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Moody Institute of Technology and Science

INDUSTRY ANALYSIS OF FAT FOOD INDUSTRY

Submitted by:Anita Rathore

Fast food industry


Fast food is the term given to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with preheated or precooked ingredients, and served to the customer in a packaged form for take-out/take-away. The term "fast food" was recognized in a dictionary by MerriamWebster in 1951. Outlets may be stands or kiosks, which may provide no shelter or seating, or fast food restaurants . Franchise operations which are part of restaurant chains have standardized foodstuffs shipped to each restaurant from central locations. The capital requirements involved in opening up a non-franchised fast food restaurant are relatively low. Restaurants with much higher sit-in ratios, where customers tend to sit and have their orders brought to them in a seemingly more upscale atmosphere , may be known in some areas as fast casual restaurants.

History of the Fast Food Industry


The concept of fast food is generally associated with urban development. However, research reveals that the trend has its roots in the bread-and-wine stands in ancient Rome and the popular ready-to-eat noodle shops in many East Asian cities. All through the ancient and medieval world, flat-bread, falafel and other heat-and-serve meals were popular attractions at roadside stands. The kiosks or brochettes that were once associated with a clientele, from the not-so-elite strata of society, are now a part of the urban and ultra-modern lifestyle. The history of Roman antiquity reveals that bread soaked in wine and stewed vegetables, and meat were commonly sold at popinas, the eating establishments that thrived during the era. All through the middle ages, major urban areas in London and Paris supported stalls that sold pies, flans, pastries, pancakes and precooked meats. These outlets catered to the demands of single households and town dwellers, who rented facilities devoid of kitchens. The kiosks also catered to pilgrims and traders.

Fast food industry India


The fast food culture emerged as early as the 19th century. During the Industrial Revolution, a large workforce was required to work for 10 to 12 hours a day. With so much work to be done, fast food was the idea of a quick and easy lunch. In India, fast food culture emerged in the decades after independence, starting from the 1950s. Eating at home used to be a significant aspect of Indian culture, so the change was gradual. Over a period of time, with a growth in the number of nuclear families, economic growth and increasing per capita income as well as globalization, fast food culture gained prominence. Women were shifting from their conventional roles of managing the household and taking care of the children. With growth in literacy, they started joining the workforce in large numbers. Fast food became a time-saving alternative to cooking for them. Similarly, children resorted to fast food to fill their stomachs in school and college. Their exposure to global urban culture and Western cuisine accelerated their want for cheap and delicious fast food. Moreover, fast food costs less than traditional long meals commencing with appetizer and concluding with dessert. . Nebulas and Pizza Corner Indias most popular domestic fast food chains gained rapid popularity during this period. Though the fast food culture originated abroad, these domestic food chains could create a perfect blend of international food with Indian ingredients. Pander pizzas and aloof tike burgers were indeed able to satisfy Indian taste buds. With the liberalization of the economy in 1992, new multinational fast food giants started dotting India with their outlets. Burger King, Wimpeys, Pizza Hut, Dominos Pizza, McDonalds, and KFC outlets can be seen today in nearly every shopping mall and other public areas. In fact, these multinationals have given their domestic counterparts a run for their money. They are growing at a much faster pace than the Indian chains.

Impact
The emergence types of cancers have been observed to spread due to lack of safety standards in some sectors of the fast food industry. There are also several environmental problems associated with how fast food outlets process and package their products. Food packaging is done using plastic, Styrofoam and other synthetic products which are not biodegradable. In recent times, many fast food outlets have switched to paper bags. Though paper is biodegradable, at the large quantities in which paper waste is generated in India, currently paper is seen more as a pollutant. Metal and glassware would be more favorable to serve food, but they destroy the whole purpose of consuming of the fast food industry has, to an extent, transformed urban food culture in India. It is common knowledge that too much fast food is bad for health and may lead to obesity. An essential component of most fast food is fat the kind of fat that in excess can lead to artery clogging. In large quantities, fast food may lead to obesity as well as hypertension, diabetes, high cholesterol and heart diseases. Even certain Food on-the-go. The need of the hour is a law or regulation that forces these outlets to recycle the paper, plastic and foam they use every day. Indias fast food industry is growing at 40% per annum and generates over Rs. 4800 crores in sales. The multinational segment of the industry generates over Rs. 7000 crores. Fast food has, in a way, impacted the Indian economy by creating jobs. Outlets require a large number of unskilled workers who are willing to work for low wages. On the one hand, this generates widespread employment. On the other hand, some analysts feel that it weakens the economy by forcing people to take up jobs in which there is little room for advancement. Fast food industry has been very successful in India, both in financial terms as well as in popularizing its quick service culture among the population.

Recent trends in fast food industry


With rapidly growing middle class population and changing lifestyle, India is blessed with one of the fastest growing fast food markets of the world. The Indian fast food market is growing at the rate of 30-35% per annum. Almost all big fast food brands of the world have succeeded in making their presence felt in the country and most of them are posting appreciable growth

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

MC DONALD
Vision
To be the best and leading fast food provider around the globe

Mission
McDonald's brand mission is to be our customers' favourite place and way to eat, and improve our operations to provide the most delicious fast food that meet our customers' expectations.

Values Our values summarized in "Q.S.C. & V.". Provide good quality, services to customer. Have a cleanliness environment when customer enjoys their meal. The value of food product makes every customer is smiling.

