“Should McDonald’s open in

Jamshedpur?”
BRM project final report

BM A Section Group 6
Abhinav Prusty – B19001
Avinash Bhat J – B19011
Hari Shankar S – B19018
Pranav J – B19033
Soham Ghosh – B19052
Tosha Trivedi – B19056
Contents
Executive Summary...................................................................................................................1

1.Introduction.............................................................................................................................2

2. Problem Definition.................................................................................................................3

2.1 Problem Genesis:..............................................................................................................3

2.2 Discussion with Stakeholders:..........................................................................................4

2.2.1 Industry Expert..........................................................................................................4

2.2.2 Secondary Data Analysis...........................................................................................4

2.2.3 Qualitative Research..................................................................................................5

3.Research Design......................................................................................................................7

3.1 RP1: To understand the eating habits of people of Jamshedpur......................................7

3.2 RP2: To understand the attitudes and perceptions of customers towards McDonald's....7

3.3 RP3: To identify the attractiveness of a new McDonald's Outlet in Jamshedpur............9

3.4 Hypotheses.......................................................................................................................9

3.5 Hypothesis Testing.........................................................................................................15

3.6 Survey link......................................................................................................................23

4. Conclusion............................................................................................................................23

5. Limitations:..........................................................................................................................24

Annexure A: Table of Hypotheses...........................................................................................25

Annexure B: Hypothesis Testing and SPSS Results................................................................28

Annexure C: Survey Infographic.............................................................................................39

References................................................................................................................................44

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Executive Summary
Jamshedpur is one of the major industrial towns in Eastern India. Naturally, it is prime
destination for multination Quick service restaurants (QSRs) who are eyeing rapid expansion
in Tier-2 cities of India. Jamshedpur is already home to KFC, Dominoes and Subway outlets
but McDonald’s is a chain which has yet to establish its presence here. With the relatively
high income and educational institutions, the town can be realistically considered for an
outlet. This project aims at helping McDonalds to decide on whether they should be opening
an outlet in the Steel city. To answer this, firstly the Research Problem are developed to
understand the eating habits of the people of Jamshedpur, their attitude and perception
towards McDonald’s and regarding the attractiveness for opening an outlet in the city.
Following this the relevant Research Question and Hypotheses have been formulated. With
the problem statement broken down, the next step was to gather data points. For this, a survey
was created and floated, receiving 103 responses from different demographics and locations.
The responses have been analyzed statistically using SPSS and interpreted. The results not
only gave insights as to whether to launch an outlet but also around the kind of marketing
campaign that would help McDonalds to tap into this new market.

Some of the key findings were:According to the one sample t-test conducted on the gathered
103 responses in Jamshedpur, it is observed that people of Jamshedpur are inclined to either
eat or order or both from existing Quick Service Restaurants.

Paired t-tests in the pricing amongst McDonalds KFC and Dominos yield that McDonalds is
perceived to be cheaper than its major competitors.

Similarly, under variety in menu, McDonalds is again perceived to be better than its
counterparts. However, when it comes to taste, KFC is better than McDonalds, though
McDonalds is perceived better than Dominos.

It is the consensus among the surveyed people that McDonalds should be opened in
Jamshedpur, though majority of them will not be visiting the site more than 2-3 times a
month.

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Based on these points Jamshedpur is an attractive destination for McDonald’s to open a new
outlet.

1.Introduction
The Quick Service Restaurants have grown rapidly in India over the last couple of decades
and they are constantly on the lookout for new locations. Having established a significant
footprint in most major cities, the QSRs have started targeting Tier 2 cities for expansion.
Jamshedpur being a major Tier-2 city would put in on the radar for any of the major QSR
chains. Consequently, many major QSR chains including KFC, Dominoes and Subway have
opened outlets in the city. One major player which is yet to enter however is McDonalds.
Being one of the first entrants into a newly liberalized India in 1993, McDonalds quickly
expanded across the country. McDonald’s could replicate it’s global in India and quickly
became one of the most recognized brands for fast food QSRs in India. However stiff
competition from other popular global chains like KFC meant that McDonalds had to not
only innovate in terms of its offerings but also continue its expansion into new cities. It is in
the pursuit of the latter goal that this project aims to help.

2. Problem Definition

2.1 Problem Genesis:

Being, a part of a premier B-School, which is home to students from diverse regions in India,
it was not long before the question arose in several minds: “Is there a McDonalds in
Jamshedpur?”. Given the presence of other renowned QSRs like Dominos and KFC in the
region, the absence of a chain as popular as McD, intrigued us to find the reasons for the
same. Jamshedpur is a renowned industrial city with the Tata hub being at the center of it, a
highly cosmopolitan demography and additionally it has several institutes of national
importance in the area. Going by the target group set by McDonald’s in India through their
advertisements, namely the young Indians on budget- by instinct it seems to be a very
attractive marketplace for a brand like McDonalds.

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This gave rise to the need of research at the ground level to understand certain basic things
before coming to a decision regarding the feasibility of opening a McDonald’s center in
Jamshedpur. The first and foremost thing being, understanding the eating habits of the
residents according to their demographics. The second being the consumer behavior and
perception of McDonalds as a brand- to determine the level of investment to be done with
respect to marketing and promotion to carry out a sustainable business. The third part being
identification of locations that in Jamshedpur that would serve best for business purposes and
help in generation of profits for McDonalds.

