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Fast Food

Analysis ofFast FoodIndustry 2013

Yuvraj Singh Thakur

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International School of Business & Media

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1. Top five product manufacturers/service providers & sellersin India and the history, structure & management of theabove manufacturers/ service providersMcDonalds Dominos Pizza Pizza HutKFCSubway

McDonalds McDonalds formed in 1954; McDonalds brand is the leading global food service retailerwith more than 30,000 local restaurants serving nearly 50million people in more than

120 countries.

Mc was started as a drive-in-restaurant by two brothers, Richard and MauriceMcDonalds in californiums in the year 1937

Ray kroc, distributor of milk shake machine ,expressed interest in the business,and he finalized a deal for franchising with the McDonalds brother in 1954 .Heestablished a franchising company, the McDonalds system inc. In 1961,hebought out the McDonalds brothers share for $2.7 million and chang ed thename of the company to McDonalds Corporation

In India 1996 - First restaurant opens in India, at Basant Lok , Vihar, New Delhi.McDonalds India is a 50 50 JV partnership between McDonalds Corporation(U.S.A) and two Indian businessman Amit Jatia (Hard castle Restaurants PrivateLimited, Mumbai)and Vikram Bakshi (Connaught Plaza Restaurants PrivateLimited, Delhi). Two separate operations in Northern & Western India.

Partners and their management team strained extensively in Indonesia & theU.S. Approximately 75% of the menu available in McDonalds in India is Indianite and specifically designed to woo Indian customers.

Dominos PizzaCorporate strategy of Dominos Pizza

Exceptional people on a mission to be the pizza delivery company in theworld

Think global and act local Fun, happiness and convenience.

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Indian operations are ranked number one for past 3 years and over the last 2 years theyopened stores in 15 new cities. Jubilant Food Works Limited (the Company) is aJubilant Bhartia Group Company, The Company was incorporated in 1995 and initiatedoperations in 1996, The Company got listed on the Indian bourses in February 2010,Mr, Shyam S, Bhartia, Mr, Hari S, Bhartia and Jubilant Private Ltd, are the Promoters ofthe Company. The Company is India's largest and fastest growing food servicecompany, with a network of 500+ Domino's Pizza restaurants.

Over the period since 1996, Dominos Pizza India has remained focused on deliver inggreat tasting Pizzas and sides, superior quality, exceptional guest care and value formoney offerings. We have endeavored to establish a reputation for being a homedelivery specialist capable of delivering pizzas within 30 minutes or else FREE to acommunity of loyal consumers from all our restaurants around the country. Dominosbelieves that when a box of pizza is opened, family and friends come together to share

the pizza. Hence, our brand positioning: Yeh Hai Rishton Ka Time. Thats why, allefforts, whether it is a new innovative and delicious product, offering consumers valuefor money deals, great service, countrywide presence or the promise to deliver in 30minutes or free are all directed towards making relationships stronger, warmer andmore fun by giving consumers an opportunity to get together, catch up, reunite andspend more time together.

Pizza Hut

Pizza Hut India is part of Yum! Restaurants International, a division of Yum! Brands Inc.

The world's largest restaurant company in terms of system units.Pizza Hut entered Indiain 1996, and opened its first restaurant in Bangalore. Since then it has captured adominant and significant share of the pizza market and has maintained an impressiveGrowth rate of over 40 per cent per annum. Pizza Hut India has 156 restaurants in 35 cities in India.The chain is part of Louisville, Ky.-based Yum! Brands Inc., which has over 36,000 restaurants.The Economic Times' Brand Equity Most Trusted Brands 2009 annual survey hasnamed Pizza Hut the"Most Trusted Food Service Brand" in India for the fifth year, ahead of all other Indian andglobal brands. Pizza Hut is also the only restaurant company to place in the Top 20Service Brands list.

Subway

Subway Franchise Started in 1965 In Bridgeport Connecticut and it is Currently ownedand operated by Doctor's Associates, Inc. .One of the fastest growing franchises 38,061in 98 Countries 25,468 restaurants in the US, 303 in India Largest single-brandrestaurant brand globally. Second largest global operator after Yum! Brands Fast Food

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2. The size of McDonalds, Dominos Pizza, Pizza Hut,KFC and Subway in following terms

a. Sales, Production

McD onalds Corporation had annual revenues of US$27.5 billion and profits of$5.5 billion in FY year 2012. McDonalds is present in 40 Indian cities with 217restaurants and serves 650,000 customers daily

Dominos Pizza delivers an average of 1 million pizzas per day sales of $8.2billion.