Introduction
McDonald's Corporation is the world's largest chain of fast food restaurants, serving nearly 47 million customers daily through more than 31,000 restaurants in 119 countries worldwide. McDonalds sells various fast food items and soft drinks including, burgers, chicken, salads, fries, and ice cream. Many McDonald's restaurants have included a playground for children and advertising geared toward children, and some have been redesigned in a more 'natural' style, with a particular emphasis on comfort: introducing lounge areas and fireplaces, and eliminating hard plastic chairs and tables. Each McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporations' revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income Expand further into Asia markets over a 2-year period by adding 500 restaurants per year at a cost of $4 billion annually, and applying 0 grams Trans fat in all worldwide McDonald's restaurants.

History analysis:
y The business began in 1940, with a restaurant opened by brothers Dick Mac McDonald in San Bernardino, California. Their introduction of the "Speedee Service System" in 1948 established principles of the modern fast-food restaurant. and

the

The original mascot of McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was "Speeded." Speeded was eventually replaced with Ronald McDonald in 1963. The present corporation dates its founding to the opening of a franchised Restaurant by Ray Kroc, in Des Plaines, Illinois on April 15, 1955, the ninth McDonald's restaurant overall. Kroc later purchased the McDonald brothers' equity in the company and led its worldwide expansion and the company became listed on the public stock markets IN 1965

With the expansion of McDonald's into many international markets, the company has become a symbol of globalization and the spread of the American way of life. Its prominence has also made it a frequent topic of public debates about obesity, corporate ethics and consumer responsibility.2

Pizza hut

MISSION STATEMENT
The mission statement of PIZZA HUT is To become the most favourite restaurant all over the world

VISION
The vision of the PIZZA HUT is that reach on the top of the peak to provide best service and taste & to see Yum on customers face

INTRODUCTION
Pizza Hut (corporately known as Pizza Hut, Inc.) is an American restaurant chain and international franchise that offers different styles of pizza along with side dishes including pasta,buffalo wings, breadsticks, and garlic bread. Pizza Hut is a subsidiary of Yum! Brands, Inc. (the world's largest restaurant company [2]) with approximately 34,000 restaurants, delivery/carry-out locations, and kiosks in 100 countries.

In India, Pizza Hut has 140 restaurants across 34 cities, including Delhi, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Pune, and Chandigarh amongst others. Yum! is in the process of opening Pizza Hut restaurants at many more locations to service a larger customer base across the country.

HISTORY OF PIZZA HUT


In 1958, Frank and Dan Carney had an idea for a great local pizza restaurant in Wichita Kansas. The small 25 seat restaurant only had room for 9 letter son the sign the building looked like a hut so 'Pizza Hut' was born!

Fifteen years later, we opened the first UK restaurant and since then we'vebecome the biggest Pizza Company on the planet, Let see listen Pizza Hut Story from them!

1958 Frank and Dan Carney open the first Pizza Hut in Wichita, Kansas. 1972 1000 restaurants are open throughout the USA. 1973 Pizza Hut went international with restaurants in Japan, Canada & England. The first UK Pizza Hut opened in Islington, London. 1977PepsiC o bought Pizza Hut. 1980 Pan Pizza was introduced. 1982 The UK joint venture started between PepsiCo and Whitbread. 1984 Over 50 restaurants so far in the UK. 1986 by now, there were 100 restaurants in the UK and 5000 worldwide. 1987 and average of one restaurant opened each week in the UK. 1988 The UK's First Delivery Unit was opened in Kingsbury, London. 1992 There were 9,000 restaurants in 84 countries. 1993 there were 300 restaurants and delivery stores in the UK. 1994 10,000 Pizza Huts were open for business. 1997 PepsiCo decided to focus on their drinks business. As a result, Trico Global Restaurants was born, creating the largest restaurant brand in the World. Tricon became the partner company with Whitbread. 1999 Pizza Hut had over 400 restaurants, employing 14000 people. 2002 Tricon Global became YUM! Brands Inc. 2006 Whitbread sold their share of the joint venture to Yum! Brands Inc. Pizza Hut UK Ltd was now 100% owned by Yum!

Recent news
y y 2008 We bought Godfather's Pizza in Ireland with 28 stores. Report and Marketing Strategies of Pizza Hut

CAF COFFEE DAY

VISION
To be the best Cafe chain by offering a world class coffee experience at affordable prices

Introduction

Caf Coffee Day, India s favourite coffee shop where the young at heart unwind. We re a division of India s largest coffee conglomerate, the Amalgamated Bean Coffee Trading Company Limited .Popularly known as Coffee Day, it s a Rs. 750 crore, ISO 9002 certified company. With Asia s second-largest network of coffee estates (10,500 acres) and 11,000 small growers, Coffee Day has a rich and abundant source of coffee. This coffee goes all over the world to clients across the USA, Europe and Japan, making us one of the top coffee exporters in the country. Cafe Coffee Day is India's favourite coffee shop, for the young and the young at heart. They part of India's largest coffee conglomerate, the Amalgamated Bean Coffee Trading Company. That's a 750 crore rupee group with the ISO 9002 people approving of what we do. We've a certificate to show for it, too. There's over 10,000 acres of rolling hills with the coffee shrubs making for lovely walks. There are 11,000 small growers who make us who we are and we're glad to be a part of their lives. And they not alone, there's folks in the USA, Europe and Japan that buy coffee from us, making us the top coffee exporter from India! To put in plainly they brought in the concept of cafes in India (this is where you thank us!). The first one opened in 1996 on Brigade Road in Bangalore. It's been an exciting journey since then, becoming the largest organized retail cafe chain in the country.

