Conumer Behaviour

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Contents

Chapter 1. Introduction and Needs & Objectives.............................................3

1.1 Introduction................................................................................................3

1.2 Needs & Objectives....................................................................................4

Chapter 2. Conceptual framewor..................................................................!

2.1 "istor#........................................................................................................!

2.2 $mer%ence.................................................................................................

'$()ON *O' $+$',$NC$............................................................................... -

2.3 Impact...................................................................................................... 12

2.4 Jobs and labor issues........................................................................................13

2.5 Globalization.............................................................................................14

2.5 Health issue............................................................................................... 14

Sample size : 100.............................................................................................1-

Chapter 3. ro/le of *ast *ood Industr#..........................................................21

3.1 Indian *ast *ood Industr# Overview..........................................................21

Fast food and its different categories:..................................................................20

Indian fast food/finger foodlo!al...................................................................20

"amil# dinersudupi $oints%thalis....................................................................20

Sand&i!h ' salad parloursSub&a#................................................................20

(ulti!uisine food !ourtsHangouts................................................................20

I!e!ream and $ui!e/be)erage parlours*as+ins ,obins%(amamia...........................20

Indian -desserts- and -sna!+ food- !hains Haldirams..........................................20

Varieties of food offered:..................................................................................20

South Indian:..............................................................................................20

1
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Beverages:.................................................................................................. 2

Jumbo ing: he (a+ing of an Indian "astfood hain..............................................30

3.5 D!I"#S...............................................................................................0

3.! Challen%es for the industr#......................................................................03

3. 'O56$+) O* IN78)9':.........................................................................00

3. 9rends in Indian maret............................................................................ 0

3.$ Indian Fast Food Industr% gro&th and its i'(ortant )la%ers.................................0

3.1 Indian *ast *ood +aret (nal#sis...........................................................0-

4. Collection and anal#sis of data; Interpretation of data...............................!3

Sample and ,esear!h design:...............................................................................!4

ools and (ethods of ata olle!tion:...................................................................!4

ata ro!essing and 3nal#sis:..............................................................................................!4

Chapter 0. +ajor *indin%s and +ajor )u%%estions..........................................3

5.1 (a$or "indings...........................................................................................3

Chapter !. (nal#sis and Interpretation...........................................................-

Chapter . 9rends of *ast *ood Industr#.........................................................-1

Chapter . (ppendices...................................................................................-!

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Chapter 1. Introduction and Needs &

Objectives

1.1 IntroductionFast foodis the term gi)en to food that !an be prepared and ser)ed )er# ui!+l#.

hile an# meal &ith lo& preparation time !an be !onsidered to be fast food% t#pi!all# the

term refers to food sold in a restaurant or store &ith lo& ualit# preparation and ser)ed to

the !ustomer in a pa!+aged form for ta+eout/ta+ea&a#.

6utlets ma# be stands or +ios+s% &hi!h ma# pro)ide no shelter or seating% or fast

food restaurants 7also +no&n as quick service restaurants8. "ran!hise operations &hi!h

are part of restaurant !hains ha)e standardized foodstuffs shipped to ea!h restaurant from

!entral lo!ations.

he !apital reuirements in)ol)ed in opening up a fast food restaurant are

relati)el# lo&. ,estaurants &ith mu!h higher sitin ratios% &here !ustomers tend to sit and

ha)e their orders brought to them in a seemingl# more ups!ale atmosphere ma# be +no&n

in some areas as fast !asual restaurants.

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1.2 Needs & Objectives

1. o stud# o)erall )ie& of "ast "ood industr# in India.

2. o stud# the )arious ser)i!es pro)ided b# the "ast "ood ,estaurant.

9. o stud# the future of "ast "ood industr# in India.

4. o stud# the a!tual &or+ing of "ast "ood ,estaurant.

5. o stud# the !ustomer satisfa!tion le)el.

. o stud# the reasons for gro&th of Indian fast food industr#.

;. o stud# !hallenges in fast food industr#.


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0

*I+,-+/-,

-,VI,0


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Chapter 2. Conceptual framework

2.1 Histor

9he concept of read#


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&ith earl# domesti!ation of animals.

345 B1 rops su!h as &heat% barle# and lentils are

de)eloped and meat and fish are staples.

2 B1 3r#an tribes migrate to northern India. Sugar

!ane is gro&n and pro!essed in southern

India.

45 B1 Hinduism de)elops and !astes de)elop. his

leads to a re$e!tion of eating meat% and parti!ularl#

!o&s.

6th centur% B1 *uddha and (aha)ira found *uddhism and

Jainism. Jains pra!ti!e stri!t )egetarianism.

4st centur% D hristianit# arri)es in India.

5th centur% D 3#ur)eda 7s#stem of medi!ine based on food8

de)elops.

4264536 entral 3sian d#nasties introdu!e entral

3sian and ersian !uisines.

*ate745th ortuguese arri)e in India% found an empire%

earl%746th and bring ne& ingredients su!h as tomatoes

centur% %!hillies% potatoes et!.

48th centur% @ast India ompan# is formed.

4345 ea plantations established b# *ritish in

3ssam and ar$eeling.

458 *ritish !ro&n ta+es o)er go)ernment of India


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and h#brid foods begin to de)elop.

4$98 andoori !hi!+en in)ented in elhi.

4$88 Indian food gro&s in popularit# in A and the

first *alti restaurant opens in *irmingham.

4$$6 (!onald?s and izza Hut open in India.

23 ,estaurants !ontinue to open offering ne&

international !uisines as the Indian e!onom#

gro&s and urbanisation de)elops at a rapid

rate.

2.2 !mer"ence

he fast food !ulture emerged as earl# as the 1=th !entur#. uring the Industrial

,e)olution% a large &or+for!e &as reuired to &or+ for 10 to 12 hours a da#. ith so

mu!h &or+ to be done% fast food &as the idea of a ui!+ and eas# lun!h.

In India% fast food !ulture emerged in the de!ades after independen!e% starting

from the 1=50?s. @ating at home used to be a signifi!ant aspe!t of Indian !ulture% so the

!hange &as gradual. 6)er a period of time% &ith a gro&th in the number of nu!lear

families% e!onomi! gro&th and in!reasing per !apita in!ome as &ell as globalization% fast

food !ulture gained prominen!e. omen &ere shifting from their !on)entional roles of

managing the household and ta+ing !are of the !hildren. ith gro&th in litera!#% the#


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started $oining the &or+for!e in large numbers. "ast food be!ame a timesa)ing

alternati)e to !oo+ing for them.

Similarl#% !hildren resorted to fast food to fill their stoma!hs in s!hool and

!ollege. heir e>posure to global urban !ulture and estern !uisine a!!elerated their

&ant for !heap and deli!ious fast food.

(oreo)er% fast food !osts less than traditional long meals !ommen!ing &ith

appetizer and !on!luding &ith dessert.

Birula?s and izza orner C India?s most popular domesti! fast food !hains C

gained rapid popularit# during this period. hough the fast food !ulture originated

abroad% these domesti! food !hains !ould !reate a perfe!t blend of international food &ith

Indian ingredients. aneer pizzas and aloo ti++i burgers &ere indeed able to satisf# Indian

taste buds.

ith the liberalization of the e!onom# in 1==2% ne& multinational fast food giants

started dotting India &ith their outlets. *urger ing% imp#?s% izza Hut% omino?s

izza% (!onald?s% and " outlets !an be seen toda# in nearl# e)er# shopping mall and

other publi! areas. In fa!t% these multinationals ha)e gi)en their domesti! !ounterparts a

run for their mone#. he# are gro&ing at a mu!h faster pa!e than the Indian !hains.

#!$%ON O# !'!#(!NC!

Gender -oles:

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Dender roles are no& !hanging. "emales ha)e started &or+ing outside. So% the#

ha)e no time for their home and !oo+ing food. "ast food is an eas# &a# out be!ause these

!an be prepared easil#.

1usto'er So(histication and 1onfidence:

onsumers are be!oming more sophisti!ated no&. he# do not &ant to prepare

food and spend their time and energ# in house hold &or+s. he# are building their

!onfiden!e more on Eread# to eat and eas# to ser)e? +ind of foods.

)aucit% of +i'e:

eople ha)e no time for !oo+ing. *e!ause of emergen!e of &or+ing &omen and

also number of other entertainment items. (ost of the time either people &or+ or &ant to

en$o# &ith their famil#.

Double Inco'e Grou(:

@mergen!e of double in!ome group leads to in!rease in disposable in!ome. Bo&

people ha)e more disposable in!ome so the# !an spend easil# in fast food and other

a!ti)ities.

0oring 0o'en:

or+ing &omen ha)e no time for !oo+ing% and if the# ha)e then also the# don?t

&ant to !oo+. *e!ause the# &ant to !ome out of the traditionall# defined gender roles.

he# do not &ant to !onfine themsel)es to household &or+ and upbringing of !hildren?s.

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*arge (o(ulation:

India being a se!ond largest !ountr# in terms of population possesses large

potential mar+et for all the produ!ts/ser)i!es. his results into entr# of large number of

fast food pla#ers in the !ountr#.

