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Mc-Donald Vs Dominos - Comparative Analysis

Determinant Of Choosing Fast Food Restaurant And Their Service Quality

BY:- ANUJ CHAUHAN (FINANCE + MARKETING)

ITM UNIVERSITY, SITHOLI, GWALIOR
http://www.google.co.in/imgres?hl=en&safe=off&sa=X&tbo=d&biw=1192&bih=535&tbm=isch&tbnid=CugwA7gmhr8FcM:&imgrefurl=http://themoneywhisperer20.blogspot.com/2012/10/stock-market-correction-anyone.html&docid=ONBRCj1PWT4MqM&imgurl=http://4.bp.blogspot.com/-aHaNsyxxFVY/UIDNKzAwBBI/AAAAAAAACsE/QBcgmPkpPPM/s1600/mcdonalds.gif&w=913&h=875&ei=-uPKUK2dBtGJrAeh14HIDw&zoom=1&iact=hc&vpx=161&vpy=202&dur=1153&hovh=220&hovw=229&tx=88&ty=134&sig=118297129955959732694&page=1&tbnh=126&tbnw=132&start=0&ndsp=18&ved=1t:429,r:7,s:0,i:136http://www.google.co.in/imgres?hl=en&safe=off&sa=X&tbo=d&biw=1192&bih=535&tbm=isch&tbnid=CugwA7gmhr8FcM:&imgrefurl=http://themoneywhisperer20.blogspot.com/2012/10/stock-market-correction-anyone.html&docid=ONBRCj1PWT4MqM&imgurl=http://4.bp.blogspot.com/-aHaNsyxxFVY/UIDNKzAwBBI/AAAAAAAACsE/QBcgmPkpPPM/s1600/mcdonalds.gif&w=913&h=875&ei=-uPKUK2dBtGJrAeh14HIDw&zoom=1&iact=hc&vpx=161&vpy=202&dur=1153&hovh=220&hovw=229&tx=88&ty=134&sig=118297129955959732694&page=1&tbnh=126&tbnw=132&start=0&ndsp=18&ved=1t:429,r:7,s:0,i:136http://www.google.co.in/imgres?hl=en&safe=off&sa=X&tbo=d&biw=1192&bih=535&tbm=isch&tbnid=CugwA7gmhr8FcM:&imgrefurl=http://themoneywhisperer20.blogspot.com/2012/10/stock-market-correction-anyone.html&docid=ONBRCj1PWT4MqM&imgurl=http://4.bp.blogspot.com/-aHaNsyxxFVY/UIDNKzAwBBI/AAAAAAAACsE/QBcgmPkpPPM/s1600/mcdonalds.gif&w=913&h=875&ei=-uPKUK2dBtGJrAeh14HIDw&zoom=1&iact=hc&vpx=161&vpy=202&dur=1153&hovh=220&hovw=229&tx=88&ty=134&sig=118297129955959732694&page=1&tbnh=126&tbnw=132&start=0&ndsp=18&ved=1t:429,r:7,s:0,i:136


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TABLE OF CONTENT

Synopsis

1.Industry Profile2.Literature review3.Need for study4.Research methodology5.

Analysis of study6.Finding and suggestions7.Conclusion

8.

Appendices9.Bibliography


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Summary:-

In this comparative analysis of two fast food restaurants regarding theirservice quality.

In this, there are pair of determinant factors of Dominos pizza and Mc-Donald which identifies the service quality regarding their customers and how theyaffect customer satisfaction.

Both are famous for their services as it explained in the abstract, it includesthe service delivered to their customers and what they perceived before gettingthese services in terms of their service quality. There are two stages are forms, oneof them related to their perception and another are totally related to expectations,which is observed by these fast food restaurants after service delivered to theircustomers, and related too their satisfaction level of customers.

INDUSTRY PROFILE:- FAST FOOD RESTAURANT

A fast food restaurant, also known as a quick service restaurant (QSR)within the industryitself, is a specific type ofrestaurant characterized both by itsfast food cuisine and byminimaltable service.Food served in fast food restaurants typically caters to a "meat-sweet diet"and is offered from a limited menu; is cooked in bulk in advance and kept hot; is finished andpackaged to order; and is usually available ready to take away, though seating may be provided.Fast food restaurants are usually part of arestaurant chain or franchise operation, whichprovisions standardized ingredients and/or partially prepared foods and supplies to each

restaurant through controlled supply channels. The term "fast food" was recognized inadictionarybyMerriamWebster in 1951.

Arguably the first fast food restaurants originated in theUnited States withA&W in 1916andWhite Castle in 1921.Today, American-founded fast food chains suchasMcDonald's andKFC aremultinational corporations with outlets across the globe.
http://en.wikipedia.org/wiki/Restauranthttp://en.wikipedia.org/wiki/Fast_foodhttp://en.wikipedia.org/wiki/Foodservice#Table_servicehttp://en.wikipedia.org/wiki/Western_pattern_diethttp://en.wikipedia.org/wiki/Chain_store#Restaurant_chainshttp://en.wikipedia.org/wiki/Dictionaryhttp://en.wikipedia.org/wiki/Merriam%E2%80%93Websterhttp://en.wikipedia.org/wiki/Merriam%E2%80%93Websterhttp://en.wikipedia.org/wiki/Merriam%E2%80%93Websterhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/A%26W_Restaurantshttp://en.wikipedia.org/wiki/White_Castle_(restaurant)http://en.wikipedia.org/wiki/McDonald%27shttp://en.wikipedia.org/wiki/KFChttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/KFChttp://en.wikipedia.org/wiki/McDonald%27shttp://en.wikipedia.org/wiki/White_Castle_(restaurant)http://en.wikipedia.org/wiki/A%26W_Restaurantshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Merriam%E2%80%93Websterhttp://en.wikipedia.org/wiki/Dictionaryhttp://en.wikipedia.org/wiki/Chain_store#Restaurant_chainshttp://en.wikipedia.org/wiki/Western_pattern_diethttp://en.wikipedia.org/wiki/Foodservice#Table_servicehttp://en.wikipedia.org/wiki/Fast_foodhttp://en.wikipedia.org/wiki/Restaurant


