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FAST FOOD
INDUSTRY IN
INDIA: KEY
PLAYERS AND
Het Thakkar - J015
Hitarth Chhajer - J016

MARKET
Apurv Upadhyay - J046
Manya Jha - J048
Gitansh Goyal - J054

DYNAMICS
Omisha Jamwal - J055
SUBWA
R O A R C C A P I TA L , 2 0 2 3 .
Why move to India?

Y
• Robust Consumer Market
• Stable Economy
• Trade encourages international investments

Entry Mode: Franchising and Licensing

The company promotes three types of franchises:
• Business, Education and Healthcare

• Travel and Entertainment

• Travel comfort
INNOVATION
W H AT M A K E S S U B WAY
AND
MODIFICATION
UNIQUE?

Customisation Eat Fresh Variety Core Product

Importance of Choice Brand Motto Good Quality Modification based on region

Paneer Tikka, Veggie Delight, Italian BMT, Mexican

BEST SELLERS Patty, Chicken Kofta, Chicken slice Egg and Cheese
IN INDIA:
S
O
U
R The Bread
• Initially, in-house
• Initially, in-house
• High tech Facilities send out frozen

C • High tech Facilities send out frozen dough-

include Lineage Logistics, ARYZTA, and

dough- include Lineage Logistics,

I
ARYZTA, and Southwest Baking.
Southwest Baking.
• Hygenic and automated process
• Hygenic and automated process

N The Vegetables

G • Local Market
• Own Farms
GOVERNME
 Increasing Numbers of Individuals Are
Opting for Nutritious Meals

Increasing Numbers of Individuals Are

Opting for Nutritious Meals

Increasing Numbers of Individuals Are

Opting for Nutritious Meals

GROWTH Increasing Numbers of Individuals Are

Opting for Nutritious Meals

PROSPE
“The foods you choose make
difference”
– You are what you eat
 KFC
Location Decision:
• High Market Potential

• Shift towards urbanization

Entry Mode:
• Franchise Model

• Low Financial Risk

• 11% of the total outlets are owned by KFC
 HIGHEST SELLING
PRODUCT RANGE

INNOVA
•TIONS
Chizza /Double down burger

• Rice bowls and Biryani bucket

 It's
SOURCING
Finger

STRATEGY
Lickin'
• Local suppliers of the operating country
Good
• Renowned 11 herbs and spices blend
• Warehousing and Inventory Management
• Data Analytics
 Modifications CChallenges
O M PA N Y
• Introduced vegetarian items for • Difficulty in product differentiation
Indian consumers • Changing consumer tastes
• Protests/Accusations
• Seperate cooking equipment for
• Vegetarian Population
vegetarian food • Affordability
• IItems inspired from Indian
flavors and ingredients
• adjusted the seasoning and
spiciness levels in its products
 Profitability GROWTH
PROSPECTUS
KFC’s revenue had been falling globally from 2016 to 2020.
Their revenue has again started growing post the pandemic • 480 outlets in 2021.
due to various factors like increased online ordering but the
• 780 outlets currently
company has been in profits
• Presence across more than 190 cities.
• Plan to expand into new cities
• Deepen presence in metros
• Create easier access for customers by
upgrading their digital assets.
 C O M PA N Y
STARB
Starbucks was founded in 1971 by Jerry Baldwin, Zev Siegl, and Gordon Bowker

UCKS
at Seattle's Pike Place Market. The company initially sold roasted whole coffee
beans and tea, but it expanded into brewing and selling coffee drinks in 1987. In
1992, Starbucks opened its first international store in Vancouver, Canada.
Starbucks is known for its high-quality coffee drinks, its friendly customer
service, and its comfortable and inviting atmosphere. The company's menu
includes a wide variety of coffee drinks, such as espresso drinks, lattes,
cappuccinos, and frappuccinos. Starbucks also offers a variety of food items, such
as pastries, sandwiches, and salads
 MODE OF
E N T RY
L O C AT I O N JOINT VENTURE

D E CLarge
• I S middle
I O Nclass
• Increased GDP
• Access to local
expertise
• Urbanisation
• Youth population • Lower risk
• Local regulation
compliance
• Government support
TOP 5
PROD
UCTS
Coffee Latte Cappuchino Espresso Americano Mocha

These drinks are popular with Indian consumers and also at a relatively high price. Starbucks is able to make a good profit from these drinks
because they use quality ingredients and have a strong brand.
 I N N O VAT I
SOURCING
ONS Menu
Localisation S TCoffee
R AT Beans
E G Y
Expansion
Collaboration

