FAST FOOD INDUSTRY Worlds largest growing food type. Industrial growth is 40% a year. The organized pizza market in India is worth about Rs.675 crore. Foreign investments are worth Rs.3600 million (1/4th total investment in this sector) McDonalds India is the market leader in this industry.

MAJOR PLAYERS

McDonalds History It started as a drive-in-restaurant in the late 1940s. In 1966, McDonalds was listed on the New York Stock Exchange. In June 1967, McDonalds opened its first restaurant outside U.S in Canada. In 1996, McDonalds entered India in a joint venture. McDonalds now has a network of over 160 restaurants across the country

McDonalds System the Worlds Best QSR experience World Market Leader in the QSR area (Quick Service Restaurant) Franchise System (75%) System employees: 1.6 million Customers Per Day: 58 million Corporate Strategy:QSC&V: Quality, Service, Cleanliness and ValuePlan To Win -> Successful business revitalization

Products Vegetarian Menu

Non-Veg Menu

McCafe

Desserts

McDonalds SUPPLY CHAINMcDonalds Supply chain is based on the three-legged stool concept : Company Franchisees Suppliers

Logistics100 sales items in the restaurant400 SKUs in the warehouse 200 restaurants per DC (~180 DCs globally)Delivery frequency: ~3/wk, higher in urban areas2-3 stops per routeExclusive distributors (3PL)Strong quality focus (Cold Chain, HACCP, QIP)

McDonalds took 4 years and around Rs 450 crores to set up the food supply chain even before opening its 1st restaurant.

McD India has pioneered the cold chain management system.

They provided assistance in the Selection of high quality seedsDrip-irrigation technology Refrigerated transportation system

SUPPLIERSDynamix Dairy Industries (Supplier of Cheese)

Fully automatic international standard processing facility. Network of milk collection centres equipped with bulk coolers.Dedicated quality program.Dedicated R&D centre

2. Trikaya Agriculture (Supplier of Iceberg Lettuce)Specialized nursery with a team of agricultural experts

Drip and sprinkler irrigation in raised farm beds with fertilizer mixing plant.

The pack house, pre-cooling and cold room are located at the farms itself to ensure no delay.

3) Vista Processed Foods Pvt. Ltd. (Supplier of Chicken and Vegetable products) World class infrastructure and support services. Separate processing lines for chicken and vegetable foods. Hi-tech refrigeration plants for manufacture of frozen food at temperatures as low as -35C.

DISTRIBUTIONRadhakrishna Foodland Ltd. Specialized in providing servicesprocurementquality inspectionstorageinventory managementdeliveriesdata collectionrecording and reporting Dry and cold storage facility Transportation trucks maintained at 22 C Implemented ERP software.

OUTSOURCING THE INGREDIENTS

ITEM PLACECheese Dynamix Dairy Industries Ltd., PuneDehydrated onions Jain Foods, JalgaonIceberg lettuce Trikaya Agriculture, PuneChicken patty Vista Foods, TalojaVeg. Patty, Veg. Nuggets, Pies Kitran Foods, TalojaChicken (dressed) Riverdale, TalegaonBuns Cremica Industries, PhillaurEggless mayonnaise Quaker Cremica Pvt. Ltd., PhillaurSesame seeds GhaziabadFish fillet patties Amalgam Foods Ltd., Kochi.Vegetable for the patties Finns Frozen Foods, Nasik and Jain Foods, JalgaonMutton and Mutton Patties Al Kabeer, Hyderabad

Quality Inspection Programme (QIP) carried out in the Cold Chain system.

Hazard Analysis Critical Control Point (HACCP)

Based on HACCP guidelines, control points and critical control points for all McDonald's major food processing plants and restaurants in India have been identified.

SUPPLY CHAIN INTEGRATION

OVERVIEW Founded in 1965 by Tom Monaghan. Second-largest Pizza chain in the United States. about 8,500 corporate and franchised stores in 55 countries. Domino's Pizza outlet in India opened in 1996. Close to 274 outlets in 55 cities of India. 70 percent of its revenue comes from home delivery service & around 30 percent is over-the-counter sales.