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Innovation Timeline:-

1872 Walter Scott of Providence, RI outfitted a horse-drawn lunch wagon with a

simple kitchen, bringing hot dinners to workers1902 FirstHorn & Hardart Automat opened in Philadelphia

1912 Horn & Hardart opens a secondAutomat in Manhattan

1916 Walter Anderson built the firstWhite Castle in Wichita, KS in 1916,introducing the limited menu, high volume, low cost, high speed hamburgerrestaurant

1919 A&W Root Beer took its product out of the soda fountain and into a roadsidestand

1921 A&W Root Beerbegan franchising its syrup1921 White Castle opens its first restaurant

1926 Maid-Rite opened its first restaurant inMuscatine, Iowa.

1930s Howard Johnson'spioneered the concept of franchising restaurants, formallystandardizing menus, signage, and advertising

1948 In-N-Out Burgerbeginsdrive-through service utilizing call-box technology

1967McDonald's opens its first restaurants outside the U.S.

1971 McDonald'sbegins serving breakfast, test-marketing the EggMcMuffin in theU.S.

1971 The firstStarbucks store opens in Seattle, Washington inPike Place Market tosell high-quality coffee beans and equipment

1980 7-Eleven introduces the 32-US-fluid-ounce (950 ml)Big Gulp

1981 Arby's offers nutritional7-Eleven introduces the 32-US-fluid-ounceinformation

1987 Howard Schultz leads purchase of the Starbucks brand from its founders (whoadopted the namePeet's)and begins offering coffee drinks modeled after those

sold in Italian coffee bars1994 McDonald'sbegins"supersizing" Extra Value Meals

1994 Arctic Circle becomes the first fast food restaurant to sellAngusbeef exclusively.

1994 Arby's is first fast food restaurant to implement a no-smoking policy

2002 McDonald's cuts back on the amount oftrans fatby 48 percent onFrench fries

2006 Arby'sbegins elimination oftrans fat oils inFrench fries
http://en.wikipedia.org/wiki/Horn_%26_Hardarthttp://en.wikipedia.org/wiki/Automathttp://en.wikipedia.org/wiki/White_Castle_(restaurant)http://en.wikipedia.org/wiki/A%26W_Root_Beerhttp://en.wikipedia.org/wiki/A%26W_Root_Beerhttp://en.wikipedia.org/wiki/White_Castle_(restaurant)http://en.wikipedia.org/wiki/Maid-Ritehttp://en.wikipedia.org/wiki/Muscatine,_Iowahttp://en.wikipedia.org/wiki/Howard_Johnson%27shttp://en.wikipedia.org/wiki/In-N-Out_Burgerhttp://en.wikipedia.org/wiki/Drive-throughhttp://en.wikipedia.org/wiki/McDonald%27shttp://en.wikipedia.org/wiki/McDonald%27shttp://en.wikipedia.org/wiki/McMuffinhttp://en.wikipedia.org/wiki/Starbuckshttp://en.wikipedia.org/wiki/Pike_Place_Markethttp://en.wikipedia.org/wiki/7-Elevenhttp://en.wikipedia.org/wiki/7-Eleven#Products_and_serviceshttp://en.wikipedia.org/wiki/Arby%27shttp://en.wikipedia.org/wiki/7-Elevenhttp://en.wikipedia.org/wiki/Howard_Schultzhttp://en.wikipedia.org/wiki/Peet%27s_Coffee_%26_Teahttp://en.wikipedia.org/wiki/McDonald%27shttp://en.wikipedia.org/wiki/Supersizehttp://en.wikipedia.org/wiki/Angus_cattlehttp://en.wikipedia.org/wiki/Angus_cattlehttp://en.wikipedia.org/wiki/Arby%27shttp://en.wikipedia.org/wiki/McDonald%27shttp://en.wikipedia.org/wiki/Trans_fathttp://en.wikipedia.org/wiki/French_frieshttp://en.wikipedia.org/wiki/Arby%27shttp://en.wikipedia.org/wiki/Trans_fathttp://en.wikipedia.org/wiki/French_frieshttp://en.wikipedia.org/wiki/French_frieshttp://en.wikipedia.org/wiki/Trans_fathttp://en.wikipedia.org/wiki/Arby%27shttp://en.wikipedia.org/wiki/French_frieshttp://en.wikipedia.org/wiki/Trans_fathttp://en.wikipedia.org/wiki/McDonald%27shttp://en.wikipedia.org/wiki/Arby%27shttp://en.wikipedia.org/wiki/Angus_cattlehttp://en.wikipedia.org/wiki/Angus_cattlehttp://en.wikipedia.org/wiki/Supersizehttp://en.wikipedia.org/wiki/McDonald%27shttp://en.wikipedia.org/wiki/Peet%27s_Coffee_%26_Teahttp://en.wikipedia.org/wiki/Howard_Schultzhttp://en.wikipedia.org/wiki/7-Elevenhttp://en.wikipedia.org/wiki/Arby%27shttp://en.wikipedia.org/wiki/7-Eleven#Products_and_serviceshttp://en.wikipedia.org/wiki/7-Elevenhttp://en.wikipedia.org/wiki/Pike_Place_Markethttp://en.wikipedia.org/wiki/Starbuckshttp://en.wikipedia.org/wiki/McMuffinhttp://en.wikipedia.org/wiki/McDonald%27shttp://en.wikipedia.org/wiki/McDonald%27shttp://en.wikipedia.org/wiki/Drive-throughhttp://en.wikipedia.org/wiki/In-N-Out_Burgerhttp://en.wikipedia.org/wiki/Howard_Johnson%27shttp://en.wikipedia.org/wiki/Muscatine,_Iowahttp://en.wikipedia.org/wiki/Maid-Ritehttp://en.wikipedia.org/wiki/White_Castle_(restaurant)http://en.wikipedia.org/wiki/A%26W_Root_Beerhttp://en.wikipedia.org/wiki/A%26W_Root_Beerhttp://en.wikipedia.org/wiki/White_Castle_(restaurant)http://en.wikipedia.org/wiki/Automathttp://en.wikipedia.org/wiki/Horn_%26_Hardart


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Indian Fast food Industry

With rapidly growing middle class population and changing lifestyle, India is blessed with one of thefastest growing fast food markets of the world. The Indian fast food market is growing at the rate of30-35% per annum. Almost all big fast food brands of the world have succeeded in making theirpresence felt in the country and most of them are posting appreciable growth.

