Professional Documents
Culture Documents
1.1 Introduction
Fast food is the term given to food that can be prepared and served very quickly.
While any meal with low preparation time can be considered to be fast food, typically the
term refers to food sold in a restaurant or store with low quality preparation and served to
the customer in a packaged form for take-out/take-away.
Outlets may be stands or kiosks, which may provide no shelter or seating, or fast
food restaurants (also known as quick service restaurants). Franchise operations which
are part of restaurant chains have standardized foodstuffs shipped to each restaurant from
central locations.
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1.2 Needs & Objectives
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LITERATURE
REVIEW
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Chapter 2. Conceptual framework
2.1 History
The concept of ready-cooked food for sale is closely connected with urban
development. In Ancient Rome cities had street stands that sold bread and wine. A fixture
of East Asian cities is the noodle shop. Flatbread and falafel are today ubiquitous in the
Middle East. Popular Indian fast food dishes include vada pav, panipuri and dahi vada. In
the French-speaking nations of West Africa, roadside stands in and around the larger
cities continue to sell—as they have done for generations—a range of ready-to-eat, char-
grilled meat sticks known locally as brochettes.
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.
The development of Indian cuisine has a very long and turbulent history and is
ever changing even today as Indians try new cuisines and are exposed to new influences
and people from other nations.
Sen (2004) traced the historical origins of Indian cuisine and a summary of these
different influences is shown next page:
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2.2 Emergence
The fast food culture emerged as early as the 19th century. During the Industrial
Revolution, a large workforce was required to work for 10 to 12 hours a day. With so
much work to be done, fast food was the idea of a quick and easy lunch.
In India, fast food culture emerged in the decades after independence, starting
from the 1950’s. Eating at home used to be a significant aspect of Indian culture, so the
change was gradual. Over a period of time, with a growth in the number of nuclear
families, economic growth and increasing per capita income as well as globalization, fast
food culture gained prominence. Women were shifting from their conventional roles of
managing the household and taking care of the children. With growth in literacy, they
started joining the workforce in large numbers. Fast food became a time-saving
alternative to cooking for them.
Similarly, children resorted to fast food to fill their stomachs in school and
college. Their exposure to global urban culture and Western cuisine accelerated their
want for cheap and delicious fast food.
Moreover, fast food costs less than traditional long meals commencing with
appetizer and concluding with dessert.
Nirula’s and Pizza Corner – India’s most popular domestic fast food chains –
gained rapid popularity during this period. Though the fast food culture originated
abroad, these domestic food chains could create a perfect blend of international food with
Indian ingredients. Paneer pizzas and aloo tikki burgers were indeed able to satisfy Indian
taste buds.
With the liberalization of the economy in 1992, new multinational fast food giants
started dotting India with their outlets. Burger King, Wimpy’s, Pizza Hut, Domino’s
Pizza, McDonald’s, and KFC outlets can be seen today in nearly every shopping mall and
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other public areas. In fact, these multinationals have given their domestic counterparts a
run for their money. They are growing at a much faster pace than the Indian chains.
Gender Roles:
Gender roles are now changing. Females have started working outside. So, they
have no time for their home and cooking food. Fast food is an easy way out because these
can be prepared easily.
Paucity of Time:
People have no time for cooking. Because of emergence of working women and
also number of other entertainment items. Most of the time either people work or want to
enjoy with their family.
Working Women:
Working women have no time for cooking, and if they have then also they don’t
want to cook. Because they want to come out of the traditionally defined gender roles.
They do not want to confine themselves to household work and upbringing of children’s.
Large population:
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India being a second largest country in terms of population possesses large
potential market for all the products/services. This results into entry of large number of
fast food players in the country.
Relaxation in rules and regulations:
With the economic liberalization of 1991, most of the tariff and non tariff barriers
from the Indian boundaries are either removed or minimized. This helped significantly
the MNC’s to enter in the country.
Menu diversification:
Increase in consumption of pizzas, burgers and other type of fast foods.
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2.3 Impact
The emergence of the fast food industry has, to an extent, transformed urban food
culture in India.
It is common knowledge that too much fast food is bad for health and may lead to
obesity. An essential component of most fast food is fat – the kind of fat that in excess
can lead to artery clogging. In large quantities, fast food may lead to obesity as well as
hypertension, diabetes, high cholesterol and heart diseases. Even certain types of cancers
have been observed to spread due to lack of safety standards in some sectors of the fast
food industry.
There are also several environmental problems associated with how fast food
outlets process and package their products. Food packaging is done using plastic,
Styrofoam and other synthetic products which are not biodegradable. In recent times,
many fast food outlets have switched to paper bags. Though paper is biodegradable, at
the large quantities in which paper waste is generated in India, currently paper is seen
more as a pollutant. Metal and glassware would be more favorable to serve food, but they
destroy the whole purpose of consuming food on-the-go. The need of the hour is a law or
regulation that forces these outlets to recycle the paper, plastic and foam they use
everyday.
India’s fast food industry is growing at 40% per annum and generates over Rs.
4800 crores in sales. The multinational segment of the industry generates over Rs. 7000
crores.
Fast food has, in a way, impacted the Indian economy by creating jobs. Outlets
require a large number of unskilled workers who are willing to work for low wages. On
the one hand, this generates widespread employment. On the other hand, some analysts
feel that it weakens the economy by forcing people to take up jobs in which there is little
room for advancement.
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Fast food industry has been very successful in India, both in financial terms as
well as in popularizing its quick service culture among the population.
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, owner-operators 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.
2.5 Globalization
In 2006, the global fast food market grew by 4.8% and reached a value of 102.4
billion and a volume of 80.3 billion transactions. In India alone the fast food industry is
growing by 40% a year. McDonald's is located in 120 countries and on 6 continents and
operates over 31,000 restaurants worldwide.
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2.5 Health issue
Tran’s fats which are commonly found in fast food have been shown in many
tests to have a negative health effect on the body.
The fast food consumption has been shown to increase calorie intake, promote
weight gain, and elevate risk for diabetes. The Centers for Disease Control and
Prevention ranked obesity as the number one health threat for Americans in 2004. It is the
second leading cause of preventable death in the United States and results in 400,000
deaths each year.
One of the richest diets high in calories is Indian Food. If you can pinch more
than an inch, it’s probably time for you to cut down on the calories you eat in Desi food,
especially if you want to lose some pounds to be healthier and look fitter.