2.2 Discussion with Stakeholders:

2.2.1 Industry Expert

Name: Ms. Swati Sharma

Date: 29th Feb 2020
Designation: HRBP, Jubilant Foodworks Pvt ltd
Dominos, McDonald’s, KFC, etc.. are examples of Quick Service Restaurants (QSRs) within
the fast-food industry, distinguished by fast and efficient preparation and service times. Some
factors considered by a QSR while setting up a new store or trying to enter new geography
are:
● Population factors - Demographic, income patterns, settlement/dwelling patterns,     
professions
● Location factors - Wages, Real estate options, connectivity, local regulatory
authorities, presence of commissaries
● Operational factors - supply of Raw material, Scheduling, dine-in, delivery and take-
out models, manpower availability 
● Internal capabilities - meeting targets, advertisement and promotion, discounts and
offers, product selection and experimentation
● External factors - Competition and substitutes, negotiations with App aggregators
(Zomato, etc..)

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2.2.2 Secondary Data Analysis

QSR Industry in India:

The Indian foodservice industry had total revenues of INR 52,52,915.4 million in 2018,
representing a CAGR growth of 10.6% between 2013 and 2018. This growth has largely been
due to rising disposable incomes as well as changing consumer lifestyles and consumption
habits. The consumption volume in the foodservice industry has increased at a CAGR of
6.6% between 2013 and 2018, to reach a total of 18 billion transactions in 2018. There are
several factors that determine consumer choice of choosing a QSR. According to a survey
published by WARC, some of the major factors include brand value, promotional offers,
accessibility, menu options, quality, and ambiance of the outlet. 

McDonald’s:
Currently, there are no McDonald’s outlets in Jamshedpur, but the town already has outlets of
other fast-food chains like KFC, Domino’s, and Subway. Considering the real estate in
Jamshedpur, the P&M mall has a majority of fast-food chains and in peak hours the outlets
are crowded with all types of population from family to friends. Also based on the brand and
aspirational value of McDonald’s there is potential for entry into Jamshedpur. In terms of
pricing and promotion, McDonald’s follows a standardized approach and is comparable to
KFC who already has an outlet in Jamshedpur. After entering India quite early around two
decades ago, burger and fries chain McDonald’s posted its first profit during March 2018.

McDonald’s in tier 2 cities of Gujarat:

Tier-2 cities No. of McDonald’s Outlets

Vadodara 7
Rajkot 1
Surat 6
Vapi 2
 
There are 16 McDonald’s outlets in Gujarat spread across four Tier-2 cities. Surat is a major
tier-2 city which is famous for its textile and diamond industries. There are various
educational institutes as well. Hence, Surat can be compared to have a similar population
spread and spending power as Jamshedpur. In 2014, McDonald’s announced it will increase
the number of outlets in Gujarat as they have been highly profitable in Tier-2 cities, showing

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a 25% growth YoY. So, given that Jamshedpur has similar dynamics, there is a scope of
opening a profitable McDonald’s franchise in Jamshedpur. The other factors that McDonald’s
considered while opening outlets in Gujarat was the availability of raw materials, employees
and semi-skilled workers, which were readily available in the regions. After the opening of
outlets, McDonald’s customized its menu to cater to the localities and served pure veg
burgers.

2.2.3 Qualitative Research

For qualitative research we interviewed 12 individuals and floated a survey with 103
responses, to gain a measure of the frequency with which they ordered food or went out to eat
in a fast-food joint, the factors based on which they chose a QSR, preferred cuisines, menu
options and other factors that they felt influenced their choice of eating out. The group of
individuals who took part in qualitative research is people from diverse backgrounds
including variety in age, profession, social dynamics, and eating habits. Questions were posed
to understand the perception of McDonald’s among the people of Jamshedpur, whether they
have heard of it, would like to see it open an outlet in this city, and the preferred location
which they would like to see it function.

To summarize, some of the factors that drive the customer’s decision to order food or eat
from a QSR are:

 Taste - taste is a major factor and consumers seek continental and fast food tastes.
Across veg and non-veg palates, customers like Fries, McChicken burger, etc.. in
McD
 Price - price is the most major driver and most customers believe McD is the cheapest
option and that is a major advantage
 Quality and hygiene - consumers expect and believe that QSRs have a good degree of
food quality owing to standard practices which are followed internationally
 Cuisine and variety of food- customers want to try continental, fast food, and western
breakfast options . They are also fond of Pizza and burgers. Also, McD offers variety
of burgers and beverages hence it will be a choice among people.
 Customer centricity - Customers find McD more customer-friendly than Dominos and
other QSRs owing to smooth delivery and payment methods

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Besides, the frequency at which the customers consume Fast food from QSRs is at least twice
a month and if McDonald’s opens in Jamshedpur, most customers overwhelmingly prefer
Bistupur as the location for the same. 

3.Research Design

3.1 RP1: To understand the eating habits of people of

Jamshedpur

The RP1 deals with the customers, particularly with the idea of them eating outside which
would be critical to understand the kind of acceptance the potential new outlet. The idea is to
understand the eating habits of people of Jamshedpur, for which we have looked at the
population on the basis of their profession , frequency of eating out , type of restaurants
visited. Based on this the below listed research questions are developed to investigate further

RQ1 Where do people of Jamshedpur prefer to eat out?

RQ2 How often do people eat out?

RQ3 Among the customers of a QSR, is there a difference in eating patterns between
employed and unemployed people?

RQ4 How much do the people spend on a visit to a QSR? (per meal)

RQ5 What is the dietary preference of people who eat from QSRs?

RQ6 How much does taste of food in a QSR affect consumer perception towards choosing it?

RQ7 How much does price of food in a QSR affect consumer perception towards choosing
it?

RQ8 How much does menu variety in a QSR affect consumer perception towards choosing
it?

RQ9 How much does accessibility of a QSR affect consumer perception towards choosing it?
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RQ10 How much does hygiene of a QSR affect consumer perception towards choosing it?

