Fast Food-A Case Study

8/13/2019 Fast Food-A Case Study

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FAST FOOD INDUSTRY

Introduction

Fast foodis the term given to food that can be prepared and served very qic!"y# $hi"e any

mea" %ith "o% preparation time can be considered to be fast food& typica""y the term refers to

food so"d in a restarantor store %ith "o% qa"ity preparation and served to the cstomer in a

pac!aged form for ta!e'ot(ta!e'a%ay#

Ot"ets may be stands or !ios!s&%hich may provide no she"ter or seating& or fast food

restarants)a"so !no%n as quick service restaurants*# Franchiseoperations %hich are part of

restarant chains have standardi+ed foodstffs shipped to each restarant from centra"

"ocations#

The capita"reqirements invo"ved in opening p a fast food restarant are re"ative"y "o%#

Restarants %ith mch higher sit'in ratios& %here cstomers tend to sit and have their orders

broght to them in a seeming"y more psca"e atmosphere may be !no%n in some areas as fast

casa" restarants#

History

The concept of ready'coo!ed food for sa"e is c"ose"y connected %ith rban deve"opment# In

Ancient Romecities had street stands that so"d bread and %ine# A fi,tre of -ast Asiancities

is the nood"e shop# F"atbread and fa"afe" are today biqitos in the .idd"e -ast#/op"ar

Indian fast food dishes inc"de vada pav& panipri and dahi vada# In the French'spea!ing

nations of $est Africa& roadside standsin and arond the "arger cities contine to se""0asthey have done for generations0a range of ready'to'eat& char'gri""ed meat stic!s !no%n

"oca""y as brochettes#

The Start of Fast Food Culture

The concept of fast food pops p dring 1234s#The 1254s first %itnessed their rapid pro"iferation#

Severa" factors that contribted to this e,p"osive gro%th in 546s %ere7

)1* America6s "ove affair %ith the atomobi"es#

)3* The constrction of a ma8or ne% high%ay system#
http://en.wikipedia.org/wiki/Restauranthttp://en.wikipedia.org/wiki/Take-outhttp://en.wikipedia.org/wiki/Kioskhttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Chain_storehttp://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Fast_casual_restauranthttp://en.wikipedia.org/wiki/Fast_casual_restauranthttp://en.wikipedia.org/wiki/Ancient_Romehttp://en.wikipedia.org/wiki/East_Asiahttp://en.wikipedia.org/wiki/Noodlehttp://en.wikipedia.org/wiki/Flatbreadhttp://en.wikipedia.org/wiki/Falafelhttp://en.wikipedia.org/wiki/Falafelhttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Vada_pavhttp://en.wikipedia.org/wiki/Panipurihttp://en.wikipedia.org/wiki/Dahi_vadahttp://en.wikipedia.org/wiki/West_Africahttp://en.wikipedia.org/wiki/Street_foodhttp://en.wikipedia.org/wiki/Brochettehttp://en.wikipedia.org/wiki/Restauranthttp://en.wikipedia.org/wiki/Take-outhttp://en.wikipedia.org/wiki/Kioskhttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Chain_storehttp://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Fast_casual_restauranthttp://en.wikipedia.org/wiki/Fast_casual_restauranthttp://en.wikipedia.org/wiki/Ancient_Romehttp://en.wikipedia.org/wiki/East_Asiahttp://en.wikipedia.org/wiki/Noodlehttp://en.wikipedia.org/wiki/Flatbreadhttp://en.wikipedia.org/wiki/Falafelhttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Vada_pavhttp://en.wikipedia.org/wiki/Panipurihttp://en.wikipedia.org/wiki/Dahi_vadahttp://en.wikipedia.org/wiki/West_Africahttp://en.wikipedia.org/wiki/Street_foodhttp://en.wikipedia.org/wiki/Brochette


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)9* The deve"opment of sb'rban commnities#

):* The baby boom sbseqent to %or"d %ar second#

;Fast'food chains initia""y catered to atomobi"e o%ners in sbrbia#

On the go

Fast food ot"ets are take-away or take-outproviders& often %ith a


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Business

In the United States a"one& consmers spent abot US114 bi""ion on fast food in 3444

)%hich increased from USE bi""ion in 124*# The Nationa" Restarant Associationforecasted

that fast food restarants in the U#S# %o"d reach US1:3 bi""ion in sa"es in 344E& a 5G

increase over 3445# In comparison& the f""'service restarant segment of the food indstry is

e,pected to generate 19 bi""ion in sa"es#

Jobs and labor issues

Today& more than 14 mi""ion %or!ers are emp"oyed in the areas of food preparation and food

servicing inc"ding fast food in the %or"d#

-mp"oyees are the bac!bone of the fast food indstry# /roper training is crcia" to the order"y

and qic! service cstomers e,pect# Yet& emp"oyee trnover can be as high as 344G per year#

$ith sch a trnover& o%ner'operators of franchise and non'franchise restarants have the

danting tas! of constant"y training an entire"y ne% %or!force# /o"icies and procedres need

to be e,p"ained to each ne% emp"oyee#

Globalization

In 344E& the g"oba" fast food mar!et gre% by :#HG and reached a va"e of 143#: bi""ion and a

vo"me of H4#9 bi""ion transactions# In India a"one the fast food indstry is gro%ing by :4G a

year# .cDona"d@s is "ocated in 134 contries and on E continents and operates over 91&444

restarants %or"d%ide#

BF>is "ocated in 35 contries# Sb%ayhas 32&1HE restarants "ocated in HE contries& /i++a

t is "ocated in 3E contries& Taco e""has 3H restarants "ocated in 13 contries besides

the United States#

Health issue

Tran6s fats %hich are common"y fond in fast food have been sho%n in many tests to have a

negative hea"th effect on the body#
http://en.wikipedia.org/wiki/National_Restaurant_Associationhttp://en.wikipedia.org/wiki/Turnover_(employment)http://en.wikipedia.org/wiki/KFChttp://en.wikipedia.org/wiki/Subway_(restaurant)http://en.wikipedia.org/wiki/Taco_Bellhttp://en.wikipedia.org/wiki/National_Restaurant_Associationhttp://en.wikipedia.org/wiki/Turnover_(employment)http://en.wikipedia.org/wiki/KFChttp://en.wikipedia.org/wiki/Subway_(restaurant)http://en.wikipedia.org/wiki/Taco_Bell


