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A PROJECT
ON
Submitted To Mrs. Geetu Sehra
Submitted By Reeshik Bahl
Enrollment No. 0811471705
Maharaja Agrasen Institute of Management Studies Affiliated to Guru Gobind Singh Indraprastha University
CERTIFICATE
This is to certify that Reeshik Bahl of Maharaja Agrasen Institute
of Management Studies has done a project entitled "Analysis of trend in
Fast Food Industry" in the partial fulfillment of Bachelor of Business
Administration as required under the rules of Guru Gobind Singh
Indraprastha University and has successfully completed it.
Director's Signature Coordinator's Signature
1
ACKNOWLEDGMENT
I am thankful to my coordinator Mrs. Geetu Sehra for giving me
the opportunity to do project work and for providing me with this
learning experience. It’s with a sense of gratitude and thankfulness that I
submit my research work.
My sincere thanks to Maharaja Agrasen Institute of Management
Studies for the help rendered during my study in the institute.
I am also thankful to all the respondents for their Cooperation. I am
extremely obliged and highly thankful to all those who have contributed
to completion of this project.
Reeshik Bahl
2
CONTENTS
OBJECTIVES
METHODOLOGY
INTRODUCTION
SECONDARY RESEARCH
O MC DONALD’S
O NIRULA’S
o PIZZA HUT
O CASE STUDY
SUBWAY
DOMINO’S
PRIMARY RESEARCH
O CONSUMER’S VIEWPOINT
O CORPORATE’S VIEWPOINT
CONCLUSIONS AND SUGGESTIONS
LEARNINGS
REFERENCES
3
OBJECTIVES
To analyze the rapidly changing trends in the Indian fast food
industry over the past few years.
To study consumption patterns of consumers pertaining to different
age segments.
To create an awareness about effects of fast food on health.
To enhance our communication skills by exposing our minds to the
world.
To use our theoretical base in real life situations.
4
METHODOLOGY
Techniques used in collection of data:
I. Primary data
a. Survey (through questionnaires)
b. Corporate interviews
i. Domino’s
ii. Subway
iii. Nirula’s
iv. McDonald’s
II. Secondary
a. Internet
b. Magazines
c. Newspapers
I prepared questionnaires and got them filled by various consumers of different
age groups. Then I analyzed the information and expressed it graphically.
5
INTRODUCTION
The million dollar question that would disturb waves in many brains and raise
eyebrows of people :
WHAT IS FAST FOOD??
So the million pound reply would be that its like goodwill – guess it is
intangible but easy to describe and difficult to define but as said by Vincent
Lombardi, “Winning isn’t everything, but making the effort to win is”. So we
give it a try:
Fast food is the fastest catching food concept among the fastest
changing youth.
According to some intellectuals,
Fast food is the food that is served fast.
OR
Fast food is the food that you eat to improve your speed
OR
Fast food is the food to express the fast pace within you
6
Apart from all this, the dictionary meaning of Fast Food is “Prepared food
requiring minimum of further preparation before sale or serving”.
India has been described as a nation of festivals and religions. But if we take a
closer look into this, we find that, the crux of these concepts is that India is a
country of multivaried cultures. These cultures give rise to different ways of
expressing themselves. This has further given birth to various food habits. The
varied terrain has also consolidated the view.
If one goes from region to region in search of various fooding habits, the
figures would be mind-boggling. Yes, we are deviating from the point, but the
truth is that this fast food has been in India since time immemorial. In the
North with the Himalayas, we have the spicy fried Tikki and Samosas. Going
westward to the Gujarati desert of folksongs and camels, we have the delicious
low-caloried Dhoklas. Going to Deccan hard land, the wavy violent sea
banging the shores brings to mind the mixed vegetable, Bhaji served with Pao,
or bread; PaniPuri and the most popular BhelPuri. Going further South to the
land of Temples, we have Dosas, Idlis, and Vadas. But as the country was
invaded and re-invaded by the Europeans in the 18th and 19th century, it
brought foreign culture and hence foreign food into the nation. Indians, who
love food eating and cooking were a bit apprehensive in the beginning but
soon accepted the Latin and Italian flavours.
Today as foreigners have come in via our own TV sets and media, the desire to
eat good, better and the best from around the world has gained momentum. To
add to this, People have welcomed the change and thus have encouraged
leading foreign food brands to come and capture the Indian market.
7
Today, fast food is not just another type of food, but McDonald burgers and
Nirula’s pizzas have become a household name. Today, one may say that the
target customers are the youth and the collegiate but the markets for these
products is widening. It seems that it would take a manifold growth in the
coming years as many outlets aim at selling their products to people from 8-88
years. This industry has today become a big investment market as crores are
invested but the returns are much more.