-ela;ation in rules and regulations:

ith the e!onomi! liberalization of 1==1% most of the tariff and non tariff barriers

from the Indian boundaries are either remo)ed or minimized. his helped signifi!antl#

the (B?s to enter in the !ountr#.

!enu diversification:

In!rease in !onsumption of pizzas% burgers and other t#pe of fast foods.

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2.) Impact

he emergen!e of the fast food industr# has% to an e>tent% transformed urban food

!ulture in India.

It is !ommon +no&ledge that too mu!h fast food is bad for health and ma# lead to

obesit#. 3n essential !omponent of most fast food is fat C the +ind of fat that in e>!ess

!an lead to arter# !logging. In large uantities% fast food ma# lead to obesit# as &ell as

h#pertension% diabetes% high !holesterol and heart diseases. @)en !ertain t#pes of !an!ers

ha)e been obser)ed to spread due to la!+ of safet# standards in some se!tors of the fast

food industr#.

here are also se)eral en)ironmental problems asso!iated &ith ho& fast food

outlets pro!ess and pa!+age their produ!ts. "ood pa!+aging is done using plasti!%

St#rofoam and other s#ntheti! produ!ts &hi!h are not biodegradable. In re!ent times%

man# fast food outlets ha)e s&it!hed to paper bags. hough paper is biodegradable% at

the large uantities in &hi!h paper &aste is generated in India% !urrentl# paper is seen

more as a pollutant. (etal and glass&are &ould be more fa)orable to ser)e food% but the#

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destro# the &hole purpose of !onsuming food onthego. he need of the hour is a la& or

regulation that for!es these outlets to re!#!le the paper% plasti! and foam the# use

e)er#da#.

India?s fast food industr# is gro&ing at 40F per annum and generates o)er ,s.

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restaurants ha)e the daunting tas+ of !onstantl# training an entirel# ne& &or+for!e.

oli!ies and pro!edures need to be e>plained to ea!h ne& emplo#ee.

2.5 Globalization

In 200% the global fast food mar+et gre& b# 4.


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Is Indian Fast Food =,*+=>??

6ne of the ri!hest diets high in !alories is Indian "ood. If #ou !an pin!h more

than an in!h% it?s probabl# time for #ou to !ut do&n on the !alories #ou eat in esi food%

espe!iall# if #ou &ant to lose some pounds to be healthier and loo+ fitter.

It ma# seem so inno!ent $ust to ha)e that bite size a+ora but &e reall# don?t

+no& &hat fat or !alories it !ontains. his is true most of us don?t a!tuall# +no& &hat

&ere eating &hen &e ha)e an Indian meal at home or at an Indian restaurant.

3 small spi!# plate of !urr# is enough usuall# to fill our appetites but &e don?t

+no& ho& man# !alories are in it. oda#% the #ounger generation is more a&are of

!alories and fat than before.

herefore% if #ou?re see+ing to !ontrol the !alories &hen !hoosing a dish% ma+e

sure #ou minimise the ghee or oil !ontent and ha)e more of the other ingredients. If

!oo+ing% use alternati)es su!h as 6li)e oil. hen ordering in a restaurant% reuest less fat

to be used in #our dish.

Seasonal eating pla#s a +e# role in our diets. uring the &inter &e tend to eat

hea)ier foods su!h as deserts and spoil oursel)es &ith s!rumptious hot meals usuall# full

of !omforting ingredients% thus% ma+ing it harder to shift the pounds &ith e>er!ise.

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@ating out !an al&a#s be a dilemma bet&een !hoosing a tast# dish and one that is

lo& in !alories. herefore% !hoosing #our !ourses &isel# !an help #ou manage the !alorie

!ount.

hen !onsidering &hat to eat for #our starter% it is perhaps best to !hoose

something light% su!h as a opadom as this !ontains onl# 5 !alories. Anli+e Samosa?s or

6nion *ha$i?s &hi!h !ontain higher !alorie !ontent in ea!h portion

ips are used to enhan!e the taste of a starter% but don?t be fooled% these also

!ontain !alories. 3 u!umber ,aita or a omato Sambal !ontains appro>imatel# 20

!alories ea!h. his is signifi!antl# less than (ango hutne# or ime i!+le a little as

1tbsp !an !ontain up to ;0 !alories. Ges% #ou read !orre!tl#% ;0 !aloriesK

In the present times% it is the fast food !raze that has !reated sensation all o)er. he

fast food has o!!upied a demanding position in the list of top hot fad foods. eople are

getting lured into tr#ing #umm# fast food dishes% &ithout possessing adeuate +no&ledge

regarding Indian fast food nutrition. ell% there is a need for bringing for&ard some e#e

opener nutrition fa!ts about fastfood.

hese da#s% the fast food !hains are booming in number and &itnessing

flourishing business. 3braham in!oln had on!e said% -let the people +no& the fa!ts and

the !ountr# &ill be safe-. ell% it also holds true regarding the information about fast

food nutritional !ontent. he prime moti)e is to ma+e the people a&are of the fa!t and

then let them ta+e !ons!ious de!ision.

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=ere are so'e facts about fast food nutrition:

In the list of fattening dishes% orma and *ir#ani are on the top.

If a sau!e solidifies in room temperature% its an indi!ation that it !onsists of high

saturated fats.

appadums !ontain relati)el# high !alories.

Indian !urr# ma+es use of green !hilies that are ri!h in Litamin .

3ll food items li+e i++a dishes that are !oo+ed in dr# o)en !ontain lo& fat.

Instead of !ream# pasta sau!e% eating tomato sau!e is a better option% as pasta

sau!e !ontain high fat !ontent.

asagna !ontains multiple !heese la#ers therefore it is a )er# fatt# item.

hips are high in fat and !alories.

ell% the basi! reason that !an be attributed to the in!reasing !onsumption of fast

food is the fa!t that fast food is readil# a)ailable% ui!+ to ma+e and eas# to ser)e. (edia

trul# deser)es the !redit for the &ide publi!it# of fast food stuff. *ut it is al&a#s

ad)isable to eat health# nutritious food that !an help maintain #our o)erall fitness.

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-esearch !ethodolog%

,esear!h fall into t&o distin!t t#pes:

18 rimar# ,esear!h

28 Se!ondar# ,esear!h

18 rimar# ,esear!h:

It in)ol)es the !olle!tion of data that does not alread# e>ist. his !an be

through numerous forms% in!luding

Muestionnaires

Inter)ie&s of !ustomers

*# )isiting the "ast "ood ,estaurant

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28 Se!ondar# resear!h:

It in)ol)es the summar# !olle!tion and /or s#ntheses of e>isting resear!h rather than

primar# resear!h%

Be&s papers

*oo+s

(agazines

re)ious pro$e!t

Larious internet sites

ebsites of (onginis and bas+inrobbins.

"ast "ood related organizations.

Sample size : 100

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2

,@)*I"+I"


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Chapter ). *ro+le of ast ood Industr

).1 Indian ast ood Industr Overview

he fast food industr# in India has e)ol)ed &ith the !hanging lifest#les of the

#oung Indian population. he sheer )ariet# of gastronomi! preferen!es a!ross the

regions% hereditar# or a!uired% has brought about different modules a!ross the !ountr#. It

ma# ta+e some time for the lo!al enterprise to mature to the le)el of international pla#ers

in the field.

(an# of the traditional dishes ha)e been adapted to suit the emerging fast food

outlets. he basi! adaptation is to de!rease the pro!essing and ser)ing time. "or e>ample%

the t#pi!al meal &hi!h !alled for being ser)ed b# an e)er alert attendant is no& offered as

a (ini(eal a!ross the !ounter. In its traditional )ersion% a plate or a banana leaf &as first

laid do&n on the floor or table. Se)eral helpers then &aited on the diner% doling out

different dishes and refilling as the# got o)er in the plate.

In the fast food )ersion% a plate alread# arranged &ith a )ariet# of !oo+ed

)egetables and !urries along &ith a fi>ed uantit# of ri!e and Indian flatbreads is handed

out a!ross the !ounter against a prepaid !oupon. he !urries and breads )ar# depending

on the region and lo!al preferen!es. he higher pri!ed ones ma# add a s&eet to the

!ombination. ,efills are generall# not offered.

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he di)ersit# of Indian !uisine poses logisti!al problems &hen it !omes to

handling. Hen!e it is !ommon to ser)e different !uisines at different !ounters &ithin the

same premises. resen!e of a large )egetarian population% &ho es!he& non)egetarian

food% has gi)en rise to outlets &hi!h e>!lusi)el# ser)e )egetarian fast food. 3lso%

different )ariet# of food ma# be ser)ed depending on the times of the da#. *e)erages

su!h !offee% tea% soft drin+s and fruit $ui!es ma# also be ser)ed in su!h outlets. Some

outlets ma# additionall# ha)e spe!iall# designed !ounters for i!e!ream% chaata et!.