3.2 RP2: To understand the attitudes and perceptions of

customers towards McDonald's

RP2 deals in understanding the attitudes and perception of customers towards McDonald’s.
Currently there is limited presence of multinational QSRs in Jamshedpur with KFC and
Dominoes being the already established players. Hence these set of RQs first determine
whether customers are aware of the brand McDonald’s. If they have had prior experience in
a McD outlet, we compare it with other QSRs, on the basis of certain set of parameters. If
customers are not aware of the brand, then we ask them if they would prefer to try out a new
QSR in the form of McDonald’s if opened in Jamshedpur.

RQs for people who have eaten at a McDonald’s outlet:

RQ11 Are the customers aware of the presence of promotional offers and discounts in
McDonald’s?

RQ12 What is the customer perception towards pricing of menu in Mc Donald’s as compared
to KFC?

RQ13 What is the customer perception towards pricing of menu in Mc Donald’s as compared
to Dominoes?

RQ14 What is the customer perception towards menu variety in McDonald’s as compared to
KFC?

RQ15 What is the customer perception towards menu variety in McDonald’s as compared to
Dominoes?

RQ16 What is the customer perception towards taste of food in Mc Donald’s as compared to
KFC?

RQ17 What is the customer perception towards taste of food in Mc Donald’s as compared to
Dominoes?

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For people who have not eaten at a McDonald’s outlet:

RQ18 Are customers aware of the existence of the brand McDonald’s?

RQ19 Would the existence of a McDonald’s outlet in Jamshedpur change the eating pattern?

3.3 RP3: To identify the attractiveness of a new McDonald's

Outlet in Jamshedpur

RP3 primarily looks at the operational issues that the company will face if they decide to
open the outlet in a city like Jamshedpur where they do not have any presence in not only the
city but also the entire state of Jharkhand. This also examines if respondents will prefer going
to McDonald’s if it is opened in Jamshedpur. The scope of this RP is limited to only certain
key operational aspects.

RQ20 Do the customers want to see a new McDonalds outlet opened in Jamshedpur?

RQ21 How frequently will customers visit McDonald’s, if it happens to open in Jamshedpur?

3.4 Hypotheses

RP1 To understand the eating habits of people of Jamshedpur

There are a variety of options available for people to dine out such as QSRs, CSRs and cafes.
Since Jamshedpur is not a metro, the options here are also limited. Most of the population
here consists of many school and college going students, people working in the TATA firms
and their families. Based on interaction with students in XLRI and other people in
Jamshedpur, the following hypotheses aim to capture the eating habits of the residents and
whether QSRs are attractive compared to other types of restaurants.

Hypothesis 1:

Based on the responses from survey, the hypotheses is based on the following options:
0-Eating from CDR, FDR, Cafes, 1- Eating from QSRs,  2- Online Order from QSRs

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Null hypothesis: Respondents’ preference towards eating from QSRs is not less than 1

Alternate hypothesis: Respondents’ preference towards eating from QSRs is less than 1

Hypothesis 2:

Based on the responses from survey, the hypotheses is based on the following options:
0-Never eat out , 1- Eat out once a month,  2- Eat out 2-3 times a month , 3- Eat out more
than 3 times a month

Null hypothesis: Respondents’ preference towards eating out is not less than 2-3 times a
month

Alternate hypothesis: Respondents’ preference towards eating out is less than 2-3 times a
month

Hypothesis 3:

Based on respondents’ profession , this is to test whether mean of frequency of eating out is
same or different between employed and unemployed people

Employed consists people in private and government jobs

Unemployed consists of students and retired people

Null hypothesis: Mean of frequency of eating out for unemployed & employed is same

Alternate hypothesis: Mean of frequency of eating out for unemployed & employed is
different

Hypothesis 4:

Based on amount spent by respondents per meal.

1-Spend per meal Less than Rs 200

2- Spend per meal between Rs 200 - Rs 500

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3- Spend per meal more than Rs 500

Null hypothesis: People prefer to spend not less than Rs 200 per meal

Alternate hypothesis: People prefer to spend less than Rs 200 per meal

For Hypotheses 5-9 , based on a 5 point Likert scale, 1 is the highest /most preferred
attribute/factor and 5 is the least preferred attribute/factor , which respondents look at before
choosing a QSR. The major factors that determine selection of a QSR have been examined
here.

Hypothesis 5:

Null hypothesis: Respondents valuation of taste of food as a deciding factor to choose a QSR
is not less than 3 out of 5

Alternate hypothesis: Respondents valuation of taste of food as a deciding factor to choose a

QSR is less than 3 out of 5 

Hypothesis 6:

Null hypothesis: Respondents’ valuation of the price of food offered in QSR is not less than 3
out of 5

Alternate hypothesis: Respondents’ valuation of the price of food offered in QSR is less than
3 out of 5

Hypothesis 7:

Null hypothesis: Respondents’ valuation of the menu variety offered in QSR is not less than 3
out of 5

Alternate hypothesis: Respondents’ valuation of the menu variety offered in QSR is less than
3 out of 5

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Hypothesis 8:

Null hypothesis: Respondents’ valuation of the accessibility of QSR outlet is not less than 3
out of 5

Alternate hypothesis: Respondents’ valuation of the accessibility of QSR outlet is less than 3
out of 5

Hypothesis 9:

Null hypothesis: Respondents’ valuation of the hygiene of QSR outlet is not less than 3 out
of 5

Alternate hypothesis: Respondents’ valuation of the hygiene of QSR outlet is less than 3 out
of 5

Hypothesis 10:

To determine which attribute between taste and price of food play a major role in choosing a
QSR

Null hypothesis: Taste of food offered does not have a higher precedence than price of food
from a customer’s point of view