8
9
Mc Donald’s
In 1954, a fifty-two-year-old milk-shake machine salesman saw a hamburger
stand in San Bernardino, California, and envisioned a massive new industry:
fast food. In what should have been his
golden years, Raymond Kroc, the founder
and builder of McDonald's Corporation,
proved himself an industrial pioneer no
less capable than Henry Ford. He
revolutionized the American restaurant
industry by imposing discipline on the
production of hamburgers, French fries,
and milk shakes. By developing a
sophisticated operating and delivery system, he insured that the French fries
customers bought in Topeka would be the same as the ones purchased in New
York City. Such consistency made McDonald's the brand name that defined
American fast food.
In amassing a $500-million fortune, the king of the hamburger transformed the
nation's cultural landscape and forged an industry that is among America's
greatest exports. The widely imitated success of McDonald's offers an
excellent example for today's managers and executives searching for greater
production efficiencies. By putting the humble hamburger on the assembly
line, Kroc showed the world how to apply sophisticated process management
to the most prosaic endeavors. To succeed the McDonald's way, companies
must define the basic premise of the service they offer, break the labor into
constituent parts, and then continually reassemble and fine-tune the many steps
10
until the system works without a hitch. Today, companies engaged in
delivering pizzas, processing insurance claims, or selling toys benefit from the
kinds of systems that Ray Kroc pioneered. To the degree that such operations
maintain quality control, and cherish customer satisfaction, profits may flow.
Adapting To Foreign Climates
One key to McDonald's continued growth is international expansion. With
operations in more than 65 countries, McDonald's now opens about one-third
of its new restaurants outside of the United States. In the early 1990s, Fred
Turner predicted that international sales would eventually surpass U.S. sales.
While foreign markets can sometimes offer new obstacles for the American
company, like hostile government bureaucracies and unreliable local suppliers,
McDonald's faces an even greater overall challenge. In each country, from
Belgium to Brunei, the company is forced to walk the tightrope of selling its
uniquely American product, while simultaneously catering to local tastes.
Although McDonald's always insisted on planting its rigid operating system in
foreign soil, when it came to other aspects of the restaurants' operation, the
company was more flexible. For example, to make the chain's name more
easily pronounceable for Japanese consumers, it was changed to
Makudonaldo, and its mascot became Donald MacDonald. Hamburger Central
also allowed local operators to devise unique promotional campaigns. "Our
name may be American, but we're all Irish," ran one promotional campaign for
outlets in Dublin. Today, even the menus at McDonald's restaurants in foreign
locations clearly reflect differences that do not exist at the company's
American outlets. While the stores offer fare like hamburgers, French fries and
11
milk shakes, there have been some additions: for example, when McDonald's
restaurants opened in Germany in the early 1970s, they started serving beer; in
the Philippines they offer McSpaghetti noodles, while Norwegian franchises
offer a salmon fillet sandwich, the MacLak.
12
Nirula’s
Established in 1934, Nirula's
today is a diversified group having
a chain of Elegant Business
Hotels, Waiter Service
Restaurants, Family Style Restaurants, Ice Cream Parlours, Pastry Shops and
Food Processing Plants in India. The chain caters to over 50,000 guests every
day.
Nirula’s quick-family restaurants offer delicious, hygienic, ready-to-go, quick
service food. Leaders in the self service, value-for-money style of restaurants
in India, these restaurants are enormously popular with a wide cross-section of
customers. These restaurants enjoy an excellent reputation, providing
customers with consistently high quality food at reasonable prices.
Serving a wide range of foods -- from Continental to Indian along with its
well-known Salad Bar -- the restaurant is popular among people from all
countries.
The chain also has Family-style restaurants serving a wide variety of multi-
cuisine foods, both Western and Indian. The Chinese Room, one of the first
Chinese restaurants in Delhi, serves authentic Cantonese food. Some of their
outlets also have a well-stocked range of various liquors, exotic cocktails,
wines, spirits and beers in a pub setting.
The restaurants are strategically located in the hearts of Delhi and Noida.
13
NIRULA'S PASTRY SHOPS are a one-stop shop for all sorts of bakery and
confectionery items.
The ICE CREAM PARLOURS, the first of their kind in India, offering an
extensive range of exciting and innovative Ice Cream flavours with one new
flavour added every month. On their own, these have created a name for
themselves and are extremely popular.
14
Pizza Hut
For ten of the last twelve years, Pizza Hut
was named Best Pizza Chain in America in
the "Choice in Chains" national consumer
survey. In 1997 Consumer Reports named
Pizza Hut the best pizza chain in America.
BRIEF HISTORY
The most important step in its growth came in 1977 when Pizza Hut was
acquired by one of the giants of international business: PepsiCo, Inc. As part
of the PepsiCo corporate family, Pizza Hut shared its leadership position with
such products as Pepsi-Cola brand soft drinks and Frito-Lay brand snack
foods.
In October 1997, PepsiCo spun off the restaurant businesses (Pizza Hut, KFC
and Taco Bell) and Tricon was founded. May 16, 2002 Tricon officially
became YUM! Brands with the addition of two new brands, Long John Silver's
and A&W. YUM! Brands is now the parent company of Pizza Hut. When
combined these organizations now make up the world's largest restaurant
group.