India isn?t probabl# the t#pe of !ountr# #ou?d asso!iate &ith an abundan!e of fast

food restaurants% and to some e>tent that?s the !ase but along &ith e)er#&here else in the

&orld% fast food is be!oming part of the lifest#le in India.

he big fast food !hains ha)e all made bra)e attempts to !onuer the Indian

mar+et. (!onalds% ominos and " all found it diffi!ult to !ater for Indian tastes%

but then de!ided to !hange their o&n menu to adapt rather than e>pe!t a !ultural shift C

and no& (!onalds and ominos ha)e a &ide presen!e in India. " ha)e struggled.

he +e# to the su!!ess of the big !hains is adapting the traditional Indian sna!+s and

!uisine to ma+e them fast food friendl#.

Generic Indian Street Food:

he street food in India is as di)erse as the population% but there are some sna!+s

that #ou?re li+el# to find all o)er the !ountr#. Gou reall# !an?t )isit India and not sample

some of the nati)e haat C a hugel# )ariable spi!# sna!+ mi>% often seasoned &ith lemon%

pomegranate seeds% ala Bama+ 7bla!+ salt8% tamarind% and )arious !hutne#s. haat !an

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be an#thing from a fruit dish &ith gua)a% banana% apple or melon% !risp pan!a+es !alled

paapri% ser)ed &ith #ogurt% or sometimes potatoes sauteed &ith bla!+ !umin po&der.

3lso on the street !arts as standard are ani uri C hollo&ed out !risp# dough

balls &ith )arious fillings% 3aloo i++i deep fried mashed potato and masala patties

usuall# ser)ed &ith a !urr# !alled hhole# 7!hi!+ peas8. he# are most popular in

Borthern India in the &inter. If #ou?re on a train% #ou?ll often be offered a haap% a potato

patt# dipped in flour batter and deep fried% usuall# dished up &ith onion sli!es.

Indian +ea and Biscuits:

"or a ui!+ s&eet sna!+% tr# a haifaen &hi!h is simpl# a !ombination of tea

&ith a roasted bis!uit !alled -faen-% or o!!asionall# E+haaree bis!uit?. 3nother tempting

s&eet treat is Lada pa) C a great e>ample of est Indian street food% eaten &ith (asala

!hai &hi!h is a deli!atel# spi!ed tea. "or an#one &ith a real s&eet tooth though% the ideal

sna!+ is a $alebi or $angri% &hi!h is a s#rup!o)ered deepfried s&eet a)ailable throughout

India.

-egional Variations on Indian Fast Food:

hat?s a)ailable on the streets to eat !an understandabl# )ar# depending on

&here #ou are. "or e>ample in al!utta #ou !an find ample street food% and the &ide

sele!tion in!ludes phu!h+a% &hi!h is mu!h lo)ed in the !it# and thought to be the

fa)ourite sna!+. It !onsists of little dough balls filled &ith all sorts of goodies% li+e

mashed potato and herbs% and dun+ed in tamarind &ater and !umin for fla)our. Jhaal

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mudi% another al!utta spe!ialt#% !onsists of puffed ri!e spi!ed &ith lemon and !oriander

and sometimes also mi>ed &ith peanuts% !hopped onions% and !hilli.

In al!utta% !ommon )arieties of fritter are the beguni 7aubergines fried in

!hi!+pea batter8% phuluri 7fried !hi!+pea batter8% and pa+odas 7assorted )egetables fried in

!hi!+pea batter8. If #ou &ant to stop and pass the time &hile #ou eat% al!utta is also

+no&n for its ri!e hotels% &hi!h ser)e ri!e!entri! sna!+ st#le meals.

(o)ing on to erala% in South India% the fast food there is a)ailable from

Ethattu+adas? &hi!h are !o)ered !atering !arts full# +itted out sto)es and utensils. he#

usuall# offer Ethattu dosa? &hi!h are ri!eflour !repes fried in !o!onut oil and ser)ed &ith

!o!onut !hutne#. Gou?ll also find thattu+adas ser)ing up omelettes% spi!# por+ % and

parottas 7li+e naan breads% but beaten and mi>ed &ith oil8.

opular formats of fast food business in India ha)e the follo&ing features in !ommon:

ide opening on the road side

@as# to maintain and durable dN!or

3 !ash !ounter &here food !oupons are sold

3 food deli)er# !ounter &hi!h in)ariabl# is granite topped

3dditional !ounters for I!e reams% haats% *e)erages et!.

3 &ell fitted +it!hen lo!ated so as to be )isible to the !ustomers

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all tables% usuall# of stainless steel% &here one !an eat &hile standing

3 drin+ing &ater fountain adorned &ith a &ater filter

,ustproof and nonbrea+able !ro!+er#

(ost of the fast food outlets in India are stand alone establishment% fe& of them ha)ing

more than one bran!h.

Fast food and its different categories:

Indian fast food/finger foodlo!al

"amil# dinersudupi $oints%thalis

Sand&i!h ' salad parloursSub&a#

(ulti!uisine food !ourtsHangouts

I!e!ream and $ui!e/be)erage parlours*as+ins ,obins%(amamia

Indian -desserts- and -sna!+ food- !hains Haldirams

Varieties of food offered:

he +ind of fare the# offer as of date !ould be $ust an#thing and e)er#thing.

referen!e of the lo!al population and the lo!ation of the outlet influen!e the menu more

than an#thing else. Some of the popular dishes offered at Indian fast food outlets are:

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South Indian:

IdlisC ,i!e Idli% ,a)a Idli

LadasC Addina Lada% ,a)a Lada% (asala Lada% (addur Lada

osas (asala osas% Set osa% ,a)a osa

Apma% esaribhath

uli#ogere

ongal

Langibhath

Legetable *onda

thers:

*onda Soup

*a$$isC *anana *a$$i% Dreen hili *a$$i

a+orasC 6nion a+ora% Legetable a+ora

halis )egetable% hi!+en% (utton

,a$ma ri!e

2!
http://en.wikipedia.org/wiki/Idlihttp://en.wikipedia.org/wiki/Vadahttp://en.wikipedia.org/wiki/Vadahttp://en.wikipedia.org/wiki/Dosahttp://en.wikipedia.org/wiki/Upmahttp://en.wikipedia.org/w/index.php?title=Kesaribhath&action=edit&redlink=1http://en.wikipedia.org/wiki/Idlihttp://en.wikipedia.org/wiki/Vadahttp://en.wikipedia.org/wiki/Dosahttp://en.wikipedia.org/wiki/Upmahttp://en.wikipedia.org/w/index.php?title=Kesaribhath&action=edit&redlink=1


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6melette bread

hinese food

asta

*urgers7!hi!+en% mutton% )eg8

raps ' rolls

Drilled !hi!+en

Samosa% patties% bread pa+oda

(il+sha+es

oner +abab

um bir#ani

"ish ' !hips

Salads

(omas

"ruit beer

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hi!+en &ings

Drilled Sand&i!h

(utar +ul!ha

a) bha$i

Stuffed paratha

"ruid salad

Idli sambar

Lada sambar

ahi&ada

"ried ,i!e

Boodles

(ini (eals

izzas

Beverages:

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ea

assi

3erated rin+s

"resh fruit $ui!e

Fast Food 1ounters:

hese high ualit# "ast "ood ounters are made b# using )er# high ualit# ra&

material &hi!h ensures hassle free &or+ performan!e at its user end. hese "ast "ood

ounters are &idel# finds its appli!ations in )arious !ommer!ial se!tors.

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Dis(la% 1ounters:

3 ualit# oriented !ompan# engaged in manufa!turing% e>porting% importing%

trading and retailing "ood Ser)ing ounters. hese "ood Ser)i!e ounters are made

from superior ra& materials for fa!ilitating their reliabilit# and durabilit# of Stainless

Steel "ood ounters. "or offering hea)#dut# Stainless Steel ountertops% &e send all

produ!ts for ualit# testing% &hi!h is performed b# profi!ient professionals. 6ur

!ompan#% @nsign @uipments besto&s &ith ser)i!e euipments and fast food !ounters%

&hi!h is !omfortable and h#gieni! &a# of ser)i!ing food in the pantr#% Jui!e area%

barbeue% pa)bha$i and !hat it is made up of !ompletel# stainless steel fabri!ation &ith

all side groo)ed paneling% pro)ided &ith o)erhead shel)es unit for additional &or+ing

area. Some of the models of fast food !ounters.

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Fast Food +ra%s:

hese fast food tra#s are &idel# finds its appli!ation in both !ommer!ial as &ell

as industrial se!tors. hese fast food tra#s are a)ailable in mar+et at )er# !ompetiti)e

pri!es.

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3.2 -eason for Gro&th of Fast Food Industr%

"ast food is one of the &orld?s fastest gro&ing food t#pes. India is seeing rapid

gro&th in the fast food and restaurant industries. It no& a!!ounts for roughl# half of all

restaurant re)enues in the de)eloped !ountries and !ontinues to e>pand. he trend is

radi!all# !hanging the &a# people eat in India.

*ased on rising disposable in!ome% !hanging !onsumer beha)iour and fa)ourable

demographi!s% India is &itnessing a tremendous gro&th in its fast food and restaurant

industries. 3dditional reasons in!lude e>posure to &estern !uisine% the rising number of

nu!lear families and gro&th in the number of emplo#ed &omen% &hi!h are also ha)ing a

signifi!ant impa!t on the eating out trends and gro&th of the fast food industr# in the

!ountr#.

