CHAPTER III

THEORETICAL
BACKGROUND
 CHAPTER III

THEORETICAL BACKGROUND

CONSUMER PERCEPTION

Consumer perception is a marketing concept that encompasses a customer’s

impression, awareness and/or consciousness about a company or its offerings.
Customer perception is typically affected by advertising, reviews, public
relations, social media, personal experiences and other channels. 1The process of
perception is primarily a conscious act. The building blocks to this process are units
known as Beliefs or Schema. Schema originates from the Greek word “schema”
meaning ‘plan’.

Merchants apply consumer perception theory to determine how their

customers perceive them. They also use consumer perception theory to develop
marketing and advertising strategies intended to retain current customers and attract
new ones.

SELF-PERCEPTION

Self-perception theory attempts to explain how individuals develop an

understanding of the motivations behind their own behavior. Self-perception by
customers relates to values and motivations that drive buying behavior which is also
an important aspect of consumer perception theory. A study by researchers at the
University of Massachusetts at Amherst addressed how self-perception shaped
consumers' buying behaviour and whether consumers believed their buying
decisions had a real effect on issues such as environmental impact. The researchers
concluded that consumers' self-perception was a driving factor in whether or not
they placed a priority on socially conscious purchase and consumption practices.

Consumers who viewed themselves as socially conscious tend to place more

weight on issues such as environmental impact when making buying decisions than
consumers who did not hold similar views of themselves.

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PRICE PERCEPTION

While mass merchandisers such as Wal-Mart emphasize low prices as an

inherent virtue, upscale merchants attempt to emphasize quality and value for money
to appeal to potential customers. Researchers at the School of Business
Administration at LaSalle University and LeBow College of Business at Drexel
University considered several factors, including price perception whether consumers
believed they were being charged fair prices in determining whether online shoppers
would make repetitive purchases through the same website. The researchers
concluded that price perception strongly influenced whether customers were
satisfied with their purchases and whether they would make future purchases. Two
factors that shaped price perception were the perceived quality of the merchandise or
service in question and price comparisons with merchants offering similar
merchandise or services.

BENEFIT PERCEPTION

"It's good, and it's good for you." Many consumers are familiar with this
phrase frequently associated with food advertising. Researchers from Marquette
University, Louisiana State University and the University of Arkansas surveyed
customers to determine how nutrition claims associated with food affected their
perception of that food's nutritional value. It was found that consumers tend to reject
general, unsupported claims of enhanced nutrition, especially concerning high
nutritional value for foods that are traditionally viewed as unhealthy. Consumers
demonstrate a trend toward applying more scrutiny to nutrition claims and
demanded more specific information about the foods they purchase.

Rachel Bryant, Lauren Dundes (2008) in their study on Fast food

perceptions: A pilot study of college students in Spain and the United States found
that the proliferation of fast food establishments was acceptable to most American
college students, especially males, while it was objectionable to about half of
Spanish college students which shows that American society varies by culture.

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 Azlina Samsudin, Kamaruzaman Jusoff, Zetty Madina Md.Zaini,
Mushaireen Musa, Khazainah Khalid, Norzaidah Ngali, Norazlina Rahmat,
Noorazlin Ramli, Fatimah Abd Ghani and Munirah Hamid (2011) in their study on
Customer’s perception towards McDonald’s Icon based Nutritional labels found that
customers positively perceived McDonald’s nutritional labels as a good effort and
step towards healthier life as people are more conscious and aware of their health
and nutritious foods intake. McDonald’s proactively continues to educate the
customers about nutrition by which customers are able to notice in-restaurant
nutrition poster at the point of purchase.

Salami C.G.E. and Ajobo R.T. (2012) in their study on Consumer

perceptions about fast food restaurants in Asaba found that the average fast food
consumer patronizes a restaurant once a week for lunch or dinner. Fast food
consumers eat out for the change and not because of their nutritional superiority
over homemade meals. Customers attach great importance to the quality of food,
cleanliness, consistency, and the general attitude of the staff. Price of the products
are low on customer’s scale of values.

Anita Goyal and Singh .N.P. (2007) in their study on Consumer perception
about fast food in India : An Exploratory study found that consumer acceptance of
food served by fast food outlets is critically important for the future growth of fast
food outlets in any economy. Though the rating of fast food outlet’s attributes under
study based on mean score is very high but still customers visit fast food outlets for
fun, change or entertaining their friends but certainly not as a substitute of
homemade food. Comparison of McDonald’s and Nirula’s indicated a clear cut
difference in their mean score of their attributes and also dimensions identified with
factor analysis. With more and more acceptability of fast food outlets and change in
life style, competition among fast food outlets with respect of quality of food and
customer service will be more prominent in the days to come.

Manisha and Sanathan Tiwari (2013) in their study on Perception of college

going students of rural villages in India for Multinational food service brand found
that the rural student’s perception of multinational food services, local food brand
service quality and their overall satisfaction level vary. Five service quality factors

43
perceived as important are dining environment, food service quality, brand image
and price image, competency of employees, quality of menu and food information.
There were no significant differences in overall satisfaction level and gender as
regards multinational brand service and local food brand service quality. The rural
college students were conscious of service equality and affordability will increase
their average meal expenditure and frequency to revisit the food brand.