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The fast food consmption has been sho%n to increase ca"orie inta!e& promote %eight gain&

and e"evate ris! for diabetes# The >enters for Disease >ontro" and /reventionran!ed obesity

as the nmber one hea"th threat for Americans in 344:# It is the second "eading case of

preventab"e death in the United States and res"ts in :44&444 deaths each year#

FAST FOOD INDUSTRY IN INDIA

INI! " #$#%GING $!%T FO% G'OB!' ('!)#%S

The percentage share he"d by foodservice of tota" consmer e,penditre on food has increased

from a very "o% base to stand at 3#EG in 3441# -ating at home remains very mch ingrained in

Indian c"tre and changes in eating habits are very s"o% moving %ith barriers to eating ot

entrenched in certain sectors of Indian society## The gro%th in nc"ear fami"ies& partic"ar"y in

rban India& e,posre to g"oba" media and $estern cisine and an increasing nmber of %omen

8oining the %or!force have had an impact on eating ot trends#

F!CTS !N FIG*%#S

Fast food is one of the %or"d6s "argest gro%ing food type# India6s fast food indstry is gro%ing by

:4G a year and is e,pected to generate a bi""ion do""ars in sa"es by 3445#The m"tinationa"

segment of Indian fast food indstry is p to Rs# E bi""ion& a figre e,pected to +oom to Rs#4

bi""ion by 3445# y 3445& the va"e of Indian dairy prodcts is e,pected to be Rs#1& 44&444

mi""ion# In "ast E years& foreign investment in this sector stood at Rs# 9E44 mi""ion %hich is abot

one'forth of tota" investment made in this sector# ecase of the avai"abi"ity of ra% materia" for

fast food& J"oba" chains are f"ooding into the contry#

$!%T SI+# , $!JO% ('!)#%S

a* Dominated by .cDona"ds having as many as 5 ot"ets#

b* Domino6s pi++a is present in arond 144 "ocations#

c* /i++a ht is a"so catching p and it has p"anned to estab"ish 135 ot"ets at the end of

3445#

d* Sb%ays have estab"ished arond :4 ot"ets#

e* Nir"as is estab"ished at De"hi and Noida on"y# o%ever& it c"aims to cater 54&444

gests every day#

.a8or p"ayers in fast food are7

.>DONAKDS BF>
http://en.wikipedia.org/wiki/Weight_gainhttp://en.wikipedia.org/wiki/Centers_for_Disease_Control_and_Preventionhttp://en.wikipedia.org/wiki/Weight_gainhttp://en.wikipedia.org/wiki/Centers_for_Disease_Control_and_Prevention


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/ICCA UT

DO.INOS /ICCA#

>OFF-- DAY

ARISTA#

The main reason behind the sccess of the m"tinationa" chains is their e,pertise in prodct

deve"opment& sorcing practices& qa"ity standards& service "eve"s and standardi+ed operating

procedres in their restarants& a strength that they have deve"oped over years of e,perience

arond the %or"d# The home gro%n chains have in the past fe% years of competition %ith the

.N>s& "earnt a fe% things bt there is sti"" a "ot of scope for improvement#

%#!SON FO% #$#%G#NC#

Gender %oles7 gender ro"es are no% changing# Fema"es have started %or!ing otside# So& they

have no time for their home and coo!ing food# Fast food is an easy %ay ot becase these can be

prepared easi"y#

Custo-er So.histication and Confidence/ consmers are becoming more sophisticated no%#

They do not %ant to prepare food and spend their time and energy in hose ho"d %or!s# They are

bi"ding their confidence more on Lready to eat and easy to serve6 !ind of foods

(aucity of Ti-e/ peop"e have no time for coo!ing# ecase of emergence of %or!ing %omen

and a"so nmber of other entertainment items# .ost of the time either peop"e %or! or %ant to

en8oy %ith their fami"y#

ouble Inco-e Grou./ emergence of dob"e income grop "eads to increase in disposab"e

income# No% peop"e have more disposab"e income so they can spend easi"y in fast food and other

activities#

0or1ing 0o-en/ %or!ing %omen have no time for coo!ing& and if they have then a"so they

don6t %ant to coo!# ecase they %ant to come ot of the traditiona""y defined gender ro"es# Theydo not %ant to confine themse"ves to hoseho"d %or! and pbringing of chi"dren6s#

'arge .o.ulation/ India being a second "argest contry in terms of pop"ation possesses "arge

potentia" mar!et for a"" the prodcts(services# This res"ts into entry of "arge nmber of fast food

p"ayers in the contry#

%ela2ation in rules and regulations/ %ith the economic "ibera"i+ation of 1221& most of the tariff

and non tariff barriers from the Indian bondaries are either removed or minimi+ed# This he"ped

significant"y the .N>6s to enter in the contry#

$enu di3ersification7 increase in consmption of pi++as& brgers and other type of fast foods#


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CH!''#NG#S FO% TH# IN*ST%)

