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GROWTH OF FAST FOOD INDUSTRY IN COMING

FIVE YEARS IN INDIA



SUBMITTED TO:- NCHMCT, NOIDA
CENTER:- IHM GWALIOR
SUPERVISION BY :- RESEARCHER :-
MR. J L SHAH ABHISHEK PATHAK
ROLL NO. 101734
GROUP:- A

CERTIFICATE OF THE GUIDE

This is to certify that the project work entitled GROWTH OF FAST FOOD INDUSTRY IN
COMING FIVE YEARS IN INDIA submitted in partial fulfillment for the award of the degree
of b.sc in hospitality and hotel administration by NCHMCT , noida in collaboration with
IGNOU, New delhi having is an authentic work carried out by him under my complete guidance.
The matter embodied in this project work has not been submitted earlier for the award of any
degree or diploma to any other institution to the best of my knowledge and belief.



SIGNATURE OF PRINCIPAL SIGNATURE OF GUIDE

NAME OF THE EXAMINER SIGNATURE OF EXAMINER











ACKNOWLEDGEMENT


The project GROWTH OF FAST FOOD INDUSTRY IN COMING FIVE YEARS IN
INDIA prepared by me has been possible owing to the relevant data & information collection
from different sources like websites, newspapers & through personal investigation.
For this project I would like to thank my guide Mr. J L SHAH in particular for his valuable &
complete guidance in preparing the project work.


INDEX
CHAPTER I
INTRODUCTION
OBJECTIVES
RESEARCH METHODOLOGY
LIMITATION

CHAPTER II
THEOROTICAL FRAMEWORK

CHAPTER III
DATA ANALYSES

CHAPTER IV

CONCLUSIONS AND RECOMMENDATIONS
APPENDIX
BIBLIOGRAPHY
QUESTIONARE









CHAPTER I
INTRODUCTION
OBJECTIVES
RESEARCH METHODOLOGY
LIMITATION









INTRODUCTION
The fast-food industry has been developing rapidly and has successfully penetrated majority of
the markets globally, at the same time bringing about several significant changes in practices,
work and employment relations. Fast-food restaurants are distinguished and characterized by
their inexpensive food products prepared in a standardized method that is dispensed to their
customers quickly and efficiently for takeaway or dine-in and are usually packaged without the
provision of utensils. However, the rapid expansion and proliferation of the industry was not a
smooth transition, instead, it has brought about several controversies and criticisms.
Such growth and success has brought disadvantages to workers rights, wages and the conditions
of work (Royal & Towers, 2002) as well as providing a greater insight on how work and
employment relations should be better managed.

In addition, it also brought to light that not all protocols, standards and practices of the fast-food
company fits the different markets globally perfectly, due to the different cultures, mindsets and
preferences, which we will be exploring in depth in this essay - in particular, the fast-food
industry in Singapore, Germany and United States.
Even though major corporations were to set up fast-food restaurants in the listed countries,
similarities and differences will arise and we will discuss this in the essay






OBJECTIVES

To study the marketing stragies adopted by pizza hut and dominos pizza

To understand fast food industry and trends in fast food industry

To understand the environmental factors affecting these two brands

To understand the service delivery gaps that can occurs and how does pizza hut and dominos
pizza avoid or fill these gaps.














METHODOLOGY
Information regarding the organisation, HRD and consumer preferences has been obtained
through:
a. Primary Sources
b. Secondary Sources.

Primary Sources
i. Marketing personal, HRD personal, PR personnel of the concerned organisation were
approached to obtain in formation about the concerned subject.
ii. Market research study was conducted in order to find out percentage wise preferences of
the stated fast food restaurants.

Secondary Sources
i. Internet
ii. Articles from newspapers & magazines
iii. Company brochures, literature and pamphlets.
Based on the information obtained from the above sources concepts were developed on which
analysis could be made.





LIMITATIONS OF STUDY

There are following drawbacks in the findings:
Sales figures (current and past) could not be made available for any of the three restaurants.
Distribution strategies of McDonalds not up to the mark.
Organisation structure for McDonalds could not be made available.





















