Preliminary Report on Fast Food Industry in

Sargodha
CHAPTER NO #1
Introduction:-
Fast food consumption in Pakistan is a common in Pakistan and there are big
restaurants all over Pakistan. Non-obesity (healthy food) is replaced by the junk food that people
also consume more. JUNKFOOD! As seen all over the world this food is consumed all over the
world and is in global context. A mass produced food also called fast food used for commercial
resale and with the first responsibility of “SPEED OF SERVICE”. Fast food was mainly created
to accommodate large number of busy workers, travelers and workers that work for daily wage
who don’t have the time to sit and eat food. By mainly the service speed the main priority tells us
that customers having extremely less time should not face any sort in inconvenience by waiting
for their food. For that fast food become the multi-billion dollar industry. The fastest form of fast
food consists of already cooked meals that have only to be served to the customers Although a
wide range of products can be prepared firstly “FAST FOODS” is a word that is used for the
food that is already been cooked or it may be already frozen or it may be precooked or preheated.
It is served to the customer in pack form so that he may also be able to take it away. Fast foods
are also different for their main ability of service that is called DRIVE THRU. Fast foods began
with the first fish and chips shop in Britain in 1860’s. Drive-thru restaurants were mainly first
used by United States the concept of ready-made food is mainly connected with cities
development. In roman cities people can’t cook their own food especially single member family
so they prefer fast foods more as it is easy to buy as well as easy to dispose. Travelers such as
pilgrims were the most of the customers in the city. Fast food market in Pakistan is the 2 nd largest
markets in Pakistan. It makes up the 27% of the produced goods in Pakistan and constitutes
almost about 16% of employment. Pakistan makes up the world 8 th largest meets when about the
fast food is discussed. Pakistan’s fast food area is changing with the passage of time as the life
styles and way of living of people changes fast food restaurants are becoming more popular
among Pakistani people.

1.1 Pakistan Overview:

In Pakistan growth of fast food restaurants is increasing as it also contributed in the economy of
Pakistan. Main Pakistani restaurants representing fast foods are McDonalds, KFC, and PIZZA
HUT etc. Fast food restaurants mainly distribute food like pizza, burgers, shawarmas, fried
chicken, sandwiches, rolls and nuggets. Some restaurants also provide home delivery service and
can take away at home. There is the detail of most famous fast food restaurants in Pakistan

MCDONALDS: Most popular fast food restaurant in the country and which is present in almost
all the big cities of Pakistan. It is mainly known for its good taste and higher quality and very fast
service. It is also the biggest chain all over the world.

KFC: It is among all the oldest fast food restaurants in the country of Pakistan. KFC is a symbol
and designed for quality and taste. It is also having a good and great menu. And moreover it is
also the 2nd largest fast food chain in the world.

PIZZA HUT: It is the biggest and the most famous pizza restaurant in Pakistan which is
famous for its special taste and price. It is also known for its reasonable deals. It is also the most
famous restaurant all over the world.

HARDEES: It is another popular restaurant known for its taste and great menu. It is present in
Karachi, Lahore, Islamabad Faisalabad and Multan.

DOMINOS PIZZA: Most famous pizza restaurant all over the world but now it has also
emerged its importance in Pakistan.

BURGER KING: Burger King is the most famous and leading fast food restaurant in the world.
It is now new in Pakistan and hence it is not known by many people. It has branches in Multan
Karachi Lahore and Islamabad. There are so many companies that are working on fast food
restaurants and also many of those companies are coming from outside the country which means
that these are multinational in the world. Most of these multinational companies that have their
main heads in America such as KFC, There are also other many companies that are running their
fast food restaurants in Pakistan but have their headquarter in America such as Hardees.
International food chains are everywhere in this global world few of them may are not
contributing to the economy, rather they would take profit from country. Young people usually
prefer fast food restaurants as it is modern looking and as well as reasonable. Fast food chains
are really developed for the food that is cooked very rapidly and easily. It is also for the cheaper
products than other restaurants.

Lahore is becoming the central place of fast food restaurants. People of Pakistan are fond of
eating and prefer the new products that are reasonable and also good in taste. This is the major
reason that people outside the country are more willing to open their chain in Pakistan and most
of them have already opened their business in major cities of Pakistan. McDonald’s KFC and
Hardees are one of the most famous restaurants in Pakistan that are of multi-national companies.
One of the basic needs of life is to eat food. Some people live only to eat, although Pakistan is an
under developed country but its fast food corner is running across the world and is having 8 th
place in the world. In last few years many companies that are multinational have set their chains
in Pakistan and Pakistan is also focusing on buying the franchises of various food chains.
Statistically, the income that is not refundable has been doubled since 2010 and about 40% of
the money is spending on food products. Pakistan has one of the youngest populations in the
world and the growth in fast food industry along with other retail segments partially shows
the stabilizing economic backdrop. The market of fast food is expanding, people spend more
money on this, and they say that-We plan to open more outlets. There are big markets we
haven’t even entered yet. We have to make our franchises in other places also like Multan
and Peshawar as well as in Sargodha.

