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A Study of Entrepreneurs in Fast Food Industry in Kurnool

Introduction
One of the largest growing food types in India is fast-food. According to the survey Indian fast food

industry is growing by 40% every year and generates huge sales. India has become one of the biggest

hubs for global fast food chains to grow due to the availability of raw materials, population size etc.

 Mc Donald’s – 480 outlets and according to the plan it can 500 by the year 2021.

 Dominoes – in 2008 there were 227 outlets in Indian and by the year 2021 the number of

outlets has increased to 1500

 Pizza hut – 422 outlets currently in India and according to the plan the number can go to 700

by the year 2021.

Indian fast food industry statistically stands on the 10 th position in per capita spending figures on fast

food, with 2.1% o expenditure of total annual spending. By 2022 the Indian fast food is expected

grow at 18%focusing on changing behavior of consumer and demographic factors. According to the

survey, India is the top third country in spending capacity of people in age 25-49 years. Also in

coming future 400 shopping malls, fast food restaurants, multiplexes etc are in construction or in

planning stage. Unlike older days people in India now a day prefer eating out food items are

perishable and it is very essential for an up gradation of technology especially in the food industry.

There is continuous improvement observed in the fast food technology in India. Due to variety of fast-

food brands and outlets the consumer is often observed hoping from one brand to another, which

lowers the level of commitment of a consumer to a particular brand.

Importance of the study

Fast food is found all around the globe, from little towns to the biggest cities. Now, there are so many

different fast food restaurants to choose from, such as McDonald’s, Dominoes, Pizza hut, Arby’s,

Dairy Queen, Panda Express, Kentucky Fried Chicken, Wendy’s, and many more. Millions of people

eat at fast food restaurants each day. They eat it for many reasons. Fast food is popular because it’s

convenient, cheap, addictive and tastes good. One of the factors making fast food popular is that it is
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convenient.People who do not have the ability, time or will to cook at home now only have to pick up

the phone book or click on the Internet in order to find their local restaurant or fast food retailer that

will be more than happy to deliver the freshly prepared hot food ready to eat straight to their door with

minimum.

Objectives of the study

 The present study is undertaken with the objective of knowing the entrepreneurs in fast food

industry in Kurnool.

 The Study reveals the challenges faced by fast food industry.

Methodology

Source of data: This study is based on both primary and secondary data. Sources of secondary data

are books, journals, newspapers and internet. Primary data are collected by administering the

questionnaire to the fast food restaurant owners.

Sample of the study

A sample of 20 fast food restaurant owners from Kurnool are selected.

Scope and period of study: The study is confined to Kurnool and the period of study is one year.

Analysis

The data are analysed using simple mathematical and statistical tools like percentages and averages.

Chapterisation

The study is divided into following chapters

Chapter I – Introduction- This chapter deals with introduction to the study which covers objectives,

methodology and Chapterisation.

Chapter II – This chapter covers the theoretical aspects of fast food industry

Chapter III – This chapter covers the analysis of primary data collected through questionnaire
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Chapter IV- This chapter covers the finding and conclusions of the study

Annexure

Bibliography / webliography

References
1. https://www.123helpme.com/essay/Importance-Of-Fast-Food-FJHE7GU8NR
2. https://www.newfoodmagazine.com/news/161692/study-reveals-the-five-biggest-
challenges-faced-by-fast-food-restaurants/

What is fast food?

The term "fast food" means just that. However, the boundary between fast foods and traditional dishes

is fluid. In particular, it's difficult to provide a qualitative distinction because fast foods can also

include salads and fruit in addition to classic offerings such as hamburgers, hot dogs, sandwiches,

patties, French-fries, fish and chips, etc. The best way to distinguish fast foods is to use formal

characteristics: Time required - those who eat fast foods do not want to spend a lot of time selecting

and eating, and if necessary will eat standing or walking, on the bus, park bench, or at work. The

variety of foods and beverages is usually very limited Fast food frequently does not come with knives

and forks, making it "finger food." When silverware, cups and plates are necessary, they are

disposable. The characteristics of fast food, therefore, are that they require little time, offer a limited

selection, are finger food, and the silverware and plates are disposable. These characteristics readily

illustrate the difference from traditional dining culture. Many people equate fast foods with

convenience foods. This is incorrect since convenience products are often eaten at home. They require

active participation because they must be heated, stirred, baked, thawed, etc., and are supplemented

with other foods. There are three general categories of fast food businesses: Self-service restaurants

with a fast-food palette like McDonalds, Wendy's, Burger King, Pizza Hut, etc. Take-out (or take-

away) businesses that sell ready-to-eat foods and beverages "on the street corner" Hot-dog stands and

snack stands with counters or a pair of stand-up tables.

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THE START OF FAST FOOD CULTURE

The concept of fast food pops up during 1920s.The 1950s first witnessed their rapid proliferation.

Several factors that contributed to this explosive growth in 50’s were:

 America’s love affair with the automobiles.

 The construction of a major new highway system.

 The development of sub-urban communities.

 The baby boom subsequent to world war second. “Fast-food chains initially catered to

automobile owners in suburbia. The notion of "fast" food reflected American culture in

which speed and efficiency are highly prized.”

Major players in fast food are: 

 MCDONALDS 

 NIRULAS 

 PIZZA HUT 

 DOMINOS PIZZA

REASON FOR EMERGENCE

 GENDER ROLES: gender roles are now changing. Females have started working outside. So,

they have no time for there home and cooking food. Fast food is an easy way out because

these can be prepared easily.

 CONSUMER SOPHISTICATION AND CONFIDENCE: consumers are becoming more

sophisticated now. They do not want to prepare food and spend there time and energy in

house hold works. They are building there confidence more on ‘ready to eat and easy to

serve’ kind of foods

 PAUCITY OF TIME: people have no time for cooking. Because of emergence of working

women and also number of other entertainment items. Most of the time either people work

or want to enjoy with their family.

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 DOUBLE INCOME GROUP: emergence of double income group leads to increase in

disposable income. Now people have more disposable income so they can spend easily in

fast food and other activities.

 WORKING WOMEN: working women have no time for cooking, and if they have then also

they don’t want to cook. Because they want to come out of the traditionally defined gender

roles. They do not want to confine themselves to household work and upbringing of

children’s.

CHALLENGES FOR THE INDUSTRY 

 Environmental friendly products cost high: government is legislating laws in order to keep

check on the fast food industry and it is emphasizing more on the usage of bio-degradable

and environment friendly products. But associated with this issue is the problem that fast

food player faces - the cost associated with the environment friendly product. They cost

much higher then the normal products that companies uses for packaging or wrapping their

products.

 Balance between societal expectation and companies economic objectives: To balance a

society’s expectation regarding environment with the economic burden of protecting the

environment. Thus, one can see that one side pushes for higher standards and other side

tries to beat the standard back, thereby making it a arm wrestling and mind boggling

exercise. 

 Health related issues: obesity: ¾ Studies have shown that a typical fast food has very high

density and food with high density causes people to eat more then they usually need. ¾ Low

calories food: Emphasis is now more on low calorie food. In this line McDonald has a plan to

introduce all white meat chicken Mcnuugget with less fat and fewer calories.
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