Fast food Resturents in India Essay

1. INTRODUCTION Globally, there is a growing demand for food away from home as a result of higher incomes, changes in consumption patterns, changes in household composition, and the time pressures created by dual-working families. The foodservice industry has become highly competitive as the number of foodservice outlets has increased to meet the demand. In order to succeed in such a competitive industry, restaurant operators need to understand the factors (and their relative importance) that influence restaurant patrons’ decision when selecting a restaurant This research investigates consumer choice using the consumer decision-making process as a framework and identifies the factors that influence the decisions of consumers in the upscale, ethnic segment of the foodservice industry. This chapter reviews the relevant literature about consumers and services, the consumer decision making process model, and previous studies in consumers’ restaurant selection behavior. Furthermore, the int errelationships between customer satisfaction, food quality, service quality and choice intentions are discussed. Lastly, the restaurant choice factors, dining occasion, and demographic characteristics are reviewed. 1.1 FASTFOOD 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. 1.2 CUSTOMER CHOICE In microeconomics, the theory of consumer choice relates preferences (for the consumption of both goods and services). Preferences are the desires by each individual for the consumption of goods and services that translate into choices based on income or wealth for purchases of goods and services to be combined with the consumer’s time to define consumption activities. 1.3 FASTFOOD INDUSTRY The fast food industry is dominated by a handful of powerful corporations who are determined to aggressively drive production costs to the minimum. Low wages are a central part of this program. Because every dollar an employer has to pay in the form of wages is one less dollar in their pocket. The lower the wages, the better the profits. The companies that have applied this formula most successfully are McDonald’s, Burger King and Yum (Pizza Hut, Taco Bell, KFC).Together these huge conglomerates dominate the industry, employing 3.7 million people worldwide; operating a combined total of 60,000 stores. 1.4 FASTFOOD RESTORENT IN INDORE Indore is famous city in a fast food industry. So many mnc’s and nation lavel corporation investing in the city. Indorins also like a fast food. That’s why many venture opened in indore like as:- 1.4.1 McDonald’s McDonald’s is the world’s largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth. McDonald’s primarily sells hamburgers, cheeseburgers, chicken, Frenchfries, breakfast items, softdrinks, milkshakes and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies and fruit. 1.4.2 Kentucky Fried Chicken (KFC) KFC (Kentucky Fried Chicken) is a fast food restaurant chain headquartered in Louisville, Kentucky, United States, which specializes in fried chicken. An â€Å"American icon†, it is the world’s second largest restaurant chain overall (as measured by sales) after McDonald’s, with over 18,000 outlets in 120 countries and territories as of December 2012. The company is a subsidiary of Yum! Brands, a restaurant company which also owns Pizza Hut and Taco Bell. KFC was founded by Harland Sanders, who began selling fried chicken from his roadside restaurant in Corbin, Kentucky during the Great Depression. Sanders was one of the first people to see the potential of the restaurant franchising concept, with the first â€Å"Kentucky Fried Chicken† franchise opening in Utah in 1952. 1.4.3 Pizza Hut Pizza hut is the largest pizza Restaurant Company in the world. It has 12000 outlets in 90 countries employing more than 3 lakh people. The legacy of pizza hut began in 1958.In India there are not much outlets, out of 1086 countries India is one of them but only in 9 cities pizza hut has its outlets. Pizza Hut has an aggressive expansion plan for India. It intends to have 100 outlets by the end of 2004. Pizza Hut will consolidate its presence in cities where it already exists as an endeavor to create a major share of these profitable markets first before spreading to other markets. Further, all new outlets in India would be franchisee owned resulting from the smooth functioning of the existing stores which are all franchisee owned. Hence, the same arrangement will be followed in the future to ensure growth-oriented results. The data written below represent what Pizza hut is all about and gives a brief profile of the company. 1.4.4 Domino’s Pizza Jubilant Food Works Limited (the Company) is a Jubilant Bhartia Group Company, The Company was incorporated in 1995 and initiated operations in 1996, The Company got listed on the Indian bourses in February 2010, Mr, Shyam S, Bhartia, Mr, Hari S, Bhartia and Jubilant Enpro Private Ltd, are the Promoters of the Company. The Company & its subsidiary operates Domino’s Pizza brand with the exclusive rights for India, Nepal, Bangladesh and Sri Lanka, The Company is India’s largest and fastest growing food service company, with a network of 500+ Domino’s Pizza stores Stores (as of 31st March, 2012) The Company is the market leader in the organized pizza market with a 54% market share (Euro monitor Report 2010) and 70% share in the pizza home delivery segment in India, The Company has strengthened its portfolio by entering into an agreement with Dunkin’ Donuts Franchising LLC, for developing the Dunkin’ Donuts brand and operating restaurants in India.