It may seem so innocent just to have that bite size Pakora but we really don’t
know what fat or calories it contains. This is true; most of us don’t actually know what
were eating when we have an Indian meal at home or at an Indian restaurant.
A small spicy plate of curry is enough usually to fill our appetites but we don’t
know how many calories are in it. Today, the younger generation is more aware of
calories and fat than before.
Therefore, if you’re seeking to control the calories when choosing a dish, make
sure you minimise the ghee or oil content and have more of the other ingredients. If
cooking, use alternatives such as Olive oil. When ordering in a restaurant, request less fat
to be used in your dish.
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Seasonal eating plays a key role in our diets. During the winter we tend to eat
heavier foods such as deserts and spoil ourselves with scrumptious hot meals usually full
of comforting ingredients, thus, making it harder to shift the pounds with exercise.
Eating out can always be a dilemma between choosing a tasty dish and one that is
low in calories. Therefore, choosing your courses wisely can help you manage the calorie
count.
When considering what to eat for your starter, it is perhaps best to choose
something light, such as a Popadom as this contains only 65 calories. Unlike Samosa’s or
Onion Bhaji’s which contain higher calorie content in each portion
Dips are used to enhance the taste of a starter, but don’t be fooled, these also
contain calories. A Cucumber Raita or a Tomato Sambal contains approximately 20
calories each. This is significantly less than Mango Chutney or Lime Pickle; a little as
1tbsp can contain up to 70 calories. Yes, you read correctly, 70 calories!
In the present times, it is the fast food craze that has created sensation all over. The
fast food has occupied a demanding position in the list of top hot fad foods. People are
getting lured into trying yummy fast food dishes, without possessing adequate knowledge
regarding Indian fast food nutrition. Well, there is a need for bringing forward some eye
opener nutrition facts about fastfood.
These days, the fast food chains are booming in number and witnessing
flourishing business. Abraham Lincoln had once said, "let the people know the facts and
the country will be safe". Well, it also holds true regarding the information about fast
food nutritional content. The prime motive is to make the people aware of the fact and
then let them take conscious decision.
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Here are some facts about fast food nutrition:
In the list of fattening dishes, Korma and Biryani are on the top.
If a sauce solidifies in room temperature, it's an indication that it consists of high
saturated fats.
Pappadums contain relatively high calories.
Indian curry makes use of green chilies that are rich in Vitamin C.
All food items like Tikka dishes that are cooked in dry oven contain low fat.
Instead of creamy pasta sauce, eating tomato sauce is a better option, as pasta
sauce contain high fat content.
Lasagna contains multiple cheese layers; therefore it is a very fatty item.
Chips are high in fat and calories.
Well, the basic reason that can be attributed to the increasing consumption of fast
food is the fact that fast food is readily available, quick to make and easy to serve. Media
truly deserves the credit for the wide publicity of fast food stuff. But it is always
advisable to eat healthy nutritious food that can help maintain your overall fitness.
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Research Methodology
1) Primary Research
2) Secondary Research
1) Primary Research:-
It involves the collection of data that does not already exist. This can be
through numerous forms, including
Questionnaires
Interviews of customers
By visiting the Fast Food Restaurant
2) Secondary research:-
It involves the summary collection and /or syntheses of existing research rather than
primary research,
News papers
Books
Magazines
Previous project
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EXPLAINATION
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Chapter 3. Profile of 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.
India isn’t probably the type of country you’d associate with an abundance of fast
food restaurants, and to some extent that’s the case but along with everywhere else in the
world, fast food is becoming part of the lifestyle in India.
The big fast food chains have all made brave attempts to conquer the Indian
market. McDonald's, Domino's and KFC all found it difficult to cater for Indian tastes,
but then decided to change their own menu to adapt rather than expect a cultural shift –
and now McDonald's and Domino's have a wide presence in India. KFC have struggled.
The key to the success of the big chains is adapting the traditional Indian snacks and
cuisine to make them fast food friendly.
The street food in India is as diverse as the population, but there are some snacks
that you’re likely to find all over the country. You really can’t visit India and not sample
some of the native Chaat – a hugely variable spicy snack mix, often seasoned with lemon,
pomegranate seeds, Kala Namak (black salt), tamarind, and various chutneys. Chaat can
be anything from a fruit dish with guava, banana, apple or melon, crisp pancakes called
paapri, served with yogurt, or sometimes potatoes sauteed with black cumin powder.
Also on the street carts as standard are Pani Puri – hollowed out crispy dough
balls with various fillings, Aaloo Tikki - deep fried mashed potato and masala patties
usually served with a curry called Chholey (chick peas). They are most popular in
Northern India in the winter. If you’re on a train, you’ll often be offered a Chaap, a potato
patty dipped in flour batter and deep fried, usually dished up with onion slices.
For a quick sweet snack, try a Chai-faen which is simply a combination of tea
with a roasted biscuit called "faen", or occasionally ‘khaaree biscuit’. Another tempting
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sweet treat is Vada pav – a great example of West Indian street food, eaten with Masala
chai which is a delicately spiced tea. For anyone with a real sweet tooth though, the ideal
snack is a jalebi or jangri, which is a syrup-covered deep-fried sweet available throughout
India.
Moving on to Kerala, in South India, the fast food there is available from
‘thattukadas’ which are covered catering carts fully kitted out stoves and utensils. They
usually offer ‘thattu dosa’ which are rice-flour crepes fried in coconut oil and served with
coconut chutney. You’ll also find thattukadas serving up omelettes, spicy pork , and
parottas (like naan breads, but beaten and mixed with oil).
Popular formats of fast food business in India have the following features in common:
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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.
The kind of fare they offer as of date could be just anything and everything.
Preference of the local population and the location of the outlet influence the menu more
than anything else. Some of the popular dishes offered at Indian fast food outlets are:
South Indian:
Others:
Bonda Soup
Bajjis– Banana Bajji, Green Chili Bajji
Pakoras– Onion Pakora, Vegetable Pakora
Thalis- vegetable, Chicken, Mutton
Rajma rice
Omelette bread
Chinese food
Pasta
Burgers(chicken, mutton, veg)
Wraps & rolls
Grilled chicken
Samosa, patties, bread pakoda
Milkshakes
Doner kabab
Dum biryani
Fish & chips
Salads
Momas
Fruit beer
Chicken wings
Grilled Sandwich
Mutar kulcha
Pav bhaji
Stuffed paratha
Fruid salad
Idli sambar
Vada sambar
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Dahiwada
Fried Rice
Noodles
Mini Meals
Pizzas
Beverages:
Coffee
Tea
Lassi
Aerated Drinks
Fresh fruit juice
These high quality Fast Food Counters are made by using very high quality raw
material which ensures hassle free work performance at its user end. These Fast Food
Counters are widely finds its applications in various commercial sectors.