1.2 Sargodha Overview:

People of Sargodha are also very fond of eating fast food and trying new dishes that are good in
taste. The preferences of people vary according to their choices and according to their
expenditures. Some people in Sargodha see the good atmosphere of fast food restaurants rather
the other people focus on the health and nutrition of fast food products. Sargodha is a developing
city and is developing day by day. Now days many brands are also establishing in Sargodha and
that makes the city better and more developing. This study reveals the impact of fast food trends
in Sargodha. Fast food restaurants are increasing in Sargodha day by day as the people of
Sargodha prefer fast food more and they are fond of eating different variety of foods. Sargodha is
in the center of Punjab and Punjab province people are fonder of eating different types of foods.
Lahore is also very famous as considered according to the food and the restaurants that are
present. Sargodha is also relating to many other districts where also the fast food trend is
increasing.

LITERATURE REVIEW

This chapter is started with the research framework of our study. This also contains the
discussion of different variables that are the main focus of the study. It also consist of the studies
that are conducted before our research which tells us the main factors of the study on which the
research study is based on. Also in those early conducted studies the issues raised in those
studies are also discussed in this chapter. Based on the study that we have conducted we came to
know that we are analyzing about the variable costumer perception relating to fast food that is
having 5 dimensions that are ; Price, Quality, Serving time, Atmosphere, Health and hygiene.
We will discuss about all these dimensions in detail. All these dimensions tell us about the
factors that are reflecting the customer behavior relating to fast food.

FOOD QUALITY:

Now a days fast food trend is increasing day by day and is facing a highly competition in the
market. Food is a main product is plays the main role in the business and the markets (Liu and
Jang, 2009). Many people have done research on this and they have noticed that food quality is
the main reason that takes a restaurant to its success [(Schrader, Lawless et al. 2008)] . Many
studies have also told us that quality of food makes a great impact on a firm long term
performance as it gives goodwill and also gives a long term relationship with customer and a
long term profit and also the customers can make difference of the quality of the food that is
being provided in different restaurants [(Valentin, Chollet et al. 2012)]. And also for making a
competitive advantage and to make a separate identity in the fast food market so the managers of
the restaurants have to make the clear identification of the values that are most important on
which the customers prefer the restaurant (Bryhni et al., 2002). The definition of the food
quality is that it makes in a very subjective way (Moskowitz, 1995).

(Baig and Saeed, 2012): The quickly meals business, at the start conceived in Southern