THE BUSINESS
The food service industry today is one of the fastest growing industries in the
world, with the pizza segment a $25 billion business leading the way.
Beginning with the original thin crust pizza first served in 1958, Pizza Hut
15
continues to refine our product and develop new products to suit the
customer's tastes.
Today, millions around the world love the six core pizzas: Pan Pizza, Thin 'N
Crispy, Hand-Tossed Style, Stuffed Crust, The Chicago Dish and The Big
New Yorker.
Pizza Hut also strives to present the products when and where the customer
wants. To achieve this goal, they've developed a number of services through
the years. 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, Pizza Hut has streamlined and refined their carryout
procedures to provide faster, more efficient service and rapidly expanded their
delivery operations throughout the country. Thanks to these innovative new
concepts, Pizza Hut pizza is now being enjoyed in sports arenas, major
airports, shopping malls and office settings. 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.
VALUE SYSTEM
At Pizza Hut, the culture reflects their values. This includes a shared vision of
who we are and where we're headed. And it encompasses everything from the
way we treat our customers to how we deal with our competitors.
One of the most important values within the Pizza Hut culture is integrity. The
people are committed to providing uncompromising quality and to providing
16
service that is personal. Their integrity is also exemplified by how they treat
their employees. They invest heavily in their people through skills training and
management development. And they provide an informal environment with
open communications to give them the freedom to make contributions on their
own initiative. And because they give our employees a stake in the company's
success, they take on the kinds of challenges people in other businesses only
dream of.
During the past four decades Pizza Hut has built a reputation for excellence
that has earned them the respect of consumers and industry experts alike. The
qualities of entrepreneurship, growth and leadership have characterized their
business through more than four decades of success.
17
18
HOW SUBWAY RESTAURANTS CAME INTO BEING?
It was the summer of ’65. "Help Me Rhonda" was blasting from the speakers
of newly minted Mustangs and T-Birds. Lyndon Johnson was in the White
House and The New York World’s Fair was offering a hope-filled but
commercialized glance into the future.
It was that very future that Fred DeLuca was concerned about. Having just
graduated from high school, young DeLuca turned his thoughts toward
achieving a higher education. An education would no doubt be the key to
success; the type of success that not even Fred himself dared to dream about.
At this moment in time, a college education seemed as far-flung as the
prospect of a man walking on the moon.
It was a typically hot and humid summer day in Bridgeport, Conn., when the
DeLuca family’s phone rang. Dr. Peter Buck, a family friend called to
announce that he had changed jobs and was moving his family to Armonk,
New York, only 40 miles away. It was time for celebration, indeed, for it had
been almost a year since the Buck’s and the DeLuca’s parted company.
Plans were quickly made for a reunion. It was on that fateful Sunday afternoon
in July, 1965, during a barbecue at the Buck’s new home, that a business
19
relationship was forged between young Fred DeLuca and Dr. Buck that would
forever change the landscape of the fast food industry.
During the summer of ’65, there wasn’t that much hope that the eldest DeLuca
child would have enough money to pay for his college tuition. He was a hard-
working, competent and dependable young man but the $1.25-per-hour
minimum wage job that he had at the local hardware store wouldn’t begin to
pay for an education. As they pulled into the Buck’s driveway, it occurred to
Fred that perhaps he could ask Pete for some advice. He half expected Dr.
Buck to offer to loan him the money. After all, they had known each other for
years and when Pete would learn how badly Fred had wanted to go to college,
to study to become a medical doctor, there might be a good chance that he
would offer to help.
"I think you should open a submarine sandwich shop," said Buck.
"What? What an odd thing to say to a seventeen-year-old kid," thought Fred.
Before Fred could respond or express his surprise, he heard himself say, "How
does it work?"
Pete explained the submarine sandwich business. He said that all one had to do
was to rent a small store, build a counter, buy some food and open for
business. Customers would come in, put money on the counter and Fred would
have enough to pay for college. To Pete, it was just as simple as that, and if
young Fred was willing to do it, Pete was willing to be his partner.
20
As the DeLuca’s were getting ready to leave, Dr. Buck pulled out his
checkbook and wrote a check for $1,000. That was his investment in their new
venture.
On the drive back home, little did Fred know that if he succeeded at opening a
submarine sandwich shop, he would accomplish more than funding his
education. Success would mean financial independence and everything that
comes with it, not just for him, but for many other people around the world.
Success would mean adventure and excitement on a non-stop roller coaster
ride that would eventually be called SUBWAY® Restaurants.
The duo had worked hard over the years. In fact, they had a goal of opening 32
submarine sandwich shops within 10 years. By 1974 they owned and operated
16 units throughout the state of Connecticut. Although it seemed unlikely that
they would double that number in two years, DeLuca concentrated on
expanding SUBWAY® Restaurants.