Milk and milk products

Store openings
Investment

Other foods

New Product
Main Focus
Launch
Manufacturing
MODIFI
• Localising the menu

CATION
• Usage of local ingredients

• Store design

GOVERNME
S The government of India supports foreign investment and the

NT SUPPORT
food and beverage industry. However, there is no specific

government subsidy program for Starbucks or other foreign

coffee chains in India. Starbucks has benefitted from the general

policies and initiatives of the indian government and government

support for the coffee industry

PROFIT IN
200m

LAST 5 YEARS
150m

100m

50m

0m
2018 2019 2020 2021 2022
CHALLENGES GROWTH
BROCHURE
Expansion

Rising costs
New targets
Real estate cost
New products and
Food safety issues services

Investments
Cultural differences

Tax disputes Partnering with local

business
Negative publicity
Increased demand

Rising disposable
income
Changing consumer
preferences
BURGE
R E S TA U R A N T B R A N D S
A S I A LT D .

R KING
Location Decision:
• Largest millennial population in the world (18 - 35 years)
• Surge in delivery through online ordering

Entry Mode:
Burger King, as a Master Franchisee, has exclusive rights to establish,

operate, and franchise Burger King-branded stores in India, leveraging its

overall expertise for localization and alignment with Indian consumer

preferences.
HIGHEST SELLING INNOV
PRODUCT RANGE ATIONS
Building Whopper Equity
Veg 4 special limited-edition Whopper flavors which are Boss Whopper,
Whopper Arabic Whopper, Masala Whopper , and Indie Tikka Whopper

Paneer
French
Royale Chicken Menu for South India
Fries
Burger Introduced a distinctive Chicken King menu for its customers in
Bengaluru, Hyderabad, and Chennai to increase their marketability

Fiery
Chicken King’s Collection
Chicken
Whopper A premium tier of iconic burgers. E.g., Paneer Royale, Hot N Cheezy,
Burger Fiery Chicken, and Chicken Tandoori, etc.
 SOURCING
• The company personally negotiates with and actively

STRATEGY
controls its ingredient and packaging suppliers.
• Most of the ingredients come from recognized regional
suppliers that adhere to Burger King's standards for
food quality

Have
• Burger King India has a comprehensive service level
it Your agreement set up with third-party distributor ColdEx to
Way
obtain ingredients and packaging materials from the
business approved vendors
MODIFIC
ATIONS
World's 1st 100% Vegetarian Burger King
Restaurant: By opening the first 100%
vegetarian, onion- and garlic-free Burger
King restaurant in the world, they have
strengthened their ties to India and Indian
consumers. To enter the Indian Market, they
replaced beef and hog with chicken, lamb
and fresh cheese delicacies to entice locals.
 CHALL
ENGES
Higher
Inflation

Infrastructure Intense
and logistics Competition

Changing
consumer
preferences
GROWTH
• 700 Restaurants by the end of FY 2026

PROSPECTU
• Increase sales by about 10% Same-Store Sales

Growth (SSSG) from where they are now.

S
• The company hopes to make roughly 67% of

gross profits in the fiscal year FY 2023–2024.

GOVERNMEN
T SUPPORT
No government support has been particularly given to Burger King in India.
PROFITABILITY IN
LAST 5 YEARS
Burger King India's net profit has
increased at a CAGR of around
13% during the last 5 years,
despite the ups and downs that
the company has faced over a
period of time.
 MCDON
ALD’S
Location Decision
• McDonald's entry into the Indian market in 1996.

• Strategic partnership with Connaught Plaza Restaurants Private Limited (CPRL) and

Hardcastle Restaurants Private Limited (HRPL).

• Rationale: Emerging middle class, open economy, and untapped market.

Entry Mode
• McDonald's franchise business model.
• Standardized business model, efficient supply chain, and economies of scale.
• Flexibility for adapting to local tastes.
 HIGHEST SELLING
PRODUCT RANGE

INNOVA
TIONS
• Early entry and focus on vegetarian offerings.

• Continuous innovation with limited edition items.

MODIFICA SOURCING
TIONS
• Adaptation to Indian tastes
and preferences.
STRATEGY
• 100% outsourced supply chain
with strict monitoring.
• E-procurement system for
• McCafe introduction in select
franchisees.
cities.
• Over 96% of products sourced
from Indian suppliers.
GOVERNMENT
• LPG policies in 1991 and GST implementation.

SUPPORT
• Positive impact on McDonald's operations.

CHALLENG
• Initial constraints and challenges.

ES
• Adaptation and acceptance in the Indian market.

PROFITABI
• Westlife Foodworld Ltd's financial performance.