Shahzad Khan , Syed Majid Husssain Fahad Yahod (2012) discussed two variables.
Independent variables Dependent variable

Promotion

Service Quality

Customer Expectation

Customer
Brand
Satisfaction

Physical Environment

Price

Taste

Md. Muzakkeerul Huda and Tamima Hossain(2009) in their study on

Consumer attitude towards restaurants in Dhaka city: An Empirical study found the
following determinants for choosing any product / service

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 All beliefs for Salient beliefs
choosing a restaurant about a restaurant

Atmosphere Atmosphere

 Availability of  Quality
variety of foods  Availability
 Taste  Reasonable
 Service quality pricing
 Reasonable  Closeness to
Pricing work place Attitude
 Quality of food towards a
 Friendly attitude of Restaurant
staff
 Overall outlook
of the restaurant
 Car parking facility
 Closeness to
work-place
 Interior design
 Quick delivery
 Reputation

CONSUMER BEHAVIOR

Consumer behavior is the study of consumers and the processes they use to
choose, use (consume), and dispose of products and services. ‘Consumer behaviour
is the actions and decision processes of people who purchase goods and services for
personal consumption’. ‘Consumer behavior is the decision process and physical
activity, which individuals engage in when evaluating, acquiring, using or disposing
of goods and services’.

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STAGES OF THE CONSUMER BUYING PROCESS

Six Stages to the Consumer Buying Decision Process (For complex

decisions). Actual purchasing is only one stage of the process. Not all decision
processes lead to a purchase. All consumer decisions do not always include all 6
stages.

The 6 stages are:

1. Problem Recognition (awareness of need) and difference between the

desired state and the actual condition. Deficit in assortment of products.
Hunger stimulates the need to eat. It can be stimulated by the marketer
through product information. A commercial for a new pair of shoes,
stimulates recognition and create a need for new pair of shoes.

2. Information search

o Internal search - memory.

o External search - Friends and relatives (word of mouth). Marketer

dominated sources; comparison shopping; public source

A successful information search leaves a buyer with possible alternatives,

the evoked set.

3. Evaluation of Alternatives creates a need to establish criteria for evaluation,

features the buyer wants or does not want. Rank/weight alternatives or resume
search. When want to eat something spicy, Indian gets the highest rank. If not
satisfied then return to the search phase. Look in the yellow pages etc.
Information from different sources may be treated differently. Marketers try
to influence by "framing" alternatives.

Purchase decision is to choose buying alternative, includes product, package,

store, method of purchase etc. Purchase it may differ from decision, time lapse
between product availability. Post-Purchase Evaluation the outcome is Satisfaction

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or Dissatisfaction. Cognitive Dissonance, as to whether the right decision has been
made. This is reduced by warranties, after sales communication etc.

Bala Swamy M Anil Kumar M and Srinivasa Rao K (2012) in their study on
Buying behavior of consumers towards instant food products found that among one
hundred and eighty households in Hyderabad city of Andhra Pradesh, Traditional
usage, liked by family members, readily available. Saving preparation time,
influence of friends or relatives, availability of products at reasonable price,
necessary ingredient for preparations and habitual usage were the factors considered
for using instant food products. Low cost of home preparation, difference in tastes,
dislike of purchased products by the family members, high price of marker product,
lack of awareness of product’s availability in the market, non- availability of instant
food products were the reasons for not purchasing the instant food products.

M.Iqbal Zafar, Saif -Ur- Rehman, Saif Abbasi, Aysha Chaudhry and Atif
Riaz, (2002) in their study on Consumer behavior towards fast food found that
majority of the respondents preferred place of outing was restaurant. Good service
and appealing taste motivates the visitors to inform their friends and relatives
through which fast food business received free of cost publicity. The respondents
agreed that the texture of the fast food was crispy with pizza and was the preferred
fast food item. Majority of the respondents felt that the restaurant staff was
cooperative with the customers and the food stuff was good but the charges were
high.

Mohammad A.Ashraf and Sharmin Akhter, Saad Imran Noor (2014) in their
study on Consumer Behaviour in fast food marketing in Bangladesh : A case study,
identified six factors namely, quality, service, variety, environment, price, location
and satisfaction responsible for choosing a fast food restaurant. All factors except
price had significant impact on consumer satisfaction.

Jacob Pratabaraj S and Sarprasatha Joe (2013) in their study on Analysis of

consumer behaviour in branded fast food joints found that income was not an
important factor for frequently visiting fast food joints. Multiple Regression analysis

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revealed factors like Religion, location, sex, income, economic status, language, age,
designation and gender but age was statistically significant and not location.

Nadia Farhana and Shohana (2011) in their study on Exploring consumer

behavior in the context of fast food industry in Dhaka city found that the pressures
of working life along with the time constraints had resulted in an increasing number
of consumers opting for convenience over price, taste and instant food. Quality and
value related perception influenced the overall impression of customer service.

Inderpreet Kaur and Sukdev Singh (2014)found the factors influence people
to eat processed cereal food.

Advertisement

Packaging
External influence
Offers

Advertisement
Retailers influence

Friends

Taste

Health
conscious Healthy

Brand image

Availability

Quantity
Quality

Good Quality

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 Amarnath M and Vijayudu G (2011) in their study on Rural consumer’s
attitude towards Branded packaged food products used ABCDE model as follows:

A Affect What consumers feel

B Behaviour What consumers do
C Cognition What consumers think
D Desire What consumers want
E Environment Where consumers are

Difference between Consumer perception and consumer behaviour

Consumer perception applies the concept of sensory perception to marketing

and advertising. Just as sensory perception relates to how humans perceive and
process sensory stimuli through their five senses, consumer perception pertains to
how individuals form opinions about companies and the merchandise they offer
through the purchases they make where as Consumer Behaviour refers to the actions
of the consumers in the marketplace and the underlying motives for those actions.
The study of consumer behaviour assumes that the consumers are actors in the
marketplace. The perspective of role theory assumes that consumers play various
roles in the marketplace. Starting from the information provider, from the user to the
payer and to the disposer, consumers play these roles in the decision process.