On a Monday night in 1974, Buck and DeLuca met with their attorney. With
him, they discussed the future of their business. As they evaluated their
options, talk turned to franchising. Franchising, they had previously thought,
was for the big companies and had dismissed the idea. Now, being behind
schedule, they were willing to look into it. All there was to do was recruit
people who would invest their money and use Pete and Fred’s management
system to open and run SUBWAY® restaurants in their hometown.
Rather than hiring consultants, DeLuca figured that the fastest way to expand
the business was to go out and find a franchisee. That’s when he spoke to his
friend Brian Dixon. DeLuca made him an offer that he couldn’t refuse. He told
21
him about their franchising plans and offered to loan him the money to buy
their restaurant located in Wallingford, Conn. DeLuca even said that if he
didn’t like the business, he could return it to them and owe them nothing.
Dixon refused. He was used to getting a paycheck every week and didn’t want
to risk going into business. DeLuca devoted his time to managing their
existing restaurants and decided to worry later about franchising.
One day, Brian Dixon changed his mind. When he reported to work that
morning, he was shocked to discover a padlock on his boss’s office and a
sheriff’s note that stated that the business was closed. It was bankrupt. Brian
didn’t panic. Somewhere in that sheriff’s notice, he saw the word
"opportunity" and decided to call DeLuca and take him up on his previous
offer to become the very first SUBWAY® franchisee. From that day forward,
not only did Dixon’s life change, so did the way that SUBWAY® did
business.
In the year 2004, the SUBWAY® chain entered its 39th year of operation. It
is the world’s largest submarine sandwich chain with more than 21,000
restaurants in 75 countries. As a matter of fact, the SUBWAY® chain
operates more units in the US and Canada than McDonald’s® does. Countless
awards and accolades have been bestowed upon Fred DeLuca and the
SUBWAY® chain over the past 39 years. The SUBWAY® name and its
products have even appeared in numerous television and motion picture
productions. Not bad for a seventeen-year-old kid from “the projects”!
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Mission Statement
"To provide the tools and knowledge to allow entrepreneurs to successfully
compete in the QSR industry worldwide by consistently offering value to
consumers through providing great-tasting food that is good for them and
made the way they like it."
Core Values and Philosophy
Committed to customer satisfaction through offering high quality food
with exceptional service and good value.
Take great pride in serving each other, our customers and our
communities.
Seek continuous improvement in all that we do.
Value a sense of urgency and emphasize an innovative, entrepreneurial
approach to business.
Expect fairness and mutual respect in all our activities.
Know our success depends upon the initiative we take individually and
our ability to work as a team.
National Advertising
The target for SUBWAY® Restaurants media buying is 18-49 in order to
maximize our buying power with a skew toward programming that delivers
23
better to the younger 18-34 audience. The goal of its current advertising
campaign is to increase the brand presence in the consumers’ "consideration
set"--that is, which fast-food restaurants consumers consider when deciding
where to eat.
It is doing this by continuing to build the brand on the "freshness" platform.
SUBWAY® Restaurants is expanding its universe of potential customers as a
place for "TASTY" and "HEALTHY" food. This positioning, communicated
via an effective advertising campaign, will serve to make the SUBWAY®
chain part of customers’ everyday consideration set.
The majority of the advertising is done via national TV during prime time,
sports and late programming on major broadcast networks and cable networks.
Additional advertising is done via local markets on TV, radio and in print.
SUBWAY® restaurants also promote advertising messages and specials in-
store with point-of-purchase material such as posters, menu translites, etc.
What is SFAFT?
The SUBWAY® Franchisee Advertising Fund Trust or SFAFT governs
advertising. SFAFT functions independently of Doctor’s Associates Inc.,
which is the franchiser of the SUBWAY® business franchise concept, and its
affiliates.
SFAFT manages funds contributed by SUBWAY® franchisees. It was
established to create advertising and marketing programs that are designed to
build restaurant sales and promote the system’s image.
24
DEPARTMENTS AND ORGANIZATIONS
SUBWAY® Restaurants is the world’s largest submarine sandwich chain and
the second largest restaurant chain in the world. SUBWAY® Restaurants
employs about 150,000 men and women at more than 16,000 locations around
the world. With an operation that large in scope, it’s no wonder that there are
more than 600 development and support people employed at the chain’s world
headquarters in Milford, Connecticut.
The following are just some of the diverse departments that are required to run
a truly world-class operation:
Construction: This department is chiefly responsible for seeing that our
restaurants are supplied with the correct equipment and signage.
Franchise Sales: This group is dedicated to finding those individuals who
possess the entrepreneurial spirit required to open a SUBWAY® franchise of
their own.
New Business Development: This team works closely with potential
franchisees who wish to open a SUBWAY® restaurant in non-traditional
locations--such as in a supermarket, movie theatre or gas station.
SUBWAY® Real Estate Corporation: The men and women of this division
assist franchisees with real estate leasing and negotiations.