CHAPTER II
THEOROTICAL FRAMEWORK












PIZZA HUT

The legacy of Pizza Hut began in 1958, when a family friend with the idea of opening a pizza
parlor approached two college students from Wichita, Kansas. Although the concept was
relatively new to many Americans at that time, the brothers quickly saw the potential of this new
enterprise.
After borrowing $600 from their mother, they purchased some second-hand equipment and
rented a small building on a busy intersection in their hometown. The result of their
entrepreneurial efforts was the first Pizza Hut restaurant and the foundation for what would
become the largest and most successful pizza restaurant in the world.
During the past four decades weve built a reputation for excellence that has earned us the
respect of consumers and industry experts alike. Our products have been voted number one in
countless consumer surveys nationwide. Our accomplishments as an innovative business leader
have been cited by such respected publications as Restaurant Business, Fortune, USA Today and
The Wall Street Journal.
Pizza Hut has been named the number one national pizza chain in America according to
Restaurants & Institutions "2001 Choice in
Chains" survey. Pizza Hut is the recognized leader of the $25 billion pizza category and has been
since 1971.
Building the leading pizza company has required innovation, a commitment to quality, and a
dedication to service and value. But perhaps as much as anything, it has taken the qualities of
entrepreneurship, growth and leadership, which have characterized our business through more
than four decades of success.
Pizza Hut franchisees, for example, exemplify the entrepreneurial spirit which launched the
system back in 1958. Through their interest and initiative, the Pizza Hut system was able to
develop new territories both in the United States and overseas. Today, franchisees and joint
venture partnerships account for nearly half of the systems total units.
Following the opening of the first international restaurant in Canada in 1968, Pizza Hut
restaurants quickly appeared in Mexico, Australia, Europe, the Far East and Africa.
Another important step in the growth of the company came in 1977 when Pizza Hut was
acquired by one of the true giants of international business: PepsiCo, Inc. As part of the PepsiCo
corporate family, Pizza Hut shared its leadership position with such fine products as Pepsi-Cola
brand soft drinks and Frito-Lay brand snack foods.
Beginning with the original thin crust pizza first served in 1958, Pizza Hut has made continuing
efforts to refine our products, and to develop new products to suit consumers tastes.
We strive to present the finest products the industry has to offer and to provide those products
wherever and whenever people want them. To achieve these goals, weve developed a number of
services and points of distribution through the years.
With our Personal Pan Pizza, weve made quick, affordable pizza a viable lunch alternative for
millions of Americans.
It has come a long way since that opening night back in 1958 when pizzas were given away to
generate interest in the brand new business. And through the strength of its heritage, culture and
people, the company looks forward to even more success in the years ahead.
THE CULTURE
At Pizza Hut, the culture reflects the values, the essence of what it believes in as a people and as
a system. It includes a shared vision of who they are and where they are heading. And it
encompasses everything from the way they treat their customers to how to deal with their
competitors.
One of the most important values within the Pizza Hut culture is integrity. The people are
committed to providing uncompromising product quality, to offering consumers the highest
quality for their money, and to providing service that is personal and concerned. In fact, the
people strive each day to provide what they call "customer mania," the kind of service that will
make customers tell stories to their family and friends about their experience with Pizza Hut.
The commitment to integrity also extends to the role they play nationally and locally in the many
communities it serves. On a national level, theyve created the BOOK IT National Reading
Incentive Program. The goal of BOOK IT is to instill a life-long love of reading in children. This
unique program, which awards a complimentary Pizza Hut Personal Pan Pizza and special
recognition to elementary school children who achieve set reading goals, has received national
accolades from educators and government officials across the country.
Our commitment to integrity is exemplified by how they treat their employees as well. They
invest heavily in their people through skills training and management development to help them
reach their full potential & encourages them to think unconventionally, to take prudent risks to
achieve results. They provide an informal environment with open communications to give them
the freedom to make contributions on their own initiative.
This is a part of their culture that is valued highly. They call it "ownership" the feeling that
comes from knowing you can affect the companys direction through your expertise, innovative
ideas and hard work. And because it gives its employees a stake in the companys success, they
take on the kinds of challenges people in other businesses only dream of a group of engineers
developing a revolutionary new oven, a restaurant manager devising a way to save the system
millions of dollars on food costs, or a marketing team turning a movie tie-in event into the most
successful kids marketing program in our systems history.
THE FUTURE
The food service industry today is one of the fastest growing industries in the United States, with
the pizza segment a $25 billion business leading the way.
Spurred by the increasingly rapid pace of living and the subsequent demand by consumers for
convenience, Pizza Hut has taken aggressive steps to provide quality products at off-site
locations. In recent years, theyve streamlined and refined their carryout procedures to provide
faster, more efficient service, and have rapidly expanded its delivery operations throughout the
country. In addition, theyve already begun exploring exciting new concepts that will bring its
products and services to a variety of new, non-traditional sites:
Theyve implemented combination operations with its sister companies Taco Bell and KFC at
major shopping areas.
It has reached thousands of new customers through its Pizza Hut Express program, a mini-
restaurant concept that provides unprecedented speed and fast food pricing to customers in a
variety of locations. And have negotiated agreements with major hotels, retailers and arenas to
provide contract food service at hundreds of sites across the country.
Thanks to these innovative new concepts, people at school cafeterias, sports arenas, major
airports, shopping malls and office settings are now enjoying Pizza Hut pizza. As a result, Pizza
Hut is greatly expanding its share of the off-premise, fast-food market, one of the fastest-growing
segments in our industry.





DOMINO'S PIZZA
Domino's Pizza is the world's second-largest pizza company. The delivery-carryout chain is
based in Ann Arbor, Mich., and boasts 7,473 units in some 60 countries around the world. Its
reported gross revenues for 2003 were $4.2 billion.

Domino's Pizza is recognised as the world's leading pizza delivery company. Our expertise and
passion for delivering hot and fresh pizzas has earned us numerous awards and the loyalty of
millions of pizza lovers around the world.

Domino's Pizza Group Limited ('DPG') is a wholly owned subsidiary of Domino's Pizza UK &
IRL plc which is quoted on the Alternative Investment Market of the London Stock Exchange.
DPG is the UK and Ireland's leading pizza delivery company and holds the master franchise to
own, operate and franchise Domino's Pizza stores in these markets. Our first UK store opened in
1985 and the first Irish store opened in 1991.

Over 8,000 team members work in our UK and Irish stores and in a range of support functions
ranging from marketing, IT and training to fresh dough production at our three commissaries in
Milton Keynes, Penrith and Naas, Ireland. The majority of our stores are owned by franchisees
who are responsible for delivering our brand's high standards to customers.

There are over 350 Domino's Pizza stores in a growing number of towns and cities throughout
England, Scotland, Wales and Ireland.
For more information about Domino's Pizza Group, download the Company Information Pack at
the bottom of this page.