Social and cultural i-.lications of Indians s4itching to 4estern brea1fast food/ Jenera""y&

inds avoid a"" foods that are be"ieved to inhibit physica" and spirita" deve"opment# -atingmeat is not e,p"icit"y prohibited& bt many inds are vegetarian becase they adhere to the

concept of ahimsa# Those see!ing spirita" nity may avoid gar"ic and onions# The concept of

prity inf"ences ind food practices# /rodcts from co%s )e#g#& mi"!& yogrt& ghee'c"arified

btter* are considered pre# /re foods can improve the prity of impre foods %hen they are

prepared together# Some foods& sch as beef or a"coho"& are innate"y po""ted and can never be

made pre# t no%& Indians are s%itching to fast food that contain a"" those things that are

considered impre or against there be"iefs# Some traditiona" and fndamenta"ist are against this

transformation of food habit and nmber of times they provo!e their conterparts to revo"t

against sch foods# And that is %hat happened %hen .cDona"d6s decided to enter the comp"e,ity

of Indian bsiness "andscape& conting on"y on its fast food global formula, %ithot any

apparent previos c"tra" training#

#-.hasis on the usage of bio5degradable .roducts/ J"asses& si"ver%are& p"ates and c"oth

nap!ins are never provided %ith fast food# Instead& paper p"ates and nap!ins& po"yrethane

containers& p"astic cps and tab"e%are& drin!ing cartons or /-T )po"yethy"ene terephtha"ate*

bott"es are sed& and these are a"" disposab"e# .any of these items are tossed in the garbageinstead of being recyc"ed& or even %orse& mere"y thro%n on the grond# This brdens natre

nnecessari"y and sqanders ra% materia"s# In order to redce soi" and %ater po""tion&

government no% emphasis more on the sage of bio'degradab"e prodcts#

%etrench-ent of e-.loyees/ .ost of ne% indstries %i"" be capita" intensive and may drive

"oca" competitors& %hich have more %or!ers& ot of bsiness#

(rofit re.atriation/ Repatriation of profits is another area of concern for Indian economy# As

%hen m"tinationa" enters the any contries& peop"e and government hope that it %i"" increase the

emp"oyment rate and res"t in economic gro%th# o%ever& %ith the m"tinationa" operation& host

contry e,periences these benefits for a short time period# In "ong rn neither emp"oyment

increases )becase of capita" intensive natre of .N>6s* nor it increases the JD/ or JN/

becase %hatever .N>6s earn they repatriate that profit bac! to their home contry#

(%OB'#$S OF IN*ST%)

#n3iron-ental friendly .roducts cost high/ government is "egis"ating "a%s in order to !eep

chec! on the fast food indstry and it is emphasi+ing more on the sage of bio'degradab"e and

environment friend"y prodcts# t associated %ith this isse is the prob"em that fast food p"ayer


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faces ' the cost associated %ith the environment friend"y prodct# They cost mch higher than the

norma" prodcts that companies ses for pac!aging or %rapping their prodcts#

Balance bet4een societal e2.ectation and co-.anies econo-ic ob6ecti3es/ To ba"ance a

society6s e,pectation regarding environment %ith the economic brden of protecting theenvironment# Ths& one can see that one side pshes for higher standards and other side tries to

beat the standard bac!& thereby ma!ing it a arm %rest"ing and mind bogg"ing e,ercise#

Health related issues/ obesity/

I# Stdies have sho%n that a typica" fast food has very high density and food %ith high

density cases peop"e to eat more then they sa""y need# M

II# Ko% ca"ories food7 -mphasis is no% more on "o% ca"orie food# In this "ine .cDona"d has

a p"an to introdce a"" %hite meat chic!en .cngget %ith "ess fat and fe%er ca"ories#

T%#NS IN INI!N $!%T

$ar1eting to children7s/ fast food ot"ets in India target chi"dren6s as their ma8or cstomers#They introdce varieties of things that %i"" attract the chi"dren6s attention and by targeting

chi"dren6s they atomatica""y target their parents becase >hi"dren6s are a"%ays accompanied

by their parents#

'o4 le3el custo-er co--it-ent/ ecase of the "arge nmber of food retai" ot"ets and

a"so becase of the tendency of cstomer to s%itch from one prodct to other& this indstry

faces "o% "eve" cstomer commitment#

Value added technology ser3ices/ There is continos improvement in the techno"ogy as far

as fast food mar!et in India is considered# The reason behind that is food is a perishab"e item

and in order to ensre that it remain fresh for a "onger period of time# -ar"ier& Indian peop"e

prefer eating at home bt no% %ith the change in trend there is a"so need for improvement

and p gradation of techno"ogy in food sector#

!ttracting different seg-ents of the -ar1et/ Fast food ot"ets are introdcing varieties of

prodcts in order to cater the demands of each and every segment of the mar!et# They are

introdcing a"" categories of prodct so that peop"e of a"" age& se,& c"ass& income grop etccan come and become a cstomer of their food "ine#


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The sccess of fast foods arose from the changes in or "iving conditions7

1# .any %omen or both parents no% %or!