"or a nation that is parti!ular about its food and signifi!antl# fond of home

!oo+ed and fresh food% this trend is sho&ing the globalisation of India and in!rease of

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ne& mar+ets not &itnessed in India before. ith in!reasing number of people eating out

the industr# offers ma$or opportunities to the pla#ers to !apture a larger !onsumer base.

3s a result of the trend% all the international food pla#ers li+e izza Hut% ominos%

(!onalds and " are in)esting huge amount of mone# to grab a share of this highl#

lu!rati)e mar+et.

izza Hut for e>ample% is one of the flagship brands of GumK *rands% In!.% &hi!h

also has "% a!o *ell% 3' and ong John Sil)er?s under its umbrella. izza Hut has

149 stores a!ross 94 !ities in India.

3 report b#Research on Indiahas found that traditionall#% the Indian !onsumers

ha)e been eating at roadside eateries% dhabas and stalls &hi!h still o!!up# a ma$or share

of the unorganised se!tor% &here fast food has been eaten traditionall#. Ho&e)er% &ith the

!hanges in the e!onom# of the !ountr# and in$e!tion of modern emplo#ment from the

est% the nonhome food mar+et has no& !hanged.

he mar+et is highl# !ompetiti)e &ith a large number of Indian and foreign

pla#ers see+ing business in this up&ard trend.

he mar+et is dominated b# global pla#ers% spe!iall# in the organised fast food

segment. Dro&ing trend of !onsumption of multi !uisines and in!reasing brand

a&areness has led to the in!rease of global pla#ers. 6rganised modern formats li+e malls

and supermar+ets ha)e also be!ome a fa)ourite destination for the outlets. arger

!ompanies are teaming up &ith small fran!hisors and mall o&ners to promote their brand.

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he gro&ing segment !omprises of formats li+e fast food !hains% !afes and fine

dining restaurants. &o sub segments of the fast food mar+et are the izzas and *urgers.

hese ha)e no& de)eloped into part of the nation?s eating habits. heir share is

!ontinuousl# gro&ing &ith the +e# global brands su!h as ominos% (!onalds and "

ma+ing their mar+s ui!+l#. he !hains ha)e had no problems a!!ommodating different

menus for the Indian !onsumer. "or e>ample% (!onalds &ill not sell beef burgers but

instead lamb and !hi!+en burgers and ha)e a larger sele!tion of )egetarian food

!ompared to the est.

hanging beha)iours of the Indian !onsumer ha)e no doubt !ontributed to the

su!!ess. Some of the brand outlets first started onl# in ma$or !ities su!h as elhi and

(umbai. Bo&% the# are !ontinuousl# e>panding to !ities li+e une% Surat% 3hmedabad%

,a$+ot% Basi+% 3urangabad% olhapur% handigarh% Jammu% hennai% *hubhanes&ar%

Doa and *angalore% to meet ma$or demand.

he !hallenges for the ne& st#le of Indian restaurants and fast food $oints are food

pri!e flu!tuations% !umbersome li!ensing la&s% high !ost of real estate and la!+ of s+illed

manpo&er.

3nother area e>perien!ing gro&th is the E,ead# o @at? 7,@8 mar+et in India for

food. ,@ !an be defined as food produ!ts that !onstitute !omplete meals reuire

minimal pro!essing% if an#% t#pi!all# reuiring reheating to desired temperature or

addition of &ater. he# are often termed as Eon)enien!e "ood? sin!e the# are positioned

as E)alue for mone#? produ!ts that sol)e the issue of time!onstrains fa!ed b# !onsumers

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due to the pressures of urban life. ,@s are !ategorised into t&o produ!t !ategories Shelf

stable pa!+aged food and "rozen pa!+aged food.

hen ,@ foods &ere introdu!ed first in India the !on!ept failed at that time and

has onl# re!entl# e>ploded. hanging !onsumer habits% preferen!es and per!eptions has

dri)en the mar+et. 3 strong !orrelation e>ists bet&een the gro&th of ,@ foods and

organised retail formats su!h as supermar+ets and h#permar+ets. ompanies su!h as a$

"oods% Sangeeta "oods 7,a$a "oods8% ,a$bhog "oods ri)ate imited are all part of the

Indian ,@ industr#.

hese trends sho& that the modernisation of India is &ell on its &a#. hese

!hanges in the eating habits Indians are more than li+el# referring to middle !lass and

up&ard earning so!iet# of India. he prospe!t of seeing fast food su!h as burgers and

pizzas being the staple diet for lo&er !lasses &ill not li+el# be the !ase% as it is perhaps is

in estern so!ieties% due to the !ontrast in affordabilit#.

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Jumbo ing is not Duptas first )enture. Shortl# after !ompleting an (*3 from

S#mbiosis Institute of *usiness (anagement in une% he started (anali "oods to e>port

s&eets to pla!es li+e ubai% &hi!h ha)e a large !on!entration of ethni! Indians. It didnt

&or+. -I suddenl# realized I &as loo+ing at the &rong mar+et%- Dupta sa#s. -here &ere

t +e# de!ision &as the produ!t.

Duptas famil# &as in the hotel and !atering business and also had run s&eetshops. *ut

s&eets had flopped on!e for Dupta% and he no& de!ided bet on Indian sna!+ foods. He

opened an outlet in (alad under the name haat "a!tor#. 7haat is the Hindi &ord for

small plates of sa)or# sna!+s.8

hat &or+ed. *ut Dupta soon dis!o)ered that the item on the menu that reall#

mo)ed &as the )ada pa). -e de!ided to sti!+ to that alone%- he sa#s. Chaat

Factorybe!ame a misnomer. hen !ustomers began !omplaining that there &as no !haat

in the haat "a!tor#% the name &as !hanged to Jumbo ing.

"rom one outlet in 1==0% Jumbo ing rea!hed 45 b# earl# this #ear. It is targeting

250 this #ear% and has alread# fora#ed to Du$arat from its home state of (aharashtra. he

initial in)estment &as ,s. 200%000 7Q4%9008. Bo&% the !ompan# plans to pump in ,s. ;5

!rore 7Q1.1 million8 o)er the ne>t three #ears. he mone# &ill !ome from pri)ate euit#.

!ore 1o'(an%7o&ned utlets:

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3!!ording to the !ompan#s plans% the funds &ill be used for setting up more

o&neroperated outlets 7outlets are fran!hised no&8% and +ios+s &ithin malls% retail !hains

and airports. 3 deal has been signed &ith *harat etroleum for +ios+s at gasoline pumps.

3nd Jumbo ing plans to mo)e inside rail&a# stations tal+s are on &ith Indian ,ail&a#s

for outlets on platforms.

-Jumbo ing is a brilliant idea%- sa#s 3+bar h&a$a% managing dire!tor of Anited

izza ,estaurants% &hi!h has 2 fran!hised outlets in 2 !ities. 7h&a$a is planning to

start a !hain of fran!hised fastfood outlets !alled Sat)i+% ser)ing -nonmess#- items su!h

as samosas% +athi rolls% paranthas% )ada pa)s and ti++is.8

-Jumbo ing has hit the right !hord for Indian fast food%- h&a$a sa#s.

-3!!ording to a re!ent sur)e# that OAnited izzaP did regarding the top fi)e Indian fast

food items a!ross the !ities of *angalore% (umbai% une and 3hmedabad% )ada pa) tops

the list% follo&ed b# pa) bha$$i% +athi rolls% samosas and pa+odas.-

3!!ording to a 2004 online sur)e# b# 3Bielsen% the mar+eting information

!ompan#% India ran+s high in fastfood !onsumption. he sur)e# sho&ed that 9;F of the

population ate at ta+ea&a# restaurants at least on!e a &ee+. hat &as se)enth globall#

and abo)e the Anited States% at 95F. 6f !ourse% the A.S. mar+et size is far greater% gi)en

pri!e differen!es% but the trend is !lear. -It doesnt matter &here in the &orld #ou are or

ho& &ell off% the fastfood !ulture has be!ome a &a# of life for all of us%- the Bielsen

report sa#s.

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"or Jumbo ing% stri+ing the right lode doesnt translate into operating a gold

mine. 3lthough mar+ups in the restaurant business !an be as high as 200F% o)erhead is

!hallenging. -6ur margins are barel# 10F to 12F%- Dupta sa#s. -*ut thats health#.-

Jumbo ing made mone# from the first #ear% be!ause it pared !osts to the bone.

-Initiall#% there &as $ust m# &ife% a fi)eman !re& and m#self%- Dupta sa#s. oda#% he has

90 people% in!luding three in Du$arat. he outlets ha)e their o&n staff.

-6ne of our first lessons &as getting our target !lientele right%- Dupta sa#s. He re!alls

opening a store in (as$id *under% an area !lassified as S@ % a lo& so!ioe!onomi!

!lassifi!ation that a!!ounts for 21F of the urban population. (ore than 50%000 people

&ent past the store e)er# da#% -but hardl# an# !ustomers. It &as a disaster. e found that%

&hile &e e>pe!ted to rea!h S@ % ;5F of our !ustomers &ere a!tuall# S@ 3.-

Bu%ing -oadside Snacs fro' !ercedes:

-he pri!eualit# euation is a big item on the (umbai+ars mind%- sa#s Harish

*i$oor% @6 of Harish *i$oor onsults and a )isiting fa!ult# member at the H#derabad

based Indian S!hool of *usiness. -If that is met% the offering &or+s. If not% it does not.-

Lalue is +e# in India% &here its not unli+el# to see someone dri)ing a (er!edes stop to

bu# sna!+s from a pa)ement stall.