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Display Counters:
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Fast Food Trays:
These fast food trays are widely finds its application in both commercial as well
as industrial sectors. These fast food trays are available in market at very competitive
prices.
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3.2 Reason for Growth of Fast Food Industry
Fast food is one of the world’s fastest growing food types. India is seeing rapid
growth in the fast food and restaurant industries. It now accounts for roughly half of all
restaurant revenues in the developed countries and continues to expand. The trend is
radically changing the way people eat in India.
For a nation that is particular about its food and significantly fond of home
cooked and fresh food, this trend is showing the globalisation of India and increase of
new markets not witnessed in India before. With increasing number of people eating out
the industry offers major opportunities to the players to capture a larger consumer base.
As a result of the trend, all the international food players like Pizza Hut, Dominos,
McDonalds and KFC are investing huge amount of money to grab a share of this highly
lucrative market.
Pizza Hut for example, is one of the flagship brands of Yum! Brands, Inc., which
also has KFC, Taco Bell, A&W and Long John Silver’s under its umbrella. Pizza Hut has
143 stores across 34 cities in India.
A report by Research on India has found that traditionally, the Indian consumers
have been eating at roadside eateries, dhabas and stalls which still occupy a major share
of the unorganised sector, where fast food has been eaten traditionally. However, with the
changes in the economy of the country and injection of modern employment from the
West, the non-home food market has now changed.
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The market is highly competitive with a large number of Indian and foreign
players seeking business in this upward trend.
The market is dominated by global players, specially in the organised fast food
segment. Growing trend of consumption of multi cuisines and increasing brand
awareness has led to the increase of global players. Organised modern formats like malls
and supermarkets have also become a favourite destination for the outlets. Larger
companies are teaming up with small franchisors and mall owners to promote their brand.
The growing segment comprises of formats like fast food chains, cafes and fine
dining restaurants. Two sub segments of the fast food market are the Pizzas and Burgers.
These have now developed into part of the nation’s eating habits. Their share is
continuously growing with the key global brands such as Dominos, McDonalds and KFC
making their marks quickly. The chains have had no problems accommodating different
menus for the Indian consumer. For example, McDonalds will not sell beef burgers but
instead lamb and chicken burgers and have a larger selection of vegetarian food
compared to the West.
The challenges for the new style of Indian restaurants and fast food joints are food
price fluctuations, cumbersome licensing laws, high cost of real estate and lack of skilled
manpower.
Another area experiencing growth is the ‘Ready To Eat’ (RTE) market in India
for food. RTE can be defined as food products that constitute complete meals; require
minimal processing, if any, typically requiring re-heating to desired temperature or
addition of water. They are often termed as ‘Convenience Food’ since they are positioned
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as ‘value for money’ products that solve the issue of time-constrains faced by consumers
due to the pressures of urban life. RTEs are categorised into two product categories Shelf
stable packaged food and Frozen packaged food.
When RTE foods were introduced first in India the concept failed at that time and
has only recently exploded. Changing consumer habits, preferences and perceptions has
driven the market. A strong correlation exists between the growth of RTE foods and
organised retail formats such as supermarkets and hypermarkets. Companies such as Taj
Foods, Sangeeta Foods (Raja Foods), Rajbhog Foods Private Limited are all part of the
Indian RTE industry.
These trends show that the modernisation of India is well on its way. These
changes in the eating habits Indians are more than likely referring to middle class and
upward earning society of India. The prospect of seeing fast food such as burgers and
pizzas being the staple diet for lower classes will not likely be the case, as it is perhaps is
in Western societies, due to the contrast in affordability.
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3.3
You won't get much variety if you visit an outlet of Jumbo King, a fast-food chain
that is expanding in western India. On offer are vada pavs (a potato-based patty in a bun),
Pepsi and lassi. This is fast food Mumbai style. It won't cost you more than a dollar. (The
basic vada pav costs just 17 cents and the most expensive 59 cents.)
"I was inspired by McDonald's: Behind the Arches, says Dheeraj Gupta, founder
and managing director of Jumbo King, referring to the John F. Love book about the
world's largest fast-food chain. "But my target is the suburban train traveler."
Most Jumbo King outlets are close to railway stations, with their constant stream
of commuters as potential customers. Many stop in to pick up a vada pav. In a city where
commuting can take two hours each way and the railways carry 6 million-plus passengers
daily, this is often breakfast or dinner. "You can get a vada pav at a roadside stall too,"
Gupta says. The difference between Jumbo King and the stalls, he says, "is that we are
hygienic."
Jumbo King is not Gupta's first venture. Shortly after completing an MBA from
Symbiosis Institute of Business Management in Pune, he started Manali Foods to export
sweets to places like Dubai, which have a large concentration of ethnic Indians. It didn't
work. "I suddenly realized I was looking at the wrong market," Gupta says. "There were
800,000 to 900,000 Indians in Dubai; there were 2 million in [the Mumbai suburb] Malad
alone."
Having made a choice about his market, the next key decision was the product.
Gupta's family was in the hotel and catering business and also had run sweetshops. But
sweets had flopped once for Gupta, and he now decided bet on Indian snack foods. He
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opened an outlet in Malad under the name Chaat Factory. (Chaat is the Hindi word for
small plates of savory snacks.)
That worked. But Gupta soon discovered that the item on the menu that really
moved was the vada pav. "We decided to stick to that alone," he says. Chaat
Factory became a misnomer. When customers began complaining that there was no chaat
in the Chaat Factory, the name was changed to Jumbo King.
From one outlet in 1990, Jumbo King reached 45 by early this year. It is targeting
250 this year, and has already forayed to Gujarat from its home state of Maharashtra. The
initial investment was Rs. 200,000 ($4,300). Now, the company plans to pump in Rs. 75
crore ($16.1 million) over the next three years. The money will come from private equity.
According to the company's plans, the funds will be used for setting up more
owner-operated outlets (outlets are franchised now), and kiosks within malls, retail chains
and airports. A deal has been signed with Bharat Petroleum for kiosks at gasoline pumps.
And Jumbo King plans to move inside railway stations; talks are on with Indian Railways
for outlets on platforms.