3# There are increased nmbers of sing"e'parent hoseho"ds

9# Kong distances to schoo" and %or! are common

:# Usa""y& "nch times are short

5# There@s often not enogh time or opportnity to shop caref""y for groceries& or to

coo! and eat %ith one@s fami"y# -specia""y on %ee!days& fast food otside the home is

the on"y so"tion#

&entuc1y Fried Chic1en

Abot the >ompany

&FC Cor.oration& or &FC& fonded and a"so !no%n as &entuc1y Fried Chic1en& is a

chain of fast food restarants based in Koisvi""e& Bentc!y# BF> is a brand and operating

segment& ca""ed a oas Tricon Global %estaurants Inc# The restarants are !no%n as Poulet Frit

Kentucky or PFKin the province of ebec in >anada# In France& ho%ever& the chain is

!no%n as BF>#

BF> primari"y se""s chic!en in form of pieces& %raps& sa"ads and sand%iches# $hi"e its

primary focs is fried chic!en& BF> a"so offers a "ine of roasted chic!en prodcts& side dishes

and desserts# Otside North America& BF> offers beef based prodcts sch as hambrgersor

!ebabs& por! based prodcts sch as ribs and other regiona" fare#

The company %as fonded as &entuc1y Fried Chic1en by >o"one" ar"and Sanders in

1253& thogh the idea of BF>@s fried chic!en acta""y goes bac! to 1294# The company

adopted the abbreviated form of its name in 1221# Starting in Apri" 344& the company began

sing its origina" name& Bentc!y Fried >hic!en& for its signage& pac!aging and

advertisements in the United States as part of a ne% corporate re'branding program ne%er
http://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Louisville,_Kentuckyhttp://en.wikipedia.org/wiki/Yum!_Brandshttp://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/Quebechttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Chicken_(food)http://en.wikipedia.org/wiki/Wrap_(food)http://en.wikipedia.org/wiki/Saladhttp://en.wikipedia.org/wiki/Sandwichhttp://en.wikipedia.org/wiki/Fried_chickenhttp://en.wikipedia.org/wiki/Side_dishhttp://en.wikipedia.org/wiki/Desserthttp://en.wikipedia.org/wiki/North_Americahttp://en.wikipedia.org/wiki/Hamburgerhttp://en.wikipedia.org/wiki/Harland_Sandershttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Louisville,_Kentuckyhttp://en.wikipedia.org/wiki/Yum!_Brandshttp://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/Quebechttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Chicken_(food)http://en.wikipedia.org/wiki/Wrap_(food)http://en.wikipedia.org/wiki/Saladhttp://en.wikipedia.org/wiki/Sandwichhttp://en.wikipedia.org/wiki/Fried_chickenhttp://en.wikipedia.org/wiki/Side_dishhttp://en.wikipedia.org/wiki/Desserthttp://en.wikipedia.org/wiki/North_Americahttp://en.wikipedia.org/wiki/Hamburgerhttp://en.wikipedia.org/wiki/Harland_Sandershttp://en.wikipedia.org/wiki/United_States


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and remode"ed restarants %i"" have the ne% "ogo and name %hi"e o"der stores %i"" contine

to se the 12H4s signage# Additiona""y& Ym >ontines to se the abbreviated name free"y in

its advertising#

/rodcts

The famos paper bc!et that BF> ses for its "arger si+ed orders of chic!en and has come to signify

the company %as origina""y created by $endy@s restarants fonder Dave Thomas# Thomas %as

origina""y a franchisee of the origina" Bentc!y Fried >hic!en and operated severa" ot"ets in the

>o"mbs& Ohioarea# is reasoning behind sing the paper pac!aging %as that it he"ped !eep the

chic!en crispy by %ic!inga%ay e,cess moistre# Thomas %as a"so responsib"e for the creation of the

famos rotating bc!et sign that came to be sed at most BF> "ocations in the US#

$enu ite-s

BF>@s specia"ty is fried chic!en served in varios forms# BF>@s primary prodct is pressre'fried

pieces of chic!en made %ith original recipe# The other chic!en offering& extra crispy& is made sing a

gar"ic marinade and dob"e dipping the chic!en in f"or before deep frying in a standard indstria"

!itchen type machine#

Bentc!y Jri""ed >hic!en ' This marinated gri""ed chic!en is targeted to%ards hea"th'conscios

cstomers# It featres marinated breasts& thighs& drmstic!s& and %ings that are coated %ith the

Origina" Recipe seasonings before being gri""ed# It has "ess fat& ca"ories& and sodim than the Origina"

Recipe fried chic!en# Introdced in Apri" 3442#

Discontinued products

The >o"one"@s Rotisserie Jo"d P This prodct %as introdced in the 1224s as a response to the oston

.ar!etchain@s roasted chic!en prodcts& and a hea"thier mindset of the genera" pb"ic avoiding fried

food# /rported"y made from a


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Nutritional value

BF> former"y sed partia""y hydrogenated oi" in its fried foods# This oi" contains re"ative"y

high "eve"s of trans fat&%hich increases the ris! of heart disease# The>enter for Science in

the /b"ic Interest)>S/I* fi"ed a cort case against BF>& %ith the aim of ma!ing it se other

types of oi"s or ma!e sre cstomers !no% abot Trans fat content immediate"y before they

by food#

In October 344E& BF> annonced that it %o"d begin frying its chic!en in trans fat'free oi"# This

%o"d a"so app"y to their potato %edges and other fried foods& ho%ever& the biscits#

Advertising

One of BF>@s "atest advertisements is a commercia" advertising its fast'food chains are crrent"y nder the restarant division of /epsi>o Incorporated#

Some ma8or threats inc"de the changing attitdes of society to%ard hea"thier eating habits&

BF> has more than 2&H44 ot"ets "ocated in contries# In mar!eting& BF> restarants are

not restricted from "ocating %ithin c"ose pro,imity of other BF> restarants# There are t%o

a"ternative strategies for BF># The first strategy invo"ves !eeping /epsi>o beverage division

and snac! foods division together& and a divestitre of /epsi>o restarant division= se""ing