Store Design: These skilled draftsmen provide blueprints and help plan the
overall layout of each SUBWAY® restaurant.
25
Franchisee Services: This large department is the franchisee’s lifeline to
headquarters to which they report sales, order materials and communicate on a
regular basis.
Operations: The division that is responsible for enforcing standards, training
and providing operational assistance to franchisees and field staff.
Art: This creative group designs materials for use in SUBWAY® Restaurants
ranging from the pattern on the wallpaper to the pictures used in the
advertising/marketing materials.
Customer Care: Dedicated specialists who are in constant communication with
our consumers.
Public and Community Relations: This group is the main contact point for
members of the media and community outreach programs.
Publications: The team that provides news and information to our franchisees,
field staff, sandwich artists and headquarters employees.
Local Store Marketing and Promotions: This department helps franchisees in
local markets with initiatives designed to increase sales at their restaurants.
Meetings and Conventions: With a company as big as SUBWAY®
Restaurants, teams of professionals are needed to organize the logistics of
large meetings and gatherings of staff throughout the world.
Research & Development: This department is responsible for developing and
test marketing the food that we serve and the equipment that is used.
26
SFAFT (SUBWAY® Franchisee Advertising Fund Trust): The ones
responsible for the creation and placement of our commercials and print ads.
International: Providing support to our franchisees location outside of the
United States and Canada.
27
How Is SUBWAY Compared to Competitors
SUBWAY® Restaurants
Franchise fee: $12,000
Start-up cost: $69,300 to $191,000
Basic royalty: 8%
Advertising royalty: 3.5%
McDONALD’S*
Franchise fee: $45,000
Start-up cost: $432,800 to $715,150
Basic royalty: 12.5% includes advertising
Service fee: 4.90%
PIZZA HUT**
Franchise fee: $25,000
Start-up cost: $218,500 to $1.3 million
Basic royalty: 6.5%
Advertising royalty: n/a
28
Worldwide Expansion
It was a cold winter’s day back in December of 1984, in what had been the
close of an eventful year. When SUBWAY® Restaurants co-founder Fred
DeLuca peered out of his office window, he saw in his mind’s eye, a vision of
a far-off land. This land was so completely different from the snow-covered
New England landscape that was familiar that his quiet contemplation of
things to come ended with a jolt. He realized then that his remarkable journey
also included taking the road less traveled.
Back in 1984, Ronald Regan had just been re-elected to the White House and
the first of a string of hits assured Madonna her status as a pop music icon. The
hit show "Miami Vice" premiered on national television, introducing millions
of viewers to a crime-fighting duo who used pastel-colored designer clothing
and exotic automobiles as part of their arsenal of weapons used to uphold the
law.
It was also an important year for SUBWAY® Restaurants. The company had
increased its number of locations eight-fold and had embarked on its first
adventure in a foreign land.
Where did the SUBWAY® chain open its first international location? It wasn’t
in Canada, Mexico or somewhere close to the United States. It wasn’t in
England, Australia or somewhere that English is the official language. It
wasn’t in Germany, France or somewhere else where many different types of
sandwiches are popular. It’s not where you might think.
29
SUBWAY® Restaurants tested international waters when it opened its first
unit in the small exotic Middle Eastern island nation of Bahrain in December
of 1984. In a relatively short time, SUBWAY® Restaurants started to appear
in such distant lands as Iceland, Poland, Nicaragua and China.
SUBWAY® Restaurants, the world’s largest submarine sandwich franchise,
goes to tremendous lengths to bring great taste and fresh ingredients to
consumers in the farthest reaches of the globe. With more than 1,000
international locations in 73 countries worldwide, SUBWAY® Restaurants is
a leader in fast-food international development.
Today, the chain’s brand name and product recognition continue to inspire
partnerships in all corners of the globe. The year 2002 marked the opening of
the first SUBWAY® restaurants in the Bulgaria, as well as the 50th unit in the
New Zealand, the 100th restaurant in the United Kingdom and the 400th
location in Australia.
In upcoming months, the plans for SUBWAY® restaurants in countries such
as Belize, Luxembourg, Thailand Romania and Hungary are on the drawing
board, despite the diversity of cultures.
Wherever SUBWAY® restaurants are located, the menu stays relatively the
same—with the exception of some cultural and religious variations. World
travelers can expect the same fresh ingredients regardless of what nation they
are visiting.
According to Carlos Eduardo Avila, SUBWAY® Restaurants development
agent in Venezuela, "Franchisees are attracted by the proven success of
SUBWAY® Restaurants, and they consider brand recognition to be of the
30
utmost importance. The ‘first-50’ restaurant phase is only the beginning of a
great challenge for SUBWAY® Restaurants to become Venezuela’s number
one quick-serve restaurant."