Pepperoni is America's favorite topping (36 percent of all pizza orders); we eat
approximately 251,770,000 pounds per year. Other popular pizza toppings are
mushrooms, extra cheese, sausage, green pepper and onion.
In America, anchovies always rank last on the list of favorite toppings.
Gourmet toppings are gaining ground in some parts of the country with such toppings as
chicken, oysters, chicken, crayfish, dandelions, sprouts, eggplant, Cajun shrimp,
artichoke hearts and tuna.
Pizza lovers are experimenting with gourmet toppings by ordering oysters, chicken,
shrimp, eggplant, artichoke hearts, dandelions and tuna. More recent trends include game
meats like venison or duck, and Canadian-style bacon.
Pizza makers have tried virtually every type of food on pizzas, including peanut butter
and jelly, bacon and eggs and mashed potatoes.
Sixty-two percent of Americans prefer meat toppings on their pizza, while 38% prefer
vegetarian. (source: Bolla wines)
Women are twice as likely as men to order vegetable toppings on their pizza. (Source:
Bolla wines)
According to Domino's, some of the more popular international toppings are: pickled
ginger, minced mutton and tofu in India, squid and Mayo Jaga (mayonnaise, potato and
bacon) in Japan, and green peas in Brazil. In Russia, they serve pizza covered with
mockba, which is a combination of sardines, tuna, mackerel, salmon and onions. In
France, a popular combo is called the Flambe, with bacon, onion and fresh cream.
Around the world, toppings vary greatly to reflect regional preferences. In Japan, for
instance, eel and squid are favorites. In Pakistan, curry is a big seller. In Russia, red
herring is a topping of choice and Australians enjoy shrimp and pineapple on their pies as
well as barbecue toppings. Costa Ricans favor coconut. (Courtesy of Numero Uno
Pizzeria)
In the Netherlands, the "Double Dutch" is a favorite, with double cheese, double onions,
double beef. (Source: Domino's Pizza)
TELSTRA SOLUTION GIVES DOMINOS PIZZA A BETTER SLICE OF THE
MARKET
Pizza lovers will be able dial up a pizza on their mobile phones progressively from next month
with the launch of new technology developed by Dominos Pizza and Telstra.
Prompted by the surge in Australian mobile phone ownership, customers will be able to dial
Dominos Pizzas 131 888 number on their mobile phone and be connected to a nearby
Dominos Pizza store after completing a number of automated voice prompts.
The launch follows recent trials of the new 131 888 mobile phone voice recognition system in
South Australia and Toowoomba.
Previously, Dominos Pizzas 131 888 phone number could only be used from a fixed line
because the call was automatically directed to the closest store.
The national rollout of the new system, designed in conjunction with Telstra, begins next month
and is expected to be completed by October 2005.
Dominos Pizza CEO Don Meij said the new technology would give Dominos Pizza a
competitive advantage by expanding the companys reach and giving customers easier access.
The trial of the system found that not only was there a substantial increase in mobile phone
orders, but also that the number of landline callers remained constant, he said.
This new technology means we can reach those people who wish to order their pizza while they
are on the run, such as traveling home on the bus or train.
Telstra State and Government Sales Managing Director, Tony Henshaw said Dominos Pizza
customers can expect even more convenience when ordering their favourite pizza.
Telstra developed this solution to solve a business problem for Dominos Pizza in order to
significantly improve customer service, Mr Henshaw said.
Dominos Pizza has 380 stores across Australia and New Zealand, employing more than 9,700
staff and making more than 35 million pizzas each year.


THE MARKETING STRAGIES ADOPTED BY PIZZA HUT AND
DOMINOS PIZZA
Dominos Pizza Inc. has been considered as the second-largest pizza chain in the United States
according to Forbes Magazine. The status of the company is that it has over 9,000 franchised and
corporate stores tin over 60 international markets including the 50 states in the United States. It
is important to note that the company was bought Bain Capital back in the year 1998 and shares
were traded in 2004 after the company went public. Some of the delicacies featured on the
Dominos menu include pasta, oven-baked sandwiches, boneless chicken, wings, breadsticks,
salads, a variety of desert items, cheesesticks, and of course pizza (Daszkowskii).

Since its inception, the company has grown from strength to strength. Dominos Pizza Inc.
started its first franchise business in 1967 by opening a first store in Ypsilanti. Despite the
original idea to add a dot to the logo of the company on every opening of a new branch, the idea
was quickly faced out because the company was quickly experiencing rapid growth. By the year
1978, the business opened its 200th store. This showed how first the business was growing.
However, it is important to note at this point that the company has underwent a major challenge
during its infancy stages that threatened to hamper the growth of the company and even its
existence.

The 1975 lawsuit filed by Amstar Corporation, which was a maker of Domino Sugar at that time,
made a complaint arguing and alleging that Dominos Pizza Incorporation had violated and
infringed its trademark and had therefore instituted unfair competition to their company. This
legal battle lasted for five years and on May 2, 1980, the court of appeal or federal appeals court
ruled in favor of Dominos Pizza Incorporation (Daszkowskii).
Dominos Pizza Incorporation went international in 1983 when it opened its first international
store on May 12, 1983 in Winnipeg, Manitoba, Canada. During the same year, the Dominos had
managed to open its 1,000th store in general. The company also managed to reach a whooping
1,000 international stores by the year 1995 and further stretched this number to 1,500 stores in
the next two years. One of the greatest achievements of the company in terms of expansion was
the opening of seven stores across five continents in just one day (Datamonitor).