*ut Dupta realized earl# on that he &ould ha)e to &or+ hard to gain !ustomers.

here &as no mone# to spend on promotion. -e gre& onl# through , and &ord of

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mouth%- he sa#s. His &ife% ,eeta% &as freelan!ing for !ertain ne&spapers around that time

and persuaded friends in the media to &rite about Jumbo ing. She sa#s% -I found that the

!on!ept of h#gieni! )ada pa) &as the sub$e!t of some !uriosit#. So m# friends helped me

gi)e some initial ne&s )alue to Jumbo ing. 3fter that I too+ !are of mar+eting.-

,eeta% a S#mbiosis alumna% has sin!e stepped out of an a!ti)e role in the business.

-O"ollo&ingP our (*3% &e had be!ome a $o+e &hen &e started Jumbo ing. eople said%

Gou are (*3s !ompeting &ith roadside )endors. I had to be supporti)e. "rom selling

)ada pa)s ph#si!all# at the !ounter to filling feedba!+ forms at rail&a# stations% I got m#

hands dirt# at e)er# stage.-

oda#% ,eeta is a sounding board for her husband &hile she tends to her o&n ,

firm. he momandpop operation has gro&n to a point &here it needs to professionalize%

so Jumbo ing has brought in a professional @6% arandeep Singh% from afN offee

a#. -(# mandate is to ma+e Jumbo ing Indias largest Oui!+ ser)i!e restaurantP !hain

in the ne>t fe& #ears%- Singh sa#s. 6ther professionals ha)e also !ome on board.

he e>pansion dri)e brings tough &or+% starting &ith getting the menu right. 3s man#

multinational !hains ha)e belatedl# realized% the Indian food mar+et is fragmented. hat

&or+s in one state ma# not in another.

Jumbo ing has alread# e>perien!ed that. In Du$arat% there are some items in addition to

)ada pa) on the menu. Dupta $ustifies the )ariet#. -In its formati)e #ears% (!onalds

tried their ne& produ!ts in one lo!ation%- he sa#s. -If it &or+ed% it &as introdu!ed all

o)er. he *utter Jumbo ing% first laun!hed in Du$arat% is no& a)ailable in other pla!es.-

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he menu &ill !hange and perhaps e>pand% for Dupta doesnt see his business as $ust

selling )ada pa). -e are in the business of !atering to people on the go%- he sa#s.

*esides% the )ada pa) that Jumbo ing ser)es is different from the one it !ompetes &ith

in the streets of (umbai. "or one% it is larger. he bread is round. 7he standard pa) is

suare.8 3nd the )ada itself is flat instead of round.

Indias Standardization 1hallenge:

he (!onalds re!ipe for su!!ess is standardization. Is that possible in IndiaR

*i$oor thin+s it &ill be diffi!ult. -a+e the taste of the humble samosa%- he sa#s. -@)er#

region and indeed e)er# to&n of India has its o&n samosa &ith a taste all its o&n.

3rri)ing at the trueblue national samosa is a game of lo&est !ommon denominator taste

management. hen a national pla#er puts it together% he puts it &ith the lo&est !ommon

taste a!!eptan!e parameters of the people of all regions. hat emerges is &hat I !all the

rationshop samosa. he taste is a!!eptable% but it is not a taste to +ill for. o!al pla#ers

are able to offer this. It is possible to go national &ith brands of sna!+s su!h as the

samosa% but the approa!h needs to be as lo!alized as possible% &ith lo!al +it!hens and

lo!al re!ipes that differ !it# to !it#. ,e!ipes ha)e to approa!h the highest !ommon

denominator taste palates of ea!h !it# and not the palates.-

h&a$a of Anited izza disagrees. -ifferent tastes in food is !ertainl# not an

issue%- he sa#s. -here are items &hi!h are popular all o)er. If (!onalds !an !ome and

sell a !on!ept li+e burgers to Indians a!ross the !ountr#% &h# !ant Indian food do &ellR

he time is no& ripe for Indian fastfood !hains to !at!h on be!ause the Indian middle

!lass is getting more brand!ons!ious.-

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*randing ma# e)ol)e &ith e>pansion. Jumbo ings message in (aharashtra is

-the h#gieni! )ada pa).- hats &hat differentiates it from the )ada pa) a)ailable at half

the pri!e from a !art perhaps $ust 100 meters a&a#. In Du$arat% &here )ada pa) is less

+no&n% it is being sold as -(umbais fa)orite fast food.- @>plains Dupta: -hen &e go

to other states% &e &ill probabl# sa# that this is &hat (umbai eats on the go% and tr# a

*oll#&ood !onne!tion. *oll#&ood sells all o)er India.- ill it &or+R he proof is in the

eating.

Dupta ine)itabl# &ill fa!e !ompetition. Some !hains ha)e alread# re!ognized that Indias

big mar+ets e>ist do&n the pri!e ladder. ominos izza has e>tended its international

izza (ania promotion to India. *ut &hile the !heapest pizza on its Anited ingdom

menu !osts 4.=5 7Q=.118% in India the !heapest is ,s. 95 7;5 !ents8. In India% #ou ha)e to

order at least four pizzas for free home deli)er#. *ut that &or+s out to $ust o)er Q9.

3nother A.S. !hain% "% has laun!hed a sna!+ bo> for ,s. 4= 7Q1.058 and a

!hana sna!+er for ,s. 25 754 !ents8. i+e the ominos izza (ania fare% these are not

targeted at the bottom of the p#ramid% but at middle!lass !ustomers see+ing )alue.

Dupta isnt fazed. He points out that the "uture Droup% &hi!h runs nationalle)el

stores su!h as antaloons% *ig *azaar and "ood *azaar% had started a !hai 7tea8 and

samosa !hain some #ears ago. alled hamosa *ars% about 200 &ere set up. he# failed.

he business &as not big enough. -Gou need to be an entrepreneur to do something li+e

Jumbo ing%- Dupta sa#s. -Gou !ant be part of a larger group. his is a ma)eri!+ +ind of

business.-

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isting pla#ers as !ompetition. his

in!ludes the multinational !hains the Adipi restaurants that dot Indian !ities% ser)ing

similar fare but &ithout !ommon o&nership and e)en the lo&pri!e Indian ,ail&a#s

!atering ser)i!e% &hi!h has outlets at stations.

*i$oor disagrees. -In the foods and sna!+s business% e)er#one is !ompetition for

e)er#one else%- he sa#s. -3 sna!+ is an impulse item. hen the impulse stri+es% one loo+s

at lo!al a)ailabilit#% !ompares offers% taste needs and pri!es% and de!ides. 3ll this in a

nanose!ond. o that e>tent% the Jumbo pa) and (!onalds !ompete &ith one another.-

Anited izzas h&a$a sees it another &a#. -he real !ompetitor for Jumbo ing

is not (!onalds but the man selling )ada pa) on the roadside. he# must turn ea!h of

them into a Jumbo ing fran!hisee.-

Jumbo ings ne>t !hallenge is getting the mone# together for e>pansion. Dupta

&ill need funds be!ause he is !hanging his model. -urrentl# &e are into 100F

fran!hising%- he sa#s. -In the future% the ratio &ill be ;0F fran!hisees and 90F !ompan#

o&ned outlets.- Jumbo ing gets 10F of sales from fran!hisees as its fee.

*oth models ha)e &or+ed in India. @>plains @6 Singh: -afN offee a# is a

!hain of !ompan#o&ned stores and Jumbo ing is into fran!hising. *ut at the bottom of

it% both are a bun!h of #oung gu#s tr#ing to !reate a big brand.-

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Dupta sa#s finding pri)ateeuit# funds &ont be a problem. *ut &hat &ill ma+e

or brea+ the !hain is this% a!!ording to h&a$a: -Indian fastfood !hains ha)e not !aught

on be!ause of the mindset of Indian entrepreneurs. he# underin)est and e>pe!t ui!+

profits. Indians t#pi!all# li+e to ha)e !omplete o&nership of their business% and so &e

end up ha)ing small !ompanies. In the !hainfood business one needs to ha)e longterm

)ision and large in)estments.-

-he absen!e of Indian fastfood !hains is not be!ause of differen!es in taste or

food habits%- sa#s *idisha Bagara$% afN offee a#s president of mar+eting. -he entr#

barrier is not so mu!h the palate as the in)estment that is reuired. ,entals themsel)es are

a huge !ost. If one is loo+ing at a !hain of 100 outlets% it !an be a huge amount for a small

entrepreneur to in)est.-

-Jumbo ing has a great produ!t and a great !on!ept%- she adds. -hat it needs to

do is to &or+ on its distribution model. It needs to loo+ at being present in pla!es li+e

!inema halls% food !ourts of shopping malls% rail&a#s stations and airports. 3s there is

onl# one produ!t% the# !an also loo+ at ba!+&ard integration to bring about more

e!onomies of s!ale.-

Jumbo ing ma# sell $ust )ada pa). *ut% in terms of management strategies and

de!isions% it has a lot on its plate.