Paul Zeck and Rodney Coverdale are the franchisees of the newly opened
SUBWAY® restaurant at the Casuarina Shopping Square in the bustling
tropical capital city of Australia’s vast Northern Territory, Darwin. Darwin,
with palm-shaded streets, flowering exotic plants, crocodiles, water buffaloes
and wonderful sunsets, is one of the fastest-growing cities in Australia and,
now, home to two SUBWAY® restaurants. The franchisees researched and
deliberated for more than a year, finally concluding that the chain most suited
their needs.
"We intend to open up more SUBWAY® restaurants as soon as we are able.
We are go-ahead people with a can-do attitude, and SUBWAY® Restaurants
is a go-ahead type of company," says Zeck.
The SUBWAY® Restaurants' partnership that was created in 1965 between
Fred DeLuca and Dr. Peter Buck marked the beginning of a remarkable
journey—professionally and personally—one that made it possible for
thousands of individuals to build and succeed in their own business. Thirty-six
years have passed since Dr. Buck loaned 17-year-old DeLuca $1,000 to open a
sandwich shop, with the intent that the restaurant would help pay for DeLuca’s
college tuition. In a relatively short period of time, the SUBWAY® Restaurant
concept developed into the largest submarine sandwich franchise in the world,
with more than 17,500 locations in 7 countries (as of January 2003). Recently,
SUBWAY® Restaurants received the distinction of being named the "number
one" franchise opportunity in all categories by Entrepreneur magazine, winner
31
of the gold award for the sandwich category in the Restaurants and Institutions
Choice in Chains Award and has received the Menu Masters Award for best
menu/line extension as presented by the editorial board of Nation’s Restaurant
News.
SUBWAY® Restaurants is a registered trademark of Doctor’s Associates Inc.
32
DOMINO’S
THE WORLD LEADER IN PIZZA DELIVERY
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
It's all in the numbers...
In 2003, Super Bowl Sunday was one of the busiest day of the year. Domino's
sold close to 1.2 million pizzas, which is about 42 percent more pizzas
compared to a normal Sunday. Super Bowl Sunday ranks among the top five
days for pizza deliveries annually, up there with Thanksgiving Eve, New
Year's Day, New Year's Eve and Halloween.
Ever wonder about what the three dots stand for in the Domino's Pizza logo?
They represent the first three Domino's Pizza stores. The plan was to add a dot
for every new store, however, with Domino's current store count more than
7,500 that would have been quite impossible to continue.
33
India
Domino's has respected the Hindu reverence for the cow by omitting
pepperoni, the beef based topping and replacing it with spicy chicken sausage.
Domino's is the recognized world leader in pizza delivery. But it isn't just
about delivering; it's also about giving back to the community. We believe that
an essential component of corporate responsibility is to provide support to
charitable organizations that benefit the communities where our employees
and customers work and live. Headquartered in Ann Arbor, Michigan,
Domino's is committed to supporting initiatives and causes in its hometown
while also participating in national programs that align with our vision,
guiding principles and strategic focus.
More than just a pizza delivery company, Domino's is a company that cares -
across the street, and across the world:
Local Support - Pizza Donations
If your charitable organization is located in the Ann Arbor, Ypsilanti or Saline,
Michigan area, and would like to request a pizza donation for an upcoming
event, please put your request in writing and fax to 734-930-4346. Requests
may also be mailed to Domino's Pizza Community Relations, 30 Frank Lloyd
Wright Dr., PO Box 997, Ann Arbor, Michigan, 48106-0997
Charitable organizations outside of Ann Arbor, Ypsilanti or Saline, Michigan
area that are seeking pizza donations for a specific event are encouraged to
submit written requests to local Domino's Pizza stores in their communities.
Local franchised owned stores welcome the opportunity to participate in
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community-related programs and activities. Use our store locator, to find the
Domino's Pizza store in your neighborhood.
Team Member Assistance
In addition, Domino's Pizza is concerned about our 140,000-team members
worldwide. In 1986, a group of franchisees formed The Partners Foundation, a
non-profit organization established to assist team members in time of special
need or tragedy as a result of natural disasters, unexpected afflictions, on-the-
job accidents and other emergencies. Since its inception, The Partners
Foundation has helped thousands of Domino's Pizza team members and their
families with financial, emotional, intermediary and advisory assistance.
In a Time of Need
Domino's stores in New York City and Washington DC provided more than
12,000 pizzas to relief workers at Ground Zero following the September 11,
2001 tragedy. Domino's established a team member matching funds program
to financially assist the American Red Cross and donated $350,000 to the
Disaster Relief Effort.
OUR COMMITMENT TO QUALITY
Since 1960, Domino's Pizza has been committed to providing our customers
with the best-tasting, highest-quality pizza, using only the finest ingredients,
and delivering it directly to their door. That is what made us the world leader
in pizza delivery. We continue to focus on our Vision:
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Exceptional People on a mission to be the best pizza
delivery company in the world.
While Domino's has an uncompromising commitment to quality, we also have
a strong commitment to the humane treatment of animals.