"Jumbo King is a brilliant idea," says Akbar Khwaja, managing director of United
Pizza Restaurants, which has 62 franchised outlets in 26 cities. (Khwaja is planning to
start a chain of franchised fast-food outlets called Satvik, serving "non-messy" items such
as samosas, kathi rolls, paranthas, vada pavs and tikkis.)
"Jumbo King has hit the right chord for Indian fast food," Khwaja says.
"According to a recent survey that [United Pizza] did regarding the top five Indian fast-
food items across the cities of Bangalore, Mumbai, Pune and Ahmedabad, vada pav tops
the list, followed by pav bhajji, kathi rolls, samosas and pakodas."
[28]
According to a 2004 online survey by ACNielsen, the marketing information
company, India ranks high in fast-food consumption. The survey showed that 37% of the
population ate at takeaway restaurants at least once a week. That was seventh globally
and above the United States, at 35%. Of course, the U.S. market size is far greater, given
price differences, but the trend is clear. "It doesn't matter where in the world you are or
how well off, the fast-food culture has become a way of life for all of us," the Nielsen
report says.
For Jumbo King, striking the right lode doesn't translate into operating a gold
mine. Although mark-ups in the restaurant business can be as high as 200%, overhead is
challenging. "Our margins are barely 10% to 12%," Gupta says. "But that's healthy."
Jumbo King made money from the first year, because it pared costs to the bone.
"Initially, there was just my wife, a five-man crew and myself," Gupta says. Today, he
has 30 people, including three in Gujarat. The outlets have their own staff.
"One of our first lessons was getting our target clientele right," Gupta says. He recalls
opening a store in Masjid Bunder, an area classified as SEC C, a low socioeconomic
classification that accounts for 21% of the urban population. More than 50,000 people
went past the store every day, "but hardly any customers. It was a disaster. We found
that, while we expected to reach SEC C, 75% of our customers were actually SEC A."
"The price-quality equation is a big item on the Mumbaikar's mind," says Harish
Bijoor, CEO of Harish Bijoor Consults and a visiting faculty member at the Hyderabad-
based Indian School of Business. "If that is met, the offering works. If not, it does not."
Value is key in India, where it's not unlikely to see someone driving a Mercedes stop to
buy snacks from a pavement stall.
[29]
But Gupta realized early on that he would have to work hard to gain customers.
There was no money to spend on promotion. "We grew only through PR and word of
mouth," he says. His wife, Reeta, was freelancing for certain newspapers around that time
and persuaded friends in the media to write about Jumbo King. She says, "I found that the
concept of hygienic vada pav was the subject of some curiosity. So my friends helped me
give some initial news value to Jumbo King. After that I took care of marketing."
Reeta, a Symbiosis alumna, has since stepped out of an active role in the business.
"[Following] our MBA, we had become a joke when we started Jumbo King. People said,
'You are MBAs competing with roadside vendors.' I had to be supportive. From selling
vada pavs physically at the counter to filling feedback forms at railway stations, I got my
hands dirty at every stage."
Today, Reeta is a sounding board for her husband while she tends to her own PR
firm. The mom-and-pop operation has grown to a point where it needs to professionalize,
so Jumbo King has brought in a professional CEO, Karandeep Singh, from Café Coffee
Day. "My mandate is to make Jumbo King India's largest [quick service restaurant] chain
in the next few years," Singh says. Other professionals have also come on board.
The expansion drive brings tough work, starting with getting the menu right. As many
multinational chains have belatedly realized, the Indian food market is fragmented. What
works in one state may not in another.
Jumbo King has already experienced that. In Gujarat, there are some items in addition to
vada pav on the menu. Gupta justifies the variety. "In its formative years, McDonald's
tried their new products in one location," he says. "If it worked, it was introduced all
over. The Butter Jumbo King, first launched in Gujarat, is now available in other places."
The menu will change and perhaps expand, for Gupta doesn't see his business as just
selling vada pav. "We are in the business of catering to people on the go," he says.
Besides, the vada pav that Jumbo King serves is different from the one it competes with
[30]
in the streets of Mumbai. For one, it is larger. The bread is round. (The standard pav is
square.) And the vada itself is flat instead of round.
[31]
Gupta inevitably will face competition. Some chains have already recognized that India's
big markets exist down the price ladder. Domino's Pizza has extended its international
Pizza Mania promotion to India. But while the cheapest pizza on its United Kingdom
menu costs £4.95 ($9.11), in India the cheapest is Rs. 35 (75 cents). In India, you have to
order at least four pizzas for free home delivery. But that works out to just over $3.
Another U.S. chain, KFC, has launched a snack box for Rs. 49 ($1.05) and a
chana snacker for Rs. 25 (54 cents). Like the Domino's Pizza Mania fare, these are not
targeted at the bottom of the pyramid, but at middle-class customers seeking value.
Gupta isn't fazed. He points out that the Future Group, which runs national-level
stores such as Pantaloons, Big Bazaar and Food Bazaar, had started a chai (tea) and
samosa chain some years ago. Called Chamosa Bars, about 200 were set up. They failed.
The business was not big enough. "You need to be an entrepreneur to do something like
Jumbo King," Gupta says. "You can't be part of a larger group. This is a maverick kind of
business."
That may be why Gupta doesn't see the existing players as competition. This
includes the multinational chains; the Udipi restaurants that dot Indian cities, serving
similar fare but without common ownership; and even the low-price Indian Railways
catering service, which has outlets at stations.
Bijoor disagrees. "In the foods and snacks business, everyone is competition for
everyone else," he says. "A snack is an impulse item. When the impulse strikes, one
looks at local availability, compares offers, taste needs and prices, and decides. All this in
a nanosecond. To that extent, the Jumbo pav and McDonald's compete with one another."
[32]
United Pizza's Khwaja sees it another way. "The real competitor for Jumbo King
is not McDonald's but the man selling vada pav on the roadside. They must turn each of
them into a Jumbo King franchisee."
Jumbo King's next challenge is getting the money together for expansion. Gupta
will need funds because he is changing his model. "Currently we are into 100%
franchising," he says. "In the future, the ratio will be 70% franchisees and 30% company-
owned outlets." Jumbo King gets 10% of sales from franchisees as its fee.
Both models have worked in India. Explains CEO Singh: "Café Coffee Day is a
chain of company-owned stores and Jumbo King is into franchising. But at the bottom of
it, both are a bunch of young guys trying to create a big brand."
