Fast food restaurant Essay

Introduction: 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 low quality preparation and served to the customer in a packaged form for take-out/take-away. History: The concept of ready-cooked food for sale is closely connected with urban development. In ancient Rome cities had street stands that sold bread and wine. A fixture of East Asian cities is the noodle shop. Flatbread and falafel are today ubiquitous in the Middle East. Popular Indian fast food dishes include vada pav, panipuri and dahi vada. In the French-speaking nations of West Africa, roadside stands in and around the larger cities continue to Sell—as they have done for generations—a range of ready-to-eat, char grilled. Meat sticks known locally as brochettes. Market size and major players †¢Dominated by McDonalds having as many as 123 outlets. †¢Domino’s pizza is present in around 274 locations. †¢Pizza hut is also catching up and it has planned to establish 147 outlets at the end of 2009. †¢Subways have established around 145 outlets. †¢Nirula’s is established in Delhi and Northern India. However, it claims to cater 50,000 guests every day. It has future expansion plans for more than 50 outlets every year, for next three years. Major players in fast food †¢McDonalds 132 outlets †¢KFC 72 outlets †¢Pizza hut 147 outlets †¢Dominos Pizza 274 outlets †¢Cafe Coffee Day 833 outlets †¢Barista 200 outlets Fast food contains high amount of †¢Calories †¢Saturated Fat †¢Carbohydrates †¢Sugar †¢Sodium †¢Proteins Why do people eat it? ?Quick and Easy ?Tastes good ?Provides satiety and comfort? It’s everywhere Dual Income families ?Work day-away from home ?Shifts in Traditional Food habits ?High income urban dwellers ?Variety of choice of foods ?Home delivery, take-away restaurants, American chains INDIA EMERGING MARKET FOR GLOBAL PLAYERS The percentage share held by foodservice of total consumer expenditure on food has increased from a very low base drastically. Eating at home remains very much ingrained in Indian culture and changes in eating habits are very slow moving with barriers to eating out entrenched in certain sectors of Indian society. The growth in nuclear families, particularly in urban India has decreased drastically. India, exposure to global media and Western cuisine and an increasing number of women joining the workforce have had an impact on eating out trends. Major players of fast food in India †¢ Mc Donalds †¢ KFC †¢ Pizza hut †¢ Dominos Pizza †¢ Coffee day †¢ Barista Kentucky Fried Chicken About the Company KFC Corporation, or KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky. KFC is a brand and operating segment, called a â€Å"concept† of Yum! Brands since 1997 when that company was spun off from PepsiCo as Tricon Global Restaurants Inc. KFC primarily sells chicken in form of pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of roasted chicken products, side dishes and desserts. Outside North America, KFC offers beef based products such as hamburgers or kebabs, pork based products such as ribs and other regional fare. The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952, Menu items. KFC’s specialty is fried chicken served in various forms. KFC’s primary product is pressure-fried pieces of chicken made with original recipe. The other chicken offering, extra crispy, is made using a garlic marinade and double dipping the chicken in flour before deep frying in a standard industrial kitchen type machine. Kentucky Grilled Chicken – This marinated grilled chicken is targeted towards health-conscious customers. It features marinated breasts, thighs, drumsticks,and wings that are coated with the Original Recipe seasonings before being grilled. It has less fat, calories, and sodium than the Original Recipe fried chicken. Nutritional value KFC formerly used partially hydrogenated oil in its fried foods. This oil contains relatively high levels of trans fat, which increases the risk of heart disease. The Center for Science in the Public Interest (CSPI) filed a court case against KFC, with the aim of making it use other types of oils or make sure customers know about Trans fat content immediately before they buy food. Advertising One of KFC’s latest advertisements is a commercial advertising its â€Å"wicked crunch box meal†. The commercial features a fictional black metal band called â€Å"Hellvetica† performing live, the lead singer then swallows fire. The commercial then shows the lead singer at a KFC eating the â€Å"wicked crunch box meal† and saying â€Å"Oh man that is hot†. In 2007, the original, non-acronymic Kentucky Fried Chicken name was resurrected and began to reappear on company marketing literature and food packaging, as well as some restaurant signage. KFC Business Strategy KFC fast-food chains are currently under the restaurant division of PepsiCo Incorporated. Some major threats include the changing