Dominos Pizza Company rolled out its mobile and online ordering services in the year 2007
while at the same time delivering and introducing their Dream franchising programs and at tits
Veterans respectively. These events made a significant impact in the company pushing company
operations a notch higher. One another significant event in 206 was the performance of
Dominos store in Tallaght, Dublin in Ireland: the store made a turnover of $3 million and
become the first store ever in the history of the company to hit the mark (Daszkowskii).
It is of equal importance to take note of the fact that the company was rated the last tying with
Chuck E. Cheeses in a survey that was conducted by Brand keys on all consumer taste
preferences among national chains in 2009.
This arguably meant bad results for the company and strategic issue had to be developed some of
which are still under current implementation as will b e discussed later in this paper
(Datamonitror). In 2008, the Dominos adopted a diversification strategy through the introduction
of non-pizza fare where they offered oven-baked sandwiches in four unique styles. The strategy
was intended to compete with toasted submarine sandwiches cooked or prepared by Subways, a
first food restaurant. One of the marketing strategies adapted by the company in marketing these
sandwiches was to offer them freely to people who were named Jared which was a reference to
one an employee of Subways, its targeted competitor (Daszkowskii).
it is quite important to note that some of the strategies adopted by the company started back in
2009, as part of an ambitious program to increase its competiveness in the market and in the
industry as a whole. one of the strategies that the company adopted in 2009 was the introduction
of american legend line of pizzas, which was significantly their specialty line of pizza
(daszkowskii).

these pizzas featured over 40% of cheese over and above the normal or regular pizzas that the
company used to sell at the time. in addition, the company made some additives, which
composed of a variety of toppings. within the same year, dominos introduced the bread bowl
pasta entree which was mainly a lightly seasoned bread bowl that was purely baked with pasta
inside. in another successive twist, dominos introduced the lava crunch cake dessert which was
composed of warm fudge that was filed on crunchy chocolate shells (young).


as a way of promoting the strategy above, dominos flew in about 1,000 cakes to deliver at their
store, which is located at hoffstadt bluffs visitor center that is near mount st. helens. the whole
idea of introducing these delicacies was a part of the strategy of diversifying the scope of
operation of the business to include other competitive delicacies like other companies in the fast
food industry business (daszkowskii). in addition, the company made tremendous changes to its
pizza recipe: from the crust up this year, 2010, which ushered in new changes in the cheese,
sauce, and dough that are used in preparing their pizza (young). the launch of this new recipe
was viewed by many consumers as a correction to their earlier mistake in which the companys
product had been criticized in terms of taste by many individuals. this had affected the perception
of the product of the company and indeed the company confirmed this view in one of its
advertising campaigns, which promoted the new recipe (daszkowskii).
currently, dominos is planning to undertake expansive strategies with plans to open an
additional 55 stores within this year at various strategic locations in its major areas of operation.
the company aims to achieve its needed growth and expansion in the fast food industry amid its
growing revenues that increased by 8.1% in the first quarter of the year 2010 alone. the plans
were announced by the company at the beginning of april this year, 2010, after successfully
appointing a new executive vice president to manage its supply chain. according to the company,
the need to mange fully their supply chain was mainly because of the increasing need to manage
supply chain routes that have been attributed as major contributors to increases in operational
costs in businesses, especially in the united states (associated press).


the company has undertaken strategies to improve supply chain management and plans are
currently underway to develop fully automated management systems to monitor the supply
chains of the business. the company bases this reason on the fact that its supply chain contributed
heavily to the operational costs according to its financial report for the year ended 2009. the costs
led to a decrease of 1.5% in company revenues to $1,404.1 million when compared to the
revenues that the business earned in 2008 (daszkowskii).
dominos company has also intensified its competitive strategy by pushing their battleground to
pay up media with the companys subscription amounting to 94% against 92% from its close
competitor pizza hut according to the report released by tns media intelligence. according to the
company analysis, the media advertising strategy is justified because the effects were evident in
the market place. the dominos tv adverts have been designed to be tactical and market-oriented,
which places on the platform the menu range and the quality. this fact is supported by the tns
media intelligence who says such adverts would have an impact on the market in terms of
responsiveness of the consumers to the products of the company (globaldata).


the company is making plans to invest heavily in media advertisement with significant focus on
content and creativity for their adverts. it is important to note at this point that the company has
been targeting subways in most of its advertisement with the comparison advert, which showed
that many customers preferred products from dominos than from subways. as motioned before,
this strategy has been utilized by the company for a number of years now and the company seeks
to continue pursuing this strategy as a way of eluding its competitors (daszkowskii).


in 2009, dominos pizza inc. almost tripled the amount investment in online advertising and the
main targets being the social media like facebook, college humor, and myspace. in future plans
for the company are to continue in this line of investment because it has witnessed tremendous
growth in sales based on this line of investment. in august, dominos introduced an application
which allows consumers to order for pizza directly from their iphone. during the launch, the
company recorded massive downloads but according to the companys ceo, the company is
currently undertaking measures to increase the number of customers or users utilizing this
exciting service (globaldata).
dominos incorporation was a little bit behind in terms of users using this service behind their
bitter rival pizza hut. pizza hut managed over 100,000 downloads of the application in only two
weeks after the launch, which was almost 24% more than what dominos achieved. this is the
main reason that has triggered the companys strategy of utilizing search engines such as google
and yahoo through the pay per click system, which the company hopes it will increase the
customer traffic to their application download (young).
In the past, most sales of the company have been supported by the promotional activities that
have accompanied every strategy that the company has ever introduced. Dominos is currently
counting on the promotional campaigns it has adopted basing its argument on the idea that
extensive promotions will bear good fruits like the promotional campaign that the company held
following the launch of its American Legend specialty pizza in 2009, as earlier mentioned
(Daszkowskii).
Generally, the companys strategy are geared towards expansion and gaining a competitive
advantage in the fast food industry (Young). Dominos is also camping on the pricing strategy
that it introduced back in 2009 which was aimed to bring back some price-sensitive customers
under their barbell technique. In addition, Dominos is planning to continue the advertising
wars, which are aimed at targeting major competitors like Subways and Pizza Hut.