THEORETICAL BACKGROUND OF FAST FOOD

Fast food is the term given to food that is prepared and served very quickly.
Fast food was first popularized in the 1950s in the United States. While any meal
with low preparation time can be considered fast food, typically the term refers to
food sold in a restaurant or store with preheated or precooked ingredients, and
served to the customer in a packaged form as take-out/take-away. Fast food
restaurants are traditionally separated by their ability to serve food via a drive-
through. The term fast food was recognized in a dictionary by Merriam–Webster in
1951.

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 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
that are part of restaurant chains have standardized foodstuffs shipped to each
restaurant from central locations.

The concept of ready-cooked food for sale is closely connected with urban
development. In Ancient Rome, cities had street stands that sold bread, sausages and
wine.

Fast food outlets are take-away or take-out providers, often with a "drive-
through" service that lets customers order and pick up food from their cars, but most
outlets also have indoor or outdoor seating areas where customers can eat on-site.

From its inception, fast food has been designed to be eat "on the go," which
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, hamburgers,
fried chicken, french fries, onion rings, chicken nuggets, tacos, pizza, hot dogs, and
ice cream, though many fast food restaurants offer "slower" foods like mashed
potatoes, and salads.

Liberalization of the Indian economy in the early 1990s and the subsequent
entry of new players set a significant change in lifestyles and the food tastes of
Indians. Fast food is one which gained acceptance of Indian palate after the
multinational fast food players adapted the basic Indian food requirements viz.
vegetarian meals and selected non-Vegetarian options excluding beef and pork
totally from their menu.

From onion rings to double cheeseburgers, fast food is one of the world’s
fastest growing food types. Fast foods are quick, reasonably priced and readily
available alternatives to home cooked food. In other side fast foods are high in
calories, fat, saturated fats, sugar and salt.

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Advantages of Fast Food

The most evident advantage of fast food is that it saves time. In today's fast-
paced life style, there is nothing better than getting a ready meal. No matter how
much the chefs praise the benefits of fresh food, at the end of a hard-working day,
when one returns home all tired and hungry, a pizza or a burger can be god send.
Besides the time an individual has to spend in the kitchen, cooking a meal also
requires one to make a trip to the supermarket to buy the ingredients for the dish.
Then there is the added effort and time consumed in washing and peeling the
vegetables. All this makes eating fast food score more preferably over cooking a
meal for a busy individual.

Besides time, cost saving gives fast food an edge over the meal prepared in
the kitchen. If one lives alone, then it is cheaper to buy a meal at the supermarket
instead of cooking it at home. Also certain fast foods like fries and burgers come
pretty cheap.

Fast food does raise health concerns. However, if careful, some options on
the menu of a fast food restaurant that could be healthier. Salads, bread products
made from wheat bread, lean meat, boiled preparation, fruit juices, low-fat milk, and
diet soda can be opted. Nutrition information of the food served (and ingredients
used) is displayed in the menu card. 'Make to order' option could restrict the use of
ingredients that are not healthy.

Disadvantages of Fast Food

Fast food is higher in soya, fat, sugar, oil, fried meat, salt, cheese,
mayonnaise and obviously calories. The greatest disadvantage of fast food is the
adverse effect that it has on one's health. Fast food is unhealthier than home-cooked
meals, as it contains higher amounts of unwanted nutrients like salt, fat and various
types of additives (artificial chemicals). It may contain harmful bacteria too. Frying
destroys most of the essential nutrients from the food. Very small amounts of
vegetables and fruits are normally present in fast food. Moreover, 'serving larger
portions' has led to several health problems. Fast food being rich in salt, adversely

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affects the cardiac/ health of heart and the overall health of an individual. Such type
of food is an important contributor to obesity of the American population. Obesity is
on the rise, and a direct link is being cited between fast food and obesity in children.

In sedentary lifestyle the excess fats and calories in fast food is not used up
completely. The result is that these accumulate in the body as fat deposits cause
complications like cardiovascular diseases and other related diseases of the heart.
With obesity come other problems like high blood pressure and diseases of the
joints. It is like a chain reaction set off by fast food and carried forward by our
unhealthy lifestyle. In fact, a recent study has shown that people who live within
walking distance of a fast food restaurant are at 13% higher risk of suffering from
strokes than those who live a considerable distance away.

The greater the number of people at a meal in a fast food restaurant, the
larger is the bill. Eating at fast food outlets is economical only for a single person.
Going out to a fast food eating joint with family once in a while won't matter much.
However, frequent visits to such restaurants with one's family can become quite an
expensive affair, besides being unhealthy.

Fast food joints are also being seen as a factor that is making a number of
families spend less and less time together. Family meal time is something that is
considered as an opportunity for all the members to come together and share their
experiences. However, the fast food centers are quickly eating into this quality time.
This is especially true about youngsters for whom a fast food Centre is a good place
to hang out with friends and peers.

Places where Fast Food is Sold

Fast food outlets are take-away or take-out providers, often with a "drive-
through" service that lets customers order and pick up food from their cars, but most
also have indoor or outdoor seating areas where customers can eat on-site.