attitudes of society toward healthier eating habits, KFC has more than 9,800 outlets located in 77 countries. In marketing, KFC restaurants are not restricted from locating within close proximity of other KFC restaurants. There are two alternative strategies for KFC. The first strategy involves keeping PepsiCo beverage division and snack foods division together, and a divestiture of PepsiCo restaurant division; selling Taco Bell, Pizza Hut, and KFC. MC Donald’s About the company: McDonald’s is the leading global foodservice retailer with more than 31,000 local restaurants serving more than 58 million people in 118 countries each day. More than 75% of McDonald’s restaurants worldwide are owned and operated by independent local men and women. The strong foundation that he built continues today with McDonald’s vision and the commitment of our talented executives to keep the shine on McDonald’s Arches for years to come. To read more about McDonald’s history, vision and executives, click on their links in the left menu. We drive our business momentum by focusing on what matters most to customers. Our owner/operators, suppliers and employees work together to meet customer needs in uniquely McDonald’s ways. The powerful combination of entrepreneurial spirit and System wide alignment around our Plan to Win enables us to execute the best ideas with both large-scale efficiency and local flair. Products McDonald’s predominantly sells hamburgers, various types of chicken sandwiches and products, French fries, soft drinks, breakfast items,and desserts. In most markets, McDonald’s offers salads and vegetarian items, wraps and other localized fare. Portugal is the only country with McDonald’s restaurants serving soup. This local deviation from the standard menu is a characteristic for which the chain is particularly known, and one which is employed either to abide by regional food taboos (such as the religious prohibition of beef consumption in India) or to make available foods with which the regional market is more familiar (such as the sale of McRice in Indonesia). Advertising. McDonald’s has for decades maintained an extensive advertising campaign. In addition to the usual media (television, radio, and newspaper), the company makes significant use of billboards and signage, sponsors sporting events ranging from Little League to the Olympic Games, and makes coolers of orange drink with their logo available for local events of all kinds. Nonetheless, television has always played a central role in the company’s advertising strategy. To date, McDonald’s has used 23 different slogans in United States advertising, as well as a few other slogans for select countries and regions. At times, it has run into trouble with its campaigns. PROBLEMS OF INDUSTRY I. Environmental friendly products cost high: Government is legislating laws in order to keep check on the fast food industry and it is emphasizing more on the usage of bio-degradable and environment friendly products. But associated with this issue is the problem that fast food player faces – the cost associated with the environment friendly product. They cost much higher than the normal products that companies uses for packaging or wrapping their products. II. Balance between societal expectation and companies economic Objectives: To balance a society’s expectation regarding environment with the economic burden of protecting the environment. Thus, one can see that one side pushes for higher standards and other side tries to beat the standard back, thereby making it a arm wrestling and mind boggling exercise. Health related issues: obesity I. Studies have shown that a typical fast food has very high density and food with high density causes people to eat more then they usually need. II. Low calories food: Emphasis is now more on low calorie food. In this line McDonald has a plan to introduce all white meat chicken. Mcnuugget is with less fat and fewer calories. Swot analysis of fast food industry Strengths †¢Quick service †¢Affordable †¢AttractionWeakness †¢Different preferences †¢Lack of customization †¢Unhygienic and unhealthy Opportunities †¢Growing nuclear families †¢Growing urban lifestyleThreats †¢Oppositions from various organization †¢Location †¢Ready-to eat †¢Health concerns ANALYSIS & INTERPRETATION 1. How often do you use fast-food services? a. Daily b. Weekly c. Fortnightly d. Monthly 2. Which fast food restaurant would prefer? a. McDonalds b. KFC c. Pizza Hut d. Subway 3. What are the reasons for eating fast food? (You can tick more than 1) a. Appearance of products b. Price of the products c. Flavor of products d. Convenience of the products 4. What else do you buy when purchasing fast food’? a. Carbonated (fizzy) drinks b. Coffee, tea c. Ice cream d. Crushers 5. What time would you normally buy fast food? a. Before 12 pm b. Between 12-3 pm c. Between 6-9 pm d. 10pm or later.