Subway Corporation had annual revenues of US $14 billion.

KFC had annual revenues of US$20 billion.

Pizza Hut had annual revenues of US$12 billion.

b. EmployeesMcDonalds India employs a sizable complement of staff numbering 9,000 people.

Pizza Hut India employs a sizable complement of staff numbering 8,000 people.

Subway has 150,000 employees across the world.

KFC has 180,000 employees across the world.

Subway India employs a sizable complement of staff numbering 6,000 people.

c. Market Share

Among McDonalds has 42% market share and Subway has 40.60% marketshare.

Among Pizza Hut has 46.4% market share and Dominos has 21.67% marketshare.

KFC has 42.11% market share.

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3) Psychological or psychographicSubway core customer between the age of 16 to 39 are found to be more healthconscious. Therefore, by providing healthy and fresh food, subway segmented thecustomer based on the trends or psychological.Besides by offering the reasonable priced food with fast services, subway wants tosuits the pockets of the many college going adults as the concept is somethingrelated to the value for money.

3) Behavioral or attitudinalBy providing catering services to its customer, Subway is segmenting the marketbased on the behavioral of its customers. Subway knew that with hectic and busylifestyle, catering of fresh, healthy and fast food is required in everyday lifeSubway also make special promotion during occasions like Christmas and new yearby offering gift card, etc on the purchase of its food. This shows that they segmentshe customer based on the occasion under behavioral of its customer.

e. Market leader

McDonalds is the market leader in terms of sales.

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market depends upon size and growth rate of population, Company resources andstructural attractiveness of market segment.

3. Market Positioning

For a product to occupy a clear, distinctive and desirable place relative toCompeting products in the minds of target consumer. In KFC feedback is taken fromthe customer in order to know the customer demands and then improvements are madein products. KFC focuses on pure and fresh food in order to create a distinct and clearposition in the minds of customers KFC has a strong brand name and they are leadingthe market in fried chicken.

Domino s

Dominos Pizza has increased its spends on the digital medium and this year, it will bespending 6-7 per cent on digital, out of its total marketing budget as opposed to lastyear where the spend was 3.5-4 percent. Dominos Pizza online ordering launched lastyear has been a runaway success, while it has launched mobile application just monthand a half back, which though early days, has seen a traction of 1.5 lakh visits in a shortspan of time. Harneet Singh Rajpal, Vice President- Marketing, Dominos Pizza India,talking about their digital foray said: Its more to do with closing the loop by being onthe digital medium. Quite often the decision to order a pizza is instantaneous. Hence wewanted to facilitate the ordering which could be done by clicking on the ad and placingan order in few simple steps. In fact, digital has become an effective channel for us in

driving our business and getting consumers instantly, thus able to measure our returnon investments too

Television has also helped them in building their brand in Tier II and Tier III cities whichis equally important for the company as the metros for growth. In fact, Dominos haspresence in 105 cities and has 465 stores which, makes Dominos the largest QuickService Restaurant player in India which has footprints beyond the metros

It has recently launched the stuffed garlic bread and the product is even beingsupported by a TVC. In April this year, it re-launched its Pizza Mania and one has seena constant effort to rev up its menu. It has also been focusing on side dishes , is to offerto its customers a complete meal experience.

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McDonalds The first restaurant opened by McDonalds Company was in San Bernardino, California

way back in 1948. At this moment, McDonalds is the worlds finest a nd leading foodservice company with more than $40 billion sales from 30, 000 outlets all over the world.However, this company didnt grow quickly because of fortune. McDonalds has reachedwhere they are now due to hard work and effective marketing strategies.

One of the companys greatest achievements was the opening of the Happy Meal. Inyear 1970s, McDonalds Company was searching a new ways to catch the attention ofcustomers.

Study indicated that little ones were great influencers in the companys decision and

making process. This led in the worlds first Happy Meal, a combination of meal suitablefor children including a free toy which place McDonalds smack-dab in the children sitesall over the world.

Marketing Strategy: 4PS.