Alternate hypothesis: Taste of food offered has a higher precedence than price of food from a
customer’s point of view

Hypothesis 11:

To determine which attribute between taste and hygiene of outlet play a major role in
choosing a QSR

Null hypothesis: Taste of food offered does not have a higher precedence than hygiene from a

customer’s point of view

Alternate hypothesis: Taste of food offered does have a higher precedence than hygiene from
a customer’s point of view

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RP2: To understand the attitudes and perceptions of customers towards McDonald's

This mainly examines the motivating factors for consumers, which draw them towards
McDonald’s as compared to other QSRs. While talking to consumers , we examined if
McDonald’s had a good perception in their minds with respect to factors such as pricing of
menu, taste, variety in menu , when compared to KFC and Dominoes , the 2 major
competitors. The response is based on the consumers’ visit to McDonald’s outlets in other
parts of India. The following hypotheses will examine the same.

Hypothesis 12:

Null hypothesis: Customer perception towards pricing of menu in McDonald’s is not

favorable as compared to KFC

Alternate hypothesis: Customer perception towards pricing of menu in McDonald’s is

favourable as compared to KFC

Hypothesis 13:

Null hypothesis: Customer perception towards pricing of menu in McDonald’s is not

favourable as compared to Dominoes

Alternate hypothesis: Customer perception towards pricing of menu in McDonald’s is

favourable as compared to Dominoes

Hypothesis 14:

Null hypothesis: Customer perception towards variety in menu in McDonald’s is not

favourable as compared to KFC

Alternate hypothesis: Customer perception towards variety in menu in McDonald’s is

favourable as compared to KFC

Hypothesis 15:

Null hypothesis: Customer perception towards variety in menu in McDonald’s is not

favorable as compared to Dominoes

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Alternate hypothesis: Customer perception towards variety in menu in McDonald’s is
favorable as compared to Dominoes

Hypothesis 16:

Null hypothesis: Customer perception towards taste of food in McDonald’s is not favorable
as compared to KFC

Alternate hypothesis: Customer perception towards taste of food in McDonald’s is favourable

as compared to KFC

Hypothesis 17:

Null hypothesis: Customer perception towards taste of food in McDonald’s is not favourable
over Dominoes

Alternate hypothesis: Customer perception towards taste of food in McDonald’s is favourable

over Dominoes

RP3: To identify the attractiveness of a new McDonald's Outlet in Jamshedpur

Here, we asked the respondents if they would like to see a McDonald’s outlet to be open in
Jamshedpur, and which location would be most ideal for it. The frequency of visits per month
were also recorded, and the following hypotheses will examine the same.

Hypothesis 18:

Options given were : Yes -1 , Don’t Care about Opening – 2 , No -3

Null hypothesis: Respondents do not want McDonalds to be open in Jamshedpur

Alternate hypothesis: Respondents want McDonalds to be open in Jamshedpur

Hypothesis 19:

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Options from Survey: 0-Never, 1- once a month, 2- 2-3 times a month, 3- more than 2-3
times

Null hypothesis: Respondents will visit a McDonald’s outlet in Jamshedpur not less than 2-3
times a month

Alternate Hypothesis: Respondents will visit a McDonald’s outlet in Jamshedpur less 2-3
times a month

3.5 Hypothesis Testing

1.

0-Eating from CDR, FDR, Cafes, 1- Eating from QSRs, 2- Online Order from QSRs

H0: Respondents’ preference towards eating from QSRs is not less than 1

H1: Respondents’ preference towards eating from QSRs is less than 1

H0: μ QSR >= 1

H1: μ QSR <1

From One sample t-test, p/2 = .230/2 >0.05, hence null hypothesis is not rejected

Conclusion: Respondents’ preference towards eating from QSRs is not less than 1, i.e, there
is a preference among consumers towards eating out in QSRs

2.

Based on the responses: 0-Never eat out, 1- Eat out once a month, 2- Eat out 2-3 times a
month, 3- Eat out more than 3 times a month

H0: Respondents’ preference towards eating out is less than 2-3 times a month

H1: Respondents’ preference towards eating out is not less than 2-3 times a month

H0: μ frequency of visit is more than 2-3 times a month<=2

H1: μ frequency of visit is more than 2-3 times a month >2

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From One-sample t-test, p/2=0.096/2 <0.05 - Null Hypothesis is rejected

Conclusion: Respondents’ preference towards eating out is not less than 2-3 times a month

3.

H0: Mean of frequency of eating out for unemployed & employed is same

H1: Mean of frequency of eating out for unemployed & employed is different

H0: μ employed = μ unemployed

H1: μ employed ≠ μ unemployed

Based on 2 sample independent t-test, assuming equal variances as Levene’s test is satisfied,
p/2= .902/2 >0.05 - null hypothesis is not rejected

Conclusion: Mean of frequency of eating out for unemployed & employed is same, i.e., there
is no difference between type of consumers eating out based on employment

4.

H0: People prefer to spend not less than Rs 200 per meal

H1: People prefer to spend less than Rs 200 per meal

H0: μ spend more than 200 >=2

H1: μ spend more than 200 < 2

From One sample t-test, p/2 = ½ >0.05, hence null hypothesis not rejected

Conclusion: People prefer to spend more than Rs 200 per meal

For questions 5-9, Based on Likert scale, 1 is highest/most preferred attribute. 5 - lowest
preference

5.

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H0: Respondents valuation of taste of food as a deciding factor to choose a QSR is not less
than 3 out of 5

H1: Respondents valuation of taste of food as a deciding factor to choose a QSR is less than 3
out of 5

H0: μ taste of food >=3

H1: μ taste of food < 3

Based on One Sample t-test, p/2 = 0<0.05 - Null Hypothesis rejected

Conclusion: Respondents valuation of taste of food as a deciding factor to choose a QSR is

less than 3 out of 5, i.e. Taste is a major deciding factor for selecting a QSR as it is chosen as
1 or 2

6.