As part of its ongoing commitment to provide its customers with only top-
quality products, Domino's Pizza LLC works diligently with its suppliers to
ensure they meet or exceed the company's rigorous standards as they relate to
food quality and safety.
Some concern was raised in early 2004 after the United States Department of
Agriculture (USDA) confirmed a positive case of Bovine Spongiform
Encephalopathy (BSE) (sometimes called "mad cow disease") in a single cow
in the state of Washington.
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SAMPLE QUESTIONNAIRE
WE ARE THE STUDENTS OF CBS AND WE ARE CONDUCTING A
SURVEY ON THE RISE OF THE FAST FOOD INDUSTRY IN THE PAST
FEW YEARS. WE SHALL BE GREATLY THANKFUL TO YOU IF YOU
CAN SPARE SOME TIME TO FILL THIS QUESTIONNAIRE.
1. NAME……………………………………………..
2. AGE GROUP
BELOW 15 YEARS
15-25 YEARS
25-45 YEARS
45 ABOVE
3. OCCUPATION
STUDENT
SERVICE
SELF EMPLOYED
UNEMPLOYED
4. DO YOU LIKE FAST FOOD?
YES
NO
IF YES, ANSWER THE FOLLOWING:
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5. HOW OFTEN DID YOU VISIT A FAST FOOD JOINT 3 YEARS
AGO?
MORE THAN ONCE A WEEK
ONCE A WEEK
ONCE A MONTH
OCASSIONALLY
6. HOW OFTEN DO YOU VISIT NOW?
MORE THAN ONCE A WEEK
ONCE A WEEK
ONCE A MONTH
OCASSIONALLY
7. RANK THE FOLLOWING OUTLETS ACCORDING TO YOUR
PREFERENCE
Mc DONALD’S
PIZZA HUT
NIRULA’S
ANY OTHER……………………………..(PLEASE SPECIFY)
8. RANK THE FOLLOWING FACTORS THAT ATTRACTS YOU
MOST TO THE JOINT YOU LIKE
BRAND IMAGE
FOOD QUALITY
CROWD
PRICE FACTOR
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9. HOW MUCH DO YOU SPEND ON EACH OUTING ON AN
AVERAGE, PER HEAD?
BELOW 50
50-100
100-150
150 ABOVE
10.WHY DO YOU GENERALLY GO TO FAST FOOD JOINTS?
PARTYING
FAMILY OUTING
CONVINIENT LOCATION
CHILLING OUT
11.ARE YOU AWARE OF THE EFFECTS ON HEALTH OF EATING
FAST FOOD?
YES
NO
12.DO YOU PREFER HOME DELIVERY TO EATING OUT?
YES
NO
13.IN TERMS OF AMBIENCE, DÉCOR, INTERIORS, ETC. WHICH
JOINT PROVIDES THE BEST EXPERIENCE OF EATING OUT?
Mc DONALD’S
PIZZA HUT
NIRULA’S
ANY OTHER………………………….…(PLEASE SPECIFY)
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14.ANY STRONG SUGGESTION FOR ANY OUTLET
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
I AM THANKFUL FOR YOUR CO-OPERATION.
MY RESULTS WILL BE COMPILED WITHIN 20 DAYS. ANYONE
INTERESTED MAY ASK FOR THE RESULTS.
THANK YOU ONCE AGAIN.
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MARKET SHARE
(According to consumer’s preferences)
According to the survey conducted Mc Donald’s has got the largest market
share. In the survey 41%people voted in favour of Mc Donalds,31% people
voted for Pizza Hut,23% voted for Nirula’s and 5%voted for others (maximum
for Wimpy’s).This means that Mc Donald’s is growing at a much faster rate.
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Number of people who like Fast food
The above diagram depicts that 92% people of the total sample studied like
fast food. This shows that majority of the Indian population likes eating Fast
food and this trend is increasing at a rapid rate. Those people who don’t like
Fast Food mainly belong to age group comprising 45 and above.
FACTORS THAT ATTRACT A CUSTOMER
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10%
69% 10%
11%
Brand Image
Food Quality
Crowd
Price Factor
In the survey 69% people gave preference to food quality than any other factor
that attracts them to a Fast Food joint, 11% gave preference to price factor and
10% each for brand image and crowd.
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AWARENESS OF CONSUMERS ABOUT
HEALTH PROBLEMS RELATED TO FAST
FOOD
89%
11%
Aware
Not Aware
This shows that 89% people are aware of health problems caused due to excess
eating of Fast Food and rest don’t know about these. In the survey though
many people knew about health problems but still they prefer eating Fast
Food.
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TREND IN CONSUMPTION PATTERN
52%
12%
36%
Increase
Decrease
Not changed
Above diagram depicts the Trend in consumption pattern of consumers. It
signifies that 52% people have started visiting Fast Food joints more
frequently than before, 36% have not changed their eating habits and 12%
have decreased their frequency of visiting Fast Food joints. The increase in
frequency of visiting to these joints is mainly because of a change in Food
Habits.