Product

Product consists of how the company must design, manufactures the products whichimprove the experience of every customer. Product refers to physical product and

McDonalds includes specific aspects of its service and products like packaging, looksand desirability. This includes non-tangible and tangible features of the services andproduct. McDonalds has intentionally kept its product depth and width limited.McDonalds had studied the manners of the Indian clients and totally provided variousmenus as compare to its menu presented in world market. The company laminatesbeef, mutton and pork burger from their menu. India is just country wherein McDonaldsoffer vegetarian menu. As well as the cheese and sauce use are pure vegetarian.

The company constantly improves its product and service in accordance to the fastchanging desires and tastes of its consumers. One of the good examples is the

launching of Chicken Maharaja Mac and the Chicken McNuggets.Place

The place for the most part includes distribution outlet and channel of the business. It isvery essential because the service or the product should be accessible to theconsumers at the right time, right place and right quantity. In United States almost 50%of McDonalds outlets are located three minutes away from ea ch other. There are

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green color in the logo denotes environment and health .Similarly, yellow being also inuse is neutral color while being the br ightest also as its between the ranges ofwavelength that could be detected by human eyes.

Subway targets Subway targets more of the younger generation aiming at nutrition consciousness,these would include empty nest 1 and 2 (singles and newly married people) and fullnest 1 and full nest 2 (family with young children and that with grownups still living withparents). With respect to the tagline and strategies in use,Subway utilizes a psychographic segmentation strategy with a clear focus on attitudes,interests and opinions (AIO) and life styles. Thus the younger generation is status andprinciple oriented with emphasis being laid on healthy food. At the same timebehaviorist segmentation is being utilized thus making it hybrid. The market is dividedaccording to the loyalty of customers and benefits it has been seeking.Subway also focuses on hard sell approach in terms of the functional benefits andattributes of the menu being offered while the soft sell approach is inclined towards thenutritional value gained and often gets to be criticized for the hefty amounts spent for adcampaigns and promotions

In the year 2002, the outlets low fat sandwiches were promoted showing MarkBlackwell having lost 42 kilograms after a year of Subway consumption, thereby,elaborating much upon the functional attribute. Later Subway started its in game textcampaign accompanied by custom creating and text messaging to attract game lovers.

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4. Recent Research and ActivitiesPizza Hut

Pizza Hut adds to Legendary Stuffed Crust Line with New 3-Cheese Stuffed Crust Pizza

As per the announcement in PLANO, Texas, Oct. 7, 2013

Nearly 20 years ago Pizza Hut reinvented the way many people eat pizza by introducingStuffed Crust Pizza. Now, the brand that made it cool to eat a slice of pizza backwardsis expanding its Stuffed Crust line with the new 3-Cheese Stuffed Crust Pizza. The 3-Cheese Stuffed Crust Pizza will be a permanent addition to the Pizza Hut menu thefirst new pizza to be added full-time since the original Stuffed Crust in 1995.

McDonalds

The first few McCafe counters will be rolled out in Mumbai followed by other metrossuch as Bangalore, Pune and Chennai over the next couple of years.

Internationally, McCafes are housed within McDonald's outlets but have a separatelook and feel, the same format will be followed here in India, said Amit Jatia, vice-chairman, West life Development, whose subsidiary Hard castle Restaurants holds thedevelopment license for McDonald's Corp in south and west of the country.

Domino's Pizza

Domino's Pizza Online Ordering Is Faster than Ever with Launch of Pizza Profiles
http://www.pizzahut.com/http://www.pizzahut.com/

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6. Job levels and descriptionsMcDonald's

McDonald's, like to provide the opportunity to earn your money the way you want.

Whether you're a people person or more of a behind-the-scenes type, we have aposition that works best for you.

Front Counter

If you're somewhat of a social butterfly, then the Front Counter is the station for you. It'shere where you'll get to meet and interact with hundreds of people every day. And asthe face of the restaurant, it's also a very valued and respected position.

Hospitality Leader

Just like you would if you were throwing your own party, a Hospitality Leader makessure guests are happy, comfortable, and have everything they need. A HospitalityLeader also handles promotions and special events, making this the perfect position forall you aspiring event planners.

Drive-Thru

The Drive-Thru is like the Front Counter, but with cooler headgear. This position keepspeople on the go moving, and it's a fast paced job that needs someone with a highenergy level and great people skills.