FOOD INDUSTRY AND TRENDS IN FAST FOOD INDUSTRY
Fast Food Industry in 2013 at a Glance

It is no secret: Americans love fast food. And its not just us! The Golden Arches have spread
across the globe, and emerging markets are one of the fastest growing areas in the industry. But
the fast food industry is not without its challenges, especially in the United States. From rising
food costs, economic recession and changing perceptions about health, many fast food franchises
have been feeling some heat.
But rather than flee from this challenge, the fast food industry has been adopting new practices
and offering new products. Modern society is on the go, and there is plenty of demand for a
quick bite at all times of the day. Fast food franchising opportunities exist in the traditional
spaces like burgers and pizza, but are also sprouting up in healthy and unique ways as well.
The Industry

The fast food industry, also known as Quick Service Restaurants (QSR), has been serving up
tasty morsels for as long as people have lived in cities. The modern system of fast food
franchising is believed to have started in the mid 1930s when Howard Johnson franchised his
second location to a friend as a means to expand operations during the Great Depression. And oh
how it has grown! As cars became commonplace, the drive-thru concept brought explosive
growth to the idea of food-on-the go. Fast Food was added to the Merrion-Webster dictionary
in 1951 and U.S. fast food companies are now franchised in over 100 countries. In the U.S. alone
there are over 200,000 restaurant locations! Revenue has grown from $6 billion in 1970 to $160
billion last year, an 8.6% annualized rate.
Fast food franchises focus on high volume, low cost and high speed product. Frequently food is
preheated or precooked and served to-go, though many locations also offer seating for on-site
consumption. For stands, kiosks or sit-down locations, food is standardized and shipped from
central locations. Consumers enjoy being able to get a familiar meal in each location, and menus
and marketing are the same in every location.
Whats Been Going Wrong?

There have been challenges for the fast food industry in recent years that have been pressuring
profit margins. The industry as a whole has proven robust enough to withstand these challenges,
though some players have done better than others.
Over the last decade there has been increased focus on the quality of food served in fast food
restaurants. Typically highly processed and industrial in preparation, much of the food is high in
fat and has been shown to increase body mass index (BMI) and cause weight gain. Popular
books such as Fast Food Nation and documentaries like Super Size Me have increased public
awareness of the negative health consequences of fast food. Fast food companies have responded
by adopting healthier choices and have had some measure of success, but the shadow of bad
press still hangs over the industry.
Rising commodity prices have also significantly crunched many fast food franchises. With food
and beverage inputs making up approximately 33% of costs, higher prices for livestock, corn,
wheat and more have seriously shrunk margins over the past decade. In such a fiercely
competitive space it is impossible to force a price increase on customers, so profit margins are
often south of 10%. The recent economic recession did lower commodity prices, but the
recession brought on its own complications, and now prices for commodity inputs are on the rise
again.
Fast food had been thought to be largely recession proof, and indeed the industry did not suffer
nearly as much as other discretionary spending sectors. In fact, there was some increase in
consumer visits as people choose cheaper fast food options over fast casual or traditional
restaurant choices. But overall, the recession hurt spending, and consumers overall purchased
less with each trip. Fast food franchises fared reasonably well but still felt some pain.
Market saturation is also a relevant issue in the fast food industry today, at least in the U.S. There
is a McDonald franchise is in almost every town, and it usually sits in a row with several
competitors. With so many competitors which offer similar products there are fewer customers
per location. Increasingly fast food restaurants are also losing market share to fast casual, a
relative newcomer in the restaurant space.
Where do we Go from Here?

Busy citizens still need quick meal options, and fast food restaurants are fighting these
challenges with gusto. Now offering healthy choices to battle the stigma of unhealthy food, some
quick service restaurants now focus on fresh or organic products. From franchises focused solely
on salads or healthy wraps to the lower calorie options offered at traditional burger franchises
such as Wendys or McDonalds, consumers are able to make better choicesif they want!

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ENVIRONMENTAL FACTORS AFFECTING THESE TWO BRANDS

Customers:
Anyone who spends money buying goods and services is a Customer.

Cuisine:
Art of cooking, preparation in the kitchen is known as Cuisine.

Customer Behavior/Choice:
There is no definition of customer behavior that has universal acceptance. Generally, Customer
behavior refers to what goods and services people buy, how they buy them, why they buy them,
where they buy them, and how often they both them. In addition, customer behavior refers to
individual and group decision-making activities, the role that consumption plays, and the
interactions, between customers and sellers.
For our purpose, the defection of customer behavior is modified version of one given some years
ago by three writers early in the development of this field. Customer behavior can be defined as
those decision making acts of both individuals and groups of people directly involved in
obtaining and using economic goods and services, including the decision processes that precede
and determine these acts.

Catering Service Sector:
This sector exist to provide hospitality and catering service in a manner similar to the
commercial sector, the difference being that these services are secondary and indirect.

Outlet:
The unit of management of establishment with each sector usually on one side.

Restaurants:
A place where one can eat, pay for the some and go.

Fast Food Joints:
These are the outlets or the setup for the quick and fast service i.e. fast turnover rate.

Market Segmentation
Markets very widely from one another since the customers who constitute the markets very
widely in their characteristics. When a market is spilt up into several smaller units, each with
homogenous characteristics, it facilitates the effective tapping of market.