LITY
• Impressive sales and profit growth.
• 17% average operating margin.
 Strategi
es to
increase
footfalls
GROWTH
, expand
the
menu,
and add
PROSPECTS
Expansion
plans in
smaller cities.
Future target:
100 Indian
cities
more
location
s.
'Experience
MFY (Made
of the Future' Sustainability
for You) food
(EOTF) efforts and
preparation
concept online sales.
platform.
restaurants.
DOMI
JUBILIANT WORKS

NOS
Intro
Domino's Pizza and Shyam Sunder Bhartia and Hari Bhartia of the Jubilant Bhartia Group engaged into a
master franchise agreement. Incorporated on March 16, 1995, Domino's Pizza India Private Ltd. started
operations in 1996. In New Delhi, the firm launched the first Domino's Pizza location in India in 1996. In
2009, the business rebranded itself as Jubilant FoodWorks Ltd.

Revenue
Pizza sales account for the majority of Domino's revenue, making them the company's main source of
income. Domino's also receives a sizable portion of its earnings from franchise fees and royalties from

its franchisee partners. The overall revenue earned by Domino's Pizza in 2018 was $3.34 billion,
surpassing the money generated by the business in 2017.
TECHNOLOGICAL
Agrowing
D VA N C E M E N T
Domino's has introduced an online ordering system and provides clients with multiple digital ordering options in response to the

demand from its clientele. Dominos' 30-minute delivery guarantee—or its free—changed the game and drew a lot of customers

to their online orders. In 1998, Domino's debuted HeatWave hot bags to maintain pizzas at a consistent temperature throughout regular

delivery. Each hot bag has a patented heating device inside of it at first. mechanism that was charged by connecting it into the store's

electrical outlet.

Modifications in product/services -:
A menu was adapted and taste adjustments were made, such as adding chilly pizzas and

tacos, which are quite popular in a market like India where the majority of people only eat
chicken and are vegetarians. Given that Indian consumers are price sensitive, the business
spent eight months scrutinizing every aspect of its offerings, from toppings to flour, in an
effort to cut costs and appeal to both Indian traditionalists and frugal diners. It then
unveiled "Pizza Mania," a 99-rupee pizza that can satisfy one's hunger and takes just 2.5
minutes to prepare and 6 more to bake.
AW MATERIAL AND GETTING MANUFACTURING
DONE IN MARKET
• In India, Dominos used a hub-and-spoke distribution system. The retail stores are the spokes, and

the four commissaries, manufacturing kitchens, and warehouses (Regional Centralized Facilities) in

Delhi, Bangalore, Kolkata, and Mumbai are the hubs.

• Several steps have been taken by Domino's Pizza to guarantee that vehicles are used to their utmost

potential. For instance, Domino's Pizza gets the best wheat at the lowest cost from Jalandhar.

Jalandhar wheat is transported to the closest commissary in Delhi, where it is used to make dough.

Instead of sending the empty truck back to Jalandhar, Domino's found that Chandigarh, a city on the

road, has a population that is cosmopolitan and could be a potential market for their products.

Domino's launched a location in Chandigarh as a result. Because the cost of product delivery was

modest, the entrance fee was incredibly inexpensive.

 PROFIT Government Support

• The LPG policies of 1991, which allowed foreign investment

ABILIT
500
into the Indian economy, were the primary government
stimulus.
400
• Additionally, after the GST was implemented, fast food is

Y
now more affordable in India due to lower taxes and a
300
uniform tax bracket, which was previously not the case across

200 all states.

• However, no significant changes have been made since then

100 that could have an impact on Dominos either way.

0
201 2020 202 2022 2023
9 1
CHALLENGES AND FUTURE PLANS
CHALLENGES
• There is fierce competition among Indian fast-food brands to capture market
share, with both domestic and foreign firms participating. Traditional Indian
restaurants and other pizza franchises present fierce competition for Domino's.
• The logistical problem of ensuring timely delivery in India arises from the
country's traffic congestion and occasionally unpredictable road conditions.
Therefore, they frequently find that their pledge of a 30-minute guaranteed
delivery backfires.
• • India's regulatory landscape can be complicated, with several states and areas
having their own set of laws governing things like licensing, food safety, and
commercial operations. For international chains such as Domino's, complying
with these standards might provide difficulties.
FUTURE PROSPECTS
• Opening more locations nationwide, bringing its total number of
locations to 3,000. Currently, the business operates 1,701 Domino's
locations in 371 cities.
• In order to expand their network and ensure timely pizza delivery,
they want to operate several locations in the same city at the same
time. According to Jubiliant, The decision is being made in order
• to streamline and optimize in-store processes, upgrade technology,
improve operational efficiencies, and open more stores nearby.
Quicker delivery of pizzas will significantly grow sales volumes,
increase consumer retention as well as frequency of orders and
make labour cost more efficient, executives at Domino’s said.
THAN