Production

Production is where the action is. Whether you work the grill or make salads, you'll be incharge of cooking and prepping meals that are famous the world over.

McDonalds India Positions of Crew Member

Making up the majority of the company workforce, McDonalds crew membersgenerally handle restaurant routines and operations. On any given day, team membersmay need to handle the cash register, back drive-thru, grill, and fryer. Easily one of the

most important responsibilities, crew members with McDonalds must maintain a cleanand sanitary environment. Team members of McDonalds India usually make aroundminimum wage, though in some instances

Hospitality Leader

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Hospitality leaders perform duties similar to shift leaders. A hospitality leader usuallymonitors McDonalds India crew members and enforces proper procedures and policies.Leaders must also perform the regular restaurant operations. Most importantly,hospitality leaders train new McDonalds team members and integrate new storepolicies

Management

Managers mainly monitor the business aspect of the restaurant and act as liaisons forthe corporate parent. To keep restaurants running smoothly, managers also handle thehiring process. McDonalds managers screen applicants, set up interviews, and handlethe initial introduction into working for the fast food chain

Corporate

fast food Company Mc Donalds runs just like any major corporation. McDonalds Indianeeds many corporate employees in departments, like marketing, IT, accounting, realestate, franchising, and other aspects of business management. Typically, corporateemployment with McDonald s India requires a degree or some kind of formal training.McDonalds does offer many internship opportunities for college students and recentgraduates, as well. Salary rates for McDonalds India corporate associates vary by jobtitle, experience, and education level.

Benefits of Working at McDonalds India -McDonalds India regularly rewards workers with several enticing job benefits. Bothpart-time workers and full-time crew members earn employment benefits fromMcDonalds, though the extent of said perks may differ. McDonalds normally offerstraining opportunities, education, and even scholarship opportunities for youngemployees. The hiring and training process may shed more light on employee benefitsavailable with McDonalds India.

Most important to re staurant workers, McDonalds India offers medical assistance andinsurance plans, which include vision, dental, and general health coverage. Smallerwork benefits include exclusive employee discounts on clothing and electronics.

KFC

Area Managers

Area Managers are accountable for providing coaching, leadership and operationalsupport to 8-10 KFC Restaurants within a defined Area.

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Restaurant General Managers

The Restaurant General Manager is accountable for creating and running an energeticand valuable work environment, which is committed to serving the best chicken at thefastest speed and with a smile.

The Restaurant General Manager reports directly to an Area Manager and isaccountable for successfully implementing and maintaining all Company policies andprocedures in relation to operations, customer service, cash handling, marketing,purchasing, human resources, health & safety, administration, training anddevelopment.

Assistant Managers

The Assistant Manager is responsible for assisting the Restaurant General Manager increating an energetic and valuable work environment, which is committed to serving thebest chicken at the fastest speed and with a smile.

Assistant Managers are also responsible for ensuring all Company policies andprocedures are followed in relation to operations, customer service, cash handling,marketing, purchasing, human resources, health & safety, administration, training anddevelopment.

Trainee Managers

Responsible for assisting the Restaurant General Manager and Assistant Managers increating an energetic and valuable work environment, which is committed to serving thebest chicken at the fastest speed and with a smile.

Trainee Managers help with day-to-day running of the restaurant, and need to ensurethat all operations, customer service, cash handling, marketing, purchasing, humanresources, administration and training & development policies are followed.

Customer Service Team Members

Responsible for working the service areas and ensuring quality product, service andcleanliness is delivered to all customers at top speed and with a smile.

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Food Service Team Members

Responsible for putting the crunch in the coating and the zing in the Zingerthe cooksmain task is to prepare and cook the irresistible KFC products! The cook must alsomaintain the cleanliness of the cooking area as well as the quality of product and speedof preparation.