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,

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hamburgers, fried chicken, french fries, onion rings, chicken nuggets, tacos, pizza,
hot dogs, and ice cream, though many fast food restaurants offer "slower" foods like
chili, mashed potatoes, and salads.

Filling Stations

Convenience stores located within many petrol/gas stations sell pre-packaged

sandwiches, doughnuts etc. Many gas stations in the United States and Europe also
sell frozen foods, and have microwave ovens on the premises in which to prepare
them.

Street Vendors and Concessions

Traditional street food is available around the world, usually from small
operators and independent vendors operating from a cart, table, portable grill or
motor vehicle. Common examples include Vietnamese noodle vendors, Middle
Eastern falafel stands, New York City hot dog carts, and taco trucks. Turo-Turo
vendors (Tagalog for point point) are a feature of Philippine life. Commonly, street
vendors provide a colorful and varying range of options designed to quickly
captivate passers-by and attract as much attention as possible.

Depending on the locale, multiple street vendors specialize in specific types

of food characteristic of a given culture or ethnic tradition. In some cultures, it is
typical for street vendors to call out prices, sing or chant sales-pitches, play music,
or engage in other forms of "street theatrics" to engage prospective customers. In
some cases, this can garner more attention than the food.

Food Courts

Another concept of fast food that is becoming popular is that of Food Courts.
It is like serving different cuisines under one roof. One has to purchase coupons and
collect the food from one of the several counters. Each one of these counters serves
specific variety of food and may be owned by different individuals or caterers. Food
Courts are normally located on much bigger premises and may provide seating
facility in addition to the stand and eat arrangement. Typically one entrepreneur

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owns or takes on lease the entire premises and promotes the place under one name.
He then lets out individual counters to different independent operators to offer
different menu. Internal competition is avoided by not allowing more than one
counter to offer similar food.

Several international fast food chains like Kentucky Fried Chicken,

McDonald's, and Barista Coffee have their outlets in major cities. Coffee Day, again
a brainchild of Bangalore based businessman, is the only Indian chain which boasts
of hundreds of outlets and is present across India. But then it is classified more as a
coffee shop than a fast food place.

Now local chains coupled with numerous foreign fast foods have sprung up
in India, leading to many websites not only catering to the curated list of foods,
restaurants and reviews but also giving option to book and get it delivered at your
doorsteps.

INDIAN FAST FOOD INDUSTRY

The fast food industry in India has evolved with the changing lifestyles of
the young Indian population. The sheer variety of gastronomic preferences across
the regions, hereditary or acquired, has brought about different modules across the
country. It may take some time for the local enterprise to mature to the level of
international players in the field.

Many of the traditional dishes have been adapted to suit the emerging fast
food outlets. The basic adaptation is to decrease the processing and serving time. For
example, the typical meal which called for being served by an ever alert attendant is
now offered as a Mini-Meal across the counter. In its traditional version, a plate or a
banana leaf was first laid down on the floor or table. Several helpers then waited
upon the customer, 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

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depending on the region and local preferences. The higher priced ones may add a
sweet to the combination. Refills are generally not offered.

The diversity of Indian cuisine poses logistical problems when it comes to

handling. Hence it is common to serve different cuisines at different counters within
the same premises. Presence of a large vegetarian population, who eschew non-
vegetarian food, has given rise to outlets which exclusively serve vegetarian fast
food. Also, different variety of food is served depending on the time of the day.
Beverages such coffee, tea, soft drinks and fruit juices is also be served in such
outlets. Some outlets may additionally have specially designed counters for ice-
cream, chaats etc.

Varieties of food offered

Varieties of food offered were Aloo Chaat, Alootikki, Bedai, Bhala,

Bhelpuri, Beetroot chaat, Dahipuri, Golgappa, Mangode, Pakora, Panipuri,
Paprichaat, Potato chaat, Pavbhaji, Samosa Chaat, Sevpuri, Bonda Soup, Pohay,
Bajji – Banana Bajji, Green Chili Bajji, Pakora – Onion Pakora, Vegetable Pakora,
Thali – Vegetable, Chicken, Mutton, Rajma rice, Chinese food, Pasta,
Burger (chicken, mutton, veg), Wraps and rolls, Chaat, Grilled Chicken, Samosa,
Patties (E.g. Ragdapattice), Bread Pakoda, Dabeli, Doner kebab, Dum biryani, Fish
and Chips, Salads, Fruit beer, Mutar kulcha, Pao bhaji, Stuffed paratha, Fruit salad,
Dahi wada and Bhajiya

Fast Food Outlets

A Fast Food Restaurant, also known as a Quick Service Restaurant (QSR)

within the industry, is a specific type of restaurant characterized both by its fast food
cuisine and by minimal table service. Food served in fast food restaurants typically
caters to a "sweet- meat diet" and is offered from a limited menu; it is cooked in
bulk ,in advance and kept hot; it is finished and packed to order; and is usually
available as ready to take away, though seating may be provided. Fast food
restaurants are typically part of a restaurant chain or franchise operation, which
provisions standardized ingredients and/or partially prepared foods and supplies to

55
each restaurant through controlled supply channels. The term "fast food" was
recognized in a dictionary by Merriam–Webster in 1951.

The first fast food restaurant originated in the United States with AandW in
1919 and White Castle in 1921. Today, American-founded fast food chains such as
McDonald's and KFC are multinational corporations with outlets across the globe.