Interesting facts about Coffee & Cafs:


y Coffee was first known in Europe as Arabian Wine. Coffee is presently the second most traded commodity in the world. It is second Only to oil. Nescafe was invented by Nestle because it had to assist the Brazilian gove to solve its coffee surplus problem.

y y y y y y

CCD bags the 'Best Coffee Bar' title for the 3rd consecutive year. Cafe Coffee Day takes top honours at Coca Cola Golden Spoon Stimulating beverages to keep you warm during the Winter CCD opens its second cafe outlet at Badnera Road Friendship Day release July 09 Combo Carnival at CDS April 09

Awards 2010

Shadows Menu launch January 2009

Recent news
Mumbai, March 05, 2010 :

India's largest cafe chain Cafe Coffee Day (CCD)

cont inues its leadership as an iconic retail brand whose dynamism and popularit y have won it respect and admirat ion from both consumers and rivals. In a latest of a series of honours, the chain was conferred with the t it le of the Most Admired F & B Retailer of the Year: Cafes, Juice Bars and Parlours at the glittering third annual Coca Cola Golden Spoon Awards ceremony in Mumbai last night. CCD won in the same category at the 2009 Coca Cola Golden Spoon Awards as well.

DOMINOS
Vision
Expectional people on a mission to the best pizza delivery company in india

Introduction
Founded in 1960, Domino's Pizza is the recognized world leader in pizza delivery operating a network of company-owned and franchise-owned stores in the United States and international markets. Domino's Pizza's Vision illustrates a company of exceptional people on a mission to be the best Pizza Delivery Company in the world. Domino's started out small with the legendary Tom Monaghan who bought his first pizza store and called it Dominick's.It was re-christened Domino's Pizza in 1965. However, in 1978, the 200th Domino's store opened, and things really began to cook. By 1983 there were 1000 Domino's stores, rising to 5000 in 1989. Today, there are more than 9000 franchised and company owned stores in the United States and 60 international markets.

Jubilant FoodWorks Limited, a Jubilant Bhartia Group Company holds the Master Franchisee Rights for Domino's Pizza for India, Nepal, Sri Lanka and Bangladesh. The company has been listed on the Indian bourses recently. Prior to Sep 24, 2009, the company was known as Domino's Pizza India Limited and underwent a name change, rest of the terms remaining the same. The promoters of the company are Mr. Shyam S Bhartia, Mr. Hari S Bhartia and Jubilant Enpro Private Ltd. Domino's Pizza opened its first store in India in January 1996, at New Delhi. Today Domino's Pizza India has grown into a countrywide network of more than 300 stores with a team of over 9,000 people. According to the India Retail Report 2009, we were the largest Pizza chain in India and the fastest growing multinational fast food chain between 2006-2007 and 2008-2009 in terms of number of stores. Over the period since 1996, Domino's Pizza India has remained focused on delivering great tasting Pizzas and sides, superior quality, exceptional customer service and value for money offerings. We have endeavored to establish a reputation for being a home delivery specialist capable of delivering pizzas within 30 minutes or else FREE to a community of loyal consumers from all our stores around the country. Domino's vision is focused on " Exceptional people on a mission to be the best pizza delivery company in the world! ". We are committed to bringing fun, happiness and convenience to lives of our consumers by delivering delicious pizzas to their doorstep and our efforts are aimed at fulfilling this commitment towards a large and ever-growing customer base.

Domino's constantly strives to develop products that suit the tastes of our consumers and hence delighting them. Domino's believes strongly in the strategy of 'Think global and act local'. Thus, time and again we have been innovating with delicious new products such as crusts, toppings and flavours suitable to the taste buds of Indian Consumers. Further providing value for money and affordable products to our consumers has been an important part of our efforts. Our initiatives such as Fun Meal and Pizza Mania have been extremely popular with consumers looking for an affordable and value for money meal option. Our Brand Positioning of Khushiyon ki Home Delivery (Happiness Home delivered) is the emotional benefit we offer to our consumers. All our efforts, whether it is a new innovative and delicious product, offering consumers value for money deals, great service, country wide presence or delivery in 30 minutes or free are all oriented towards delivering happiness to the homes of our consumers.

Recent new
2009 Continuing its aggressive menu expansion, Domino's introduces a new line of pastas that include a handmade, oven-baked bowl. BreadBowl Pasta flavors include Three Cheese mac-N-Cheese, Italian Sausage Marinara, Chicken Alfredo, Chicken Carbonara and Pasta Primavera. Number one ranking in the American Customer Satisfaction Index Domino's introduces new chocolate Lava crunch Cakes,oven-baked choclate cakes ,crunchy on the outside,witha warm flowing choclate fudge inside . Domino's adds four bold new varieties to its oven baked sandwiches line italian Sausage and peppers, Buffalo Chicken with Blue Chesse ,Sweet and Spicy Chicken Habanero and Mediterranean Veggie. In late December,Domino's announces its inspired new pizza Reinvented from the crust up,the new hand-tossed piizza features new sauce ,cheese and garlic-seasoned crust .The reformulation was one of the biggest moves in the company's 50-year history, and was inspired by its toughest consumer criticts. Dominos transparent approach to talking about this bold change garnered much attention from the media and public in genral ,with the press highlighting the company's open and honest treatment in it's advertising. 2010 After years of languishing near the bottom of consumer taste perception studies,Domino's proudly boasts its research-backed wins over Papa john,s and pizza Hut in a national taste test of hand-tossed pepperoni pizza,sausage pizza and extra-cheese pizza chairman and CEO David A.Brandon steps down as CEO effective March 7 and the Board of Director's Sucessor . elect j.Patrick Doyle as Brandon's sucessor . Brandon will be retained by the Compan as a Special adivisor for the remainder of 2010 and continue as a non-executive Chairman of the Board.Concurrently,the University of Michigan announces Brandon will serve as its next Director of intercollegiate Athletics. Dominos opened its 9,00th store on March 11.