Dominos

Dominos Pizza jobs feature excellent base pay and opportunities for advancement intomanagerial roles offering generous salary rates. The international pizza company needsto hire for the following positions:

Team Member

Dominos Pizza team member job duties range from preparing food and cleaning workstations to taking food and drink orders and explaining menu items. Team memberassociates act as cooks and operate kitchen equipment, such as ovens, grills, andmicrowaves, in order to prepare foods. Dominos team member employees work directlywith customers. The average team member works 15 to 30 hours a week or part-timesched ules. Many Dominos Pizza locations in India hold late hours. The ability to workan open schedule also benefits prospective associates

Delivery Driver

Applicants with valid permits and clean driving records may find work as DominosPizza delivery drivers. The nationwide pizza chain primarily offers part-time shift optionsfor delivery driver jobs. Primary responsibilities include delivering pizzas and interactingwith customers. During slow hours, delivery drivers with Dominos Pizza may washdishes, clean dining and kitchen areas, and prepare food. Pay rates typically start out atminimum wage for delivery driver workers. The position also features the ability to earntips.

Management

Managerial opportunities available with Dominos Pizza India include assistant managerand general manager job titles. Dominos regularly promotes entry -level workers intosupervisory roles and hires applicants with sound fast food industry, restaurant industry,or pizza shop industry experience. Excellent leadership capabilities and motivationalskills serve candidates well during Dominos interviews. Managers often share

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Senior Sandwich ArtistThe Senior Sandwich Artist performs a variety of duties, including greeting and servingguests, preparing product, maintaining food safety and sanitation standards, andcompleting light paperwork. Trains newer or less experienced Sandwich Artists .in alltasks and responsibilities. Exceptional customer service is a major componentof this position

Tasks and Responsibilities:

1. Performs all tasks and responsibilities of a Sandwich Artist as outlined in Sandwich Artist job description.

2. Trains newer or less experienced Sandwich Artists in their tasksand responsibilities.

3. Understands and adheres to all quality standards, formulas and procedures asoutlined in the Subway Operations Manual .

4. Maintains a professional appearance and grooming standards as outlined in theSubway Operations Manual .

5. Performs light paperwork duties as assigned.6. Completes University of Subway courses as directed.

Shift ManagerThe Shift Manager supervises the operations of a shift to ensure that food safety,product preparation, cleanliness and inventory control standards are maintained. Thismay include scheduling and supervising staff. Exceptional customer service is a majorcomponent of this position.


1. Performs all tasks and responsibilities of a Senior Sandwich Artist as outlined inSenior Sandwich Artist job description.

2. Trains newer or less experienced Sandwich Artists in their tasksand responsibilities.

3. Practices inventory control standards.4. Inspects equipment and storage facilities throughout a shift to ensure

that equipment is in proper working order.5. Schedules and supervises staff as needed.6. Performs paperwork duties as needed.

Assistant ManagerThe Assistant Manager supervises daily operations to ensure that food safety, productpreparation, cleanliness and inventory control standards are maintained. Schedules and

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supervises staff. Maintains standards of restaurant safety and security. Exceptionalcustomer service is a major component of this position.


1. Performs all tasks and responsibilities of a Shift Manager as outlined in the ShiftManager job description.2. As needed, supervises food preparation to ensure that food safety andoperations standards are maintained.3. Coordinates and supervises staff so that standards of cleanliness aremaintained as outlined in the Subway Operations Manual.4. Manages a staff of approximately 4 to 12. Assigns, oversees and evaluateswork. Recommends promotion, transfer, or termination of employees. May conductwritten and verbal staff evaluations.5. Performs paperwork duties and assists with product orders and inventory as

needed.6. Assists with planning of special events and promotions.

ManagerThe Manager performs and directs overall restaurant management. Directs staff toensure that food safety, product preparation, and cleanliness standards are maintained.Maintains standards of restaurant safety and security. Recruits staff and overseestraining program. Responsible for inventory and money control systems may establishinventory schedules. Responsible for local marketing initiatives may contact

prospective customers to promote sales. Maintains business records. Exceptionalcustomer service is a major component of this position.


1. Completes and posts the staff work schedules.2. Recruits, rewards and terminates staff as needed.3. Communicates changes of food preparations formulas, standards, etc. to staff.4. Ensures that all local and national health and food safety codes are maintained and

company safety and security policy are followed.5. Maintains business records as outlined in the SUBWAY Operations Manual .

Analyzes business records to increase sales.6. Supports local and national marketing initiatives.7. Identifies and contacts prospective customers to promote sales.8. Plans special events and promotions.