CORPORATE STRATEGY

Exceptional people on a mission to be the best pizza delivery company in the world! " 'Think global and act local Fun, happiness and convenience

PRODUCTS Pizzas Pastas Breadsticks Cheese Dips Beverages Chocolava

OPERATIONS Indian operations are ranked number one for the past 3 years. Delivers an average of 1 million pizzas per day. Over the last 2 years, they opened stores in 15 new cities. The company operates in three segments: Domestic stores Domestic supply chain International

Domestic Storesuses its company-owned stores as a testing ground for new products and technologies which may then be passed onto franchisees.generates income from company-owned stores in the form of store profits.

Domestic Supply ChainVertically integrated supply systemautomatic delivery of raw materials cuts out a lot of the "back of-store" activities.Helps in keeping down food costs.

3. International consists of 3,469 franchised stores outside the United States.

operates six supply chain centers which manufacture dough and distribute food and supplies.

International segment accounts for about 41% of Domino's store sales worldwide.

DOMINOS SUPPLY CHAINProcurement of raw materials

Raw materials like wheat, baby corn, tomatoes and spices are got, out of which wheat was bought in from jalandhar and then sent to the commissaries in refrigerated trucks.

4 commissaries (Regional Centralized Facilities) Delhi BangaloreKolkata Mumbai

Distribution

Pizza dough processed from the wheat is then sent to the retail outlets again in refrigerated trucks.

Logistics requirement for sending frozen foods, at a temperature of 18C and of refrigerated trucks in which food is sent at a temperature range of between 1 to 4C.

3. Retail OutletsRegular storesSuper stores : High traffic, More counters Express stores : those where people were expected to walk in and order rather than ask for home delivery.

SUPPLY CHAIN DIAGRAMWHEATREFRIGERATED TRUCKWAREHOUSEDOUGHRETAIL OUTLET

Outsourcing the Ingredients

ITEM PLACEWheat Jalandhar (Punjab)Cheese Karnal, HaryanaTomatoes Bhubaneshwar, OrissaSpice South IndiaBaby Corn NepalExotic Vegetables Sri LankaPepperoni AustraliaJalapeno Spain

OVERVIEW one of the flagship brands of Yum! Brands, Inc. Frank and Dan Carney opened Pizza hut in 1958 12,500 restaurants across 91 countries Indian outlet opened in June 1996 in Bangalore. 147 restaurants across 36 cities in India. 27 per cent market share of the eating- out market and over 70,000 footfalls per day.

CORPORATE STRATEGY

We want to satisfy our customer by offering them the best C.H.A.M.P.S (Cleanliness, Hospitality, Accuracy, Maintenance, Product quality and Speed) 3Fs ( Fun, Friendly and Familiar)

PRODUCTSSauteed PastasBeveragesAppetizersSoups and SaladsPizzasDesserts

SUPPLY CHAIN SUPPLIERS

Direct SuppliersPepsiCremica Group (Buns)

Indirect SuppliersMeat market : Chicken from BrazilVegetable market : Potatoes from AustraliaSauce companies

COLD CHAIN LOGISTICSSnowman Frozen Foods provides cold storage facility16 warehouses and 110 trucksEquipped with Carrier and Thermo King transport temperature control units.Cold storage capacity is between 100 tonnes and 1,200 tonnes.

Teradata Warehouse Miner largest customer data warehouse Profile and segment customer households Track phone orders & online orders Increased ROI Predict the success of a campaign Simplified data management

CONCLUSIONFast Food industry in India is growing at a fast rate. From the study done among the 3 fast food services McDonalds, Dominos and Pizza hut, we can clearly come to the conclusion that McD with its superior supply chain management (cold chain) is able to balance between its quality and cost. The setting up of cold chain has enabled it to cut down on its operational wastage.