Gupta says finding private-equity funds won't be a problem. But what will make
or break the chain is this, according to Khwaja: "Indian fast-food chains have not caught
on because of the mind-set of Indian entrepreneurs. They under-invest and expect quick
profits. Indians typically like to have complete ownership of their business, and so we
end up having small companies. In the chain-food business one needs to have long-term
vision and large investments."
"Jumbo King has a great product and a great concept," she adds. "What it needs to
do is to work on its distribution model. It needs to look at being present in places like
cinema halls, food courts of shopping malls, railways stations and airports. As there is
only one product, they can also look at backward integration to bring about more
economies of scale."
[33]
Jumbo King may sell just vada pav. But, in terms of management strategies and
decisions, it has a lot on its plate.
The Jumbo King brand was founded by Dheeraj Gupta, a Hotel Management
Graduate with a Masters degree in Financial Management. Dheeraj not only put up his
own single product stores but also convinced others to invest in the brand through the
franchise model. The vision has grown to encompass many cities and states, and Dheeraj
believes that vada pav has as much universal appeal as the burger.
Franchise Information:
Master Franchises
Jumboking is presently looking for master franchisees who can invest into
8 to 10 outlets at a time. Please contact us for more information.
[34]
Key Benefits and Opportunities
The company has a fully automated central kitchen and a modern bakery
providing world-class quality products. Thus you are in the restaurant business
without the headaches of manufacturing.
The company has very good purchasing power, which enables it to source
raw materials at prices much lower than any individual restaurant.
Testimonials
''On my visit to Mumbai in 2004 I saw a Jumboking Vada Pav being served. I was
surprised and fascinated to know that it was our own local street food VadaPav prepared
in a very hygienic condition and wrapped in food grade paper as burger. This was the day
which saw the start of revolution in fast food chain “Jumboking”, culminated in national
growth and poised for international expansion. Today I have first Jumboking outlet in
Akruli-Kandivali, second in Bazar gate-V.T and third upcoming outlet at Thakur Village-
Kandivali, Mumbai.
[35]
Requirements from a Franchisee:
• Investment of Rs.10-12 lac for express counter and Rs.15-20 lac for restaurant
format store.
Recruitment Process:
All Mumbai and Thane based enquiries are called to Mumbai Office for
Jumboking presentation. Shortlisting is done for a second round where prospective
franchisees are given details of project profit and loss account. In third round M.O.U is
signed and franchisee is given hand book detailing how to make Jumboking outlet
operational. For outside Mumbai/Thane a presentation is given in respective cities, then
second follows and third round will be conducted in Mumba
[36]
3.4 India – Emerging market for global players
Fast food is one of the world’s largest growing food type. India’s fast food
industry is growing by 40% a year and is expected to generate a billion dollars in sales by
2005.The multinational segment of Indian fast food industry is up to Rs. 6 billion, a
figure expected to zoom to Rs.70 billion by 2005. By 2005, the value of Indian dairy
products is expected to be Rs.1, 00,000 million. In last 6 years, foreign investment in this
sector stood at Rs. 3600 million which is about one-fourth of total investment made in
this sector. Because of the availability of raw material for fast food, Global chains are
flooding into the country.
MCDONALDS
KFC
PIZZA HUT
DOMINOS PIZZA.
COFFEE DAY
BARISTA.
The main reason behind the success of the multinational chains is their expertise
in product development, sourcing practices, quality standards, service levels and
standardized operating procedures in their restaurants, a strength that they have
developed over years of experience around the world. The home grown chains have in
the past few years of competition with the MNCs, learnt a few things but there is still a
lot of scope for improvement.
[38]
3.5 DOMINO’S
Domino's Pizza is one of the biggest and fastest growing international food joints
in South Asia. The very first Domino's Pizza outlet in India opened in Jan, 1996 at New
Delhi. Today, Domino's Pizza India has become a wide network of Pizza delivery and
food chain. There are close to 220 outlets in 42 cities of India and the brand is the top
most among the food delivery business. Domino’s Pizza outlets can be seen at major
locations of Delhi and NCR. Their home delivery is free with a guarantee of “Thirty
Minutes Nahi to Free”. Although they are expert in delivering Pizzas on time, their
eating joints and outlets are also good. We plan to have a total of 500 stores in 75-80
cities by 2010 to 2011. It would entail an investment of Rs 200 million during the period
Market growth:
During last four months, dominoes have opened outlets in Jammu, Panipat, Surat,
Baroda, Nashik, Trivandum, Meerut and Patiala. While earlier, 70 percent of our business
used to be in metros and mini-metros, now the ratio is 50:50 between big cities and
smaller Tier II and III cities. Domino’s Pizza is expanding its base in India by opening
500 outlets to add to its current tally of 156 outlets, across 50 cities in India by 2011 with
an investment of Rs.1, 000 crore.
[39]
Market strategies:
Market share:
The organized pizza market in India is worth Rs.500 crore and Domino’s has a
substantial 45% market share, and registered a healthy growth of 60% over last year. The
main target for new outlets shall be metro cities though Tier II cities would also receive a
fair amount of attention. Currently Domino’s sells around 35,000 pizza every day, of
which around 1% are given free on account of its “30 minutes or free” model. 65 percent
of its revenue comes from home delivery service; around 35 percent is from sales in
premise.
Competitors:
Fast food is one of the world's fastest growing food types. 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. But some of the most
rapid growth is occurring in the developing world; where it's radically changing the way
people eat. People buy fast food because it's cheap, easy to prepare, and heavily
promoted. This paper aims at providing information about fast food industry, its trend,
reason for its emergence and several other factors that are responsible for its growth. India
is a developing country with 2 percent of organized and 98 percent of unorganized sector. So
most of the fast foods came into Indian market as India has a high growth in every sector.
[40]
Some of the competitors of domino’s are
McDonald's
Pizza Hut
Barista
Coffee Day
Increase in Chinese Food stalls: There are large numbers of Chinese food stalls
are present in India and they are increasing day by day. It is becoming a big
challenge to Indian fast food industry.
[42]
3.7 PROBLEMS OF INDUSTRY
I. 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. \
II. Low calories food: Emphasis is now more on low calorie food. In this line
McDonald has a plan to introduce all white meat chicken Mcnuugget with less fat
and fewer calories.
Changing trends
Changing consumer preferences.
Underdeveloped Infrastructure.
[43]
3.8 Trends in Indian market
Marketing to children's: fast food outlets in India target children’s as their major
customers. 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.
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,
this industry faces low level customer commitment.
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. They are introducing all categories of product so that people of all age, sex, class,
income group etc can come and become a customer of their food line.