BARISTA

Introduction
Barista Lavazza is noted as a pioneer of Indian caf culture. The Barista Lavazza chain of espresso bars delivers a truly Italian coffee experience in warm, friendly and relaxed environment. It aims to provide a comfortable place for people to unwind over interesting conversations and a cup of coffee. Barista Lavazza consist of young adults, who are exposed to global lifestyles and appreciate the authentic flavours and tastes of coffee. At last count, the Barista Coffee Company Limited has over 200 Barista Lavazza Espresso Bars and Barista Lavazza Crmes in over 30 cities across India.

History
C850 : First known discovery of coffee berries 1600 : Coffee enters to Europe through the port of Venice 1654 : The first coffee house opens in Italy 1750 : One of Europes first Coffee house 1822 : Prototype of 1st espresso machine is created in France 1908 : Invention of the worlds 1st drip coffee maker Feb, 2000: First Barista Lavazza at Basant Lok, New Delhi At Barista Lavazza our objective is to provide an authentic Italian coffee drinking experience in a warm, friendly, no pressure environment. We began operations in the year 2000 as we felt the time was right for the Indian consumer to experience a caf that provided a third space, away from work and home, where the guest could relax and unwind. Lavazza traces its origins back to 1895, when Luigi Lavazza purchased a little grocery store, Paissa Olivero, in the old commercial section of Turin for 26,000 Italian Lire, about US$ 20. In the early 1900's, he invented the concept of the blend - a complex art of mixing together coffee of different origins to obtain a distinctive taste and harmonious flavour in the cup. Before the turn of the century, the name Lavazza evolved into an international

powerhouse and the unofficial ambassador of Italy, being synonymous with all things Italian - creativity, art, passion and of course, espresso.

y Recent trend
Over the next few months the chain willinvest an estimated Rs 50 crore and usea combination of thelatest intechnology, differential pricing and ahost of market initiatives to build the brands

two new avatars a premium coffeelounge in New Delhi's South Extensionlocality, and a chain of `Barista Coffeeon

Barista will invest between Rs 45lakh to Rs 50 lakh on the 3,000-sq. ft. coffee lounge, which will offer aselection of specialty coffee and continental food

Barista coffee on the go' bars will offer lower priced coffee and a limited menu of convenience foods such as sandwiches. The first of these will come up at Karnal on the

CEO OF BARISTA: Mr. Partha Dattagupta, MANAGING DIRECTOR OFBARISTA: Mr. Ravi S. Deo CHIEF OPREARTING OFFICER: Mr. Brotin Banerjee

COMPETITIVE PROFILE MATRIX

ATTRIBUTES

Weights

McDonald

Total

Pizza hut

Total

Caf Coffee Day

Total

dominos total

barista

Total

Price

0.09

0.36

0.27

0.27

0.18

0.18

Advertisement

0.11

0.33

0.33

0.22

0.44

0.11

Innovation

0.09

0.36

0.27

0.18

0.27

0.18

Distribution channel Product portfolio

0.11

0.22

0.33

0.44

0.22

0.33

0.11

0.33

0.44

0.22

0.22

0.22

Customer loyalty

0.10

0.40

0.30

0.20

0.20

0.12

Financial position Product quality

0.09 0.12

4 4

0.36 0.48

3 3

0.27 0.36

2 3

0.18 0.36

1 0.09 3 0.36

3 3

0.27

0.36

Price In today era fast food industry in growing at a high speed . this industry mainly target middle and high class people .fast food is mainly like by young generation people .They want product quality with reasonable rate .

Mc donals In mc donald starting range is veg pizza mcpuff cost Rs.19 which is affordable for every one Mc Donalds .Vegetarian burgers are priced between Rs 20 and Rs 48. The non vegetarian burgers are priced between Rs 30 and Rs 60. Wrap chicken Mexican is priced at Rs 55...All the products of mc Donald are of average cost and minimum as compare to other resataurant

Pizza hut In pizza hut the starting range of pizza is magherita Rs.70 .other products like simple veg Rs 100,fiery chees Rs. 140 and many more. This is affordable to most of the people .It has a wide range of product with reasonable rate .

Caf coffe day Caf coffe day is mostly popular for coffe but it also have big eat in its menu like veg burgar Rs.47, chicken burgar Rs.52, chicken tikka Rs.68,chicken keema Rs.64, chow brownie Rs.47 and many more . all are at reasonable but its compititers have same product with less price.

Dominos

Dominos start its pizza rate at Rs.65 small size. Other products are mexican green waves Rs.235,deluxe veggi Rs.130,chicken mekicon red waves Rs.275,spicy chicken Rs. 210 and many more. All these products are of affordable but for all people its not possible.

Barista . Barista products are veg combo Rs. 69,slimmers non veg sandwich Rs.95,veg sandwich Rs.75 and many more .All these products are of high range which is affordable by high class people .

Distribution channel
In fast food industry distribution channel plays a important role . if people are aware of it but don t have the outlet at that place in this case may be they switch to other rest aunt . In this way distribution channel is important. Or this industry target young people which always consider avability of productsor outlet.

Mc donalds Mc donalds have 31,000 restaurants in 119 countries.Total outlets in india are approx 200. In Mumbai around 2 2 outlets , delhi 32 outlet, jaipur 3 outlet. McDonalds, which serves five lakh people across India [ Images ] every day, plans to spend around Rs 400-500 crore (Rs 4-5 billion) over the next three-years to open 120 restaurants. All this show that mc donalds have outlet but less as campare to other competitors.