Variations on the fast food restaurant concept include fast casual restaurants
and catering trucks. Fast casual restaurants have higher sit-in ratios, and customers
can sit and have their order. Catering trucks often park just outside worksites and are
popular with factory workers.

The major fast food restaurants in India are KFC, McDonalds, Subway,
Pizza Hut, and Dominos. These chains provide mostly western products. However
most Indians prefer the local cuisine such as samosas, panipuri, pav Bhaji, vada pav
etc. Major emerging food chains include Haldiram's and Coffee Day.

KFC

KFC (the name was originally an initialism for Kentucky Fried Chicken) is a
fast food restaurant chain that specializes in fried chicken and is headquartered in
Louisville, Kentucky, in the United States. It is the world's second largest restaurant
chain (as measured by sales) after McDonald's, with 18,875 outlets in 118 countries
and territories as of December 2013. The company is a subsidiary of Yum! Brands, a
restaurant company that also owns the Pizza Hut and Taco Bell chains.

KFC was founded by Harland Sanders, an entrepreneur who began selling

fried chicken from his roadside restaurant in Corbin, Kentucky, during the Great
Depression. Sanders identified the potential of the restaurant franchising concept,
and the first "Kentucky Fried Chicken" franchise opened in Utah in 1952. KFC
popularized chicken in the fast food industry, diversifying the market by challenging
the established dominance of the hamburger. By branding himself as "Colonel
Sanders," Harland became a prominent figure of American cultural history, and his
image remains widely used in KFC advertising. However, the company's rapid

56
expansion saw it overwhelm the ageing Sanders, and in 1964 he sold the company to
a group of investors led by John Y. Brown, Jr. and Jack C. Massey.

KFC was one of the first fast food chains to expand internationally, opening
outlets in the United Kingdom, Mexico, and Jamaica by the mid-1960s. Throughout
the 1970s and 1980s, KFC experienced mixed fortunes domestically, as it went
through a series of changes in corporate ownership with little or no experience in the
restaurant business. In the early 1970s, KFC was sold to the spirits distributor
Heublein and taken over by the R.J. Reynolds food and tobacco conglomerate, who
sold the chain to PepsiCo. The chain continued to expand overseas however, and in
1987 KFC became the first Western restaurant chain to open in China. The chain has
since expanded rapidly in China, which is now the company's single largest market.
PepsiCo spun off its restaurants division as Tricon Global Restaurants, which later
changed its name to Yum! Brands.

KFC's original product is pressure fried chicken pieces, seasoned with

Sanders' recipe of 11 herbs and spices. The constituents of the recipe represent a
notable trade secret. Larger portions of fried chicken are served in a cardboard
"bucket," which has become a well known feature of the chain since it was first
introduced by franchisee Pete Harman in 1957. Since the early 1990s, KFC has
expanded its menu to offer other chicken products such as chicken fillet burgers and
wraps, as well as salads and side dishes, such as French fries and coleslaw, desserts,
and soft drinks, the latter often supplied by PepsiCo. KFC is known for the slogan
"finger lickin' good," which has since been replaced by "Nobody does chicken like
KFC" and "So good."

IN INDIA

By December 2013, there were 361 KFC outlets in India. As well as the
standard KFC offerings, and the chain sold a chickpea burger, a paneer burger, hot
wings with chilli lemon sprinkles and other country-specific products. A major
franchise holder is QSR Brands (M) Holdings, which operated 26 outlets as of 2012.

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 The first Indian KFC was a two-storey outlet on the fashionable Brigade
Road in Bangalore in June 1995. According to journalist Michael White, the
company could not have chosen a "more difficult venue for its maiden entry into the
country. Bangalore housed the headquarters of the Karnataka Rajya Raitha Sangha,
one of the most influential, vocal and anti-foreign investment farmers' associations
in the country. The first outlet suffered protests from left wing, anti-globalization
and environmental campaigners, as well as local farmers, who objected to the chain
bypassing local producers. Many Indians were concerned about the onslaught of
consumerism, the loss of national self-sufficiency, and the disruption of indigenous
traditions. The protests came to a head in August 1995, when the Bangalore outlet
was repeatedly ransacked. The KFC outlet in Bangalore demanded, and received, a
police van permanently parked outside for a year. The outlet was closed on 13
September 1995 by local authorities, who claimed the company used high amounts
of monosodium glutamate (MSG) than permissible limits in its food. However, the
outlet reopened for business within six hours of its closure, after the Karnataka High
Court blocked the local authorities' order on an appeal by KFC. The company had
argued that it prepared food in India using the same formula as in 77 other countries.
Rural activist M. D. Nanjundaswamy subsequently claimed KFC would adversely
affect the health of the impoverished, by diverting grain from poor people to make
the more profitable animal feed. Former environment minister Maneka Gandhi
joined the anti-KFC movement. A second outlet opened in Delhi, but was closed by
the authorities throughout November, purportedly for health reasons, but more likely
to avoid a repetition of the Bangalore incident. The Delhi outlet soon closed
permanently.