The success of fast foods arose from the changes in our living conditions:
[44]
5. There's often not enough time or opportunity to shop carefully for groceries,
or to cook and eat with one's family. Especially on weekdays, fast food
outside the home is the only solution.
3.9 Indian Fast Food Industry growth and its important Players
With the rapidly growing middle class population and changing lifestyle, India is
blessed with one of the fastest growing fast food markets in the world. The Indian fast
food market is growing at an annual rate of 25-30%. Almost all the world’s big fast food
brands have succeeded in making their presence felt in the country and most of them are
posting appreciable growth.
Consequently, all the popular fast food chains have chalked out massive plans for
expanding their business and presence throughout the country. Foreign fast food chains
are aggressively increasing their presence in the country. For instance, Domino’s has
planned to open 60-65 outlets every year for the next three years (2010-2012) while Yum
Brands Inc is also preparing for massive expansion across the country with plans to open
1000 fast food outlets by 2015.
According to our new research report “Indian Fast Food Market Analysis”,
although the market has witnessed robust growth over the past couple of years, it remains
largely underpenetrated and concentrated in metropolitan cities. However, there is a large
room for growth in untapped tier-II and tier-III cities. Therefore, the future of the Indian
fast food industry lies in tier-II and tier-III cities. Owing to this, major fast food retailers
are on the way to market their brands by using different marketing strategies such as
campaigns and putting up billboards in tier 2 and tier 3 cities.
The report provides an extensive research and objective analysis of the fast
expanding Indian fast food market. The report analyzes all the vital industry trends and
[45]
possible growth areas for future expansion. It also analyzes important driving forces in
detail, which will help clients to understand the market better.
Moreover, we have identified the important players operating in the sector and
have made a separate chapter which talks about their business expansion plans in detail.
Most importantly, the report features forecast for fast food sales in the country. The
forecast is based on the correlation between past market growth and growth in base
drivers such as middle class, urbanization, cultural shift and lifestyle changes.
[46]
3.10 Indian Fast Food Market Analysis
As per our research report “Indian Fast Food Market Analysis”, India has seen
a massive rise in the consumption of fast food over the past few years. In fact, the country
has emerged as one of the fastest growing fast food markets in the world. Improving
living standards, rapid urbanization, and westernization of Indian culture are some of the
major factors responsible for such a robust growth. These factors and several other
factors will help the industry to grow at a CAGR of 30-35% during 2010-2013.
Although the market has witnessed a robust growth in the past few years, the
market largely remains underpenetrated. The market largely remains concentrated in the
metropolitan and Tier-I cities, while Tier-II and Tier-III cities as well as rural areas
remains mostly untapped. However, all the major food chains have started realizing the
potential of these untapped markets and are trying to increase their presence in Tier-II
and Tier-III cities.
According to our research, pizza, pasta and noodles market along with other fast
food markets are expected to get double in 2013 compared to 2010. Owing to this trend,
nearly all major international fast food players, such as McDonald, Pizza Hut, Dominos,
KFC, etc. are investing huge amount of money to expand their presence and share in the
highly lucrative Indian fast food industry. Customization of products, considering Indian
choices and customs, has been one of the key strategies for the success of foreign fast
[47]
food chains in India. Most of the food chains are busy in innovating and customizing
their products.
Although the multinational fast food restaurants have made strong presence and
are found at almost every shopping malls and local markets, they are facing stiff
competition from ethnic eateries/fast food chains that sell traditional items such as Wada
Pav, Kaati Rolls, Kulfi, and Tikka. Though these restaurants are not big ticket like their
foreign counterparts, they are fast becoming a part of day-to-day life of urban India.
The report covers both pure vegetarian and multi-cuisine type fast food
restaurants which are classified into different types in the first chapters, including a
history of the “hamburger”. The main focus of the report is on explaining franchise
models and cost aspects of a fast-food venture, introducing necessary controlling tools,
among them “financial ratios”, “projected profitability” or “projected cash flow”.
Regarding locations, for example, the report notes that the top five foreign brands,
namely, McDonald’s, Domino’s Pizza, Pizza Hut, Subway, and Pizza Corner would be
focused on New Delhi, Mumbai, Bangalore and Chennai which account for 53% of their
total number of outlets.
The principal factors that drive the demand for fast food restaurants would be the
increasing disposable incomes among the target groups, increase in working women,
urbanization, globalization, the consequent changes in life styles, and the brand pull,
[48]
ITCOT says, but informs also that there would be no authentic estimates of demand for
fastfood products in India.
12 Aug 2010 - New Delhi, India - As per our new research report, “Indian Fast
Food Market Analysis”, India has seen a massive expansion in consumption of fast food
in recent years. In fact, the country has emerged as one of the fastest growing fast food
markets in the world. It has been found in our research that growing number of nuclear
families, rising numbers of women employees and intensifying exposure to western food
are driving the eating out trend in India that has resulted in growth of fast food industry.
Further with increasing wealth of prospective customers in Tier 2, Tier 3 cities, demand
for fast food is expected to grow at a faster pace in near future. As a result, Indian fast
food industry is expected to grow at a CAGR of 30-35% during 2010-2013.
According to our new research report, major international fast food chains present
in India have now well understood the market potential in untapped Tier 2, Tier 3 cities
and rural areas and have now started making investment to serve the growing numbers of
prospective fast food customers into these untapped areas. The report has identified
various other factors such as changing life style and westernization of Indian culture that
are further expected to fuel growth in Indian fast food Industry.
The research report has covered the important fast food segments such as Pizza,
pasta and noodles, etc and studied the consumption pattern in each segment extensively.
The report also provides the emerging trends in Indian fast food market and identifies the
potential growth areas for future expansion.
[49]
4. Collection and analysis of data, Interpretation of data
A descriptive research design was adopted to do the survey with the help of the
questionnaire. The study used non probability convenience sampling. The methodology
of study is the interview method survey. The study is completely based on the primary
data which is collected from different Fast food stores and the sample size taken for study
is 100 people.
The interview is conducted for about 15 minutes with each person and collected
the data. The tool for the collection of data is a questionnaire. The questionnaire has 15
questions.
The data processing consists of coding the data collected in the form of
questionnaire. The data collected with the help of questionnaire is having 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.
