers of the fast food industry. H3: Overall service quality (OSQ) will positively effect repurchase intentions for Malaysian fast food consumers. Patterson and Spreng. H4: Customer satisfaction will positively effect repurchase intentions for Malaysian fast food consumers. The data collected with the help of questionnaire is having . Overall however. 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. 1994. it appears likely that this will also be the case for Malaysian consumers in the fast food industry.that overall service quality did not effect repurchase intentions. 1997). Tools and Methods of Data Collection: The interview is conducted for about 15 minutes with each person and collected the data. satisfied customers most likely will become loyal which can then translate into higher profits organizations.
the closed replies. 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. ANALYSIS & INTERPRETATION 1) VISIT Frequency Daily Weekly Fortnightly Monthly Total 14 38 19 9 100 .
e. 38%) and minority of them (19%) visit fortnightly 2) PRICE RANGE Range 100-200 200-500 Above 500 Total Frequency 24 60 16 100 . it says that majority of the customers visit the fast food retail store weekly (i.visit 40 35 30 25 20 15 10 5 0 Daily Weekly Fortnightly Monthly 14 9 19 38 Interpretation:From the above table and graph.
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 .e.price range 70 60 50 40 30 20 10 0 100-200 200-500 Above 500 Interpretation:From the above table and graph.e. it says that majority of the customers are willing to spend money of price range 200-500 (i.
e.e.preference of store 60 50 40 30 20 10 0 Brand image Easy accessibility Special offer Interpretation:- From the above table and graph. it says that majority of the customers (i. 50%) prefer special offers in the store and minority of them (i. 29%) prefer easy accessibility 4) Visiting hours Frequency 45 40 35 30 25 20 15 10 5 0 Morning Afternoon Evening Morning Afternoon Evening Total 40 29 31 100 .
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.e.Interpretation:From the above table and graph it says that majority of the customers are willing (i. 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. 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 .e.
e. 39%) are neutral about the preference of store due to service speed and minority of them are disagree that (i. 39%) of them agree that they will prefer the store due to the variety of menu and minority of them (i.Interpretation From the above table and graph it says that majority of the customers ( i.e.e. 21% ) of them neutral about the variety of menu in the store 7) Preference of store due the service speed Response Strongly disagree Disagree Neutral Agree Strongly agree 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.e. 20%) of them prefer the store due to service speed .
8) Preference of store due to good calorie content exist in the food Response Strongly disagree Disagree Neutral Agree Strongly agree 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. 33%) of them disagree that they will prefer the store due to the calorie content in the food and minority of them (i.e. 31%) agree that they will prefer the store due to the calorie content in the food .
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.e. 41%) of them prefer the store due to delivery speed that is offered .
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 .11) Satisfaction with the menu offer for my family Response Strongly disagree Disagree Neutral Agree Strongly agree Total Frequency 7 16 34 35 6 100 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.
e.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 .
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. 45%) of them agree that they will prefer the store due to easy accessibility and locational advantage 14) advertising strategy Response Frequency .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 .e.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.
41% ) agree that they will prefer the store because of special offers and discounts. Major Findings .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.
38%) and minority of them (19%) visit fortnightly • This study indicates that majority of the customers are willing to spend money of price range 200-500 (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.e.e.e.e. 21% ) variety of menu in the store • This study indicates that them majority of the customers (i. 40% ) of them agree that they will prefer the store for friendliness of staff • This study indicates that majority of the customers ( i.e.e. 29%) prefer easy accessibility • This study indicates 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. 39%) of them agree that they will prefer the store due to the variety of menu and minority of them (i. 60%) and minority of them says that they will spend money of price range 100-200 (i.e. 33%) of of them neutral about the disagree that they will prefer the store due to the calorie content in the food and minority of them (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.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 . 24%) in the fast food retail store • This study indicates that majority of the customers (i.e.e.e. 50%) prefer special offers in the store and minority of them (i.e.• This study indicates that majority of the customers visit the fast food retail store weekly (i.
e.so it suggest stores to more concentrate on the special offers but no compromise in the quality of food. Major suggestions: As majority of customers (38 percent) visit the store weekly especially weekends.e. As study refers more customers are looking for the special offers .Regular monitoring of the staff behavior towards customers is also suggest here. As study shows that customers are not aware of the calorie contents exist in the food. Customers are happy with the MENU verities available in the stores . It is found that majority of customers are not fully satisfied with the friendliness of staff. 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. 41% ) agree that they will prefer the store because of special offers and discounts. So it is suggest that the stores should conduct soft skill training and make them give more customer service .But it is suggested that add more customized menu and review the menu for every 3 months. So it is suggest to stores give special offers and discounts to capture more customers and retain loyal customers. So it is suggest that stores should display the calorie contents available in a particular food. 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 (i.
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 . . It is suggest the stores to concentrate on the areas of ambience and locational strategy.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.