KFC began to expand outside of Bangalore in 2004, with a localized menu

that was the most extensive meat-free menu across the chain's worldwide operations.
It introduced a vegetarian menu that included rice meals, wraps and side dishes and,
like McDonald's, served eggless, onionised and sauces. Unnat Varma, marketing
director of KFC India, states "The vegetarian offerings have made the brand more
relevant to a larger section of consumers and that is necessary for KFC's growth."
KFC also began using Indian spices and cooking techniques to localize its chicken
dishes. By 2008–09, KFC operated 34 outlets in India. In 2014, KFC launched the

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"So Veg, So Good" menu as part of an India-specific promotional strategy focused
on enhancing their vegetarian range. Dhruv Kaul, marketing director of KFC India,
stated, "The So Veg, So Good menu launch does not mean that we are moving away
from our core chicken offerings. It enhances and strengthens our existing vegetarian
range and helps broaden the brand's relevance in a diverse country such as India.

Products available at KFC are Chicken Snacker, Potato Krisper, Kold

Koffee, Chicken Zinger, Paneer Zinger, Veg Rockin' Burger, Chicken Rockin'
Burger, Toasted Wraps, Box meals ,Share a Bucket, Group meals, Desserts and
Krushers.

McDONALD’S

The McDonald's Corporation is the world's largest chain of hamburger fast

food restaurants, serving around 68 million customers daily in 119 countries across
35,000 outlets. Headquartered in the United States, the company began in 1940 as a
barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they
reorganized their business as a hamburger stand using production line principles.
Businessman Ray Kroc joined the company as a franchise agent in 1955. He
subsequently purchased the chain from the McDonald brothers and oversaw its
worldwide growth.

A McDonald's restaurant is operated by either a franchisee, an affiliate, or

the corporation itself. McDonald's Corporation revenues come from the rent,
royalties, and fees paid by the franchisees, as well as sales in company-operated
restaurants. In 2012, McDonald's Corporation had annual revenues of $27.5 billion,
and profits of $5.5 billion.

McDonald's primarily sells hamburgers, cheeseburgers, chicken, french fries,

breakfast items, soft drinks, milkshakes, and desserts. In response to changing
consumer tastes, the Company has expanded its menu to include salads, fish, wraps,
smoothies, fruit, and seasoned fries.

The business began in 1940, with a restaurant opened by brothers Richard

and Maurice McDonald at 1398 North E Street at West 14th Street in San

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Bernardino, California . Their introduction of the "Speedee Service System" in 1948
furthered the principles of the modern fast-food restaurant that the White Castle
hamburger chain had already put into practice more than two decades earlier. The
original mascot of McDonald's was a man with a chef's hat on top of a hamburger
shaped head whose name was "Speedee". Speedee was eventually replaced with
Ronald McDonald by 1967 when the Company first filed a U.S. trademark on a
clown shaped man having puffed out costume legs.

McDonald's first filed for a U.S. trademark on the name "McDonald's" on

May 4, 1961, with the description "Drive-In Restaurant Services", which continues
to be renewed through the end of December 2009. In the same year, on September
13, 1961, the Company filed a logo trademark on an overlapping, double arched
"M" symbol. The overlapping double arched "M" symbol logo was temporarily
disfavored by September 6, 1962, when a trademark was filed for a single arch,
shaped over many of the early McDonald's restaurants in the early years. Although
the "Golden Arches" appeared in various forms, the present form as a letter "M" did
not appear until November 18, 1968, when the Company applied for a U.S.
trademark.

The present corporation dates its founding to the opening of a franchised

restaurant by Czech American businessman Ray Kroc, in Des Plaines, Illinois, on
April 15, 1955, the ninth McDonald's restaurant overall. Kroc later purchased the
McDonald brothers' equity in the Company and led its worldwide expansion, and
the company became listed on the public stock markets in 1965. Kroc was also
noted for aggressive business practices, compelling the McDonald brothers to leave
the fast food industry. The McDonald brothers and Kroc feuded over control of the
business, as documented in both Kroc's autobiography and in the McDonald
brothers' autobiography. The San Bernardino store was demolished in 1976 (or
1971, according to Juan Pollo) and the site was sold to the Juan Pollo restaurant
chain. It now serves as headquarters for the Juan Pollo chain, as well as a
McDonald's and Route 66 museum. With the expansion of McDonald's into many
international markets, the company has become a symbol of globalization and the

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spread of the American way of life. Its prominence has also made it a frequent topic
of public debates about obesity, corporate ethics and consumer responsibility.

PRODUCTS

McDonald's predominantly sells hamburgers, various types of chicken

sandwiches and products, French fries, soft drinks, breakfast items, and desserts. In
most markets, McDonald's offers salads and vegetarian items, wraps and other
localized fare. On a seasonal basis, McDonald's offers the McRib sandwich. Some
speculate the seasonality of the McRib adds to its appeal. Various countries,
especially in Asia, are currently serving soup. This local deviation from the standard
menu is a characteristic for which the chain is particularly known, 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 regional
market is more familiar (such as the sale of McRice in Indonesia, or Ebi (prawn)
Burger in Singapore). In Germany and other Western European countries,
McDonald's sells beer. In New Zealand, McDonald's sells meat pies, after the local
affiliate partially relaunched the Georgie Pie fast food chain it bought out in 1996.

PIZZA HUT

PIZZA HUT opened its first restaurant in Bangalore. Since then it has
captured a dominant and significant share of the pizza market and has maintained an
impressive growth rate of over 40 per cent per annum. Pizza Hut now has 95 outlets
across 24 cities in India; and employed nearly 4,000 people by end of 2004. Yum!
has invested about US$ 25 million in India so far; this is over and above investments
made by franchisees. Yum! Brands Inc is the owner of the Pizza Hut chain
worldwide. A Fortune 300 Company, Yum! Brands owns Kentucky Fried Chicken,
Pizza Hut, Taco Bell, AandW and Long John Silver’s restaurants worldwide. Yum!
generated more than US$ 25.9 billion in worldwide sales in the year 2003, and has
more than 33,000 restaurants in over 100 countries.