[50]
ANALYSIS & INTERPRETATION:
1) VISIT:
Frequency
Daily 14
Weekly 38
Fortnightly 19
Monthly 9
Total 100
visit
40 38
35
30
25
19
20
14
15
9
10
5
0
Daily Weekly Fortnightly Monthly
Interpretation: - From the above table and graph, it says that majority of the
customers visit the fast food retail store weekly (i.e. 38%) and minority of them
(19%) visit fortnightly
[51]
2) PRICE RANGE
Range Frequency
100-200 24
200-500 60
Above 500 16
Total 100
price range
70
60
50
40
30
20
10
0
100-200 200-500 Above 500
Interpretation:-From the above table and graph, it says that majority of the customers are
willing to spend money of price range 200-500 (i.e. 60%) and minority of them says that
they will spend money of price range 100-200 (i.e. 24%) in the fast food retail store.
[52]
3) Preference
Frequency
Brand image 21
Easy accessibility 29
Special offer 50
Total 100
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.e.
50%) prefer special offers in the store and minority of them (i.e. 29%) prefer easy
accessibility
[53]
4) Visiting hours
Frequency
Morning 40
Afternoon 29
Evening 31
Total 100
45
40
35
30
25
20
15
10
0
Morning Afternoon Evening
Interpretation:-From the above table and graph it says that majority of the customers are
willing (i.e. 40% ) to visit the store on morning session and minority of them (i.e.31% )
of them visit the store on evening session
[54]
5) Preference of store due to friendliness of staff
Response Frequency
Strongly disagree 2
Disagree 5
Neutral 44
Agree 40
Strongly agree 9
Total 100
50
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.
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.
[55]
6) Preference of store due the variety of menu available in the store
Response Frequency
Strongly Disagree 5
Disagree 15
Neutral 21
Agree 39
Strongly agree 15
Total 100
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.
39%) of them agree that they will prefer the store due to the variety of menu and minority
of them (i.e. 21% ) of them neutral about the variety of menu in the store
[56]
7) Preference of store due the service speed
Response Frequency
Strongly disagree 5
Disagree 20
Neutral 39
Agree 15
Strongly agree 20
Total 100
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. 39%) are neutral about the preference of store due to service speed and minority
of them are disagree that (i.e. 20%) of them prefer the store due to service speed
[57]
8) Preference of store due to good calorie content exist in the food
Response Frequency
Strongly disagree 9
Disagree 33
Neutral 19
Agree 31
Strongly agree 20
Total 100
35
30
25
20
15
10
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.
[58]
9) Preference of store due to the cleanliness and store atmosphere
Response Frequency
Strongly disagree 2
Disagree 7
Neutral 25
Agree 40
Strongly agree 26
Total 100
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.
40% ) of them agree that they will prefer the store for ambience provided in the store.
[59]
10) Preference store due the delivery speed offer by the store
Response Frequency
Strongly disagree 4
Disagree 20
Neutral 15
Agree 41
Strongly agree 20
Total 100
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.
[60]
11) Satisfaction with the menu offer for my family
Response Frequency
Strongly disagree 7
Disagree 16
Neutral 34
Agree 35
Strongly agree 6
Total 100
40
35
30
25
20
15
10
5
0
Strongly disagree Disagree Neutral Agree Strongly agree
Interpretation:- From the above table and graph it says that majority of the customers
(i.e. 35% ) of them agree that they are satisfied with the menu that was offered in the fast
food store and followed by some of them are neutral about the menu for their family.
[61]
12) Preference of store due to facilities offered
Response Frequency
Strongly disagree 11
Disagree 20
Neutral 41
Agree 14
Strongly agree 14
Total 100
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 says that they are neutral about preferring the store due to the
facilities.
[62]
13) Preference of store due to easy accessibility and locational advantage
Response Frequency
Strongly disagree 4
Disagree 18
Neutral 15
Agree 45
Strongly agree 15
Total 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.e. 45%) of them agree that they will prefer the store due to easy accessibility and
locational advantage.
[63]
14) Advertising strategy
Response Frequency
Strongly disagree 9
Disagree 20
Neutral 33
Agree 28
Strongly agree 10
Total 100
35
30
25
20
15
10
0
Strongly disagree Disagree Neutral Agree Strongly agree
Interpretation:- From the above table and graph it says that majority of the customers
(i.e. 33%) of them are neutral about the advertising strategy provided by the store and
followed by that customers agree the store for the advertising strategy.
[64]
15) Preference of store due to special offer and discounts
Response Frequency
Strongly disagree 4
Disagree 20
Neutral 15
Agree 41
Strongly agree 20
Total 100
45
40
35
30
25
20
15
10
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% ) agree that they will prefer the store because of special offers and
discounts.
[65]
Chapter 5. Major Findings and Major Suggestions
This study indicates that majority of the customers visit the fast food retail store
weekly (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.e. 60%) and minority of them says that they will spend
money of price range 100-200 (i.e. 24%) in the fast food retail store
This study indicates that majority of the customers (i.e. 50%) prefer special offers
in the store and minority of them (i.e. 29%) prefer easy accessibility
This study indicates that majority of the customers (i.e. 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
This study indicates that majority of the customers ( i.e. 39%) of them agree that
they will prefer the store due to the variety of menu and minority of them (i.e.
21% ) of them neutral about the variety of menu in the store
This study indicates 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
This study says that majority of the customers (i.e. 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
[66]
This study indicates that majority of the customers (i.e. 45%) of them agree that
they will prefer the store due to easy accessibility and locational advantage
This study indicates that majority of the customers (i.e. 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. 41% ) agree that they will
prefer the store because of special offers and discounts.
[67]
5.2 Major suggestions
As majority of customers (38 percent) visit the store weekly especially weekends.
So it is suggest to stores give special offers and discounts to capture more
customers and retain loyal customers.
As study refers more customers are looking for the special offers ,so it suggest
stores to more concentrate on the special offers but no compromise in the quality
of food.
It is found that majority of customers are not fully satisfied with the friendliness
of staff. So it is suggest that the stores should conduct soft skill training and make
them give more customer service .Regular monitoring of the staff behavior
towards customers is also suggest here.
Customers are happy with the MENU verities available in the stores .But it is
suggested that add more customized menu and review the menu for every 3
months.
As study shows that customers are not aware of the calorie contents exist in the
food. So it is suggest that stores should display the calorie contents available in a
particular food.
Advertising strategy of the stores are not making attention the customers .So it is
suggest the stores to think of the design of different innovative advertising
campaigns.
[68]
WORK DONE
[69]
Chapter 6. Analysis and Interpretation
Interview taken at Jumbo King Restaurant, Sanpada.
6.1 Summary
On 16 November 2010, I visited the fast food restaurant of Jumbo King at Sanpada,
Plot no.24, Sector-30.Navi Mumbai.