Market Segmentation and its Necessity
Market segmentation is the process of disaggregating the total market for a given product, into a
number of sub-markets. The heterogeneous market is broken up into a number of relatively
homogenous units. This process is based on the recognition that any market or customer group is
made up of a number of subgroups distinguished by varying needs and buying behavior, it is
feasible to disaggregate the customers into suitable segments in such manner that the
characteristics of the segmented groups would vary significantly among segments but would
almost be identical 'within segments'.
Market segmentation confers several benefits on the marketing man. It helps him distinguish one
customer group from another within a given market, thereby; enabling him to decide which
segment of the market should form his target. It facilitates an in depth study of the characteristics
of the customers. When the customers are approached after careful segmentation, responses that
are predictable would be forthcoming from them. This would help the marketing man develop
his marketing programme on a predictable and reliable base.
The responses of any given from are normally limited. So, it would be better if the efforts were
concentrated on the most productive and profitable segments of the market. By focusing sharply
on each of the different Customer groups within a market, market segmentation would be
making the marketing effort more efficient and economical. Segmentation helps access how far
the existing offers in the market from competitor match the needs of the customer segments.
Thereby segmentation also helps the marketing man spot the relatively less satisfied segments
and make a business success by satisfying such segments.
Segmentation brings benefits to the customers as well. When market segmentation reaches
higher levels of. sophistication and perfection, customers and companies can choose each other
for mutual benefit and satisfaction. .

VALUE FOR MONEY WANTS OFFER
Ever wonder what goes on behind the scenes at fast food restaurants? Fast-food insiders (i.e.
former employees) reveal a slew of nasty secrets that may make you think twice about ever
eating in one of these restaurants again
Black Oil, Blood and Melted Chicken
The featured article has quite a few doozies, such as a former worker from Burger King who
describes the restaurants oil rotation policy:
1

"Here is how the oil rotation went. You had four vats of oil that you cooked fries in. And boy did
you cook fries. Tons of them. After about 2 days worth, the oil got too dark for fries. So we
switched it over to the ones for chicken. Since it was darker, it was ok.
Then that goes on for a week. After a week of massive frying. The oil is black as motor oil. At
that point, it's switched to the Fish Filet vat. That's the only thing you cook in that vat."
Another former worker, this one from McDonalds, recalled what happened when a bag of
chicken nuggets was left out on the counter for too long:
"They melted. Into a pool of liquid. I never understood why. But they were completely
indiscernible as being the nuggets I once knew."
Other unsavory confessions revealed by these fast-food whistleblowers include:
Large chunks of mold in ice-cream machines and ice dispensers (which are rarely
cleaned)
A worker continuing to handle food with an open, bleeding wound on her hand
Recycling overcooked burgers into chili, or stripping chicken patties of their breading
and passing it off as chicken salad
Startling discoveries like these are all too common when it comes to fast-food it was several
years back when 12-year-old middle schooler Jasmine Roberts won the science fair at her school
when she discovered that the ice used in the drinks of fast food restaurants had more bacteria
than the toilet water. And in 2010, nearly half of soda fountains at fast food restaurants tested
were found to contain coliform (bacteria that grows in feces) while 11 percent also contained E.
coli!
2

And Then Theres the Food
Even under the best circumstances, fast-food restaurants fail when it comes to your health.
Eating the food at nearly every fast food chain (except maybe Chipotle and a few other
restaurants committed to sustainable, organic suppliers) means you are likely consuming feedlot
animal meat flesh that comes from animals raised in crowded unsanitary conditions, fed
massive doses of antibiotics and unnatural "frankenfeed" full of GM crops and some other truly
disturbing ingredients.
This is just the tip of the iceberg when it comes to all the decidedly unhealthy practices that go
on at a CAFO (Concentrated Animal Feeding Operation). The problem begins at the massive
CAFOs where the beef, chicken or pigs are fed genetically modified corn and soybeans and
excessive grains in general (which are not the natural diet of these animals), along with the
following almost unbelievable feed ingredients:
Plastics -- for the many animals whose digestive systems need roughage to pass food
through them, the CAFOs now use plastic pellets.
Meat from members of the same species -- CAFOs turn farm animals into cannibals.
Scientific research has linked this practice to the spread of both mad cow disease and
avian bird flu.
Manure and animal feces-- this can include cattle manure, swine waste, and poultry
waste. It also includes wood, sand, rocks, dirt, sawdust and other non-food substances.
Roxarsone -- more commonly known as arsenic, which until last year was put into
chicken and pig feed to control intestinal parasites that might cause them to eat less and
grow slower. Chicken litter (containing the arsenic that passes through the birds) is also
collected from chicken CAFOs and fed to feedlot cattle, for some apparent reason that
defies common sense.
Animal byproducts -- categorized as "animal protein products," this includes rendered
feathers, hair, skin, hooves, blood, internal organs, intestines, beaks and bones, dead
horses, euthanized cats and dogs, and road kill.
Most Fast Food is a Mixture of Chemicals, Sugar, Flavoring and Salt
From there, fast food is often nothing more than a slew of chemicals, sugar, high fructose corn
syrup and salt for instance, only about half of a Chicken McNugget is actual chicken. The rest
is a mix of corn-derived fillers and additives (most likely genetically modified), along with a
slew of synthetic chemicals, including:
Dimethyl polysiloxane, a type of silicone with anti-foaming properties used in cosmetics
and a variety of other goods like Silly Putty
Tertiary butylhydroquinone (TBHQ), a petroleum-based product with antioxidant
properties
Even the seemingly healthy menu items are loaded with surprising additives like preservatives
and inordinate amounts of sugar (in a salad, no less!). A burger or a chicken sandwich from a
fast-food restaurant is not equal, nutritionally, to the equivalent you would make at home
nearly always the fast-food version will contain a staggering variety of additives, flavoring,
coloring, and other chemicals that give it that fast-food flavor For instance, even the
hamburger buns used at McDonalds, which you may think would be relatively safe, allegedly
contain:
3

