Fast food (also known as Quick Service Restaurant or

QSR within the industry itself) is the term given to food

that can be prepared and served very quickly. The term
"fast food" was recognized in a dictionary by Merriam–
Webster in 1951.
Main
MainEntry:
Entry:fast–food
fast–food
Pronunciation:
Pronunciation:\fas(t)-füd\
\fas(t)-füd\
Function:
Function:adjective
adjective
Date:
Date:1951
1951
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quickly<a <afast–food
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restaurant>
22::designed
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Fast food is any food that is quick,
convenient, and usually inexpensive. You
can buy fast food just about anywhere that
sells food and snacks. Vending machines,
drive-thru restaurants, and 24 hour
convenience stores are probably the most
common places to find fast food.
• Quickly prepared food from small stalls and limited-
seating restaurants dates back to ancient times

• White Castle, established in 1921, is considered to be

the first fast food chain.

• McDonald’s introduction of the "Speedee Service

System" in 1948 established modern principles of the
fast food restaurant.

• Wendy's, founded in 1972, is credited with

pioneering the use of the "drive-thru"
McDonald’s: $24.3 billion
Wendy’s: $7.7 billion
Burger King: $7.7 billion
Subway: $6.3 billion
Taco Bell: $5.7 billion
Pizza Hut: $5.2 billion
KFC: $5.0 billion
Arby’s: $2.8 billion
Sonic: $2.7 billion
Jack in the Box: $2.5 billion
 YES!
Roadside shops have offered snacks-to-go since
time immemorial and the country has a long
tradition of indigenous fast-food served by a
variety of street vendors.

South had 'Dosas' in the North 'Puri', in the

West‘ 'VadaPav ', 'Samosas' or 'Bhelpuri and
‘Rolls’, ‘Chops’ and ‘Momo’ in East,
 Mr. Dhirubhai Ambani is said to have started
the first Fast Food venture by selling "pakora
(Indian fast food snack)" to pilgrims in Mount
Girnar over the weekends in 1932.
Due to increase in tourism Indian Fast food
gets popular through out the world.
Popularity of Indian fast food made
international chains like Mc Donald's to think
about entering in Indian markets.
 The fast-food giant McDonalds opened its first
restaurant in India at Vasant Vihar in south Delhi on
October 13, 1996 .
Fast food is one of the world’s fastest growing food
types as an industry.
The Indian fast food market is growing at the rate
of 30-35% per annum.It’s reached to nearly USD 8
billion in 2009.
Foreign Investment holds about one-fourth of the
total investments made in this sector.
 1940 - First McDonald’s in USA.
 World’s biggest marketer of fast food.
 Most preferred fast food brand(2009 third time)
 Concept: American fast food (family restaurant)
 31000 restaurants in120 countries
 47 million customers per day
 Doubling of turnover within three years.
•McDonald's was started as a drive-in restaurant by two brothers,
Richard and Maurice McDonald in California, US in the year
1937.

•Ray Kroc, distributor for milkshake machines, expressed interest in

the business, and he finalized a deal for franchising with the McDonald
brothers in 1954.

•He established a franchising company, the McDonald System

Inc. and appointed franchisees.

•In 1961, he bought out the McDonald brothers' share for $2.7
million and changed the name of the company to McDonald's
Corporation . In 1965 McDonald's went public…
 Vision
 To be the best and leading fast food provider
around the globe.
MISSION
 To be our customers' favorite place and way to
eat, and improve our operations to Provide the
most delicious fast food that meet our
customers' expectations.
•McDonalds opened its first restaurant in India at
Vasant Vihar in south Delhi on October 13, 1996.
 Majority of population is vegetarian.
 Many Org. were opposing entry of foreign
companies in domestic market.
 Religion
 Price was a major factor.
 Eating habits of people. (taste and
preferences.)
 Competition from local vendors.
 Nutrition and Health
 Addition of vegetarian items in menu.
 Replacing beef and pork with chicken and fish.
 Indianization of menu.
 Cutting down on prices.
 Indian management.
 Introduction of service concept.
 Employment
 Purchase of raw material from Indian
suppliers.
 Indian suppliers
 Low Pricing
 Co-branding
 Eco friendly
 Product Mix
• Trikaya Agriculture :Supplier of Iceberg Lettuce

• Vista Processed Foods Pvt. Ltd. :Supplier of Chicken

and Vegetable range of products.
• Dynamix Diary :Supplier of Cheese.

• Amrit Food :Supplier of long life UHT Milk and Milk

Products for Frozen Desserts.
 Provides value meals at range of price.
 In 2001 veg burger just for 17 Rs.
 Ensure affordability to attract wider section of
customers.
 Happy price menu just Rs 20.