The restaurant is exactly opposite to the railway station of Sanpada. The place of the
restaurant is not that big but we can stand outside and have a tasty vada pav.
Then, I met some employees of Jumbo King. There are 3 people working at that time.
They all are making the vada pav and also serving to the customers.
Then I met the store manager Mr. Rakesh Kumar age: 30, working for Jumbo King
from last 3 years. I asked him some questions to him related to Jumbo King and also
fast food industry of India. Mr. Rakesh Kumar answered my every question very
nicely. Following is the analysis of answers given by him.
The Reason for opening of franchisee of jumbo king at Sanpada is to cover more
market. Jumbo King is having many restaurants in the Mumbai but there was no
restaurant of Jumbo King at Navi Mumbai. There are lots of people in Navi Mumbai
who love Jumbo Kings vada pav. So for them they started their franchisee at Sanpada.
Mr. Rakesh Kumar mentioned that Indian fast food industry is a very big industry,
there is vast variety of foods in India and also Indians love to eat different kind of
foods. So that there are many foreign fast food restaurants coming to India and also
[70]
there is high growth in local restaurants. So there is very cut throat competition in this
industry, but the restaurant who is serving good quality food can survive for longest
and Jumbo King is one of them.
He also mentioned that the food at Jumbo King is very healthy; the pav is made in very
hygienic condition also other items are also made in healthy environment. This is the
USP of Jumbo King.
There are five employees at Jumbo King Sanpada and two managers, they all are
working in two shifts from 10-4 and 4-10.They all are well educated and also they had
training for one month before joining the restaurant. The employees are well trained
about how to talk and behave with the customer. That’s why the relation with the
customers is very good.
Jumbo King Sanpada have regular rush of people as there are lots of people coming
everyday but during morning 10-12 and evening 4-8 there is very high rush, but the
employees at Jumbo King are very well trained so they treat every customer very well
at each time. That’s the reason there are many customers who regular to the restaurant.
Some of them come daily twice a day. This proves that the relation between Jumbo
King and customer is very well.
Jumbo King do not have different strategies at different time and days as they have
large variety of vada pav and beverages. The franchisee at Jumbo King Sanpada is
working quite well having a very bright future. So, they are going to increase the space
of store.
As stated by Mr. Rakesh Kumar they are having some future plans such as to increase
timings and variety of vada pav. Also they are trying to include different beverages.
So, Jumbo King Pvt. Ltd. is very good at its quality and customer relation also they are
having great future plans to improve it. They are setting a standard for fast food
industry.
This is the analysis of the interview of Mr. Rakesh Kumar Jumbo King.
[71]
Chapter 7. Trends of Fast Food Industry
Sub-urban communities
Rise of automobiles
Consumerism
Menu diversification
Convenience food
[72]
7.3 Future trends & Conclusion
Stage 4: 2018-2025
The industry will begin to make larger internal and external business decisions.
The food at fast food establishments will all be brought to an acceptable level of
nutrition value.
By 2025 the fast food industry will have transformed from a food provider
to one that serves a specific health benefit.
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The balancing of the food will allow people to eat fast food meals and gain
a balanced diet from every menu. One way to achieve this transformation
is vitamin burgers.
The fast food industry will give importance to taste and health.
Conclusion
Fast food is one of the world’s fastest growing food types. India is seeing rapid
growth in the fast food and restaurant industries. It now accounts for roughly half of all
restaurant revenues in the developed countries and continues to expand. The trend is
radically changing the way people eat in India.The fast food industry in India has evolved
with the changing lifestyles of the young Indian population. It may take some time for the
local enterprise to mature to the level of international players in the field.
India’s fast food industry is growing at 40% per annum and generates over Rs.
4800 crores in sales. The multinational segment of the industry generates over Rs. 7000
crores. The main reason behind the success of the multinational chains is their expertise
in product development, sourcing practices, quality standards, service levels and
standardized operating procedures in their restaurants, a strength that they have
developed over years of experience around the world. The home grown chains have in
the past few years of competition with the MNCs, learnt a few things but there is still a
lot of scope for improvement.
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7.4 Interesting facts about fast food industry
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Chapter 8. Appendices
8.1 Bibliography
1. www.google.com
2. www.indianfastfoodindustrty.net
3. www.scribd.com
4. www.wikipwdia.com
8.2 Questionnaire
Questionnaire for Manager:
1) Why you entered in this industry?
2) Why you decide to open this franchisee at Sanpada?
3) Describe the Indian fast food industry?
4) Is your all food items are healthy?
5) What are the expectations of customers?
6) How many workers are under this franchisee?
7) Do you gave some training before joining the work here?
8) How the persons handle the customer’s problems?
9) What is the timing of this franchisee?
10) How is the relation you having with the customers?
11) How many customers are regular?
12) Is there always a rush at your store or at specific timings?
13) Do you have different strategies for weekends?
a. Yes
b. No
14) If yes then what?
15) What are the different strategies do you have for this particular franchisee?
16) What do you think future of your franchisee at Sanpada?
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8.3 Questionnaire for customers:
b. 200-5000
c. Above 5000
8) Do you prefer a fast food restaurant due to good calories content exist in food?
a. Strongly disagree
b. Disagree
c. Neutral
d. Agree
e. Strongly agree
9) Do you prefer the fast food restaurant due to cleanliness and store atmosphere?
a. Strongly disagree
b. Disagree
c. Neutral
d. Agree
e. Strongly agree
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10) Do you prefer the fast food restaurant due to delivery speed offer by them?
a. Strongly disagree
b. Disagree
c. Neutral
d. Agree
e. Strongly agree
11) Do you prefer the fast food restaurant due to menu offer for family ?
a. Strongly disagree
b. Disagree
c. Neutral
d. Agree
e. Strongly agree
12) Do you prefer the fast food restaurant due to facilities offered?
a. Strongly disagree
b. Disagree
c. Neutral
d. Agree
e. Strongly agree
13) Do you prefer the fast food restaurant due to easy accessibility and locational
advantage?
a. Strongly disagree
b. Disagree
c. Neutral
d. Agree
e. Strongly agree
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14) Do you choose a fast food restaurant after watching its advertisement?
a. Strongly disagree
b. Disagree
c. Neutral
d. Agree
e. Strongly agree
15) Do you choose a fast food restaurant due to special offer and discounts ?
a. Strongly disagree
b. Disagree
c. Neutral
d. Agree
e. Strongly agree
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