H0: Respondents’ satisfaction with the price of food offered in QSR is not less than 3 out of 5

H1: Respondents’ satisfaction with the price of food offered in QSR is less than 3 out of 5

H0: μ price of food >=3

H1: μ price of food < 3

Based on One Sample t-test , p/2=0<0.05 , Null Hypothesis rejected

Conclusion: Respondents valuation of price of food as a deciding factor to choose a QSR is

less than 3 out of 5, i.e., Price of food is a major deciding factor for selecting a QSR as it is
chosen as 1 or 2

1- highest 5-lowest

7.

H0: Respondents’ satisfaction with the menu variety offered in QSR is not less than 3 out of 5

H1: Respondents’ satisfaction with the menu variety offered in QSR is less than 3 out of 5

H0: μ menu variety >=3

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H1: μ menu variety < 3

Based on One Sample t-test , p/2=0<0.05 , null hypothesis is rejected

Conclusion: Respondents valuation of menu variety as a deciding factor to choose a QSR is

less than 3 out of 5,i.e, menu variety is a major deciding factor for selecting a QSR as it is
chosen as 1 or 2

8.

H0: Respondents’ satisfaction with the accessibility of QSR is not less than 3 out of 5

H1: Respondents’ satisfaction with the accessibility of QSR is less than 3 out of 5

H0: μ accessibility >=3

H1: μ accessibility < 3

Based on One Sample t-test, p/2=0<0.05, null hypothesis is rejected

Conclusion: Respondents valuation of accessibility as a deciding factor to choose a QSR is

less than 3 out of 5, i.e., accessibility is a major deciding factor for selecting a QSR as it is
chosen as 1 or 2

9.

H0: Respondents’ satisfaction with the hygiene of QSR outlet is not less than 3 out of 5

H1: Respondents’ satisfaction with the hygiene of QSR outlet is less than 3 out of 5

H0: μ hygiene >=3

H1: μ hygiene < 3

Based on One Sample t-test, p/2=0<0.05, null hypothesis is rejected

Conclusion: Respondents valuation of hygiene as a deciding factor to choose a QSR is less

than 3 out of 5, i.e., hygiene is a major deciding factor for selecting a QSR as it is chosen as 1
or 2

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10.

H0: Taste of food offered does not have a higher precedence than price of food from a

customer’s point of view

H1: Taste of food offered has a higher precedence than price of food from a customer’s point

of view

H0: μ taste – μ price <0

H1: μ taste -μ price >=0

Based on Paired t-test, p/2 =0 <0.05 , null hypothesis is rejected

Conclusion: Taste of food offered does have a higher precedence than price of food from a
customer’s point of view of view

11.

H0: Taste of food offered does not have a higher precedence than hygiene from a customer’s
point of view

H1: Taste of food offered does have a higher precedence than hygiene from a customer’s
point of view

H0: μ taste – μ hygiene <0

H1: μ taste -μ hygiene >=0

Based on Paired t-test, p/2 =0 <0.05 , null hypothesis is rejected

Conclusion: Taste of food offered does have a higher precedence than hygiene from a
customer’s point of view

12.

H0: Customer perception towards pricing of menu in McDonald’s is not favourable as

compared to KFC

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H1: Customer perception towards pricing of menu in McDonald’s is favourable as compared
to KFC

H0: μ price in McDonald’s – μ price in KFC <0

H1: μ price in McDonald’s – μ price in KFC >=0

Based on Paired t-test, p/2=0 <0.05 , null hypothesis rejected

Conclusion: Customer perception towards pricing of menu in McDonald’s is favourable as

compared to KFC, i.e., McDonald’s food is perceived to be priced less than KFC

13.

H0: Customer perception towards pricing of menu in McDonald’s is not favourable as

compared to Dominoes

H1: Customer perception towards pricing of menu in McDonald’s is favourable as compared

to Dominoes

H0: μ price in McDonald’s – μ price in Dominoes <0

H1: μ price in McDonald’s – μ price in Dominoes >=0

Based on Paired t-test, p/2=0 < 0.05, null hypothesis rejected

Conclusion: Customer perception towards pricing of menu in McDonald’s is favourable as

compared to Dominoes, i.e., McDonald’s food is perceived to be priced less than Dominoes

14.

H0: Customer perception towards variety in menu in McDonald’s is not favourable as

compared to KFC

H1: Customer perception towards variety in menu in McDonald’s is favourable as compared

to KFC

H0: μ menu variety in McDonald’s – μ menu variety in KFC <0

H1: μ menu variety in McDonald’s – μ menu variety in KFC>=0

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Based on Paired t-test, p/2=0.021/2 <0.05 , null hypothesis rejected

Conclusion: Customer perception towards variety in menu in McDonald’s is favourable over

KFC.

15.

H0: Customer perception towards variety in menu in McDonald’s is not favourable as

compared to Dominoes

H1: Customer perception towards variety in menu in McDonald’s is favourable as compared

to Dominoes

H0: μ menu variety in McDonald’s – μ menu variety in Dominoes <0

H1: μ menu variety in McDonald’s – μ menu variety in Dominoes >=0

Based on Paired t-test, p/2=0.061/2 <0.05 , null hypothesis rejected

Conclusion: Customer perception towards variety in menu in McDonald’s is favourable over

Dominoes

16.