Pizza hut Pizza hut have 7,200 units in the U.S. and 3,000 units in more than 86 other countries.Total outlets in india are approx 110 outlet in 24 cities in india. all this data show that it haave less outlet .

Caf coffee day Caf coffee day is having 1125 outlet all over the india . Total outlet of caf ciffe day in all over the world is around 16858 stores in 50 contries all this data show that caf coffee day is having lot of outlet all over the world and even in India it have many outlet Dominos Dominos is having around 9000 stroes in 60 contries all over the world.in India dominos have 300 outlet in 45 cities. This data shows that dominos have average outlet in India and in all over the world..

Barista Barista currently operates in over 206 outlets all over the country, and at their current rate, they are opening a new outlet approximately every 10 days. They have a market presence in over 20 cities. Mumbai alone has over 30 outlets.

Advertisement
Advertisement play a important role in every business or industry. Without advertisement we cannot make our product in knowledge to our customers. If customer are not aware of our products and firms success is not possible. Advertisement can be done though many ways or media for ex ample newspaper , T.V, radio, banners , posters and many more.

Mc Donald s Over the years, McDonald's has developed TV advertising campaigns that have become, like McDonald's, a part of our lives and culture. McDonald's commercials have focused not only on product, but rather on the overall .. Some of the great tag lines of mc Donalds are My McDonald's (1997), We Love to See You Smile (2000), i'm lovin' it (2003) the first adverstisement of mc donalds in make in 1967 by the tag line McDonald's is Your Kind of Place. This "image" or "reputation" advertising has become a trademark of the company and created many memorable television moments and themes.

Pizza hut Pizza Hut's very first ad was "Putt Putt to Pizza Hut". In 2008 to 2009.the advertising slogan is currently "Your Favorites. Your Pizza Hut." Pizza hut use commercial add on T.V , poster and banners on many palaces .

Caf coffe day

Caf coffee day does not look at mass media as viable area of adversting or market spends . caf coffee is advertised with other brands for ground level events. Caf coffee day is group partner of channel [V]. It also adverstesd in some of the movies like mai hu na,khakee,kyu ho gaya na many more. This show that cafe coffee day not invest more on commercial add or normal add.

Dominos Dominos is mainly popular for its 30 min service .Starting in 1973, Domino's Pizza had a guarantee that customers would receive their pizzas within 30 minutes of placing an order, or they would receive the pizzas free. Dominos give its commercial add on T.V, radio, poster and many more.

Barista Barista does not inveset more on advertisement .Barista never use commercial add on T.V .It not use banners and all for its popularity . This show that barista is not good effective in advertisement .

Product quality
In this fast food industry quality matter the most . it target middle and high class people which always consider the quality of product .For them good quality is matter a lot . In todays era people are more health conscions they want good quality good with reasonable price.If the quality of product is not good then customer can switch to other product so it is always important to maintain the quality of product.

Mc Donald High quality is one of the top priorities of mc Donald . From meats to cheeses, from fresh produce to eggs they commit that they always use fresh and new raw material for its product For example :Whatever food raw material is use in its product is used with in 8 hr. The potato used in burger like meg allu tikki and meg veggi is import from out of India. They are always very specifice for there quality and they never adjusted on this issue .

Pizza hut Pizza hut is also popular of its quality .They are popular for there 30 min service include quality for example:In Pizza hut is all Ice Cream Factory toppings are free from artificial colours .All flavour of boneless chicken products are made from 100% chicken breast. The menu is free from Hydrogenated Vegetable Oils . And they commit for good quality.

Caf coffee day The product quality of caf coffee days products is good .They use best quality coffee for there espresso coffee. The food products of this are always fresh . They use fresh vegetable in there sandwich and in there menu they add many healty salad which is always good for customer health. There

Dominos In dominos you get different variety of pizza and other fast food products .My type of sauce and sandwich with fresh and good quality. Dominos is popular for 30 min service. It commitee that the quality of that product is same as you get it in its outlet store. For example: In dominos if you are order a pizza but don t want cheese on it tou can ask them to not apply it. You getevery product fresh and hot

Barista Barista has a check on the quality of its products every 14 days. Barista also incorporates TQM at its headquarters in Delhi. Since Delhi is the base for all its distribution, quality control measures are adopted there to avoid any poor quality products being distributed. Barista made its coffee in a proper step by step process that is why the taste of coffee of barista is always constant.

Innovation
Innovation means to change in the thought process for doing something. In fast food industry innovation is always need . Customer get bored by the same products and the same menu. .fast food industry mainly target young population and they are always very choose for the taste . They always demand for for new tasty product but sometime these experiment may get fail and not get profit.

Mc Donald McDonalds has captured the imagination of young minds by creating a new toy with the burger theme. The burger flipping

toy is designed to motivate kids to role-play . Mc Donald is always very creative. It keep on changing the items of its menu. It mainly give super offer for kids. They attract them by surprise gift and coupons free with a product. McDonald's, has adapted its menu to suit palates and dietary habits in a country where a significant portion of the population is vegetarian. Some of the new items added in mc donals menu are New fruit and maple oatmeal, dollar smart play ground, New caramel mocha ,many new variety in burgar and many more in beverages it include new caf macho , ice tea, cappuccino .This shows that mc Donald is always update its menu .

Pizza hut Pizza hut is also good in new innovation in its menu. Now a days a new trents is started in pizza hut that start with your favorite crust, add all the toppings you want and just the right amount of cheese and sauce. Pizza hut provides many new flavor in its menu like pepperoni lovers pizza , meat lover pizza and many more. Pizza hut just stared a new offer for all customer that is you can order any pan pizza of any size with any topping is cost $10.some of offer like these attract people but pizza hut is not more innovative at its drinks and desert which is not good for it.