California in the course of the 1940s, now not solely modified the ingesting habits of
Americans, however additionally these in quite a few different nations round the world, plus
Asian nations (Schlosser, 2001). Fast meals utilization elevated radically in Pakistan [(Baig and
Saeed 2012)]. Aspects having affects meals are; enchantment for ingesting out, socialization,
urbanization, style for university and college students, expediency for dual incomes in Pakistan,
and several different.
((Regmi and Dyck 2001) Globalization has influenced the manufacturing and processing
of meals plus its sales, arrangements and utilization and with developing relative value of snacks,
burgers, pizzas and fizzy drinks, human beings are snacking in a new way. Urbanization
is additionally one of the problems main to alter life and augmented profits and sovereignty
of younger people, as it had been noted that requirement for meals is associated with the life-
style of city areas . Utilization of western fashion meals extended [(Regmi and Dyck 2001)].
(Akman, Akan et al. 2010): In Turkey simply 15% of members stated eating the advocated every
day quantity of fruits and vegetables. Nearly one-third of contributors stated that
they pick junk meals or speedy meals an everyday snack, and the identical variety additionally
mentioned having speedy meals as soon as greater every day[(Akman, Akan et al. 2010)].
Goyal and Singh (2007): Estimate significance of a range of element affecting the preference of
quickly meals retailer with the aid of Indian younger consumer. They point out that
the younger Indian purchaser has ardour for traveling speedy meals shops for enjoyable and alter
nate however domestic meals is their first choice. They experience self-made meals is a great
deal higher than meals served at speedy meals out lets [(Goyal and Singh 2007)].
(Watson & Mufti 1995)&(Yahya,Zafar): Lots of human’s beings take pleasure in ingesting
speedy meals each day, though they may have in no way diagnosed about its horrible impact to
their health. One of the syndromes that motives from ingesting quickly meals is most
cancers (Serve et al., 1980). Shockingly, the predicted reasons of most cancers in the U.S. in
1993 tested that the purpose from weight-reduction plan due to the fact of excessive fats and
fried meals to create most cancers can be about 25 percent [(Yahya, Zafar et al. 2013)].
(McCracken and Brandt, 1987): There are many sorts of foodservice companies inclusive
of full-service eating places (traditional meals restaurants), quickly meals restaurants, hotels, and
retail stores, compete for consumer’s away-from-home expenditure. However full-service
(traditional meals restaurants) and speedy meals eating places have captured bulk of market
share. In this study, restaurant enterprise is viewed to be comprised of two classes’ i.e.
full provider (traditional food) eating places and quickly meals restaurants. Full-service
(traditional food) eating places are described as corporations with wait staff, have a tendency to
provide greater different menus and eating amenities. Fast meals enterprises have a tendency to
emphasize convenience. Consumer expenditure on normal meals eating places and quickly meals
eating places anticipated to develop over time. However, the large make bigger will possibly
show up at common meals eating places [(McCracken and Brandt 1987)] have additionally
proven the significance of a number of socio-demographic elements by using kind of eating-out
restaurant. These elements are family income, the cost of family time, family dimension and
composition, race and age.
Bryne, Capps, and Saha (1998): The view that traits away from full provider eating
places to quickly meals eating places can also have an impact on meals distribution
system, dietary consumption of households and demand of items at farm level. The rest of this
lookup is targeted on the influence of socio-demographic element that has an effect on food-
away-from-home with appreciate to the kind of restaurant i.e. full-service and quickly meal
restaurant. [(Byrne, Capps Jr et al. 1998)] describe FAFH consumption to be characterized as
three stage process. First, the choice is made whether or not to devour FAFH. Second,
the selection is made as to which kind of restaurant to dine out. Finally, the 1/3 stage refers to
expenditure stage or consumption degree decision. This find out about solely brings mild to 2 nd
stage of their though. The FAFH market is most accurately analyzed inside the theoretical
framework of family manufacturing principle of economics. This principle accommodates much
less restrictive assumption on fashions of patron conduct (McCracken and Brandt, 1987). The
selection to dine-out at a unique kind of restaurant is influenced by way of time and price range
constraints. Household manufacturing principle considers the function of time in the choice
procedure via incorporation the probability price of time into utility maximization method
(Becker 1965). Time is divided into three uses; market work time, family manufacturing time,
and entertainment time. This constraint recommended that time can be transformed into market
items and offerings via the usage of much less time in producing commodities in domestic and
greater time at market work. Dining at full provider restaurant is normally greater and costly in
each time and cash than at rapid carrier restaurant. However, eating at full-service restaurant is
regularly amusement past time alongside with meal consumption (McCracken and Brandt,
1987). On the different hand, eating at speedy carrier restaurant is frequently a time saving
activity, seeing that it present giant time saving relative to domestic meal education and eating at
full carrier eating places(Kara 1995).
Eom and Kim 2006): Analyzed the have an impact on of household traits on expenditure by
using ingesting event and market segment. Characteristics discovered to be necessary in this find
out about consist of the household's income, time constraints confronted with the aid
of the family manager,the family manager'sage, quantity of humans inthehousehold, training deg
ree of the family manager, the household's location of residence, and the household's race and
ethnicity. [(Eom and Kim 2006)]. A household's demand for meals away from domestic may
additionally additionally rely on the whole of its members. One motive is that tastes can
also trade as human beings age. For example, if the sensitivity of style buds diminishes with age,
older human beings can also demand ingredients with bolder flavors (Friddle et al., 2001). Also,
older and youthful humans can also have unique possibilities to socialize, so if they devour out
for one-of-a-kind reason.