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PIZZA HUT IN INDIA : YUM! RESTAURANTS INTERNATIONAL

As a major player in the Indian fast food and beverage sector market share,
Pizza Hut is believed to have close to 50 percent market share of the organized
pizza-retailing segment in India. According to Pizza Hut sources, most of their
outlets are financially successful, encouraging further expansion. In India, the
average investment for each outlet is US$ 275,000-335,000and is borne by the
franchisee stores.

According to company sources, Pizza Hut is moving beyond the metros and
foraying into12 to 13 new markets including Trichy, Nagpur, Bhubhaneswar,
Thiruvananthapuram and Pondicherry to increase penetration. Aggressive marketing
and tie-ups with local and popular brands. Pizza Hut has increased its visibility by
launching a well-received TV campaign aimed at the young crowd. It has formed
partnerships with recognised brand such as Nestle and Pepsi. It also holds regular
promotional campaigns targeted at children and uses these alliances to offer
packages during these campaigns.

Developing the local supply chain

The local supply chain for Pizza Hut was developed by Yum! and currently
95 per cent of the ingredients they use are locally produced. They now import very
few specialty items like pepperoni. Pizza Hut is one of the first international pizza
Chains with purely vegetarian dine-ins at Chowpatty (Mumbai), Ahmedabad and
Surat, which also serve Jain menus. Pizza Hut has even opened two all-vegetarian
restaurants in the western state of Gujarat to cater to the religious community of
Jains whose members prefer not to eat at places where meat is served. Offering more
than the international menu .International food chains typically offer only a few
localized products in other parts of the world. However, Pizza Hut’s local menu is
as large as the international one. According to Pizza Hut, the Indian food heritage is
very rich, and hence Indians like local flavors. The Tandoori range of pizzas, which
was developed locally, has a menu mix of over 20 per cent.

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Pizza Hut has reduced costs through indigenous sourcing of raw material. It has tied
up with a local company Dynamix Dairy Industries Ltd (DDIL) for sourcing
mozzarella cheese. Pizza Hut is adding to the bottom line by localising equipment as
well as by paying attention to inventory replenishment, which has been reduced
from 60 to 30 days.

FUTURE PLANS

According to Yum! Restaurants International, India is amongst the top five

growth markets for Pizza Hut. Pizza Hut is also experiencing double-digit growth in
India and hence is confident about expanding its operations in India. Pizza Hut
hopes to increase the number of Pizza. The expansion programme will make Pizza
Hut the fastest growing western restaurant chain in India.

Products available at Pizza Hut were Pan Pizza, Pastas, Garlic breads,
Chiken wings, Potato wedges, Choco truffle cake, Choco mousse and Pepsi.

PIZZA CORNER

Pizza Corner was established in 1996 by Global Franchise Architects India

Pvt Ltd. (GFA). This winning idea is one among the several supported by GFA, a
builder of specialty retail Quick Service Restaurants since 1996. Its current portfolio
consists of four self-created, unique, distinctive brands: Pizza Corner,Cream and
Fudge, Donut Baker and Coffee World.

At Pizza Corner they offer a variety of toppings and crusts and a wide array
of choices made from natural ingredients, balancing a nutritional diet with splendid
taste. Along with conventional pizzas there are Indian variations like the Indian
flavored Pizza’s their innovative range of Conniza’s and Sandwizza among others
as well as beverages, pastas, salads, and desserts. The entire mentioned items are
available at all dine-in Restaurants.

In fact, since they began 15 years ago, they have always believed in the
goodness of basics: bread, milk, vegetables, potatoes, poultry, 100% pure mutton,
and cheese - and in creating nutritious and tasty meals to maintain good health.

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 They believe in creating the wow experience in every guest by serving an
innovative range of delicious, high quality, mouthwatering pizzas in a fun, friendly,
and comfortable environment. No expense is spared while delivering the Pizza
Corner Experience. The most sophisticated Conveyor Ovens make sure their hand
tossed pizzas are baked to perfection, giving their customers that unmatchable,
scrumptious pizza corner experience. To add to this, every process is streamlined
and only ingredients of superlative quality are used. At Pizza Corner, they also pride
ourselves on adaptability, so when in India, they don't serve beef or pork but they
offer the best of the taste with ham and salami specially developed from halal
chicken meat.

At Pizza Corner, time and again they have been innovating delicious new
products such as Conizza, Sandwizza, Indian flavored Pizza’s and various new
toppings and flavors suitable to tickle the taste buds of Indian Consumers. Further
providing value for money and affordable food range for the consumers has been an
important part of their growth.

Other added attractions are, offers and introduction of new products at

competitive prizes giving a great value for money. Their Guest Care Centre (GCC)
and Commissaries are state of the art, facilitating adherence to international
standards service. They operate their own call centres with a single delivery number
in each city. At Pizza Corner, the emphasis is always on recreating the authentic, so
that one can enjoy real pizza. 39 Minutes or Free At Pizza Corner, they have
pioneered to establish goodwill for being capable of delivering pizzas within 39
minutes or free to a community of consumers at their door step from all their stores
around the country. After all, it's all about no compromises. That's what makes it the
Pizza Corner experience worthwhile. Products available are:- Appetizer, Pizza,
Salads/Pastas, Desserts, Conizza/Sandwizza and Beverage

DOMINO’S PIZZA

Jubilant Food Works Limited (the company) and its subsidiary operates
Domino’s Pizza brand with the exclusive rights for India, Nepal, Bangladesh and Sri
Lanka. As of October 30, 2014, Domino’s Pizza India operates 806 restaurants in

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India located in 29 States and Union Territories, covering 170 cities across the
Country. According to India Retail Report 2009, Domino’s Pizza is the largest Pizza
chain in India and the fastest growing multinational fast food chain between 2006-
2007 and 2008-2009 in terms of number of stores. As per the Euro monitor Report
2014, Domino’s Pizza is largest organised Pizza chain in India with 70% market
share.