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nother infor'ation of perien!ed professionals in the team from the food and

mar+eting se!tor% Jumbo ing is ma+ing a sin!ere attempt to upgrade the

unorganised fast food industr#.

!aster Franchises

Jumbo+ing is presentl# loo+ing for master fran!hisees &ho !an in)est into

< to 10 outlets at a time. lease !onta!t us for more information.

Ae% Benefits and ((ortunities

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"rom da# 1 the fran!hisee &ill be!omes a part of a su!!essful business

model and deri)e the benefits of a trusted brand name.

he !ompan# has a full# automated !entral +it!hen and a modern ba+er#

pro)iding &orld!lass ualit# produ!ts. hus #ou are in the restaurant business

&ithout the heada!hes of manufa!turing.

he !ompan# has )er# good pur!hasing po&er% &hi!h enables it to sour!e

ra& materials at pri!es mu!h lo&er than an# indi)idual restaurant.

he !ompan# helps the fran!hisee in re!ruiting &elltrained staff and

pro)ides !ontinuous training to help them implement the ualit#% ser)i!e and

!leanliness standards. he highlight of the fran!hising model is that an#

fran!hisee adhering to the !ompan#?s standards !an build multiple stores and

in!rease his in!ome man# times o)er.

+esti'onials

6n m# )isit to (umbai in 2004 I sa& a Jumbo+ing Lada a) being ser)ed. I &as

surprised and fas!inated to +no& that it &as our o&n lo!al street food Ladaa) prepared

in a )er# h#gieni! !ondition and &rapped in food grade paper as burger. his &as the da#

&hi!h sa& the start of re)olution in fast food !hain TJumbo+ingU% !ulminated in national

gro&th and poised for international e>pansion. oda# I ha)e first Jumbo+ing outlet in

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3+ruliandi)ali% se!ond in *azar gateL. and third up!oming outlet at ha+ur Lillage

andi)ali% (umbai.

(r. ( (od#% Su!!essful and proud fran!hisee of Jumbo+ing. He is also a

fran!hisee of *limp# sand&i!hes in AS3.

-eCuire'ents fro' a Franchisee:

V In)estment of ,s.1012 la! for e>press !ounter and ,s.1520 la! for restaurant

format store.

V ,eatil Spa!e of 9001000 s.ft o&nership / lease basis.

V ime !ommitment of 10/12 hours per da# to Jumbo+ing business.

-ecruit'ent )rocess:

3ll (umbai and hane based enuiries are !alled to (umbai 6ffi!e for

Jumbo+ing presentation. Shortlisting is done for a se!ond round &here prospe!ti)e

fran!hisees are gi)en details of pro$e!t profit and loss a!!ount. In third round (.6.A is

signed and fran!hisee is gi)en hand boo+ detailing ho& to ma+e Jumbo+ing outlet

operational. "or outside (umbai/hane a presentation is gi)en in respe!ti)e !ities% then

se!ond follo&s and third round &ill be !ondu!ted in (umba

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3.9 India ,'erging 'aret for global (la%ers

he per!entage share held b# foodser)i!e of total !onsumer e>penditure on food

has in!reased from a )er# lo& base to stand at 2.F in 2001. @ating at home remains

)er# mu!h ingrained in Indian !ulture and !hanges in eating habits are )er# slo& mo)ing

&ith barriers to eating out entren!hed in !ertain se!tors of Indian so!iet#.. he gro&th in

nu!lear families% parti!ularl# in urban India% e>posure to global media and estern

!uisine and an in!reasing number of &omen $oining the &or+for!e ha)e had an impa!t on

eating out trends.

Facts and figures:

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"ast food is one of the &orld?s largest gro&ing food t#pe. India?s fast food

industr# is gro&ing b# 40F a #ear and is e>pe!ted to generate a billion dollars in sales b#

2005.he multinational segment of Indian fast food industr# is up to ,s. billion% a

figure e>pe!ted to zoom to ,s.;0 billion b# 2005. *# 2005% the )alue of Indian dair#

produ!ts is e>pe!ted to be ,s.1% 00%000 million. In last #ears% foreign in)estment in this

se!tor stood at ,s. 900 million &hi!h is about onefourth of total in)estment made in

this se!tor. *e!ause of the a)ailabilit# of ra& material for fast food% Dlobal !hains are

flooding into the !ountr#.

!aret size and 'aor (la%ers:

a8 ominated b# (!onalds ha)ing as man# as ;5 outlets.

b8 omino?s pizza is present in around 100 lo!ations.

!8 izza hut is also !at!hing up and it has planned to establish 125 outlets at the

end of 2005.

d8 Sub&a#s ha)e established around 40 outlets.

e8 Birulas is established at elhi and Boida onl#. Ho&e)er% it !laims to !ater

50%000 guests e)er# da#.

!aor (la%ers in fast food are:

(6B3S

"

IWW3 HA

4-


50/100

6(IB6S IWW3.

6""@@ 3G

*3,IS3.

he main reason behind the su!!ess of the multinational !hains is their e>pertise

in produ!t de)elopment% sour!ing pra!ti!es% ualit# standards% ser)i!e le)els and

standardized operating pro!edures in their restaurants% a strength that the# ha)e

de)eloped o)er #ears of e>perien!e around the &orld. he home gro&n !hains ha)e in the

past fe& #ears of !ompetition &ith the (Bs% learnt a fe& things but there is still a lot of

s!ope for impro)ement.

0


51/100

3.5 D!I"#S

Size of the 'aret:

Do'inos )izzais one of the biggest and fastest gro&ing international food $oints

in South 3sia. he )er# first ominos izza outlet in India opened in Jan% 1== at Be&

elhi. oda#% ominos izza India has be!ome a &ide net&or+ of izza deli)er# and

food !hain. here are !lose to 220 outlets in 42 !ities of India and the brand is the top

most among the food deli)er# business. omino?s izza outlets !an be seen at ma$or

lo!ations of elhi and B,. heir home deli)er# is free &ith a guarantee of Thirt#

(inutes Bahi to "reeU. 3lthough the# are e>pert in deli)ering izzas on time% their

eating $oints and outlets are also good. e plan to ha)e a total of 500 stores in ;5


52/100

used to be in metros and minimetros% no& the ratio is 50:50 bet&een big !ities and

smaller ier II and III !ities. omino?s izza is e>panding its base in India b# opening

500 outlets to add to its !urrent tall# of 15 outlets% a!ross 50 !ities in India b# 2011 &ith

an in)estment of ,s.1% 000 !rore.

!aret strategies:

romotional and 3d)ertisement ampaigns7oupons and dis!ounts8

he 90 (inutes romise

Ase of e!hnolog#7Digital interactive Television, Internet on the C, Mo!ile

tele"hony8

remium ri!ing Strateg#

Indian fast food industr# and entr# of multinational pla#ers

istribution strategies of fast food !hains in India

!aret share:

he organized pizza mar+et in India is &orth ,s.500 !rore and omino?s has a

substantial 45F mar+et share% and registered a health# gro&th of 0F o)er last #ear. he

02


53/100

main target for ne& outlets shall be metro !ities though ier II !ities &ould also re!ei)e a

fair amount of attention. urrentl# omino?s sells around 95%000 pizza e)er# da#% of

&hi!h around 1F are gi)en free on a!!ount of its T90 minutes or freeU model. 5 per!ent

of its re)enue !omes from home deli)er# ser)i!e around 95 per!ent is from sales in

premise.

1o'(etitors:

"ast food is one of the &orlds fastest gro&ing food t#pes. It no& a!!ounts for

roughl# half of all restaurant re)enues in the de)eloped !ountries and !ontinues to e>pand

there and in man# other industrial !ountries in the !oming #ears. *ut some of the most

rapid gro&th is o!!urring in the de)eloping &orld &here its radi!all# !hanging the &a#

people eat. eople bu# fast food be!ause its !heap% eas# to prepare% and hea)il#

promoted. his paper aims at pro)iding information about fast food industr#% its trend%

reason for its emergen!e and se)eral other fa!tors that are responsible for its gro&th . India

is a de)eloping !ountr# &ith 2 per!ent of organized and =< per!ent of unorganized se!tor. So

most of the fast foods !ame into Indian mar+et as India has a high gro&th in e)er# se!tor.

Some of the !ompetitors of domino?s are

(!onalds

izza Hut

*arista

offee a#

03


54/100

)., Challen"es for the industr

Social and cultural i'(lications of Indians s&itching to &estern breafast

food: Denerall#% Hindus a)oid all foods that are belie)ed to inhibit ph#si!al and

spiritual de)elopment. @ating meat is not e>pli!itl# prohibited% but man# Hindus

are )egetarian be!ause the# adhere to the !on!ept of ahimsa. hose see+ing

spiritual unit# ma# a)oid garli! and onions. he !on!ept of purit# influen!es

Hindu food pra!ti!es. rodu!ts from !o&s 7e.g.% mil+% #ogurt% ghee!larified

butter8 are !onsidered pure. ure foods !an impro)e the purit# of impure foods

&hen the# are prepared together. Some foods% su!h as beef or al!ohol% are innatel#

polluted and !an ne)er be made pure. *ut no&% Indians are s&it!hing to fast food

that !ontain all those things that are !onsidered impure or against there beliefs.

