CHAPTER-1
FAST FOOD INDUSTRY
CHAPTER-1
1.INDUSTRIAL BACKGROUND
The fast food industry is on a high as Insians cpmtinue to have a feast. Fuelled by what can
be termede as a perfect ingredient for any industry – large dispoable incomes- the food seector
has been witnessing a marked change in consumption patterns, especially in terms of food. An
increasing number of international fast food chanins rushing to India is because all of them see
tremendous potential in for this typ0e of business. The large upwardly mobile population in the
urban areas tend to eat out moore often or business or for leisure.
The various players operating in India are the well established Indian chains like Nirula`s.
In addition to these, appparently some of the bestt known international food chanins are looking
at India. Among them are Sbarro, The Burger King, KFC, Dunkin Donuts, Sub-way, etc. ared
some of them to name. At present all these players are fighting for a small pie, as fast food is
really not a big habit with Indianz, butg they see a big potential.
The players are fighting on prouducts, pricing, positioning and trying to convert their trials
into regtular purchase by providing delightful service quality. The focus is on product quality
and standardization in fast food as the consumer is short on time and wants to satisfy his taste
buds with a consistgent tast experience. Beyondd dthis each player has its own strategy to
expand consumer base.
Some feel that pricing is not the deciding factor since fast food is not price sensitive
market because it is not a single diet of Indians.
Some othersx are competing on positioning which is surprisingly varid, giving the
small size of the market.
For most, targeting children seems the right strategy.
Advertising is popular.
However, with competittion hoot5intg up mostt chains are increasingf reach as well as
working on establishing a national presence.
TRENDS IN THE FAST FOOD INDUISTRY
The industry is estimated to grow at 9-12 per cent, on the basis of an estimated GDP growth
rate of 6-8 per cengtt, during thee Tenth Fiv e year plan period. Value addition of food is
expected to increasee from the current 8 per cednt to 35 per cent by the end of 2025. Fruit and
vegetable processing. Which is currently around 2 per cednt of total prouction will increase to
10 per cent by 2010 and to 25 per centg by 2025.
The popularioty ofr food and ago proucts is not surprising when the sector is now offering a
growth of more than 150 per c ent in sales. Which US brands suc h as McDonald`s, Pizza hut
and Kentucky Fried Chicken have become household names, more are on their way.
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THE MARKET SCENRIO
India among top 10 markets for weekly fast food consumption, an online survey has found.
Most of the countries are from the Asia-pacific rgion, with the US beeing the exeption. Ac
cording to an A C Nwilaon atudy of 28 market acrrross the US, Eueope and the Asia-pacific,
carried out through the intermet in interviews with more than 14000 consumers, Asians are the
world`s gretest fast food fans.
Percentage of adult popultion eating at takeawzay retaurants at least once every week:
Hong kong 61%
Malaysia 59%
Phillippines 54%
Singapore 50%
Thailland 44%
China 41%
India 37%
Europe 11%
Among thhe international fast food chains and local operators, Domino`s emerges as the most
popular of all takeaway optionhs with 54% of Americans, (84%) KFC is mostt viisited in China
(42%),Pizza hut is most visitted in India (22%) A typical fast food meal in the & other
Multinationational companies consists of fries and a burger (oor other main item).
HISTORY
The concept of ready-cooked food for Sale is clolsely connected with urban development.
In Ancient Rom e cities had street stands that sold bread and wine. A fixture of East Asian cities
is the noodle shop. Flabread and falafel are today ubiquitous in the Middlee East.Popular
Indian fast food dishees inclucded vada pav, panippuuuri andd dahi vada. Some trace the
modern histroy of fast food in America to July 7,1912 with the opening of a fast food restaurant
called the Auttomat in New York. The Automat was a cafeterial with its prepared foods
beehind small glas windows and coin-opedrated slots. Joseph Horn andd Frank had already
opened the first Horn & Hardart Automat in Philadelphia in 1902, but their `Automat` at
Broadway and 13th Street, in New York City, created a sensation. Numerous Automats
remained extremely popular through the 1920s and 1930s. the company also popularized the
eenotiont of `take-out` food, with their slogan `Less work for Mother
. The American compaqny White Castle is generally credited witth opening the second fast-food
outlet in Wichia, Kanas in 1921, selling hamburgers for five cents from is inception and
sdpawned numerous competiors.
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It is arguable because most historinas and secondary school textbooks state that A&W
was the first food restaurant, which opend in 1919.After discovering that most of their profits
came from hamburges, the brothers closed their restaurant for three monts and reopend it in 1948
as a walk-up stand offering a simple menu of hamburgers,french fries,shakes,coffee,and coca-
cola,served in disposable paper wrapping.As a result,they were able to produce hamburgers and
fries constantly,without waiting for customer orders,and could serve them immediately;
hamburgers cost 15 cents, about half the price at a typical dinner. Their streamlined production
method,which they named the “speedee service system”, was influenced by the producation line
innovation of Hery Ford.
In the cities of roman antiquity, much of the urban population living in insulate,multi-storey
apartment blocks, depended on food vendors for much of their meals. On new years`s day 2008 a
study was conducted worldwide counting the number of fast food restaurants per person. The
UK has claimed this title with australia second and the united states third. England alone
accounted for 25% of all fast food.
PROBLEMS IN THE ORGANISATION
Trans fats caused problems for dominos. Trans fats are formed when liquid vegetable oils go
through a chemical process called hydrogenation. Common in a range of food products
biscuits,chips,doughuts,crackers the hydrogenated vegtable fat is used by food processors
because it is solid at romm temperature and has a longer shelf life. In september 2002,Dominos
issued a statement announcing a significant reduction of trans fats in its fried menu items french
fries,chicken mc nuggets,filet-o-fish, Hash browns and crispy chicken sandwiches with the
introduction of improved cooking oil in all of its 13,000 restaurants