Consequently, all the popular fast food chains have chalked out massive plans for expanding theirbusiness and presence throughout the country. Moreover, foreign fast food chains are aggressivelyincreasing their presence in the country. For instance, Dominos has planned to open 60-65 outletsevery year for the next three years (2010-2012) while Yum Brands Inc is also preparing for massiveexpansion across the country with plans to open 1000 fast food outlets by 2015.

According to Indian Fast Food Market Analysis, although the market has witnessed a robust growthin the past couple of years, it remains largely underpenetrated and concentrated into metropolitancities. However, there is large room for growth in tier-II cities and tier-III cities, which are mostly

untapped. Therefore, the future of Indian fast food industry lies in masses that live in tier-II and tier-IIIcities.

The report provides extensive research and objective analysis on the fast expanding Indian fast foodmarket. The report analyzes all the vital industry trends and possible growth areas for futureexpansion. It also analyzes important driving forces in detail, which will help clients to understand themarket better.

Moreover, we have also identified the important players operating in the sector and have made aseparate chapter which talks about their business expansion plans in detail. Most importantly, thereport also features forecast on fast food sales in the country. The forecast is based on the

correlation between past market growth and growth in base drivers such as growth in middleclass, urbanization, cultural shift and lifestyle changes.

McDonald's India ProfileA Locally Owned Company:

McDonald's is the world's leading food service retailer with more than 33,000 restaurantsin 118 countries serving more than 67 million customers each day. In India, McDonald's has twoIndian entrepreneurs: Amit Jatia, Vice Chairman, Hardcastle Restaurants Pvt. Ltd, which hasbeen awarded a Development Licensee status by McDonald's Corporation, U.S.A, spearheadsMcDonald's operations in West & South India, while McDonald's restaurants in North & EastIndia is managed by Vikram Bakshi's Connaught Plaza Restaurants Private Limited, which is

still a Joint Venture with McDonald's Corporation.For Hardcastle Restaurants Pvt. Ltd ('HRPL'), the transition to a Development Licenseeimplies a higher level of commitment by McDonald's Corporation as it enhances its trust in theLocal partner. McDonald's ensures that the evolution to a Development Licensee takes placeonly after the financial strength, viability, profitability and long - term sustainability of thebusiness is assured.Celebrating over 15 years of leadership in food service retailing in India, McDonald's Indianow has a network of over 250 restaurants across the country. McDonald's India is a leader in


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the food retail space, with a presence of more than250 restaurants serving more than 6.5 lakhcustomers daily in India.McDonald's India and HRPL in particular has anaggressive expansion plan - including market

expansion, new customer outreach formats andmenu expansion. With HRPL becoming aDevelopment Licensee in the year 2010, there arestrong and robust commitments to investments,expansion and growth. By 2014, HRPL plans todouble the number of restaurants it currently has.HRPL is expanding its reach by expanding theportfolio and access points with formats like fromkiosks, drive thrus, web-delivery and petrolpumps in addition to the restaurants. In 2012,HRPL plans to open another 35-40 McDonald's

restaurants in West and South India.An Employer of Opportunity:McDonald's India is an employer of

opportunity, providing quality employment andlong-term careers to professionals across thecountry. The average McDonald's restaurantemploys 40-60 people from crew to restaurantmanager. McDonald's invests in its employees,leveraging world class-training inputs to createambassadors of the brand and creating food service professionals with global outlook. The brandcurrently has over 10,000 employees in India.

Respect for Indian Customs and Culture:McDonald's worldwide is well known for the high degree of respect for the local culture of eachmarket it operates in. In line with this respect for local culture, India is the first country in theworld where McDonald's does not offer any beef or pork items. McDonald's has developed amenu especially for India with vegetarian selections to suit the Indian palate, and has also re-engineered its operations to address the special requirements of vegetarians. Special care is takento ensure that all vegetable products are prepared separately, using dedicated equipment andutensils. This separation of vegetarian and non-vegetarian food products is maintainedthroughout the various stages of procurement, cooking and serving. So much so that themayonnaise and soft serves are also 100% vegetarian, and McDonald's uses only vegetable oil asa cooking medium in India.

Quality, Service, Cleanliness & Value (QSC & V):McDonald's is driven by the philosophy of Quality, Service, and Cleanliness &Value for Money. This translates into a commitment to provide customers highquality products, served quickly with a smile, in a clean and pleasant environmentat an affordable price. This effectively means that the McDonald's menu is pricedat a value that the largest segment of the Indian consumers can afford, while at the


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same time ensuring that quality is not sacrificed for value - rather, McDonald'sleverages economies to minimize costs while maximizing value to customers.

McDonald's a Global Phenomenon

Formed in 1954, McDonald's brand is the leading global foodservice retailer with

more than 30,000 local restaurants serving nearly 50 million people in more than120 countries each day. Our rich history began with the founder Ray Kroc's visionand his commitment, transformed in our talented executives, and will keep theshine on McDonald's arches for years to come.

McDonald's Corporation is the world's largest chain of hamburger fast foodrestaurants, serving around 68 million customers daily in 119 countries.Headquartered in the United States, the company began in 1940 as a barbecuerestaurant operated by Richard and Maurice McDonald;in 1948 they reorganizedtheir business as a hamburger stand usingproduction lineprinciples. BusinessmanRay Kroc joined the company as a franchise agent in 1955. He subsequently

purchased the chain from the McDonald brothers and oversaw its worldwidegrowth.