Caf coffee day Caf coffee day is good in innovations but mainly for its drinks. it always keep on update its menu card .Recently it come with a new offer that is 1 min filter coffee cost Rs.100 and that include some surprise it. It also provide coffee or other products according to the season like in winter it offer new hot beverages and in summers it have long range beverages that include shake ,cold coffee ,cold drinks etc. this show caf coffee day is update its product.

Dominos Dominos have a large amount of items in its menu .A wide range of pizza is available in its menu like mexican green waves Rs.235,deluxe veggi Rs.130,chicken mekicon red waves Rs.275,spicy chicken Rs. 210 ,veg single, veg double, non veg singles, non veg double and many more. This show that dominos have innovation in its products but mainly for pizza nt in beverage .

Barista Barista Lavazza is a 3 dimensional brand experience. There focus has always been to provide a differentiated offering. It have a long range of drinks like in diet drink low fat banna, lemon ginger ,almond raision muffir , in normal drinks caffe twist , caffe latte mug , hazelmut mocha ,barrrista. In food chicken salsa sandwich , spicy veg puff , chicken puff, lemon semon mojito freese. Barista have large range of products but it does not make more innovation .

Product portfolio
Product portfolio is important in fast food industry. If we have a wide range of product in our menu then customer vist our restaurant again and again. They always try something new for a change.And if we have less variety then customer get bored.they never want to have same product every time specialy young generation.so product portfolio is important

Mc Donald Mc Donald primarily comprises of vegetarian and non-vegetarian burgers. The vegetarian burgers like Veg surprise, salad sandwich, Mc Aloo Tikki Burger, Mc veggie burger are offered to

the customers. Non-vegetatarian burgers include Chicken Mc grill, Mc chicken burger, Fliet of fish and chicken maharaja burger. Along with these french-fries, veg pizza mc puff, wrap chicken Mexican, wrap paneer salsa, potato wedges, soft serve pineapple and choclate ice creams, Mc swirl soft drinks, coffee and Mc shakes are also offered to increase the variety in the product portfolio. Mc Donalds also provides mean combos with medium fries and medium soft drink, happy mean with small soft drink, econo meals with small soft drinTo capture the market. All this show that mc donald have a wide range of products for its costumer

Pizza hut The goal of pizza hut is to develop the best product with the resources available. Pizza Hut sells pizzas in four different sizes: personal , small,medium and large. A variety of toppings are available, plus "specialty" styles, including Meat Lovers, Pepperoni Lovers, Cheese Lovers, Veggie Lovers, Double. The nutrition plan also clearly tells diabetes patients can use what range of food at pizza hut. Over weight patients are also satisfied and the pizza with less cholesterol can be ordered. This encourages the customers to visit pizza hut rather than going elsewhere

Caf coffee day Caf Coffee Day product mix constitutes a wide range of products that appeal primarily to Indian coffee and snack lovers. Products have a decided Indian taste to it be it food or coffee. Most of the eatables have been adopted to meet the Indian taste buds like samosa, biryani, masala sandwich, tikka sandwich etc. Thus they have been trying to capture the Indian taste along with classic coffee.The best selling item in summer is frappe, which is coffee and ice cream blended together. The young people favor it. In winter it is cappuccino. Their merchandising includes funky stuff like t-shirts, caps etc.

Dominos Domino's menu features several different styles of pizza with a wide array of topping options, as well as additional items such as bread sticks, cheese bread, and chicken wings. Its stores are principally delivery locations and generally do not have any dine-in seating. It have a wide variety of different product.

Barista They offered different varieties of coffee. Customers were given a choice of drinks that were not common in India. It had a separate vending area for chocolate products. It even had coffee making machines for sale and also a trainer to teach how to make perfect espresso. The have lot of products in there menu.

Financial position
In every industry or in business financial position play a important role. If the business is financially strong then it can invest more in its industry and make it more successful like in fast food industry if company have good position then it can open more outlet and give more services to its customers .It make its company more better and can fulfill customer exception . This is profitable for company brand image and for employees also. Financial position can be estimated by its many ways like by its profit ,sales ,growth rate ,current assets ,current liab many more.

Mc Donald

The finical position of mc Donald is strong .Its growth rate is 8 to 9 percent, income growth is approx 8%, sales is $ 24074 approx. mc Donald have very limited outlet all over the world but those outlet are getting great profit .They satisfy there customer demand. All these data show that mc Donald hane strong financial position.

Pizza hut Pizza hut have good financial position. Its growth rate is approx 7 to 8 percent . Pizza hut have a wide range of products of in its menu. Variety of pizza is available in pizza hut but its innovation is only in pizza .It not make more effort for its beverages and other things. In india it have around 110 outlet running successfully.

Caf coffee day Caf coffee day have good financial position .Its growth rate is around 6% .It is mainly more popular for it coffee and beverages IT have around 1125 outlet in India but not getting more profit .Its make a image in customer that it is a coffee caf and specially for young. So may be this effect it.

Dominos Dominos is not having a good financial position .According to its owner the sales growth of dominos pizza is decrease by 9% to 5% . its owner have promised to increase the sales by 3 to 4 % at the end of this year. This show that its financial position is no so strong.