H0: Customer perception towards taste of food in McDonald’s is not favourable as compared
to KFC

H1: Customer perception towards taste of food in McDonald’s is favourable as compared to

KFC

H0: μ taste of food in McDonald’s – μ taste of food in KFC <0

H1: μ taste of food in McDonald’s – μ taste of food in KFC >=0

Based on Paired t-test, p/2=0.11/2 > 0.05 , null hypothesis is not rejected

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Conclusion: Customer perception towards taste of food in McDonald’s is not favourable
over KFC

17.

H0: Customer perception towards taste of food in McDonald’s is not favourable over

Dominoes

H1: Customer perception towards taste of food in McDonald’s is favourable over Dominoes

H0: μ taste of food in McDonald’s – μ taste of food in Dominoes <0

H1: μ taste of food in McDonald’s – μ taste of food in Dominoes >=0

Based on Paired t-test, p/2=0.02/2 <0.05 , null hypothesis rejected

Conclusion: Customer perception towards taste of food in McDonald’s is favourable over

Dominoes

18.

Options: Yes :1 , Don’t care: 2, No: 3

H0: Respondents do not want McDonalds to be open in Jamshedpur

H1: Respondents want McDonalds to be open in Jamshedpur

H0: μ new McDonalds outlet >=2

H1: μ new McDonalds outlet <2

Based on One Sample t-test, p=0<0.05, Null rejected

Conclusion: Respondents want McDonalds to be open in Jamshedpur as most have chosen

option 1 - Yes.

19.

Options from Survey: 0-Never, 1- once a month, 2- 2-3 times a month, 3- more than 2-3
times

22
H0: Respondents will visit a McDonald’s outlet in Jamshedpur less than 2-3 times a month

H1: Respondents will visit a McDonald’s outlet in Jamshedpur not less 2-3 times a month

H0: μ frequency of visit<=2

H1: μ new locations > 2

Based on One Sample t-test , p/2=0.078/2 <0.05 , null hypothesis is rejected

Conclusion: Respondents will visit a McDonald’s outlet in Jamshedpur not less than 2-3
times a month

3.6 Survey link

Survey link

https://forms.gle/8qEtfhohitMPULPT8

Survey link – collaboration

https://docs.google.com/forms/d/19p6RFHvzKU1TuUgDuREjkwMfkY1LB1k36QwDhYQS9U8/edit?
usp=sharing

4. Conclusion

According to the one sample t-test conducted on the gathered 103 responses in Jamshedpur, it
is observed that people of Jamshedpur are inclined to either eat or order or both from existing
Quick Service Restaurants.

From one sample t-test it is also found that people visit QSRs more than 2-3 times a month
with an average bill of 200 or more. The frequency to dine at QSRs between employed
category and unemployed category is found to be similar using 2 sample independent t test.

Using one sample t-tests we have identified the major factors contributing towards the choice
of QSRs to be as the following: Taste, Pricing, Menu Variety, Accessibility and Hygiene

23
Based on paired t- tests we have found that taste is given as higher preference by customers
over both hygiene and price. This is positive for McDonald's given the consistent taste
throughout the country, the Indianised diverse variety in the menu.

Paired t-tests in the pricing amongst McDonalds KFC and Dominos yield that McDonalds is
perceived to be cheaper than its major competitors.

Similarly, under variety in menu, McDonalds is again perceived to be better than its
counterparts. However, when it comes to taste, KFC is better than McDonalds, though
McDonalds is perceived better than Dominos. Considering the fact that nearly 77% of the
people surveyed had chosen Dominos as one of their go to QSRs(over 46% for KFC), we can
safely say the market for McDonalds is there for the taking. This can also be attributed
primarily to the high no. of vegetarians, and given McDonalds special Vegetarian Menu, they
have an added advantage.

It is the consensus among the surveyed people that McDonalds should be opened in
Jamshedpur, though majority of them will not be visiting the site more than 2-3 times a
month.

Using the results from the data analysis through RQs, primary data as well as secondary data,
Jamshedpur is viable commercial spot for McDonalds to set up a franchise.

5. Limitations:
1. A crucial feature that has not been addressed is the nutritional value of the fast food.
Traditionally fast food and nutritional value have not seen eye to eye. However, the growing
awareness to shift towards healthier and more nutritious options is evident from the personal
interviews conducted by us. Unfortunately, due to lack of data on Healthier alternatives of
QSRs it has been incorporated as a parameter to rate McDonalds or its competitors.

2. The responses used for data analysis are largely from students of XLRI or their
acquaintances which results in bias towards eating outside given that majority are from
middle -upper class backgrounds. This sort of convenience sampling often fails to give the
whole picture of the population. Further analysis can be done by comparing with population
percentages according to lifestyle level of people in the city of Jamshedpur.

24
3. Telephonic interviews and surveys have the drawback of missing intangible data like
facial expressions which help to detect the behaviour of the respondents.