A McDonald's restaurant is operated by either a franchisee, an affiliate, or thecorporation itself. The corporation's revenues come from the rent, royalties andfees paid by the franchisees, as well as sales in company-operated restaurants.McDonald's revenues grew 27 percent over the three years ending in 2007 to $22.8

billion, and 9 percent growth in operating income to $3.9 billion.

McDonald's primarily sells hamburgers, cheeseburgers, chicken, french fries,breakfast items, soft drinks, milkshakes and desserts. In response to changingconsumer tastes, the company has expanded its menu to include salads, wraps,smoothies and fruit.
http://en.wikipedia.org/wiki/Hamburgerhttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Richard_and_Maurice_McDonaldhttp://en.wikipedia.org/wiki/Production_linehttp://en.wikipedia.org/wiki/Ray_Krochttp://en.wikipedia.org/wiki/Franchiseehttp://en.wikipedia.org/wiki/Affiliate_(commerce)http://en.wikipedia.org/wiki/Hamburgerhttp://en.wikipedia.org/wiki/Cheeseburgerhttp://en.wikipedia.org/wiki/Chicken_(food)http://en.wikipedia.org/wiki/French_frieshttp://en.wikipedia.org/wiki/Breakfasthttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Milkshakehttp://en.wikipedia.org/wiki/Desserthttp://en.wikipedia.org/wiki/Saladhttp://en.wikipedia.org/wiki/Wrap_(food)http://en.wikipedia.org/wiki/Smoothieshttp://en.wikipedia.org/wiki/Smoothieshttp://en.wikipedia.org/wiki/Wrap_(food)http://en.wikipedia.org/wiki/Saladhttp://en.wikipedia.org/wiki/Desserthttp://en.wikipedia.org/wiki/Milkshakehttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Breakfasthttp://en.wikipedia.org/wiki/French_frieshttp://en.wikipedia.org/wiki/Chicken_(food)http://en.wikipedia.org/wiki/Cheeseburgerhttp://en.wikipedia.org/wiki/Hamburgerhttp://en.wikipedia.org/wiki/Affiliate_(commerce)http://en.wikipedia.org/wiki/Franchiseehttp://en.wikipedia.org/wiki/Ray_Krochttp://en.wikipedia.org/wiki/Production_linehttp://en.wikipedia.org/wiki/Richard_and_Maurice_McDonaldhttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Hamburger


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Quick Facts bout McDonalds

1.McDonald's was started as a drive-in restaurant by two brothers,

Richard

andMaurice McDonald

in California, US in the year1937.

2.By mid-1950s, the restaurant's revenues had reached $350,000.

3.Ray Kroc, distributor for milkshake machines, expressed interest

in the business, and he finalized a deal for franchising with the

McDonald brothers in 1954.

4.

He established a franchising company, the McDonaldSystem Inc.

and appointed franchisees.

5. In 1961, he bought out the McDonald brothers' share for $2.7

million and changed the name of the company to McDonald s

Corporation. In 1965, McDonald's went public.

McDonalds is a global foodservice retailer with more than 32,000 local

restaurants in 117 countries, serving more than 58 million customers each day.

In simpler terms, were a global brand of local restaurants. At the heart of

McDonalds operations is a unique business model comprised of the Company,

our suppliers and franchisees (also called owner/operators). Often referred to as a

three-legged stool, all three parts of this business model are essential toMcDonalds success around the world.


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Domino's Pizza is an international pizza deliverycorporation headquartered in Ann Arbor Township, Michigan,United States, nearAnn Arbor.[Founded in 1960, Domino's is the

second-largest pizza chain in the United States (after Pizza Hut)and has more than 10,000 corporate andfranchised stores in 70 countries and all 50U.S. states. Domino's Pizza was sold to Bain Capital in 1998 and went public in2004.Domino's serves Coca-Cola products, and as of January 2012 is the only "BigFour" pizza chain to do so. RivalsPapa John's Pizza andLittle Caesars sold Coca-Cola in the past (Pizza Hut, due to its previous ownership by PepsiCo, has alifetime contract to sell Pepsiproducts.), but both switched to Pepsi in 2012 and2007, respectively. Domino's Pizza in Mexico switched to Pepsi in November2012.

The Beginning

The Domino's franchise started out as just one tiny store. It was purchased

and started by brothers Tom and James Monaghan in 1960. At that time, the

restaurant was known, not as "Domino's," but as "Dominick's Pizza" and was

located in Ypsilanti, MI. The two brothers only worked as a team until 1961,when James traded his half of the business to his brother for the price of a

Volkswagen Beetle. In 1965, the name "Dominick's" was traded for "Domino's."

Growth

The second Domino's pizza store was opened in Ypsilanti in 1967, officially

starting the Domino's franchise. Since that time, the chain has experienced

record-breaking growth: By 1978, 200 Domino's restaurants had been opened,

and by 1983, the chain boasted 1,000 openings as well as restaurants in Australia

and Canada. By 1985, Domino's was the fastest-growing chain in the United

States, with additional locations in England and Japan.
http://en.wikipedia.org/wiki/Pizza_deliveryhttp://en.wikipedia.org/wiki/Ann_Arbor_Township,_Michiganhttp://en.wikipedia.org/wiki/Ann_Arbor,_Michiganhttp://en.wikipedia.org/wiki/Pizza_Huthttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Bain_Capitalhttp://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/Papa_John%27s_Pizzahttp://en.wikipedia.org/wiki/Little_Caesarshttp://en.wikipedia.org/wiki/Pizza_Huthttp://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/Pizza_Huthttp://en.wikipedia.org/wiki/Little_Caesarshttp://en.wikipedia.org/wiki/Papa_John%27s_Pizzahttp://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/Bain_Capitalhttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Pizza_Huthttp://en.wikipedia.org/wiki/Ann_Arbor,_Michiganhttp://en.wikipedia.org/wiki/Ann_Arbor_Township,_Michiganhttp://en.wikipedia.org/wiki/Pizza_delivery


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Obstacles

As hugely successful as the Domino's pizza franchise has been, the chain's

history has been riddled with obstacles and troubles. In 1968, the company's

headquarters were destroyed in a fire. In 1975, Domino's entered, and eventually

won, a 5-year legal battle over trademark infringement claims posed by Domino

Sugar. In 1989, a man named Kenneth Noid created a hostage situation at an

Atlanta restaurant, angrily believing that the company's "Avoid the Noid" ad

campaign (featuring a pizza-stealing, stop-motion animation character known as

"The Noid") to be a personal insult. Luckily, Noid surrendered to police without

harming his hostages, though he did force them to make pizza for him.