Over the period since 1996, Domino’s Pizza has remained focused on
delivering great tasting Pizzas and crusts, superior quality, exceptional customer
service and value for money offerings. It has endeavoured to establish a reputation
for being a home delivery specialist capable of delivering pizzas within 30 minutes
or FREE to a community of loyal customers from all its stores around the country.
Domino’s Pizza vision is focused on “Exceptional people on a mission to be the best
pizza delivery Company in the world!” It is committed to bringing fun, happiness
and convenience to lives of its consumers by delivering delicious pizzas to their
doorstep. Products offered were Veg Pizza, Simply veg – Margherita, Veg Treat –
Double cheese Margherita, Country special, Farm house, Spicy Triple Tango and
Veg Hawaiian Delight. Veg Specials include Peppy Paneer, Mexican green wave,
Deluxe Veggie, 5 Pepper and Veggie paradise. Feast pizza include Veg
extravaganza, Cloud 9 and Chef’s veg wonder. Non Veg Pizza includes Simply Non
veg, Non Veg Treat, Non veg special and Feast pizza. Beverages offered were Coke,
Diet coke, Fanta, Sprite and Coke zero. Crusts include Cheese Burst Classic hand
tossed, Wheat thin crust, Fresh pan pizza and Cheesy wonder. Toppings include
Veg toppings, Non veg toppings and Pizza mania Combos. Side orders include
Breads, Pastas, Dips, Desserts, Kids meal, Veg sandwich and Crispy Chicken strips.

There were around 3000 fast food restaurants in Chennai. Some were very
famous and people frequently visit these restaurants that includes Hot Chips,
Saravana Bhavan, Shree Mithai, The French Loaf, Cakes ‘N’ Bakes, Adyar Ananda
Bhavan, Royal Sandwich,Subway, Marrybrown, BurgerMan, Ambur Star Biriyani,
Rain Forest, Chokhi Dhani, Murugan Idly shop and Sangeetha.

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Upcoming Fast food outlets in India

Over the past years, Western fast food has been catching up with Indian fast
food in terms of popularity as well as availability. Most of us are familiar with KFC
(Kentucky Fried Chicken) and McDonald’s, thanks to their presence in India. These
fast food chains are originally from the USA. But apart from these, there are quite a
few popular fast food chains in the West.

Burger King The name more or less suggests the kind of food it would offer
- Burgers and the like, similar to McDonald’s. In fact, Burger King is a very direct
competitor for McDonald’s.

If you ‘are a vegetarian traveling to the USA, Burger King is your best bet
for a burger. Most Burger King outlets have a veggie burger on their menu.

Chipotle is a popular Mexican fast food chain. The menu at Chipotle is not
too elaborate, but the fact that it is quick and easy, and allows you to customize your
order makes it very popular.

Taco Bell serves a variety of Tex-Mex (Mexican-American) food items such

as nachos, tacos, and burritos. Items on the Taco Bell menu are priced relatively
lower than other eateries.

Taco Bell is a very old brand, founded in the 1940’s. Most places that offer
Tex-Mex or Mexican food have decent enough options for vegetarians, and Taco
Bell is no exception.

In-N-Out Burger This burger place is not yet international and can only be
found in a few states even within the USA. Even so, it ranks high on the popularity
meter! In-N-Out offers the usual fare - burgers, fries, and so on.

CONCLUSION

As far as the role of government is concerned, various initiatives in the

recent past have resulted in the entry of many international Fast Food Retailers in
the country. With the economic liberalization in 1991, nearly all tariff and non-tariff
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barriers have been removed or minimized from the Indian boundary that has helped
many retailers to enter the growing Indian fast food industry.

As per the Food Safety and Standards Authority of India, the new rules and
standards will make it mandatory for street food vendors to register with state health
departments that are into policing hygiene. It requires the food authority to issue
licenses to food vendors only after ensuring that their products are safe and hygienic.
Vendors with products that are found unhygienic or unsafe face monetary penalties.
Moreover, user friendly and IT-enabled licensing system will be created to improve
governance and compliance.

To try to ensure that India has the capacity to implement the new law, the
Government has increased the number of state laboratories for testing eatables and
appointed more food safety officers to check food quality and hygiene instead of
merely monitoring adulteration.

Besides, the Indian Government has also directed state Governments to

prohibit sales of fast food and carbonated drinks on school premises and check out
all such items that lead to unhealthy eating from cafeteria within a 1,500 feet radius
of schools.

In addition, the country’s regulators have ordered food chains to provide

product nutritional labeling at the time of sale, so that customers can know about
what they are eating and what effect it can have on their health. This step is a result
of various studies that have shown that a typical fast food has very high density that
causes people to eat more than they usually require, causing people to fall ill with
many health-related problems like obesity, diabetes and heart diseases.

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