25
 Annexure A: Table of Hypotheses
MDP RP RQ
Should Mc Where do people of
Donald’s open in To understand Jamshedpur prefer to eat out ?
Jamshedpur? the eating habits
of people of
Jamshedpur
How often do people eat out?
Among the customers of a
QSR, is there a difference in
eating patterns between
employed and unemployed
people?
How much do the people
spend on a visit to a QSR? (per
meal)
Is taste of food a deciding
factor to choose a QSR ?
Is price of food a deciding
factor to choose a QSR ?
Is menu variety a deciding
factor to choose a QSR ?
 Is accessibility a deciding
Null Hypothesis
Respondents’ preference
towards eating from
QSRs is not less than 1
Respondents’ preference
towards eating out is not
less than 2-3 times a month
Mean of frequency of eating
out for unemployed &
employed is same
People prefer to spend not
less than Rs 200 per meal
Respondents valuation of
taste of food as a deciding
factor to choose a QSR is
not less than 3 out of 5
Respondents’ satisfaction
with the price of food
offered in QSR is not less
than 3 out of 5
Respondents’ satisfaction
with the menu variety
offered in QSR is not less
than 3 out of 5
Respondents’ satisfaction
26
Test Type Conclusion
One-sample t-test Respondents’ preference
towards eating from
QSRs is not less than 1,
i.e, there is a preference
among consumers
towards eating out in
QSRs
One-sample t-test
Respondents’ preference
towards eating out is less
than 2-3 times a month
Two sample Mean of frequency of
independent t-test eating out for
unemployed & employed
is same, i.e., there is no
difference between type
of consumers eating out
based on employment
One-sample t-test People prefer to spend
more than Rs 200 per
meal
One-sample t-test
Respondents valuation of
taste of food as a deciding
factor to choose a QSR is
less than 3 out of 5
One-sample t-test Respondents valuation of
price of food as a
deciding factor to choose
a QSR is less than 3 out
of 5
One-sample t-test Respondents valuation of
menu variety as a
deciding factor to choose
a QSR is less than 3 out
of 5
One-sample t-test Respondents valuation of
 factor to choose a QSR ?
Is hygiene of outlet a deciding
factor to choose a QSR ?
  Do consumers value taste of
food more than the price while
choosing a QSR?
Do consumers value taste of
food more than the hygiene
while choosing a QSR?
To understand What is the customer
the attitudes and perception towards pricing of
perceptions of menu in Mc Donald’s as
customers compared to KFC?
towards Mc
Donald’s
What is the customer
perception towards pricing of
menu in McDonald’s as
compared to Dominoes?
What is the customer
perception towards variety in
menu in McDonald’s as
compared to KFC?
with the accessibility of
QSR is not less than 3 out of
5 less than 3 out of 5
Respondents’ satisfaction
with the hygiene of QSR
outlet is not less than 3 out
of 5
  Taste of food
offered does not have a
higher precedence than
price of food from a
customer’s point of view
Taste of food offered does
not have a higher
precedence than hygiene
from a customer’s point of
view
Customer perception
towards pricing of menu in
McDonald’s is not
favourable as compared to
KFC
Customer perception
towards pricing of menu in
McDonald’s is not
favourable as compared to
Dominoes
Customer perception
towards variety in menu in
McDonald’s is not
favourable as compared to
KFC
27
accessibility as a deciding
factor to choose a QSR is
One-sample t-test Respondents valuation of
hygiene as a deciding
factor to choose a QSR is
less than 3 out of 5
 Paired samples t-
test  Taste of food offered
does have a higher
precedence than price of
food from a customer’s
point of view of view
 Paired samples t- Taste of food offered does
test have a higher precedence
than hygiene from a
customer’s point of view
 Paired samples t-
test Customer perception
towards pricing of menu
in McDonald’s is
favourable as compared
to KFC , i.e, McDonald’s
food is perceived to be
priced less than KFC
 Paired samples t- Customer perception
test towards pricing of menu
in McDonald’s is
favourable as compared
to Dominoes, i.e,
McDonald’s food is
perceived to be priced
less than Dominoes
 Paired samples t-
test Customer perception
towards variety in menu
in McDonald’s is
favourable over KFC.
 What is the customer
perception towards variety in
menu in McDonald’s as
compared to Dominoes?
What is the customer
perception towards taste of
food in McDonald’s as
compared to KFC?
What is the customer
perception towards taste of
food in McDonald’s as
compared to Dominoes?
To identify the Do the customers want to see a
attractiveness of new McDonalds outlet opened
a new in Jamshedpur?
McDonald's
Outlet in
Jamshedpur
How frequently will customers
visit McDonald’s, if it happens
to open in Jamshedpur?
Customer perception
towards variety in menu in
McDonald’s is not
favourable as compared
toDominoes
Customer perception
towards taste of food in
McDonald’s is not
favourable as compared to
KFC
Customer perception
towards taste of food in
McDonald’s is not
favourable over Dominoes
Respondents do not want
McDonalds to be open in
Jamshedpur
Respondents will visit a
McDonald’s outlet in
Jamshedpur not less than 2-
3 times a month
28
 Paired samples t-
test Customer perception
towards variety in menu
in McDonald’s is
favourable over
Dominoes
 Paired samples t-
test Customer perception
towards taste of food in
McDonald’s is not
favourable over KFC
 Paired samples t-
test Customer perception
towards taste of food in
McDonald’s is favourable
over Dominoes
One-sample t-test Respondents want
McDonalds to be open in
Jamshedpur as most have
chosen option 1 - YES.
One-sample t-test Respondents will visit a
McDonald’s outlet in
Jamshedpur less 2-3
times a month
Annexure B: Hypothesis Testing and SPSS
Results

1.

H0: Respondents’ preference towards eating from QSRs is not less than 1

H1: Respondents’ preference towards eating from QSRs is less than 1

H0: μQSR >= 1

H1: μQSR <1

2. Based on the responses : 0-Never eat out , 1- Eat out once a month, 2- Eat out 2-3 times a
month , 3- Eat out more than 3 times a month

H0: Respondents’ preference towards eating out is less than 2-3 times a month

H1: Respondents’ preference towards eating out is not less than 2-3 times a month

H0: μfrequency of visit is more than 2-3 times a month<=2

H1: μfrequency of visit is more than 2-3 times a month >2

29
3.

H0: Mean of frequency of eating out for unemployed & employed is same

H1: Mean of frequency of eating out for unemployed & employed is different

H0: μemployed = μunemployed

H1: μemployed =/ μunemployed

4.