Taco e""& /i++a t& and BF>#
http://en.wikipedia.org/wiki/Trans_fathttp://en.wikipedia.org/wiki/Heart_diseasehttp://en.wikipedia.org/wiki/Center_for_Science_in_the_Public_Interesthttp://en.wikipedia.org/wiki/Center_for_Science_in_the_Public_Interesthttp://en.wikipedia.org/wiki/Black_metalhttp://www.collegeresearch.us/free_search/KFC+Business+Strategy/1.htmlhttp://en.wikipedia.org/wiki/Trans_fathttp://en.wikipedia.org/wiki/Heart_diseasehttp://en.wikipedia.org/wiki/Center_for_Science_in_the_Public_Interesthttp://en.wikipedia.org/wiki/Center_for_Science_in_the_Public_Interesthttp://en.wikipedia.org/wiki/Black_metalhttp://www.collegeresearch.us/free_search/KFC+Business+Strategy/1.html


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(resent Situation

The organi+ation is crrent"y strctred %ith t%o divisions nder /epsi>o# David Nova! is

president of BF># ?ohn i"" is >hief Financia" Officer and >o"in .oore is the head of

.ar!eting# /eter $a""er is head of franchising %hi"e O"den Kee is head of man Resorces#

BF> is part of the t%o /epsi>o divisions& %hich are /epsi>o $or"d%ide Restarants and

/epsi>o Restarants Internationa"# oth of these divisions of /epsi>o are based in Da""as#

Strengths

Strengths can be fond interna""y in a company and can be sed to the company6s advantage#

The strengths identified are as fo""o%s7

89 &FC7s secret reci.e9

The secret recipe has "ong been a sorce of advertising& and a""o%ed BF> to set itse"f apart#

A"so& BF> %as the first chain to enter the fast'food indstry& 8st before .cDona"d@s& %hich

opened its first store a year "ater& and the @s ear"y entrance into the fast'food indstry in 125: a""o%ed BF> to deve"op strong

brand name recognition and a strong footho"d in the indstry# The >o"one" is BF>@s origina"

o%ner and a very recogni+ab"e figre& both in the U#S# and internationa""y& in their ne% "ogo#

In fact& in the forth anna" Kogoa"e Srvey& done by The Schecter Jrop& the BF> "ogo%as the on"y one %hich significant"y enhance the brand@s image #

;9 (e.siCo7s success 4ith the -anage-ent of fast food chains9 /epsi>o acqired /i++a

t in 12& and Taco e"" in 12H# /epsi>o sed many of the same promotiona" strategies

that it has sed to mar!et soft drin!s and snac! food# y the time /epsi>o boght BF> in

12HE& the company a"ready dominated t%o of the for "argest and fastest'gro%ing segments

of the fast food indstry#


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@s c"tre %as bi"t "arge"y on >o"one" Sanders@ "aid bac! approach to management by /epsi>o& emp"oyees at BF> en8oyed good

benefits& a pension& and co"d receive he"p %ith other non'income needs# This !ind of


13/44

$hi"e BF>@s c"tre %as "arge"y based on the >o"one"@s "aid bac! approach to management&

%hi"e /epsi>o@s c"tre is more of a & the

fo""o%ing potentia" prob"em areas %ere identified7

89 No defined target -ar1et9

The advertising campaign of BF> does not specifica""y appea" to any segment# It does not

appear to have a consistent "ong'term approach# The U#S# has enormos changes in its

demographics# Sing"e'person hoseho"ds have increased from 13G in 124 to 35G in 1225#

$ith this !ind of dramatic change& BF> does not have a proper approach to its target mar!et#

:9 Health Conscious Consu-ers9

There has been a trend to%ard an increasing"y hea"thy diet in America# This pt BF> at an

e,treme disadvantage de to its fried prodct offering#

;9 Increased Start *. Costs9

/rime "ocations have increased in cost de to "imited room for e,pansion# Ne% techno"ogy

has increased efficiencies& bt res"ted in greater increased start p costs# Restarant and

eqipment pac!ages range from 544&444 to 1&444&444#

!chie3e-ents/

BF> is one of the most reno%ned %or"d gastronomic brand names# Bentc!y Fried >hic!en

prodcts are crrent"y offered in H4 contries %or"d%ide and in more than 11&444 restarants

%hich are visited on a dai"y basis by a"most H mi""ion cstomers# J"oba""y& BF> emp"oys

appro,imate"y 324&444 peop"e& $or"d%ide& a ne% BF> restarant is opened a"most every

day#

In 344: the ;BF> -,ce""ent range ' three types of sa"ad )>aesar& Jarden and .andarin*obtained the pri+e for ;$or"d%ide est /ractice A%ard 344: in the category of best prodct


14/44

and best mar!eting campaign and its imp"ementation in the restarants# This pri+e is

distribted each year by YU. Restarants Internationa"#According to the ratings for ;.ost

e,pensive %or"d brands 344: condcted by the American %ee!"y Lsiness $ee!6& BF>

%as positioned 5:th p"ace= crrent"y va"ed at 5#1 bi""ion USD#

O$INO>S

SIZE OF THE MARKET

Domino's Pizzais one of the biggest and fastest growing international food joints in

South Asia. The very first Domino's Pizza outlet in India opened in an! "##$ at %ew

Delhi. Today! Domino's Pizza India has be&ome a wide networ of Pizza delivery

and food &hain. There are &lose to (() outlets in *( &ities of India and the brand is

the top most among the food delivery business. Domino+s Pizza outlets &an be seen

at major lo&ations of Delhi and %,-. Their home delivery is free with a guarantee of

Thirty /inutes %ahi to 0ree1. Although they are e2pert in delivering Pizzas on time!

their eating joints and outlets are also good. 3e plan to have a total of 4)) stores in

5467) &ities by ()") to ()"". It would entail an investment of -s ()) million during

the period

MARKET GROWTH

During last four months! dominoes have opened outlets in ammu! Panipat! Surat!