Delivery

From the early days of the company, Domino's has had a delivery-focused

business model. This approach helped the business gain a serious leg up during

the late 1960s when the store's East Lansing location gained massive popularity

with Michigan State University students wanting convenient food optionswithout having to have their own cars. The delivery-heavy model prompted the

restaurant's famous "30 minutes or it's free" guarantee. However, this guarantee

was rescinded in 1993 as a result of complaints about reckless driving and

accidents caused by delivery drivers in a rush to meet the requirements.

Today

Nowadays, Domino's pizza continues to grow, with over 8,000 store

locations worldwide. The company has continued to develop its business model

by featuring many non-pizza menu items and incorporating new customer


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service options such as online order. Domino's has also been listed in

Entrepreneur magazine's list of the top 10 best franchise opportunities.

IN INDI

Dominos pizza opened its first store in India in January 1996, at New Delhi.

Today Dominos pizza India has grown into a country wide network of more than

300 stores with a team of 9000 people. According to India retail report 2009,

dominos is the largest Pizza chain in India.

LITERATURE REVIEW:-

According to (1982), service quality is generally viewed as the output of theservice delivery system, especially in the case of pure service systems. Moreover,service quality is linked to consumer satisfaction. Although there is no consensusin the research community about the direction of causality relating quality andsatisfaction, the common assumption is that service quality leads to satisfiedcustomers (1994; 1990, 1989).

For example, customers leaving arestaurant orhotel are asked if they weresatisfied with the service they received. If they answer "no," we tend to assumeservice was poor. Direct service providers, such as waitresses, also note that attimes the best service efforts are criticized because the customer's perceptions ofthe service are clouded by being in a bad mood or having a disagreement withsomeone just before arriving at the restaurant.These service providers recognizethat in practice the influence of service quality on customer satisfaction is affected

by other factors, one of which is the customers themselves.In addition, (1989) and (1983) defined both service quality and customer

satisfaction as matching the expectation of the service with that which is actually

experienced by the customer. Therefore, when customers' experiences meet orexceed their expectations, the service is viewed as a quality service and therecipients are typically satisfied customers. On the other hand, when the serviceexperienced by consumers is less than their expectations, the perception of servicequality is diminished and customers are generally not satisfied.


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Almost half of our food expenditure today is on food prepared away from home. And we all

know that food prepared away from home is far too often high in calories, unhealthy fat, and

sodium. So why are we eating out so much? The top three reasons for choosing fast foods are:

1. Rapid service

2. Convenient location

3. Good-tasting food

Researchers from Texas A&M University recently investigated whether additional explanations

for eating away from home exist. In particular, they looked at factors like: parental work

(whether one or both parents were working), family meal rituals (like who eats dinner together

and whether family members believe it is important to eat together), parenting style, and

mothers' worries and concerns regarding their children's weight3. Researchers spoke with 312

families (parents and children ages 9-11 or 13-15), asking them about the factors above as well

as all of the foods they ate over a two-day period.

Some interesting findings included:

When both parents have a standard work schedule (8-5), father has a flexible schedule orhe feels that he has control at work, children use full service restaurants more.

Children whose mothers rank their job role as more important than their other roles,

including that of a parent, reported spending more time in fast food restaurants.

Time spent by children traveling in the car was directly related to use of fast food

restaurants and time spent in both fast food and full service restaurants.

Fathers who reported that the family dinner was a family ritual had children who

frequented fast food restaurants less.

Children with authoritative mothers (parenting style that consists of caring, clear

behavioral expectations and punishment by privilege withdrawal) used fast foodrestaurants less.

Children with neglectful parents (parenting style with lack of caring, lack of control, and

few punishments) spent more time in fast food restaurants.

Researchers concluded that eating away from home and the healthfulness of children's

diets are linked with the manner in which parents interact with their children (parenting

style), time available for family meals, and the role restaurants play in their lives.

Physical evidence

Services are different from physical goods on some key dimensions or characteristics such asintangibility, heterogeneity, inseparability and perishability (Lovelock and Wirtz, 2004). Thedelivery and measurement of the high-quality service are difficult tasks for a service providerbecause of the intangible nature of the services. Research has revealed that the consumers mayrespond to more than just the tangible part of the product or service rendered when making a


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purchase decision (Kotler, 1973; Milliman, 1986). A proper combination of tangible andintangible aspects should result in a customers perception of high service quality (Ryu, 2005).Physical evidence is one such instrument, which is widely used to visualize the intangibleaspects of the service delivery. It relates to the style and appearance of the physical surroundingsand other experiential elements encountered by customers at service delivery sites (Lovelock and

Wirtz, 2004). It is one of the additional Ps of services marketing mix and considered as apowerful tool for those services in which customers and service providers have high degree ofinvolvement (high-contact) while delivering and receiving the service.