Kivela (1999): According to Kivela (1999) ambiance elements are appear to be the vital
deciding preference variable for 25-34 and 12 months old. Aunty (1992), Bitner (1992) and
Finkelstein (1989) recommend this may be due to the fact these businesses have a tendency to
seem to be for ambiance or ecosystem kind eating places due to the fact they furnish appropriate
social surrounding for 25-34 year old. The preference determinant variable for 45-54 and 12
months historical are pleasant of food ambiance factors, alleviation level, status and immediate
dealing with complaints. Also center and excessive profit corporations have chosen remedy
degree as their desire determinant variable [(Kivela, Inbakaran et al. 1999)]. One of very broadly
conventional definitions of quick meals that it is the kind of meal that is frequently pre-prepared
and served quickly. Fast meal is comfort meals that can be organized and served in lesser time
and they are typically perceived as cheaper foods. Pakistan is a United States of
America of greater than one hundred fifty million consumers. It is world's ninth biggest country.
Restaurant enterprise in Pakistan is developing with quick pace. New eating places are being
opened day with the aid of day in spite of financial downfall in 2009. This is
the enterprise which extensively contributes to GDP of Pakistan. Although per capita profits in
Pakistan are now not excessive however a common Pakistani spends 42% of his profits on meals.
(Gain report 2000). The Western fashion speedy meals are turning into an increasing number
of famous in Pakistan. Most of the speedy meals franchises have been set up between 1995 and
1999. Most of the franchise eating places depend on direct import from their regional shops in
Asia and Middle East for a wide variety of enters items. Most of the quickly meals chains exist
in city areas of Pakistan, such as Karachi, Lahore, and Islamabad. Some of
the quick meals chains eating places which are efficaciously working in Pakistan are KFC, Pizza
Hut, McDonald's, and Mr. Burger.

By (Arif, Abash): (Fast foods and their impact on health) Study conducted in 2013 in this paper
he focused on Eat healthy live healthy. Due to urbanization and globalization people prefer
fancy food (fast food) in USA 300000 people were died due to obesity because intake of fast
food consumption is really high.in 2017 they studied Fast food chemicals like carbonyl oxide
sugar acetyl. They present calories chart, an individual consume 867 calories per serving. He
first time enhance the point of human mental stress due to methyglyoxal present in fast food’s
work on it and china also adopted this study for awareness of healthy fast food. They also drive
the measures to avoid the obesity they raise the slogans accept junk with health [(Arif, Absah et
al.)].

By vickram pathania and Enricco morreti: (Effect of fat food restraints on obesity and weight
gain). This study was conducted in 2015 for awareness of health issues regarding weight gain
and obesity in Mother to be ladies (pregnant women’s) they also target the school going students
specially the student of 9th standard they are quickly gaining their weights . They make survey
report in which they were able to report that 2 billion of ladies per year gain weight in baby
booming process after more intake of fast food which has awful impact on health. In schools
students gaining their weights by taking fast food at their brunch time therefore on the average
age (17-25) they face obesity n over weight issue and immune systems. They provide the
measures that veggies with fast food, fizz replace by juices [(Currie, DellaVigna et al. 2010)].

By (Ardaneh, Askari et al. 2014):Fast food consumption, diet quality and obesity among girls in
Asian girls (specifically in subcontinent). They conduct study on adults and girl’s obesity ratio
that 1.6 million of adult girls gain their weights per year by taking more quantity of fast food and
they have less interested in balance diet.in 10% of girls 4.1 % of adult girls are obsessed. They
are suffering with cardio vascular disease. They noticed that they eat more Conveniences food
which is saturated and produce more fatty acids in body but the use of immense energy is lesser
because don’t they really perform outdoor physical activities. They recommend that promote
healthy convenience food like unsaturated sausages, pizza dough, and more water intake.

By nur amalina: (Influences of nutrition information on fast food consumption among

undergraduates in Malaysia). They conduct study in 2017 on nutrition consumption through fast
food they take the sample of 197 students in which 83 students (under graduates) are addicted to
fast food which mean in 100% of students 74% of students are addicted and facing health and
muscular issues due to lower intake healthier food . in fast food they studied have less calcium,
less carbonate, and have less vitamins after all evaluation they categories fast food into 2 1 st is
fatty fast food 2nd is Nutritional fast food. They also recommend the specific time to sell fast food
in Malaysia. To prevent the adults from obesity diseases [(Vijayakumaran and Nur Amalina
2018)]

By karrin S. Hamrick: (Role of time in fast food and purchasing behavior in USA). This study
was conducted in 2013 -2015 they want the essence of fast food consumption in time and
purchasing behavior of individuals. In which they find the major problem that food away from
home because they do job e on mile distances therefore they prefer semi cooked or cooked fast
food instead of homemade healthy foods. They also observe the sleeping patterns of the peoples
which change the purchasing behavior of peoples. Fast food is convenient and cheaper therefore
on household side it saves times and more scrumptious then homemade food therefor
unfortunately home meals and snacks is replace by fast food which Impact on purchasing
behavior of individuals. After this kind of study they recommend more break time in offices has
to offer mini kitchens inside for workers for healthier and safer food [(Hamrick and Okrent
2014)].