Calcium sulfate (aka Plaster of Paris) and calcium carbonate (limestone; antacid
medication)
High fructose corn syrup
Ammonium chloride (Causes irritation to the gastrointestinal tract. Symptoms include
nausea, vomiting and diarrhea)
Calcium propionate (Preservative) and Sodium propionate (Mold inhibitor)
Artificial flavors
Studies have shown that eating fast food just twice a week DOUBLES your risk of developing
insulin resistance and can make you gain 10 pounds, compared to eating it just once a week, for
example.
4
Insulin resistance, as I've discussed on many occasions, is one of THE primary driving
factors behind most of the diseases many currently struggle with, from diabetes to cancer and
heart disease...
Three Tips for Breaking Free of the Fast-Food Trap
There is just no way around it -- if you want your family to be healthy, someone in your
household, or someone you pay, must invest some time in the kitchen preparing your food from
scratch, using fresh, whole ingredients. Avoiding processed, fast food requires a change in
mindset, which is not always an easy task. It CAN be done, however. Rather than looking at fast
foods as a convenience that tastes good or saves money, try thinking of it as:
Extra calories that will harm your body
A toxic concoction of synthetic chemicals and artificial flavors that will lead to disease
A waste of your money
Likely to lead to increased health care bills for you and your family
Not something to give to children, whose bodies are still developing and in great need of
nutrients
Your goal should be to strive for 90 percent non-processed, whole food. Not only will you enjoy
the health benefitsespecially if you buy mostly organicbut you'll also get the satisfaction of
knowing exactly what you're putting into your body, and that in and of itself can be a great
feeling. The following three tips can make it easier to eat well without resorting to fast food:
Identify someone to prepare meals. Someone has to invest time in the kitchen to
prepare your meals, or else you will succumb to costly and unhealthy fast food and
convenience foods.
Become resourceful: This is an area where your grandmother can be a wealth of
information, as how to use up every morsel of food and stretch out a good meal was
common knowledge to generations past. Seek to get back to the basics of cooking --
using the bones from a roast chicken to make stock for a pot of soup, extending a Sunday
roast to use for weekday dinners, learning how to make hearty stews from inexpensive
cuts of meat, using up leftovers and so on.
Plan your meals: If you fail to plan you are planning to fail. This is essential, as you will
need to be prepared for mealtimes in advance to be successful. Ideally this will involve
scouting out your local farmer's markets for in-season produce that is priced to sell, and
planning your meals accordingly. But, you can also use this same premise with
supermarket sales or, even better, produce from your own vegetable garden.
You can generally plan a week of meals at a time, make sure you have all ingredients
necessary on hand, and then do any prep work you can ahead of time so that dinner is
easy to prepare if you're short on time in the evening.






SERVICE DELIVERY GAPS PIZZA HUT AND DOMINOS PIZZA

To be the reliable delivery brand that consumers love as it is value for money, has a good variety
of food and is hot and on time every time.

Pizza Hut's expertise in delivering quality pizzas goes as far back as 1986, when we first
introduced the concept of home delivery to Singaporeans. Just like how we create delicious
pizzas in the kitchen, we're constantly whipping up new
ideas to improve our delivery service.
In 2003, we created the revolutionary Hot Pouch that keeps
your food hot during the delivery process. A special nylon
bag prevents condensation from accumulating, so your
pizza remains fresh, while built-in insulated heating
elements lock in the pizzas' heat. Combined with the heat-
sensitive Hot Dot sticker, you can be doubly sure that your
pizzas are delivered hot and fresh.
In 2008, Pizza Hut successfully launched the first pizza online ordering service in Singapore. In
the following year, we implemented the Hot Dot Guarantee, a promise that all our food will be
delivered hot. Using the heat-sensitive Hot Dot sticker, it will transform from its original black to
white on pizza box, revaling the word HOT', if the pizza is hot.
With the Hot Guarantee, we've given pizza lovers in Singapore yet another first. Call us a leader
or pioneer, but our real number one has always been the customer.










CHAPTER III
DATA ANALYSES












DATA ANALYSE
A Ag ge e: :
0 0- -1 10 0 1 10 0- -2 20 0 2 20 0- -3 30 0 3 30 0- -4 40 0 4 40 0- -5 50 0 A Ab bo ov ve e 5 50 0
0 0 2 20 0 4 40 0 3 30 0 5 5 5 5

T Th he es se e t ty yp pe es s o of f r re es st ta au ur ra an nt ts s a ar re e m mo or re e p po op pu ul l a ar r t to o t th he e u up pw wa ar rd dl l y y m mo ob bi i l l e e a an nd d t th he e
y yo ou ut th h g gr ro ou up p. .
0-10
0%
20-30
20%
20-30
40%
30-40
30%
40-50
5%
Above 50
5%
W Wh ha at t b br ri i n ng gs s y yo ou u t to o t th he e F Fa as st t F Fo oo od d T Ta ak ke e A Aw wa ay y R Re es st ta au ur ra an nt t ? ?
Quality
S Se er rv vi i c ce e R Re es sp po on ns se e V Va ar ri i e et ty y A Am mb bi i e en nc ce e
2 25 5 4 40 0 5 5 3 30 0