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Multi Unit ManagerThe Multi-Unit Manager coordinates and supports all activities within the assignedgeographic area. Trains, coaches and supports managers. Plans and sets businessgoals. Focuses on in-store issues.

Tasks and Responsibilities::

1. Coaches and trains shift managers, assistant managers, and managers onoperational excellence. Helps to develop new hire orientation programs andrewards programs, monitors training processes to ensure quality trainingof employees. Develops and maintains staffing levels for managers and assistantmanagers. Implements management training.

2. Provides leadership to managers and staff in the geographic area toensure compliance with standards as set in the SUBWAY Operations Manual andapplicable government regulations.

3. Ensures that correct operational procedures are followed and takescorrective action if necessary.

4. Works with staff to achieve sales goals, using available reports to identifyopportunities.

5. Supports local and national marketing initiatives.

Pizza hut

Pizza Hut Shift Manager

As a Pizza Hut Shift Manager, this means stepping up to take the lead on shifts andexceeding our customers expectations. This also means you get involved at the frontline providing great customer service, as well as helping out with our freshly preparedproducts as a routine part of shifts. You will be part of a lively, friendly culture with someexceptional management training which will allow you the opportunity to develop yourmanagement skills, while still having the flexibility to do the things you enjoy outside ofwork.

Pizza Hut Driver

As a Pizza Hut driver, you are the smiling face that delivers our pizzas direct to thecustomers door. You get to enjoy driving while listening to your own tunes anddelivering great pizza. Besides being a team player who enjoys working in a fast pacedenvironment, you will need a smile, keen sense of direction and a reliable set of wheels.They will give you the training you need to succeed on the job, and working with us will

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7. Growth prospects of Fast Food industry in IndiaThe Indian fast food market has been witnessing rapid growth on the back of positivedevelopments and presence of massive investments. Currently, market growth is largelyfuelled by the rising young population, working women, hectic schedules, andincreasing disposable income of the middle-class households. Some of the uniqueproperties of fast food like quick served, cost advantage, etc are making it highlypopular among the masses. Thus, India offers enormous opportunities for bothdomestic as well as international players. According to this new research report, IndianFast Food Market Analysis , the Indian Fast Food Industry is anticipated to grow at aCAGR of around 34% during 2011-2014. Anticipating the future growth, many bigInternational players are entering into the market by making deals with the domesticplayers. And those already present in the Indian market are expanding their presence indifferent provinces of the country. This trend will emerge more s trongly during BMIs

forecast period, providing opportunities to local players to widen their product portfolios.BMI research further revealed that there is a large scope of growth in the untapped tier-II and tier-III cities, owing to which, major fast food retailers have already startedapplying various marketing strategies in popularizing their brands in these cities.Furthermore, they are aiming to provide affordable and customized products to suit theneeds of people that would ultimately provide necessary boost to the Indian fast foodindustry.

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8.References

http://www.slideshare.net http://www.uniassignment.com

http://marketing-team-project.wikispaces.com http://publications.theseus.fi http://en.wikipedia.org http://www.google.com http://www.kfc.com http://www.dominos.com http://www.mcdonalds.com http://www.pizzahut.com http://www.subway.com http://www.cnnmoney.com http://www.cybex.com
http://www.slideshare.net/http://www.slideshare.net/http://www.uniassignment.com/http://www.uniassignment.com/http://marketing-team-project.wikispaces.com/http://marketing-team-project.wikispaces.com/http://publications.theseus.fi/http://publications.theseus.fi/http://en.wikipedia.org/http://en.wikipedia.org/http://www.google.com/http://www.google.com/http://www.kfc.com/http://www.kfc.com/http://www.dominos.com/http://www.dominos.com/http://www.mcdonalds.com/http://www.mcdonalds.com/http://www.pizzahut.com/http://www.pizzahut.com/http://www.subway.com/http://www.subway.com/http://www.cnnmoney.com/http://www.cnnmoney.com/http://www.cybex.com/http://www.cybex.com/http://www.cybex.com/http://www.cnnmoney.com/http://www.subway.com/http://www.pizzahut.com/http://www.mcdonalds.com/http://www.dominos.com/http://www.kfc.com/http://www.google.com/http://en.wikipedia.org/http://publications.theseus.fi/http://marketing-team-project.wikispaces.com/http://www.uniassignment.com/http://www.slideshare.net/

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