8aroda! %ashi! Trivandum! /eerut and Patiala. 3hile earlier! 5) per&ent of our

business used to be in metros and mini6metros! now the ratio is 4)94) between big

&ities and smaller Tier II and III &ities. Domino+s Pizza is e2panding its base in India

by opening 4)) outlets to add to its &urrent tally of "4$ outlets! a&ross 4) &ities in

India by ()"" with an investment of -s."! ))) &rore.

MARKET STRATEGIES


15/44

Promotional and Advertisement ,ampaigns:,oupons and dis&ounts;

The '


16/44

8arista

,offee Day

MC Donalds

/&Donald's is the leading global foodservi&e retailer with more than


17/44

other lo&alized fare. Portugal is the only &ountry with /&Donald's restaurants

serving soup. This lo&al deviation from the standard menu is a &hara&teristi& for

whi&h the &hain is parti&ularly nown! and one whi&h is employed either to

abide by regional food taboos :su&h as the religious prohibition of beef

&onsumption in In%ia; or to mae available foods with whi&h the regional

maret is more familiar :su&h as the sale of /&-i&e in In%on"sia;.

Advertising/&Donald's has for de&ades maintained an e2tensive advertising &ampaign. In

addition to the usual media :television! radio! and newspaper;! the &ompany maes

signifi&ant use of billboards and signage! sponsors sporting events ranging from

ittle eagueto the lympi& Eames! and maes &oolers of orange drinwith their

logo available for lo&al events of all inds. %onetheless! television has always played

a &entral role in the &ompany's advertising strategy.

To date! /&Donald's has used (< different slogans in =nited Statesadvertising! as

well as a few other slogans for sele&t &ountries and regions. At times! it has run into

trouble with its &ampaigns.
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Little_Leaguehttp://en.wikipedia.org/wiki/Olympic_Gameshttp://en.wikipedia.org/wiki/Orange_drinkhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Little_Leaguehttp://en.wikipedia.org/wiki/Olympic_Gameshttp://en.wikipedia.org/wiki/Orange_drinkhttp://en.wikipedia.org/wiki/United_States


18/44

*ARISTA

8arista &offee was establishes in "### with the aim of identifying growth

opportunities in

the &offee business. In&reasing disposable in&omes and global trends in &offee

indi&ate

immense growth potential in one parti&ular segment.

*aista Co""is a &hain of espresso bars in India. @eadCuartered in Delhi! 8arista

&urrently has espresso bars a&ross India! Sri ana and the /iddle Fast. It was

founded in "##5 by Amit udge and was part of his group of &ompanies. @e sold part

of the eCuity to first Tata ,offee. Then after he and Tata ,offee fell apart! Sterling

then bought over the firm. In ())5! Sterling divested all their stae to avazza.

8arista ,offee ,ompany is &urrently owned by avazza! Italy+s largest &offee

&ompany

At 8arista avazza! we do all we &an to mae every guest feel &omfortable and

wel&ome. 3e serve nothing but the finest Arabi&a &offees and &uisine at great value

pri&es. 3e have friendly and effi&ient brew masters who believe in servi&e with a

smile. And provide a &heerful! intera&tive ambien&e that maes guests wish their

&offee breas lasted just a little bit longer.

To share our &up of joy! we have always stu& to our Italian roots! guarding them

zealously to ensure that our espresso bars refle&t the warmth and &hara&ter of

traditional Italian &offee houses. And in the pro&ess! mae 8arista avazza the pla&e

Gwhere the world meets+.


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ur aim is to passionately deliver the highest levels of e2periential servi&es. /aintain

&onsisten&y in serving the highest Cuality produ&ts and be&ome a globally

&ompetitive organization H one that is driven by an insatiable thirst for e2&ellen&e.

CAF COFFEE DAY

Caf Coffee Day is a chain of coffee shops in India having its headquarters in

Chikkaaga!uru" #arnataka$ A division of Aa!gaated %ean Coffee Trading Copan&

'td$ (A%CTC')" it is coon!& kno*n as Coffee Da& or CCD$ It opened its first cafe in

+,,- on %rigade Road in %anga!ore" and toda& has the !argest cafe retai! chain in India . *ith

over /00 cafes in ++1 cities$

'arge nu2er of coffee da& cafes are !ocated in %anga!ore$ The cafe chain has had uch

success riding" and to soe e3tent creating" the cafe cu!ture *ave that s*ept acrossetropo!itan India fo!!o*ing strong econoic gro*th resu!ting in an increase in &outh

spending po*er$ It has even tied up *ith 4or!d Space and 5icro sense to ena2!e its cafes

*ith sate!!ite radio and 4i6Fi" respective!&$ Its first 4i6Fi cafe *as opened on 'ave!!e Road"

%anga!ore$

Caf7 Coffee Da& sources coffee fro 8000 acres of coffee estates" the second !argest in Asia"

that is o*ned 2& a sister concern and fro ++"000 sa!! gro*ers$ It is one of India9s !eading

coffee e3porters" *ith c!ients across the USA" 5idd!e :ast" :urope and ;apan$

4ith its roots in Chikaga!ur" the hoe to soe of the 2est Indian coffees" Coffee Da& has

its 2usiness spanning the entire va!ue chain of coffee consuption in India$ Its different

divisions inc!ude< Coffee Da& Fresh =n= >round (*hich o*ns ?80 coffee 2ean and po*der

retai! out!ets)" Coffee Da& @press (*hich o*ns B0 Coffee Da& kiosks)" Coffee Da&

Takea*a& (*hich o*ns ,000 vending achines)" Coffee Da& :3ports and Coffee Da&

erfect (F5C> ackaged Coffee) division$ It is entering the :uropean arket 2& openingt*o Caf7s in Austria as *e!!" aking fora&s into akistan and >eran& to set up cafes