LITERATURE REVIEWConsiderable research has been conducted in the area of physical evidence as it is one of thedeterminants of service quality. Most of the previous studies related to physical evidence tried torelate it with the perceived performances of the services and expectations of the servicecustomers, which in turn produces service quality perceptions. Such studies on the effect ofphysical evidence on the perceived service quality and on store or outlet selection covered widerange of service categories. Baker (1987) classified three fundamental factors that affect the

tangible portion of service quality dimensions: design, social, and ambient factors. Ambienceincludes background factors such as lighting, aroma, and temperature. Design factor representsthe components of the environment that are more visual and tangible in nature. It includes color,furnishings, and spatial layout. The design elements contain both the aesthetic aspects (e.g.,beauty, dcor) and the functional aspects (e.g., layout, ease of transaction, and waiting roomdesign) that facilitate high quality service. The social factors relate to an organizations concernfor the people in the environment, including customers and employees.

Berman and Evans (1995) classified tangible quality clues into four categories: external,general interior, layout, and point of purchase factors. External variables or factors includeexterior, signs, building size and color, location, and parking. General interior variables includemusic, scent, lighting, temperature, and color scheme. The layout and design factors pertain to

the workstation placement, waiting facilities, and traffic flow. Finally, the point of purchase anddecoration variables relate to the displays, pictures, artwork, and product displays at point ofpurchase. Environmental dimensions of the servicescape shapes the way customers and serviceproviders interact and behave (Zeithaml, et.al., 2006). Such environmental dimensions are thebasic constituents of the framework for understanding environment-user relationships in serviceorganizations. Ambient conditions (temperature, air quality, noise, music, odor), space (layout,equipment, furnishings), signs, symbols and artifacts are included in these environmentaldimensions.

A multiple item scale has been developed by Raajpoot to determine tangible quality offoodservice industry. The scale captures factors such as music and temperature; design factorssuch as location and seating arrangement and service factors such as food presentation and foodvariety (Raajpoot, 2002). In another study among the elderly citizens, Knutson and Patton (1993)found that about one fourth of older diners named service quality as a strong motivator forchoosing a restaurant. According to this research, seniors want to eat in a welcoming, pleasant,comfortable atmosphere.

Determinant factors are:-


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Accessibility:-according to Litman, 2003a Accessibility refers to the ability toreach desired goods, services, activities and destinations (together called

opportunities). Accessibility depends on mobility, mobility substitutes andopportunities as follows:

Mobility - provided by walking, cycling, public transport, car sharing, taxi,cars, and other modes. All else being equal, an increase in the speed, servicequality or affordability of a mode will improve access by that mode.

Mobility substitutes - telecommunications and delivery services. These can

provide access to some types of goods and activities, particularly thoseinvolving information.

Land uses - the geographic distribution of activities and destinations. The

dispersion of common destinations increases the amount of mobility needed

to access goods, services and activities, reducing accessibility. When realestate experts say location, location, location they mean accessibility,accessibility, accessibility.

Other factors - information availability, affordability, convenience andcomfort, security and prestige.

Key responsibility for accessibility:-

All else being equal Responses to mobility changes can mean that things are usually notequal and often complex behavioural responses need to be considered.The need to consider information, availability, comfort, security, prestige, speed, modesavailable, telecommunications, land uses and all potential activities emphasises that it isimportant not to confuse detailed components of accessibility with the definition the ability toreach goods services, activities and destinations.

Accessibility is a term often used in transport and land-use studies and the main aim of this

report is to survey the range of measures of accessibility that have been proposed. Accessibility

is seen as being concerned with the opportunity available to an individual or type of person at agiven location to take part in a particular activity or set of activities. However various other

interpretations of the term accessibility have been made and in order to survey the range of

indices to which the term accessibility measure has been applied it is necessary to consider also

the range of definitions that have been given to the term accessibility. The advantages and

disadvantages of the various measures are discussed. No single "best" measure is identified;rather the choice depends on the type of problem being studied and the resources available. Some

consideration is given also to the areas of study in which accessibility may be a useful concept.

1. Price:- Pricing actually plays a vital role in the branding and image of your product.

Determining your price can be difficult, especially if you product is in a widely-variable


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industry. You must determine pricing strategy, retail and wholesale pricing, possible

bundling, and any type of discounts.2.

Ambiance:-Eating takes place in a context of environmental stimuli known as ambience.

Various external factors such as social and physical surroundings, including the presence

of other people and sound, temperature, smell, color, time, and distraction affect food

intake and food choice. Food variables such as the temperature, smell, and color of thefood also influence food intake and choice differently. However, the influence of

ambience on nutritional health is not fully understood. This review summarizes the

research on ambient influences on food intake and food choice. The literature suggeststhat there are major influences of ambience on eating behavior and that the magnitude of

the effect of ambience may be underestimated. Changes in intake can be detected with

different levels of the number of people present, food accessibility, eating locations, food

color, ambient temperatures and lighting, and temperature of foods, smell of food, time ofconsumption, and ambient sounds. It is suggested that the manipulation of these ambient

factors as a whole or individually may be used therapeutically to alter food intake andthat more attention needs to be paid to ambience in nutrition-related research.

LITERATURE REVIEW:- Researchers have recently addressed the links betweencustomer satisfaction (CS) and restaurant performance, emphasizing the way that satisfactionaffects a customers repeat purchase practices (Sulek and Hensley 2004; Sderlund andhman 2005; Cheng 2005). Several studies have identified some of the factors thatinfluence customers satisfaction of dining experience, including wait time, quality ofservice, responsiveness of front-line employees, menu variety, food prices, food quality, foodconsistency, ambience of the facilities, and convenience (Sulek and Hensley 2004; Iglesiasand Yague 2004; Andaleeb and Conway 2006).

In reality, the success of restaurant managers/owners depends on understanding theircustomers needs and expectations, and then meeting these needs better than the competition.While estimates vary, a National Restaurant Association report indicated that 60% of all newrestaurants fail within the first three years in business, and roughly half of those fail in thefirst year (Parsa, Self, King, and Njite 2005). This high percentage of failure shows theimportance of ensuring customer satisfaction by providing excellent service, listening tocustomers needs and complaints, and caring about the customer.