Some traditional and fundamentalist are against this transformation of food habit

and number of times the# pro)o+e their !ounterparts to re)olt against su!h foods.

3nd that is &hat happened &hen (!onald?s de!ided to enter the !omple>it# of

Indian business lands!ape% !ounting onl# on its #$ast $ood glo!al $or%ula&,

&ithout an# apparent pre)ious !ultural training.

,'(hasis on the usage of bio7degradable (roducts: Dlasses% sil)er&are% plates

and !loth nap+ins are ne)er pro)ided &ith fast food. Instead% paper plates and

nap+ins% pol#urethane !ontainers% plasti! !ups and table&are% drin+ing !artons or

@ 7pol#eth#lene terephthalate8 bottles are used% and these are all disposable.

(an# of these items are tossed in the garbage instead of being re!#!led% or e)en

04


55/100

&orse% merel# thro&n on the ground. his burdens nature unne!essaril# and

suanders ra& materials. In order to redu!e soil and &ater pollution% go)ernment

no& emphasis more on the usage of biodegradable produ!ts.

-etrench'ent of e'(lo%ees: (ost of ne& industries &ill be !apital intensi)e

and ma# dri)e lo!al !ompetitors% &hi!h ha)e more &or+ers% out of business.

)rofit re(atriation: ,epatriation of profits is another area of !on!ern for Indian

e!onom#. 3s &hen multinational enters the an# !ountries% people and go)ernment

hope that it &ill in!rease the emplo#ment rate and result in e!onomi! gro&th.

Ho&e)er% &ith the multinational operation% host !ountr# e>perien!es these

benefits for a short time period. In long run neither emplo#ment in!reases

7be!ause of !apital intensi)e nature of (B?s8 nor it in!reases the D or DB

be!ause &hate)er (B?s earn the# repatriate that profit ba!+ to their home

!ountr#.

Increase in 1hinese Food stalls: here are large numbers of hinese food stalls

are present in India and the# are in!reasing da# b# da#. It is be!oming a big

!hallenge to Indian fast food industr#.

00


56/100

).- *#O/!'% O IN0%#3

,nviron'ental friendl% (roducts cost high: go)ernment is legislating la&s in

order to +eep !he!+ on the fast food industr# and it is emphasizing more on the

usage of biodegradable and en)ironment friendl# produ!ts. *ut asso!iated &ith

this issue is the problem that fast food pla#er fa!es the !ost asso!iated &ith the

en)ironment friendl# produ!t. he# !ost mu!h higher than the normal produ!ts

that !ompanies uses for pa!+aging or &rapping their produ!ts.

Balance bet&een societal e;(ectation and co'(anies econo'ic obectives:

o balan!e a so!iet#?s e>pe!tation regarding en)ironment &ith the e!onomi!

burden of prote!ting the en)ironment. hus% one !an see that one side pushes for

higher standards and other side tries to beat the standard ba!+% thereb# ma+ing it a

arm &restling and mind boggling e>er!ise.

0!


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=ealth related issues: obesit%:

I. Studies ha)e sho&n that a t#pi!al fast food has )er# high densit# and food &ith

high densit# !auses people to eat more then the# usuall# need. X

II. o& !alories food: @mphasis is no& more on lo& !alorie food. In this line

(!onald has a plan to introdu!e all &hite meat !hi!+en (!nuugget &ith less fat

and fe&er !alories.

1hanging trends

1hanging consu'er (references.

*ong service hours.

/nderdevelo(ed Infrastructure.

).4 rends in Indian market

!areting to childrens: fast food outlets in India target !hildren?s as their ma$or

!ustomers. he# introdu!e )arieties of things that &ill attra!t the !hildren?s attention and

b# targeting !hildren?s the# automati!all# target their parents be!ause hildren?s are

al&a#s a!!ompanied b# their parents.

*o& level custo'er co''it'ent: *e!ause of the large number of food retail

outlets and also be!ause of the tenden!# of !ustomer to s&it!h from one produ!t to other%

this industr# fa!es lo& le)el !ustomer !ommitment.

0


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Value added technolog% services: here is !ontinuous impro)ement in the

te!hnolog# as far as fast food mar+et in India is !onsidered. he reason behind that is

food is a perishable item and in order to ensure that it remain fresh for a longer period of

time. @arlier% Indian people prefer eating at home but no& &ith the !hange in trend there

is also need for impro)ement and up gradation of te!hnolog# in food se!tor.

ttracting different seg'ents of the 'aret: "ast food outlets are introdu!ing

)arieties of produ!ts in order to !ater the demands of ea!h and e)er# segment of the

mar+et. he# are introdu!ing all !ategories of produ!t so that people of all age% se>% !lass%

in!ome group et! !an !ome and be!ome a !ustomer of their food line.

+he success of fast foods arose fro' the changes in our living conditions:

1. (an# &omen or both parents no& &or+

2. here are in!reased numbers of singleparent households

9. ong distan!es to s!hool and &or+ are !ommon

4. Asuall#% lun!h times are short

5. heres often not enough time or opportunit# to shop !arefull# for gro!eries%

or to !oo+ and eat &ith ones famil#. @spe!iall# on &ee+da#s% fast food

outside the home is the onl# solution.

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3.$ Indian Fast Food Industr% gro&th and its i'(ortant )la%ers

?ith the rapidl# %rowin% middle class population and chan%in% lifest#le; India

is blessed with one of the fastest %rowin% fast food marets in the world. 9he

Indian fast food maret is %rowin% at an annual rate of 20uentl#; all the popular fast food chains have chaled out massive

plans for e=pandin% their business and presence throu%hout the countr#.

*orei%n fast food chains are a%%ressivel# increasin% their presence in the

countr#. *or instance; 7ominoBs has planned to open !

for the ne=t three #ears 21


60/100

).15 Indian ast ood 'arket $nalsis

TIndian "ast "ood (ar+et 3nal#sisU is a !omprehensi)e mar+et report that

pro)ides ualitati)e resear!h and rational anal#sis of the fast food mar+et in India. he

report identifies the +e# pla#ers operating in the India fast food industr# and has made a

separate se!tion that tal+s about their business e>pansion plans and also gi)es an

o)er)ie& of strength and &ea+ness of ea!h pla#er. Do)ernment regulation and !onsumer

beha)iour are separatel# dis!ussed in detail in the report. (ost importantl#% the report

also features the fore!ast on fast food sales important e!onomi! parameters. he fore!ast

is based on the !orrelation bet&een past mar+et gro&th and gro&th in base dri)ers su!h

as gro&th in middle !lass% urbanization% !ultural shift and lifest#le !hanges.

!


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3s per our resear!h report TIndian Fast Food !aret nal%sisU% India has seen

a massi)e rise in the !onsumption of fast food o)er the past fe& #ears. In fa!t% the !ountr#

has emerged as one of the fastest gro&ing fast food mar+ets in the &orld. Impro)ing

li)ing standards% rapid urbanization% and &esternization of Indian !ulture are some of the

ma$or fa!tors responsible for su!h a robust gro&th. hese fa!tors and se)eral other

fa!tors &ill help the industr# to gro& at a 3D, of 9095F during 20102019.

3lthough the mar+et has &itnessed a robust gro&th in the past fe& #ears% the

mar+et largel# remains underpenetrated. he mar+et largel# remains !on!entrated in the

metropolitan and ierI !ities% &hile ierII and ierIII !ities as &ell as rural areas

remains mostl# untapped. Ho&e)er% all the ma$or food !hains ha)e started realizing the

potential of these untapped mar+ets and are tr#ing to in!rease their presen!e in ierII and

ierIII !ities.

3!!ording to our resear!h% pizza% pasta and noodles mar+et along &ith other fast

food mar+ets are e>pe!ted to get double in 2019 !ompared to 2010. 6&ing to this trend%

nearl# all ma$or international fast food pla#ers% su!h as (!onald% izza Hut% ominos%

"% et!. are in)esting huge amount of mone# to e>pand their presen!e and share in the

highl# lu!rati)e Indian fast food industr#. ustomization of produ!ts% !onsidering Indian

!hoi!es and !ustoms% has been one of the +e# strategies for the su!!ess of foreign fast

food !hains in India. (ost of the food !hains are bus# in inno)ating and !ustomizing

their produ!ts.

3lthough the multinational fast food restaurants ha)e made strong presen!e and

are found at almost e)er# shopping malls and lo!al mar+ets% the# are fa!ing stiff

!1


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!ompetition from ethni! eateries/fast food !hains that sell traditional items su!h as ada

a)% aati ,olls% ulfi% and i++a. hough these restaurants are not big ti!+et li+e their

foreign !ounterparts% the# are fast be!oming a part of da#toda# life of urban India.

"astfood restaurants seem to be big business in India% and so a man# foreign

!hains ha)e made an entr# into the mar+et to $oint the earl# mo)ers li+e (!onalds or

". 6n of the last entrants is *embos% and that !hain from eru &ill not be the last one.