20/44

a2road$ The strateg& CCD has adapted is to p!ace a cafe in ever& possi2!e !ocation *here

soe 2usiness can 2e generated$ So in %anga!ore" in the ain shopping district" there are si3

out!ets in a 1 k radius and overa!! +10 cafes in %anga!ore a!one$

Another ode! *hich CCD has adapted is to 2e present in educationa! institutions and

corporate capuses either in the for of detai!ed cafes or its econoica! ode! of CCD

e3press$

These innovative strategies have ensured that the copetition is at 2a& and ensured CCD=s

doinance in the Indian arket though an& of its out!ets are incurring !osses$

Cafe Coffee Da& copetitors inc!ude 2ut are not !iited to

%arista

Cafe 5ocha

Costa Coffee

The Coffee %ean Tea 'eaf


21/44

'IT#%!T*%# %#VI#0

Z"n$+ S, "t al, -."i!hbohoo% Ra#ial Com)osition+ ."i!hbohoo% Po("t/ an%

th" S)atial A##"ssibilit/ o Fast Foo% Sto"s in M"to)olitan D"toit0,

Am"i#an 1ounal o Publi# 2344567 85296,

Absta#t9 -esidential environment is &learly related to health! spe&ifi&ally dietary

health. In fa&t! many of the most serious &hroni& illnesses in the =nited States are

asso&iated with dietary defi&ien&ies. Proper a&&ess to nutritious foods is essential to

de&reasing dietary related &hroni& illness. Supermarets provide dietary health

resour&es through higher Cuality and lower &osts of nutritious foods. This study

e2amines the spatial a&&essibility of supermarets for 7$# neighborhoods within

/etropolitan Detroit with relation to &ommunity's poverty and ra&ial &omposition. The

per&entage of residents below the poverty line serves as the measure of

neighborhood poverty for the study. Supermarets are defined as either a

Super&enter su&h as Super mart or a full6line gro&ery store asso&iated with a

national or regional gro&ery &hain su&h as roger. Spatial a&&essibility is eCuivalent

to a /anhattan blo&. The study found that the distan&e to the nearest Supermaret

in&reased with in&reasing levels of neighborhood poverty. 3hile the distan&e to the

nearest Supermaret was similar among the most impoverished neighborhoods!

Afri&an Ameri&an &ommunities averaged "." mile greater distan&e to the nearest

supermaret than predominantly white neighborhoods.

R"l"(ant Data:

iterature now asso&iates residen&e in e&onomi&ally disadvantaged neighborhoods!

after &ontrolling for so&ioe&onomi& status! with a variety of adverse diet6related

health out&omes.


22/44

Disparities in Supermaret a&&essibility on the basis of ra&e were evident among the

most impoverished neighborhoods9 the most impoverished neighborhoods! in whi&h

Afri&an6Ameri&ans resided! were on average were "." miles farther from the nearest

supermaret than the most impoverished white neighborhoods.

/ean distan&e to the nearest supermaret in&reased with ea&h su&&essive tertile of

per&entage poor for neighborhoods with a high proportion of Afri&an Ameri&ans but

remained appro2imately the same a&ross all tertiles of per&entage poor for

neighborhoods with a low proportion of Afri&an Ameri&ans :predominantly white; .

InadeCuate a&&essibility to supermarets may &ontribute to less nutritious diets and

hen&e to greater ris for &hroni& diet related disease.

Affordable publi& transportation needs to be improved integrating transportation

routes with supermaret lo&ations .

Po&"ll+ ;isa M, "t al, -Foo% sto" a(ailabilit/ an% n"i!hbohoo% #haa#t"isti#s

in th" :p J ).)"; of that in

3hite neighborhoods with even less relative availability in urban areas .

@ispani& neighborhoods have only :p J ).)"; as many &hain supermarets

&ompared to non6@ispani& neighborhoods.

arger sized food stores su&h as supermarets versus smaller stores and &hain

versus non6&hain supermarets have been shown to be more liely to sto& healthful

foods and to offer foods at a lower &ost.

0urthermore! given that low6in&ome populations are less liely to have private meansof transportation and given that the nature of food shopping involves either


23/44

transporting multiple shopping bags or maing more freCuent shopping trips! the

mobility strategies for food shopping among low6in&ome families will e2a&erbate the

barriers to a limited number of available lo&al area supermarets! in parti&ular &hain

supermarets. Indeed! several studies have highlighted the mobility &onstraints

fa&ed by low6in&ome households in their daily a&tivities in&luding food shopping .

A re&ent report finds that Afri&an Ameri&ans prefer to shop in &hain supermarets

and that one of the ey fa&tors that influen&e these shoppers is transportation and

lo&ation. Pro2imity is importantK of Afri&an Ameri&an shoppers travel one mile

or less to their primary gro&ery store .

G"n!s+ 1o", -Do"s Publi# Tansit Count"a#t th" S"!"!ation o Cal"ss

Hous"hol%sB M"asuin! S)atial Patt"ns o A##"ssibilit/0, Tans)otation

R"s"a#h *oa% o th" .ational A#a%"mi"s 2344=67

Absta#t: This study resear&hed Eeographi& Information Systems! te&hnology that

measures transit use on smaller s&ales! to address the problem of urban populations

that depend on publi& transportation but have a la& of a&&ess to their everyday

needs! in&luding food.

R"l"(ant Datauotations:

The analysis finds that over 5!4)) households! representing "( per&ent of %ew Lor

,ity's households! do not have reasonable a&&ess to supermarets.

The study provides statisti&ally signifi&ant eviden&e that poor a&&essibility is

asso&iated both with low6in&ome neighborhoods and with neighborhoods with

disproportionately high populations of Afri&an Ameri&ans.