Thank You

****Three Pillars of the Plan to WinBrand direction Freedom within a framework Measurable milestones More customers More often More brand loyalty More profitable best ingredients, strict standards, and proven preparation procedures

value is defined as the total experience you receive for what you pay, and at McDonalds, the total experience includes great food, friendly folks, a clean environment, as well as quick and accurate service. *****

each support the weight of McDonalds equally. For one to prosper, we each must prosper. SCM starts from procuring raw materials, converting them efficiently into finished products and despatching them to the final destinations.

*Cold chain refers vto the procurement warehousing transportation and retailing under controlled temp.*15 bulk cooling centres , is equipped with modern measuring and testing equipment , nearer to farmers farms, chilled immediately to two degrees Celsius to stop bacterial growth and preserve freshness. From this point onwards, until just before the burger is actually served in a McDonalds restaurant hundreds of kilometers away, the temperature is never allowed to increase, . When the refrigerated milk arrives at the Dynamix plant at Baramati, the milk in every single tanker is thoroughly tested and rejected if found sub-standard, adulterated or contaminated. The sophisticated testing lab can check fat content with an accuracy of 0.1 per cent.*lettuce could only be grown during the winter months but with McDonald's expertise in the area of agricultureprovided assistance in the selection of high quality seeds, exposed the farms to advanced drip-irrigation technology, and helped develop a refrigerated transportation system allowing a small agri-business in Maharashtra to provide fresh, high-quality lettuce to McDonald's urban restaurant locations . pre-cooling room to remove field heat, a large cold room and a refrigerated van for transportation where the temperature and the relative humidity of the crop is maintained between 1 C and 4 C and 95% respectively. Vegetables are moved into the pre-cooling room within half an hour of harvesting. The pre-cooling room ensures rapid vacuum cooling to 2 C within 90 minutes

*Capability to produce frozen foods at temperature as low as -35 Degree Cel. to retain total freshness. Hi-tech refrigeration plants is to ensure that the frozen food retains it freshness for a long time and the 'cold chain' is maintained. keeping cultural sensitivities in mind, both processing lines are absolutely segregated and utmost care is taken to ensure that the vegetable products do not mix with the non-vegetarian products.

*The DCs have focused all their resources to meet McDonald's expectation of 'Cold, Clean, and On-Time Delivery' and plays a very vital role in maintaining the integrity of the products throughout the entire 'cold chain'. the DC receives items from different parts of the country. These items are stored in rooms with different temperature zones and are finally dispatched to the McDonald's restaurants on the basis of their requirements. Ramco Systems pdt Marshal ERP Implementation-order processing, order fulfillment, shipping, invoicing

**As the ingredients move from farms to processing plants to the restaurant, McDonald's Quality Inspection Programme (QIP) carries out quality checks at over 20 different points in the Cold Chain system. Setting up of the Cold Chain has also enabled it to cut down on operational wastage.HACCP emphasizes prevention within its suppliers' facility and restaurants rather than detection through inspection of illness or presence of microbiological data. The HACCP verification is done at least twice in a year and certified.

*******About 90% of the company's 5,155 domestic stores are franchised.First, automatic delivery of raw materials cuts out a lot of the "back-of-store" activities letting store operators focus more on sales and customer service.the vertically integrated supply chain lets Domino's leverage the purchasing power of thousands of company-owned and franchised stores nationwide which can help keep down food costs

*has a supply chain in a limited number of its international markets; During 2007, Domino's international segment generated revenues of $126.9 million, of which approximately 52% resulted from the collection of franchise royalties and fees, accounting for 93% of the segment's $57.2 million in operating income*Commissary processed the wheat and prepared the pizza dough. The pizza dough and other items prepared in commissaries were then sent to the retail outlets again in refrigerated trucks. The temperature inside the truck was fixed based on the distance between the retail outlets and the commissaries. This was to set the dough at a particular level when it reached the outlets. The retail outlets had to use up the processed dough within three days of delivery. If they failed to do so for some reason the entire quantity was discarded.************Setting up of the Cold Chain has also enabled it to cut down on operational wastage*