Bo& I6% a hennai based% ban+spromoted !onsultan!# has presented the

updated )ersion of a T"easibilit# ,eport on "ast "ood ,estaurantsU &hi!h has first been

published in 2002. 3fter an o)er&helming response% so I6% a re)amped )ersion &as

released in 200< so to pro)ide the latest statisti!s and information to entrepreneurs about

the fastfood restaurant segment.

he report !o)ers both pure )egetarian and multi!uisine t#pe fast food

restaurants &hi!h are !lassified into different t#pes in the first !hapters% in!luding a

histor# of the ThamburgerU. he main fo!us of the report is on e>plaining fran!hise

models and !ost aspe!ts of a fastfood )enture% introdu!ing ne!essar# !ontrolling tools%

among them Tfinan!ial ratiosU% Tpro$e!ted profitabilit#U or Tpro$e!ted !ash flo&U.

,egarding lo!ations% for e>ample% the report notes that the top fi)e foreign brands%

namel#% (!onald?s% omino?s izza% izza Hut% Sub&a#% and izza orner &ould be

fo!used on Be& elhi% (umbai% *angalore and hennai &hi!h a!!ount for 59F of their

total number of outlets.

he prin!ipal fa!tors that dri)e the demand for fast food restaurants &ould be the

in!reasing disposable in!omes among the target groups% in!rease in &or+ing &omen%

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urbanization% globalization% the !onseuent !hanges in life st#les% and the brand pull%

I6 sa#s% but informs also that there &ould be no authenti! estimates of demand for

fastfood produ!ts in India.

3!!ording to o&n to @arth 7(ar!h 200. Y;; million8 at fastfood $oints. he fastfood mar+et &ould

be gro&ing at 40F per #ear. If one &ould assume a modest gro&th of 90F onl#% so

I6% then the business potential for fast food restaurants in the !ountr# ma# be

re!+oned at ,s.19%5pansion in !onsumption of fast food

in re!ent #ears. In fa!t% the !ountr# has emerged as one of the fastest gro&ing fast food

mar+ets in the &orld. It has been found in our resear!h that gro&ing number of nu!lear

families% rising numbers of &omen emplo#ees and intensif#ing e>posure to &estern food

are dri)ing the eating out trend in India that has resulted in gro&th of fast food industr#.

"urther &ith in!reasing &ealth of prospe!ti)e !ustomers in ier 2% ier 9 !ities% demand

for fast food is e>pe!ted to gro& at a faster pa!e in near future. 3s a result% Indian fast

food industr# is e>pe!ted to gro& at a 3D, of 9095F during 20102019.

3!!ording to our ne& resear!h report% ma$or international fast food !hains present

in India ha)e no& &ell understood the mar+et potential in untapped ier 2% ier 9 !ities

and rural areas and ha)e no& started ma+ing in)estment to ser)e the gro&ing numbers of

prospe!ti)e fast food !ustomers into these untapped areas. he report has identified

!3


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)arious other fa!tors su!h as !hanging life st#le and &esternization of Indian !ulture that

are further e>pe!ted to fuel gro&th in Indian fast food Industr#.

he resear!h report has !o)ered the important fast food segments su!h as izza%

pasta and noodles% et! and studied the !onsumption pattern in ea!h segment e>tensi)el#.

he report also pro)ides the emerging trends in Indian fast food mar+et and identifies the

potential gro&th areas for future e>pansion.

6. Collection and analsis of data7Interpretation of data

Sa'(le and -esearch design:

3 des!ripti)e resear!h design &as adopted to do the sur)e# &ith the help of the

uestionnaire. he stud# used non probabilit# !on)enien!e sampling. he methodolog#

of stud# is the inter)ie& method sur)e#. he stud# is !ompletel# based on the primar#

data &hi!h is !olle!ted from different "ast food stores and the sample size ta+en for stud#

is4people.

+ools and !ethods of Data 1ollection:

!4


65/100

he inter)ie& is !ondu!ted for about 15 minutes &ith ea!h person and !olle!ted

the data. he tool for the !olle!tion of data is a uestionnaire. he uestionnaire has 15

uestions.

Data )rocessing and nal%sis:

he data pro!essing !onsists of !oding the data !olle!ted in the form of

uestionnaire. he data !olle!ted &ith the help of uestionnaire is ha)ing the !losed

replies. 6ne open ended replies ha)e been ta+en for that if an# problems the# are fa!ing

and for the !lose ended the replies are measured using s!ales.

"*>SIS E I"+,-)-,++I":

4 VISI+:

"reuen!#

ail# 14

!0


66/100

visit

14

3

1-

-

0

1

10

2

20

3

30

4

7ail# ?eel# *ortni%htl# +onthl#

ee+l# 9uenc#

+ornin% 40

(fternoon 2=

$venin% 31

9otal 1

!-


70/100

0

1

10

2

20

3

30

4

40

0

)tron%l# a%ree 7isa%ree Neutral (%ree )tron%l# a%ree

Interpretation:"rom the abo)e table and graph it sa#s that ma$orit# of the !ustomers are

&illing 7i.e. 40F 8 to )isit the store on morning session and minorit# of them 7i.e.91F 8

of them )isit the store on e)ening session

5 )reference of store due to friendliness of staff

'esponse *re>uenc#

Strongl# disagree 2

isagree 5

Beutral 44

3gree 40

Strongl# agree =

otal 10

0


71/100

Interpretation:"rom the abo)e table and graph it sa#s that ma$orit# of the !ustomers 7i.e.

44F8 of them are neutral to prefer the store for friendliness of staff and minorit# of them

7i.e. 40F 8 of them agree that the# &ill prefer the store for friendliness of staff.

6 )reference of store due the variet% of 'enu available in the store

'esponse *re>uenc#

Strongl# isagree 5

isagree 15

Beutral 21

3gree 9=

Strongl# agree 15

otal 100

1


72/100

preference due to variet of menu

0

1

10

2

20

3

30

4

40


Interpretation:"rom the abo)e table and graph it sa#s that ma$orit# of the !ustomers 7 i.e.

9=F8 of them agree that the# &ill prefer the store due to the )ariet# of menu and minorit#

of them 7i.e. 21F 8 of them neutral about the )ariet# of menu in the store

8 )reference of store due the service s(eed

'esponse *re>uenc#

Strongl# disagree 5

isagree 20

Beutral 9=

3gree 15

Strongl# agree 20

otal 100

2


73/100

preference due to service speed

0

1

10

2

20

330

4

40


Interpretation: "rom the abo)e table and graph it sa#s that ma$orit# of the !ustomers

7i.e. 9=F8 are neutral about the preferen!e of store due to ser)i!e speed and minorit#

of them are disagree that 7i.e. 20F8 of them prefer the store due to ser)i!e speed

)reference of store due to good calorie content e;ist in the food

'esponse *re>uenc#

Strongl# disagree =

isagree 99

Beutral 1=

3gree 91

Strongl# agree 20

otal 100

3


74/100

preference for calorie content

0

1

10

2

20

3

30



99F8 of them disagree that the# &ill prefer the store due to the !alorie !ontent in the

food and minorit# of them 7i.e. 91F8 agree that the# &ill prefer the store due to the

!alorie !ontent in the food.

$ )reference of store due to the cleanliness and store at'os(here

'esponse *re>uenc#

Strongl# disagree 2

isagree ;

Beutral 25

3gree 40

Strongl# agree 2

4


75/100

preference due to ambience

0

1

10

2

20

3

30

4

40

)tron%l# disa%ree 7isa%ree Neutral (%ree )tron%l# a%ree

otal 100


40F 8 of them agree that the# &ill prefer the store for ambien!e pro)ided in the store.

4 )reference store due the deliver% s(eed offer b% the store

'esponse *re>uenc#

Strongl# disagree4

isagree 20

Beutral 15

3gree 41

0


76/100

preference due to delivar speed

0

1

10

220

3

30

4

40


Strongl# agree 20

otal 100

Interpretation: "rom the abo)e table and graph it sa#s that ma$orit# of the !ustomers 7i.e.

41F8 of them prefer the store due to deli)er# speed that is offered.

44 Satisfaction &ith the 'enu offer for '% fa'il%

'esponse *re>uenc#

Strongl# disagree ;

isagree 1

Beutral 94

!


77/100

preference of menu for m famil

0

1

10

2

203

30

4


3gree 95

Strongl# agree

otal 100


7i.e. 95F 8 of them agree that the# are satisfied &ith the menu that &as offered in the fast

food store and follo&ed b# some of them are neutral about the menu for their famil#.

42 )reference of store due to facilities offered

'esponse *re>uenc#

Strongl# disagree 11

isagree 20


78/100

preference due to facilites

0

1

10

2

20

3

30

4

40


Beutral 41

3gree 14

Strongl# agree 14

otal 100


7i.e. 41F 8 of them sa#s that the# are neutral about preferring the store due to the

fa!ilities.

43 )reference of store due to eas% accessibilit% and locational advantage

'esponse *re>uenc#


79/100

01

10

2

20

3

30

4

40

0


Strongl# disagree 4

isagree 1

Conumer Behaviour

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