Barista Barista is having good financial position. Its growth rate is 6% .Barista is having a good quality of coffee .mainly it target high class customer. Its prize range is also high that is not affordable for all the people. It have a wide range of products of fast food also but at high cost that are not affordable for all specially for young generation customer. So it is not getting good profit

EXTERNAL FACTOR EVALUATION MATRIX

Opportunities Weights

Mc score pizza score Caf d hut 0.26 3 0.39 coffee 4

score Dominos

score barista score

Vast market

rural 0.13

0.52

0.26

0.26

Rising Income 0.16 Level Growth rate 0.14

0.64

0.48

0.48

0.32

0.32

0.42

0.42

0.28

0.42

0.28

of industry Increase Population Threats Ready made 0.15 4 0.60 3 0.45 2 0.30 3 0.45 3 0.45 0.16 4 0.64 3 0.48 3 0.48 2 0.32 2 0.32

food product Fluctuation in 0.14 price of raw material Difficulty keep to 0.12 pace 3 0.36 4 0.48 2 0.24 2 0.24 3 0.36 4 0.56 3 0.42 3 0.42 2 0.28 2 0.28

with customer expectation

Opportunities
Opportunities means that those area or those factors that give profit to our business .They can be those field where our industry must work more and capture the market .fast food industry is now a days most growing in India .Young generation are most attracted to these fast food rest.

1) Vast rural market


Rural India accounts for approx. 70 per cent of the Indian population. The working rural population is approximately 400 Millions. And an average citizen in rural India has less then half of the purchasing power as compare to his urban counterpart. Still there is an untapped market and the Companies have to take different steps to capture rural market share.

Mc Donald
Mc Donald is having only 120 outlets in India .Its distribution channel is not so good so it not covers the rural market in India. For example in Rajasthan in jaipur it have only 3 outlet and in Udaipur it have only 1 outlet .This show it does not cover rural market and it not taking more advantage of this opportunity.

Pizza hut
Pizza hut is having approx 110 outlet .This show it doesnt not have good distribution channel but its home delivery service try cover rural market . In India most of the population is rural but it is not cover by them.

Cafe coffee day


Cafe coffee day give its full attention toward rural market. Total outlet of cafe coffee day in India 1125. This show it always try cover rural market in india . It try to give best service to its customer with reasonable price . Its take best advantage of this Opportunities .It specialy for young generation and it always try to cover rural market.

Dominos
Dominos is having around 300 outlet in india. It is planning for some more outlet in india . It show that it is giving its attention toward rural market .it is popular for its home delivery service in 30 min .The product price of dominos is also reasonable but rural customer are willing to pay but they are not getting feasible options.

Barista
Barista is having a good distribution channel in india but all there outlets are in urban area like in metro cities or in many city. Barista is not making more attention on rural market. The product prize of barista is very high which is not affordable by all and the feasibility of it is also not so high .This show it is not making much more attention

2) Rising income level


In India the income of per person is increasing at a high range. In 2009 -20010 it was around Rs.46492.and now a days it is increase by Rs.54527 in 2010-2011. Income of per person effect a

lot to our business .If people have money in there pocket they can invest it which is profitable for our business . The country's per capita income has doubled over the last seven years to Rs 37490 in 2008-09, reflecting improvement in the living standards of an average Indian. Per capita income, according to advance estimates for national income , is expected to grow by 14.4 per cent during the current fiscal (2009-2010) y y y y In 2002-03 the Per Capita Income in India was Rs 19040. In 2003-04 the Per Capita Income in India was Rs 20989. In 2004-05 the Per Capita Income in India was Rs 23241. In 2008-2009 the Per Capita Income in India was Rs 37490.

As per capita income of people are increasing their purchasing power is also increasing. It acts as an opportunity to the industry.

Mc donald
The income of people is increasing it is a great profit to industry . Mc Donald is making a good use of it. Mc Donald provide a wide range of product with reasonable rate and quality like a burgar in mc Donald is cost rs 19, drink and other product are also of affordable price .purchasing power of customer is increasing and mc Donald is taking advange of it.

Pizza hut
Pizza hut is getting good profit by increase in income of people. Pizza hut provides a wide range of products to its customer and even it provide home delivery. Due to its this service it get good profit . People get good income and they invest on it .starting range of pizza is Rs.75 around. Pizza hut is not must good in its beverages so it doesnt give it more profit as compare .

Cafe coffee day

Cafe coffee day is many popular for young generation .In case of increase in income people visit more to the outlet and invest more . In India young generation is more when there income increase they like to invest and like to hangout for rest. For this cafe coffee day is the best place.

Dominos
Dominos is mainly popular for its home delivery service within 30 min.people who like to have food at there home dominos is for them. If income is good and they are able to spend then it is profitable for dominos Dominos pizza and other items are of average

Barista
Barista is getting good profit by increase in income. The product of barista are of high range .If customer have money they can afforded its products. Barista target high class people for if there income increase they invest more and visit there many time which is profitable for it.

3) Growth rate of industry


The Indian fast food market is growing at the rate of 30-35% per annum. Almost all big fast food brands of the world have succeeded in making their presence felt in the country and most of them are posting appreciable growth like mc Donald ,pizza hut, cafe coffee day and many more. The popular fast food chains have chalked out massive plans for expanding their business and presence throughout the country. Moreover, foreign fast food chains are aggressively increasing their presence in the country. Growth of fast food in india is due to young generation .In India most of the population is under 40 yr. They like fast food and they are the main reason for this growth in India.

Mc Donald
Fast food industry is growing at a high speed .In this Mc Donald is taking good advantage of this. They will have about 210 stores in India by the end of this year . they are increasing there outlet in india and trying to cover the remaining market. Mc Donald is trying to attracted customer by different discount and offers. They get a great market in india and trying to cover remaing also.