Service Quality An investigation into Malaysian Fast food consu!ers using D"#ESE$%

&eang Meng 'ang( )niversity of #e*castle

)rsula +ougoure( Queensland )niversity of 'ec,nology

As noted by Doran :())(;! it is imperative that we see to e2amine &ommonly

a&&epted! western6based mareting theory in the &onte2t of different &ountries to see

whether su&h &on&epts e2plain the same phenomena in &onsumers from different

&ountries. 3hilst e2tensive resear&h has been &ondu&ted on servi&e Cuality over the

past two de&ades :e.g. 8itner! "##)? ,ronin and Taylor! "##(! Parasuraman!

Meithaml and 8erry! "#77;! relatively little attention has been paid to issues


24/44

surrounding servi&e Cuality in non6western &ountries! lie the Asian region and in

parti&ular! /alaysia.

f the nowledge gained in the servi&e Cuality literature! the wor of Parasuraman!

Meithaml and 8erry :"#77; provides an approa&h to defining and measuring servi&e

Cuality! nown as SF-NO=A. In&orporating five servi&e Cuality dimensions of

tangibles! reliability! responsiveness! assuran&e and empathy! SF-NO=A has been

well utilised within the literature. This being said however! it is important to note that

SF-NO=A has been found to possess &ertain limitations! parti&ularly when applied

a&ross different servi&e industries :eg9 8abaus and 8oller! "##(? S&hneider and

3hite! ())*;. 0or e2ample! DI%FSF-N for restaurants was developed by Stevens!

nutson and Patton :"##4;! in response to findings that SF-NO=A was inadeCuate

for the GuniCue+ restaurant environment :Dube! -enaghan and /iller! "##*;.

Prior resear&h suggests that not all servi&e Cuality elements :within tools su&h as

SF-NO=A! DI%FSF-N; are able to predi&t a &onsumer+s overall servi&e Cuality

per&eptions or :SO; :liva! liver and /a&/illan! "##(;. Therefore! it is important

to identify the importan&e of servi&e Cuality and its dimensions in determining overall

servi&e Cuality :SO;! as per&eived by &ustomers. 8y addressing this issue! firms

&an gain an understanding of the areas they should &on&entrate on when seeing toimprove their overall servi&e Cuality provisions :liva! liver and /a&/illan! "##(;.

In the &onte2t of the fast food industry! it appears liely that servi&e Cuality

dimensions from DI%FSF-N will positively effe&t overall servi&e Cuality :SO;

per&eptions by /alaysian &onsumers. Thus!

@"9 Servi&e Cuality :DI%FSF-N; will positively effe&t verall Servi&e Ouality

per&eptions :SO; for /alaysian fast food &onsumers.

,ustomer satisfa&tion has long been re&ognised as a pro&ess :liver! "#7"; and is

the differen&e between &onsumers+ per&eived and e2pe&ted performan&e of a

produ&t or servi&e. In other words! &ustomer satisfa&tion o&&urs when performan&e is

higher than e2pe&ted! while dissatisfa&tion o&&urs when performan&e is lower than

e2pe&ted. verall! to gain &ustomer satisfa&tion! some argue that organisations need

to e2&eed predi&tive e2pe&tations of &ustomers! rather than just satisfy e2pe&tations

:Spreng and /a&oy! "##$;.

Servi&e Cuality and &ustomer satisfa&tion are inarguably fundamental &on&epts

within servi&es mareting theory :Spreng and /a&oy! "##$; and their relationship


25/44

has seen in&reasing resear&h interest over the years :8itner! "##)? Dabholar! "##4?

Spreng and Taylor! "##5? /ohsin! ())


26/44

verall however! results tend to support this relationship and it seems liely that this

will be the &ase for /alaysian &onsumers of the fast food industry. Thus!

@


27/44

A.A;SIS I.TERPRETATIO.

"; ISIT

Frequenc&

Daily 14

Weekly 38

Fortnightly 19

Monthly 9

Total 100


28/44

visit

14

38

19

9

0

5

10

15

20

25

30

35

40

Daily Weekly Fortnightly Monthly

Interpretation


29/44

price range

0

10

20

30

40

50

60

70

100-200 200-500 Above 500

Interpretation


30/44

preference of store

0

10

20

30

40

50

60

!ran" i#age $a%y a&&e%%ibility '(e&ial o))er

Interpretation


31/44

Interpretation


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0

5

10

15

20

25

30

35

40

45

50

'trongly agree Di%agree ,e+tral Agree 'trongly agree

Interpretation96

Fro the a2ove ta2!e and graph it sa&s that aEorit& of the custoers (i$e$ ??) of the are

neutra! to prefer the store for friend!iness of staff and inorit& of the (i$e$ ?0 ) of the

agree that the& *i!! prefer the store for friend!iness of staff

-) reference of store due the variet& of enu avai!a2!e in the store

Response Fre*+en&y

'trongly Di%agree 5

Di%agree 15

,e+tral 21

Agree 39

'trongly agree 15

Total 100


33/44

preference due to variety of menu

0

5

10

15

20

25

30

35

40

45


Interpretation

Fro the a2ove ta2!e and graph it sa&s that aEorit& of the custoers ( i$e$ B,) of the

agree that the& *i!! prefer the store due to the variet& of enu and inorit& of the (i$e$ 1+

) of the neutra! a2out the variet& of enu in the store

) reference of store due the service speed

Response Fre*+en&y

'trongly "i%agree 5

Di%agree 20

,e+tral 39

Agree 15

'trongly agree 20

Total 100


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preference due to service speed

0

5

10

15

20

25

30

35

40

45


Interpretation


35/44

preference for calorie content

0

5

10

15

20

25

30

35


Interpretation


36/44

preference due to ambience

0

5

10

15

20

25

30

35

40

45

'trongly "i%agree Di%agree ,e+tral Agree 'trongly agree

Interpretation

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Fast Food-A Case Study

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