H0: People prefer to spend not less than Rs 200 per meal

H1: People prefer to spend less than Rs 200 per meal

H0: μ spend more than 200 >=2

H1: μ spend more than 200 < 2

30
For questions 5-9 , 1 is highest /most preferred attribute. 5 - lowest preference

5.H0: Respondents valuation of taste of food as a deciding factor to choose a QSR is not less
than 3 out of 5

H1: Respondents valuation of taste of food as a deciding factor to choose a QSR is less than 3
out of 5

H0: μ taste of food >=3

H1: μ taste of food < 3

6.

H0: Respondents’ satisfaction with the price of food offered in QSR is not less than 3 out of 5

31
H1: Respondents’ satisfaction with the price of food offered in QSR is less than 3 out of 5

H0: μ price of food >=3 ; H1: μ price of food < 3

7.H0: Respondents’ satisfaction with the menu variety offered in QSR is not less than 3 out of
5

H1: Respondents’ satisfaction with the menu variety offered in QSR is less than 3 out of 5

H0: μ menu variety >=3; H1: μ menu variety < 3

8.H0: Respondents’ satisfaction with the accessibility of QSR is not less than 3 out of 5

H1: Respondents’ satisfaction with the accessibility of QSR is less than 3 out of 5

32
H0: μ accessibility >=3

H1: μ accessibility < 3

9.H0: Respondents’ satisfaction with the hygiene of QSR outlet is not less than 3 out of 5

H1: Respondents’ satisfaction with the hygiene of QSR outlet is less than 3 out of 5

H0: μ hygiene >=3

H1: μ hygiene < 3

10.H0: Taste of food offered does not have a higher precedence than price of food from a

customer’s point of view

H1: Taste of food offered has a higher precedence than price of food from a customer’s point

of view

33
H0: μtaste – μprice <0

H1: μtaste -μprice >=0

11.H0: Taste of food offered does not have a higher precedence than hygiene from a

customer’s point of view

H1: Taste of food offered does have a higher precedence than hygiene from a

customer’s point of view

H0: μtaste - μhygiene <0

H1: μtaste -μhygiene >=0

12.H0: Customer perception towards pricing of menu in McDonald’s is not favourable as

compared to KFC

H1: Customer perception towards pricing of menu in McDonald’s is favourable as compared

to KFC

34
H0: μ price in McDonald’s – μ price in KFC <0

H1: μ price in McDonald’s – μ price in KFC >=0

13.

H0: Customer perception towards pricing of menu in McDonald’s is not favourable as

compared

to Dominoes

H1: Customer perception towards pricing of menu in McDonald’s is favourable as compared

to

Dominoes

H0: μ price in McDonald’s – μ price in Dominoes <0

H1: μ price in McDonald’s – μ price in Dominoes >=0

35
14.

H0: Customer perception towards variety in menu in McDonald’s is not favourable as

compared to KFC

H1: Customer perception towards variety in menu in McDonald’s is favourable as compared

to

KFC

H0: μ menu variety in McDonald’s – μ menu variety in KFC <0

H1: μ menu variety in McDonald’s – μ menu variety in KFC>=0

15.

H0: Customer perception towards variety in menu in McDonald’s is not favourable as

compared to Dominoes

H1: Customer perception towards variety in menu in McDonald’s is favourable as compared

to

36
Dominoes

H0: μ menu variety in McDonald’s – μ menu variety in Dominoes <0

H1: μ menu variety in McDonald’s – μ menu variety in Dominoes >=0

16.

H0: Customer perception towards taste of food in McDonald’s is not favourable as compared
to KFC

H1: Customer perception towards taste of food in McDonald’s is favourable as compared to

KFC

H0: μ taste of food in McDonald’s – μ taste of food in KFC <0

H1: μ taste of food in McDonald’s – μ taste of food in KFC >=0

37
17.

H0: Customer perception towards taste of food in McDonald’s not favourable over Dominoes
H1: Customer perception towards taste of food in McDonald’s is favourable over Dominoes

H0: μ taste of food in McDonald’s – μ taste of food in Dominoes <0

H1: μ taste of food in McDonald’s – μ taste of food in Dominoes >=0

18.

H0: Respondents do not want McDonalds to be open in Jamshedpur

H1: Respondents want McDonalds to be open in Jamshedpur

H0: μ new McDonalds outlet >=2

H1: μ new McDonalds outlet <2

38
Options from Survey: 0-Never , 1- once a month , 2- 2-3 times a month, 3- more than 2-3
times

19.

H0: Respondents will visit a McDonald’s outlet in Jamshedpur less than 2-3 times a month

H1: Respondents will visit a McDonald’s outlet in Jamshedpur not less 2-3 times a month

H0: μ frequency of visit<=2

H1: μ new locations > 2

39
Annexure C: Survey Infographic

40
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References

(n.d.). Retrieved from https://www.arcgis.com/home/item.html?

id=f4769668fc3f486a992955ce55caca18

Vishal, A. and Sachitanand, R. (2020). Restaurants are operating in an increasingly

tough environment. [online] The Economic Times. Available at:
https://economictimes.indiatimes.com/industry/cons-products/food/restaurants-are-
operating-in-an-increasingly-tough-environment/articleshow/53788412.cms?
from=mdr

Technopak.com. (2020). [online] Available at:

http://www.technopak.com/Files/qsr-market-in-india.pdf

Ficci.in. (2020). [online] Available at:

http://ficci.in/spdocument/23056/foodzania-release2018.pdf

Tandon, S. (2020). McDonald's appoints new partner for north, east India business.
[online] Livemint. Available at:
https://www.livemint.com/news/india/mcdonald-s-appoints-new-partner-for-north-
east-india-business-11580703274317.html

Survey Link : https://forms.gle/TE8VxG3zeGvdPLe3A

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