An additional benefit of customer satisfaction is the increased likelihood that diners willrepatronize the establishment. The majority of previous research has addressed the nonlinear

effects of antecedents on CS (Anderson and Mittal 2000; Mittal, Ross, and Baldasare 1998;Oliver 1995). For example, Mittal et al. examined the nonlinear effects of attributeperformance on CS, and found support for an S-shaped function (which is steep in the middleand flat at the extremes). These results question the commonly held belief of linear (positiveand direct) relationships between product attributes and consumer satisfaction. Only a fewstudies have presented empirical evidence for nonlinear effects in the satisfaction-outcomelink (with dependent variables such as customer loyalty and complaining behavior), and noexamination of the functional structure for specific relationships have yet been undertaken.


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3. Choice:- Currently healthy food choices are difficult. The food environment around us

is not conducive to healthy eating. In restaurants, people are offered large portion sizes,value meals include French fries and soda, and there are limited healthy choices on

menus. That is, the default options are primarily unhealthy.

Studies consistently show that the default exerts a powerful influence on choice, and the default

option is more likely to be chosen. Behavioral economic interventions that make default optionshealthy make the healthy choice the easy choice and mean that individuals must actively work to

engage in less desirable behaviors. The use of healthy default items as part of restaurant meals is

supported by studies in retail food chains and cafeterias, as well as from studies in the areas of

health insurance, 401(k) savings plans, and organ donation. Providing healthier default items onmenus could lead to healthier food choices and positive health benefits.

Customer loyality:-

The fast food industry is on in an upward trend. The demand for fast food product is nowgrowing as it is convenience which suits the lifestyle of customers. With the changing lifestyle ofMalaysian consumers, more educated people and affluent, people tend to eating-out especially infast food restaurants. Along with the heavily promote through media and information technologyexposure, customers has variety choice of fast food pattern and restaurants. Therefore, local fastfoods restaurants have to be sensitive to these changing trends and to be innovative and getprepare to change accordingly to avoid from losing their existing and future potential customers.The aim of this study is to examine how the respondents perception will be influenced byfactors of customer loyalty towards preferred fast food restaurants. Malaysia is a multiracial and

multicultural country that made up by several dominant groups such as Malay, Chinese andIndians. Malaysia is a rapidly developing country in Asia and economic growth is projected tomoderate to 5.2% in 2011. According to the World Bank Group, Malaysia GDP per capita isUS dollars 14, 215, which adjusted by purchasing power parity. This shows that the purchasingpower and standard of living of the population in Malaysia is growing adequately. Consequently,Malaysians allocated largest amount of household expenditures to their food budgets. Owing tothe changing lifestyle of Malaysian households, the trend towards greater consumption of take-away food outside the home is increasing. This gave birth to fast food sector. According toBender and Bender (2001), fast food is a general term used for a limited menu of foods that lendthemselves to production line techniques and that are typically hamburgers, pizzas, chicken orsandwiches. According to ACNielsen (2005), there is 59% of adult population that eats at take-

away restaurants at least once a week. This is due to convenience concept of fast food restaurantmatch the busy lifestyles and ease of access to a wide variety of fast food restaurants in theMarkets.


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Analysis of the global fast-food industry is enhanced by segmenting it into Quick Service

Restaurants (QSR, 65.5%), Takeaways (17.7%), Leisure Locations (13%), and Mobile and StreetVendors (3.9%) (Datamonitor, 2005a). Global consumers generally perceive fast food ascharacteristically similar to McDonalds, Burger King, or Taco Bell. As noted earlier, the presentstudy was designed to examine consumer perceptions of fast food in the United States, Japan,and China due to the continued growth rates of fast-food consumption in each of these threeareas.

The average American dines out four times weekly, with nearly half of adults consumingat least one meal outside the home daily (Rubin, 2004). In 1970, away-from-home foodsaccounted for 25 percent of total food spending. That amount increased to 47 percent by 1999(Clauson, 2000). Fast-food accounts for 32 percent of Americas away from- home meals(Economist, 2002).

Fast-food consumption among Chinese children appears to be increasing (Cheng, 2003).Consistent with this, Chinese generally perceive McDonalds as representing youth, perhaps dueto the brands self-promotion as a childrens birthday party venue and Uncle Ronald as an iconfor Chinese children (Eckhardt and Houston, 2002). Elder Chineseare commonly observed acquiescing to their children and grandchildrens requests to be escortedto McDonalds, although they generally find the foods taste and affordability to be lacking(Yan, 1997).

Waiting time:-People are willing to queue and pay to get food. Knowing peoples opinions on queuing

is of interest to restaurant stakeholders since it and related actions have a direct effect onrevenue. While most previous studies focused on dine-in restaurants, we observed queuing for


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fast food restaurants. Specifically, we observed the actual waiting time of customers for anumber of fast food restaurants, and compared the metrics with waiting times that customersexpected. During lunch time peak hours, customers spent on average 5.4 minutes waiting beforethey could get their orders. The 5.4 minutes consisted of 2.42 minutes of queuing time and 2.98minutes of service time. This total waiting time is only slightly below the actual expected waiting

time of 5.42 minutes. How the fast food restaurants try to manage the perceived waiting time ofcustomers was also discussed.

Literature ReviewIn general, restaurants can be divided into five categories; quick service, family dining, casualdining, dinner house and fine dining (Walker, 2011, p. 34-40). Quick service restaurants arerestaurants where the food and drink are paid for before being served. The critical points for thistype of restaurant are to have staff and food ready to serve the maximum number of customers inthe least amount of time. The menus offered are usually limited and include burgers, sandwiches,hot dogs, tacos, burritos, fried chicken and so on. Family restaurants developed from coffeeshop-style restaurants, offering simple menus and providing service for the family marketsegment. Due to their market type, most family restaurants do not serve alcoholic drinks. Casual

restaurants or casual dining offers a relaxing lifestyle, signature food items, wine service, bar andcomfortable dcor. Fine dining is a type of restaurant that offers expensive cuisine and beveragessuch as wine, elegant service and luxurious ambiance. The table turnover is usually only once anevening.