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WHO’S AMBIENCE, DÉCOR, INTERIORS ARE
THE BEST?
In the survey mostly people voted for Pizza Hut to have the best interiors,
decor and ambience. To be exact 42%people voted for Pizza Hut, 31% for Mc
Donald’s, 15% for Nirula’s and 12% for other joints.
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WHAT PEOPLE PREFER?
46%
48%
50%
52%
Home Delivery Visiting Joints
This shows that 52% people like to visit the joint for eating Fast Food whereas
48% people likes food to be delivered at their door step. This mainly includes
the preferences of the consumers and not the situation under which
consumptions is done.
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REASONS FOR VISITING FAST FOOD JOINTS
According to the survey conducted, 50% people go to these joints for chilling
out, that is just for hanging out, (this mainly includes a large portion of young
college going crowd), 30% go for family outing to these joints, 14% go for
parties in these joints and 6% go mainly because of their convenient location.
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Questionnaire
(For company personnel)
1) How do you define fast food?
2) What is your market share in the fast food industry
according to you?
3) Which age group do you target the most?
4) How do you think that your organization is better then others?
5) What trend are you facing now a days?
6) What are your hot selling items?
7) Can we have some knowledge of your last year’s financial reports?
8) Are you having some special offers for this festive season?
9) What is your advertising strategy?
10) Any specific point that you want us to include in our
study? Please suggest.
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DOMINO’S
(Views of company personnel)
According to them, fast food is defined as the food, which is easy to make.
They don’t have a variety of food items but have a wide variety of pizzas. Due
to increasing competition, some marketing techniques are also being used by
them like ‘In NAVRATRAS, Buy one pizza and get another absolutely free’,
’30 minutes to free scheme i.e., if the order is not delivered to your home
within 30 minutes, they will serve you for free’, etc. So their motto is ‘Think
of delivery, Think of Domino’s’. However, though they deal in a wide variety
of pizzas, low priced pizzas are their hot selling item.
SUGGESTIONS
Domino’s is advised to bring down their rates sharply without affecting their
food quality. Also, to maintain their time guarantee.
They should increase their seating capacity at their restaurants.
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NIRULA’S
(Views of company personnel)
NIRULA’S has been number 1 among all fast food joints from the past many
years. They are continuously facing a rising trend.Fast food mainly includes all
those food items which are quick to prepare.According to him Nirula’s market
share is between 25-30%.Young generation is the most targeted group for
them and the schemes like free ice creams to all those students who score more
than 90% marks, free coke for order more than Rs.400/-, etc. are the most
popular. Also, In our analysis of consumer survey 24% of the market share
has been acquired by Nirula’s alone. It is the only joint from the past many
years that provides a large variety of foodstuffs. It can be regarded as Fast
Food joint as well as a family restaurant.
SUGGESTIONS
While concentrating on opening more outlets, they have let slip their food
quality, which urgently needs to be beefed up. Their market share has also
been steadily decreasing, as they have not been able to fight their MNC rivals
effectively.
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SUBWAY
(Views of company personnel)
They define fast food as ‘pick and take away’. SUBWAY is one of the famous
restaurants all over the world. SUBWAY provides an edge over the other
outlets in the following manner:
They make food in front of consumers.
They are customer oriented- make food according to the preferences of
the consumers.
Their food is like ‘Pick and Drive’.
They have a wide range of sandwiches, which are famous all over the
world.
Though in our survey, SUBWAY didn’t get many votes from the consumers,
but foreigners favour it.
Thus, SUBWAY is in literal terms, ‘a fast food joint.’
SUGGESTIONS
Their food is largely perceived to be alien to Indian taste buds, so first they
should Indianise their menu. They should open more outlets countrywide and
run a more aggressive advertisement campaign.
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LEARNING
This project gave an opportunity to me to apply my theoretical knowledge of
management education in practical situation. Interacting and dealing with
professionals, snatching a peek into the corporate world, this project taught me
real business skills.
I not only learnt how to prepare a truly professional business report (I hope it
is!!), but this project will always hold great meaning for me because I feel, this
is my first step in the Business world.
As for the qualities I honed in myself and COOPERATION would top the list.
Perceiving the other’s viewpoint, respecting others’ opinions, clearing
misunderstandings….. I learnt it all. In the true sense, this project was an eye-
opener for me.
Despite the long hours staring into the computer screen, poring over
questionnaires……. I now feel it was more than worth it all. I truly and deeply
feel gratitude for being given such a marvelous opportunity.
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REFERENCES
INTERNET
o www.Mcdonaldsindia.com
o www.pizzahut.com
o www.subway.com
o www.nirulas.com
o www.dominos.com
o www.bbcworld.com
o www.cnn.com
NEWSPAPERS
o The Economic Times
o The Hindustan Times
o The Times of India
MAGAZINES
o Pitch
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o Business Today
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