Pizza hut
Pizza hut is taking good advantage of industry growth. It have around 110 outlet in india and now it is increase by 140 outlet. Pizza hut is popular for its pizza so they attract there customer by different variety of pizza and they also modify there product according to customer demand. In this way we can say that pizza hut is trying to take good advantage of growth in industry.

Cafe coffee day


Cafe coffee day is mainly popular for its coffee but it also have fast food in its menu . It is growing in india with high speed. Early it have very limited variety in fast food but as the fast food industry is increase it change it menu accordingly . it has increase it outlet from 900 to 1125 outlets .

Dominos
In this growth of fast food industry dominos come with a new concept to bit its competitors . It provide a home delivery service with in 30 min. Those people who not have time to visit outlet or some of the join family or any one want to have there food at there home in this condition they can order and get there food at home. By this concept dominos place it self in market and tey provide best service with best quality.

Barista
Barista is also taking good advantage of industry growth . Earlier barista is only for coffee but now it add some fast food product in its menu. The main thing is that the price of barista product is high for all customer. They are not able to afford it so for this barista renew its menu with low cost product to get advantage by this growth in fast food industry.

4) Increase in population
The population of india is increasing day by day. The population of inda is 1.15 billion in 2009. It has increased from 1.12 billion and reached to 1.15 billion in 2009.current population of india is 1.19 billions. In this 0-14 yrs are 31.7%, 15-64 yrs are 63.5%,and 65 yrs above are 4.8% . All this data show that in india young generation is more than half of the population which is the main reason for fast food industry growth.

Mc Donald
Mc donals is taking full advantage of this . It target every segment of population it may be childrens, young , old people. It offer various discount and many gift items to arrack customers . it attract childer by surprise gift and fun loving games. They attract young generation to hangout and have fun time in there outlets. They mainly provide customer good quality food with reasonable price. Mc donald Like for college student they have a limited money in there pocket and mc Donald always consider this and serve them best service.

Pizza hut
Pizza hut is also trying to get good profit from this increase in population .pizza hut provide wide range of pizza in its menu.now customer are getting more choose like young generation they never like same pizza or other item they always want change. It provide healthy diet products and many more like diet products and many more like it provide diet products and many more like it provide sugar free products for ld people and cheess free product also.

Cafe coffee day


Cafe coffee day is popular for its coffee which is all time favorit for all yong and old people. It now add some fast food product in this menu to target all customers. A line is famous for cafe coffee day is that business people like to have coffee in ccd . this show cafe coffee day trying to get full profit from increase population.

Dominos
Dominos is popular for its home delivery service. People those not have time to visit outlet they can order online or by phone like the people who work late hours in office they can benefit by this service. dominos have a wide range of product in its menu.

Barista
Barista is not getting as much profit by this the main reason is the product price of mc Donald is high which is not affordable to all . like 63% of Indian population is in between 15 to 64 years. This generation are have high class customer but not more. Barista is trying to more outlet in india to cover the market and also making its more cheap.

Porters five force model

Porter's 5 Forces analysis deals with factors outside an industry that influence the nature of competition within it, the forces inside the industry (microenvironment) that influence the way in which firms compete, and so the industrys likely profitability is conducted in Porters five forces model.

A business has to understand the dynamics of its industries and markets in order to compete effectively in the marketplace.

Porter (1980a) defined the forces which drive competition, contending that the competitive environment is created by the interaction of five different forces acting on a business.

In addition to rivalry among existing firms and the threat of new entrants into the market, there are also the forces of supplier power, the power of the buyers, and the threat of substitute products or services.

Porter suggested that the intensity of competition is determined by the relative strengths of these forces.

These forces are:1. THREAT OF NEW ENTRANTS 2. THREAT OF SUBSITUTES 3. BARGAINING POWER OF SUPPLIER. 4. BARGAINING POWER OF BUYER 5. RIVARLY AMONG EXISTING FIRM

SUPPLIER POWER Supplier concentration Importance of volume to supplier Differentiation of inputs Switching costs of firms in the industry Presence of substitute inputs Cost relative to total purchases in industry BARRIERS TO ENTRY Absolute cost advantages Access to inputs Government policy Economies of scale Capital requirements Brand identity Switching costs Access to distribution RIVALRY THREAT OF SUBSTITUTES -Switching costs -Buyer inclination to substitute -Relative price performance of substitutes

BUYER POWER Bargaining leverage Buyer volume Buyer information Brand identity Price sensitivity Product differentiation Substitutes available Buyers' incentives

DEGREE OF RIVALRY -Industry concentration Fixed costs/Value added -Industry growth -Intermittent overcapacity -Product differences -Switching costs

1. THREATS OF NEW ENTRANTS

Entry to this industry is risky. Require large amount of investment. Brand image of existing companies. Switching cost is very high. Importance of distribution channel

2. THREAT OF SUBSITUTES In fast food industry there are many substitutes : Packet food products. Ready made food products. Ready made fruit and cold drink. Family restaurant.

3. BARGAINING POWER OF SUPPLIER

Supplier power is very low. Reason are: Its not possible to get same ingredient from same supplier . Companies have permanent supplier and they are loyal to them

4. BARGAINING POWER OF BUYER

In fast food industry bargaining power of buyer Switching cost of customer very low.

is high.

5. RIVARLY AMONG

EXISTING FIRMS

In fast food industry there is huge competition. Main player are: Mc donald Kfc Caf coffee day Dominos Pizza hut Veggie king Barista

CONCLUSION Fast food company is growing company in India . Although there are many competitors in fast food industry but the leader in this industry is mc Donald. The price, product quality, product portfolio and many other factors of mc Donald is better then the other competitors. Fast food industry have bright future and will grow more .

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