Other sources (Jackson, 2011; Walker, 2011; Knutson, 2000) mention that the fast foodrestaurant is often categorized under quick-service restaurant, even though not all quick-servicerestaurants serve fast food. The main characteristics of quick-service restaurants are speedyservice, inexpensive food items, simple dcor, limited menu normally displayed on a wall, andconvenience. This type of restaurant may also provide drive-thru, delivery, and take-out services.Simplicity and limitation in a menu are important in a quick-service operation due to speed ofservice and high turnover rates to achieve high sales volumes. To realize speed, several factors

are required: minimum food handling by food production staff, minimum handling by the servicestaff, and the ability to withstand a holding temperature since most of the food items areprecooked (Drysdale and Galipeau, 2009, p. 207-208).

Restaurants fall into the category of a service industry. As such, researchers analyze theefficiency of restaurant services. Hummel and Murphy (2011) mapped out an entire servicesystem to depict the impact of efficiency management on a restaurant and its industry. Thistechnique was termed service blueprinting. One of their findings was that optimizing the time toserve the customers paying their bills would earn the restaurant three additional dining tables in apeak hour. Hummel and Murphy highlighted that the difficulties in producing a conclusion weredue to service blueprinting requiring extensive research that observes larger samples than hadpreviously been utilized.

Restaurants balance efficiency-for-profitability with customer satisfaction. As defined byCarbone and Haeckel (2002), customer satisfaction includes functional, mechanical, andhumanic clues. Kimes (2004) discussed that efficiency and profitability could be represented innumbers, whereas customer satisfaction measurement was subjective. Sulek and Hensley (2004)showed that choice of foods, restaurant atmosphere and the fairness of the seating contributed alarge part to a customer satisfaction model. Wall and Berry (2007) added performance,appearance, and behavior of the employees to the above dimensions.


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External Environment:-Literature shows that the entry decision to any market is significantly affected by the

Political (P), Economical (E) and Social (S) conditions (Whitelock & Jobber, 2004). The growthrate of fast food industry is directly proportional to employment and consumer income. Theconsumer spending at fast food outlets reflects the better life patterns of people according to

economics (Deane, 1987). According to Deane, these factors affect the growth of fast foodindustry and with a better understanding of these factors managers can increase the profits andremain up to date with time. A positive correlation was found between income of consumers andvisit of customers to some types of restaurants. Consumers with higher income visit restaurantsmore frequently as compared to lower income consumers. Fast food has the negative effect onthe social habits of the people, as the gain in the mass (weight) is found to be directlyproportional to the fast food especially in Women (Jeffery & French, 1998). It is supposed thatboth the technical and the legislative parties should sit together and find some solution to theproblems that are being faced in the environment to improve the quality of the fast food so thatthe technical issues may be made the part of the policy (Tester, Stephanie A. Stevens et al.,2010). Hazard analysis and critical control point (HACCP) is found to be the very good

technology to improve the speed of the safety implementation and the quality of the food in theindustry especially fast food industry (Sweet, Balakrishnan et al. 2010). The use of thetechnology has increased the growth of the fast food industry, as the Burger King and theMacdonald s has increased their budget for the TV advertisements, and as a result led toincrease in the sale (Harris, Schwartz et al. 2010). Poultry meat (One of the key ingredientsused in the fast food industry) quality insurance is the very key and primary issue for the fastfood industry, so for that purpose the PRP are introduced to manage the meat requirement andsupply efficiently (Manning & Chadd, 2006).


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NEED FOR STUDY:-

Determinant of Service quality in response to fast food restaurants.

RESEARCH METHODOLOGY:-

Research Methodology deals with, the procedure adopted to carry outthe study. According to GREEN AND TULL:A research design is thespecification of methods and procedures acquiring the information needed. Itis the overall operational pattern or framework of th e pr oj ec t th ats t ipu la t es which in fo rmat ion i s to be co l l ec ted f rom whichsources by what procedures. For conducting the study, as a researcher

I adopted both primary as well as secondary method of data collection.

Objectives:-Th e p u rp o se o f r e se a rc h i s t o d i s c o v e r a n sw e r t o

qu es ti on s th ro ug h th e application of scientific procedures. The mainaim of research is to find out how much people an individual get aware andgo for those advertisement and collect more information about it. Though eachresearch study has its own specific purpose. The objective of study To know theimpact of determinant factors on service quality and satisfaction of customer.

1.

To know an individual awareness about fast food industry.2. To know how these determinant factors can affect ones fast food industry.

Hypothesis:-

1. There is null hypothesis of different determinant on service quality andsatisfaction level of customer.

2. There is positive hypothesis of different determinant on service quality and

satisfaction level of customer.


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TYPES OF RESEARCH:-

Research refers to the search for knowledge. It can be defined as

scien tifi c and systematic search for pertinent information on a specific topic. It iscareful investigation or enquiry especially through search for new facts of any

branch of knowledge. In this study I used Exploratory research, whichprovides insights into and comprehension of an issue or situation. It helped me todraw some definitive conclusions. Exploratory research is a type ofresearchConducted when the problem has not been clearly defined. It helps in determinethe best research design, data collection method and selection of subjects. Given itsfundamental nature, exploratory research often concludes that a perceived

problem does not actually exist.

RESEARCH DESIGN

A research design or a structure is the process done before data collection oranalysis can commence. A research design is not just a work plan. Awork plan details what has to be done to complete the project but the function of aresearch design is to ensure that the evidence obtained enables us to answer t h ei n i t i a l q u e s t i o n a s u n a m b i g u o u s l y a s p o s s i b l e .

Primary data:

The primary data was collected with the help of questionnaire filled usingInterview method. As per the need of the study I formulated the questionnairewith the help of the mentors guidance. This helped me to frame the required level

of questionnaire needed for the study of the service quality.

Secondary data:The secondary data was collected from the database, publications

and the websites of the company through Internet.
http://en.wikipedia.org/wiki/Researchhttp://en.wikipedia.org/wiki/Researchhttp://en.wikipedia.org/wiki/Research


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DATA ANALYSIS

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