S Se er rv vi i c ce e r re es sp po on ns se e a an nd d A Am mb bi i e en nc ce e a ar re e t th he e t tw wo o m mo os st t i i m mp po or rt ta an nt t f fa ac ct to or rs s f fo or r w wh hi i c ch h
t th he es se e p pl l a ac ce es s a ar re e f fr re eq qu ue en nt te ed d b by y t th he e p pa at tr ro on ns s. . Q Qu ua al l i i t ty y c co om me es s a a c cl l o os se e t th hi i r rd d. .
Quality
25%
Service
Response
40%
Variety
5%
Ambience
30%
D Do o y yo ou u c co om me e h he er re e w wi i t th h y yo ou ur r
F Fa am mi i l l y y F Fr ri i e en nd ds s
Girl friend/ Boy friend
A Al l o on ne e
3 30 0 4 45 5 1 15 5 1 10 0

Family and friends are the main reason that the customers frequent these places.
Family
30%
Friends
45%
Girl friend/ Boy
friend
15%
Alone
10%
H Ha av ve e y yo ou u c co om me e a ac cr ro os ss s a an ny y a ad dv ve er rt ti i s se em me en nt ts s o of f F Fa as st t F Fo oo od d T Ta ak ke e A Aw wa ay y
R Re es st ta au ur ra an nt t ? ?
Yes
N No o
7 70 0 3 30 0

M Mo os st t o of f t th he e p pe eo op pl l e e h ha av ve e a ac ct tu ua al l l l y y c co om me e a ac cr ro os ss s a ad dv ve er rt ti i s se em me en nt ts s o of f t th he es se e k ki i n nd ds s o of f
r re es st ta au ur ra an nt ts s s so om me ew wh he er re e o or r t th he e o ot th he er r. .
Yes
70%
No
30%
H Ha av ve e y yo ou u c co om me e a ac cr ro os ss s a an ny y s sp pe ec ci i a al l o of ff fe er rs s g gi i v ve en n b by y t th he es se e F Fa as st t F Fo oo od d T Ta ak ke e A Aw wa ay y
R Re es st ta au ur ra an nt t ? ?
Yes
N No o
8 85 5 1 15 5


Most of the people have actually come across special offers given by these F Fa as st t F Fo oo od d T Ta ak ke e
A Aw wa ay y R Re es st t a au ur ra an nt t.




Yes
85%
No
15%
CONCLUSIONS

For the purpose of growth of each at the thee fast food restaurants i.e., Pizza Hut, Domino Pizza
certain recommendation have been given below :
PIZZA HUT
Accessibility: Pizza Hut could come up with a restaurant at the International
Airport/Domestic airport considering the success of its NDR station joint.
Home delivery services could also improve its clientele.
Compared to the items of McDonalds, the masses do not derive value for money for certain
items and hence its price should be reduced at least marginally. If done in places where both
are located, more income could generated by Pizza Hut.
DOMINO PIZZA
Accessibility: Domino Pizza should look at more and more places like Destination Point
and Leisure bowl to expand its chain of outlets.
Standard of hygiene: People of India are becoming more hygiene conscious. Therefore the
management needs to become more hygiene conscious. The restaurant should start providing
with disposable spoons, plates etc., Mineral water should also be provided free of cost.
Dcor: Any new restaurant that Domino Pizza plans to come up with should be spacious,
vibrant and give a pleasant look.
Services: Staff needs to be more efficient and friendly.
Other than the variety provided by Domino Pizza a low calorie diet could also be added to its
menu. This would attract health conscious people into the restaurant thus improving its
customer base.
The companys plan of opening up of outlets in West and South East Asia should be
materialized as soon as possible as this would affect the image of the restaurant nationally.
BIBLIOGRAPHY
Sources Referred
1. Internet :
www.mcdonalds.com.
www.pizzahut.com
www.rubytuesdays.com
www.papajohns.com

2. Company Literature : McDonalds India Information Booklet

3. News Papers : Economic Times
Dated - 15th September 2003
July 21st 2003
4. McDonalds Restaurant Brochures
5. Pizza Hut Restaurant Brochures










QUESTIONARE FOR RESTAURANTS

Name: Designation:

Outlet:
How are the services of your restaurant, differentiated vis--vis the services of the other
restaurants?
1. Excellent ( ) 2. Good ( ) 3. Satisfactory ( ) 4. Average ( )

Who are the target audience (age group)?
1. 18-22 ( ) 2. 23-27 ( ) 3. 28-32 ( ) 4. 32 & above ( )

Where does you restaurant stand in the matched vis--vis other restaurants (Rating)?
1. Excellent ( ) 2. Good ( ) 3. Average ( ) 4. Poor ( )

How much emphasis is placed on each of the following promotional tools:
1. Advertising ( ) 2. Sales Promotion ( ) 3. Public Relation ( )

Any particular advertising agency/PR firm handling your account?
1. Yes ( ) 2. No ( )

On what basis are, the product at your restaurant priced?
1. Food ( ) 2. Service ( ) 3. Ambience ( )

How much popular is your Restaurant (in %age)?
1. 25%-50% ( ) 2. 50%-75% ( ) 3. 75%-100% ( )

Any specific period of the year when some special promotional schemes are introduced?
1. Yes ( ) 2. No ( )

What media used by your restaurant to reach the right target audience.
1. Television ( ) 2. Radio ( ) 3. Newspaper ( ) 4. Pamphlets ( )

How is the work environment in your Restaurant?
1. Excellent ( ) 2. Good ( ) 3. Average ( )