 Big discount Meals – Combos are pricwd low than

individual items.
 Beverages and Desserts at very low price.
 Change in packaging: Introduction of brown paper
bags.
 McDonald’s uses networking equipment from
Echelon Corporation to manage and reduce the
energy consumption of its kitchens.
 Energy-saving bulbs are used in outlets.
 All equipments are Energy Star Rated
from IFB.
Mc D has major tie-ups with many companies as
their co-branding strategy. Few of them are:
• Coca-cola

• Barbie

• Hot wheels

• Cadbury
• McD spends highest amount for marketing of its products.
• “Brand globally and act locally.”
•Advertisements are generally aimed on attracting children.
• Sponsors sport events with their logos advertised in these
events.
•“I’m lovin’ it” is an international
Branding campaign which was launched
in 2003 and has proved to be its biggest
success.
•“aap ke zamaane mein baap ke zamaane ke daam”
is a highly localized campaign which aimed at
attracting the masses through its happy price menu.
• Each outlet is headed by a Restaurant Manager . He
is responsible for the daily operation and customer
interaction.
• BSM-basic shift manager- sharpening operation skills
with training on safety & hygiene.
• Delivery Crew Member carries basic operation of a
restaurant. Ensures customer satisfaction at the
restaurants.
• In order to motivate there employees they give them
stars as per their performance.
 World’s biggest marketer of fast food.
 Opening more and more restaurants.
 Increasing seating capacity of restaurants.
 Being eco friendly .
 Opening 30 more restaurants in west India.
 Wireless networking
 Use of star rated cooking appliances
 Automatic timers in deep-frying machines helps
maintain quality.
 PlayStation 2 video games consoles.
 Flat screen televisions, Touch screen TVs
 Open zone WiFi hotspots for business users
 Handheld devices used to take orders
 Profit margin maintained at McDonald's ranges from
60% - 65%.
 Increase the rate once or twice a year.
 E.g.: Rate increase by Rs.5 on few items.
 Incase of recession the profit margins are reduced to
50%
 Expansion Plans were held back during recession.
 Inflation also causes reduction in profit margin.
 Cut down staff during recession.
 Chandigarh-based Alchemist Group involved in
complete integrated poultry operations, has recently
launched Republic of Chicken chain of restaurants.
 Total capital outlay of Rs 750 crores.
 Three formats :-
 200 sq ft outlet only for takeaway and home delivery
 600-1,000 sq ft eateries that can seat 10 to15 people in
addition to home delivery and takeaways
 3,000 sq ft QSR with 65-70 covers (DINER)
 Website - www.republicofchicken.com
 The company was founded as
Kentucky Fried Chicken by Colonel
Harland Sanders in 1952
 Chain of fast food restaurants based
in Louisville, Kentucky.
 Revenue - $520.3 million USD (2007)
 Web site – www.kfc.com
Anything that can be offered to a market to
satisfy a want or need.
Price is the any amount of money that customers have to pay while
purchasing the product.

Prices in both ROC & KFC are determined according to the rates of
the raw materials keeping in mind what customer is ready to pay.

ROC KFC
Chicken dishes are its Fried Chicken is its main
main selling point. selling point. Now entering in
veg menus also.
This refers to how the product gets to the
customer.

ROC & KFC has only one channel of

distribution i.e. direct where the goods are
transferred to the consumer directly. KFC
has no middlemen.
 ROC KFC
• Provides Home Delivery Service • No Home delivery Service

• At least 50 exclusively company- • KFC placing itself close to schools,

owned outlets, but eventually colleges, cinemas and markets which
they’ll take the franchise route are mostly populated by the young
also. and those who are in a hurry

• Right now operating in PUNJAB, • Right now operating at13 places

DELHI and GURGAON. in INDIA.
SMS service ! KFC gets Wheels!
 Promotion is the method used to inform and educate
the chosen target audience about the organization
and its products.

 Advertising
 Sales Promotion
 Public Relations
 Events and Experiences
 Coupons, Discounts and Bundled packages
 India’s fast food industry is growing by 41% a year and is
expected to generate a billion dollars in sales by 2015.
 There is large room for growth in tier-II cities, tier-III cities
which are mostly untapped.
 The total food production in India is likely to double in the
next ten years and there is an opportunity for large
investments in food and food processing technologies, skills
and equipment.
 The food industry will need to transform itself towards
offering newer products, both in terms of attributes as well
as value proposition.
 Fast food industry needs to put more emphasis on nutritional
value of products.
Gaurav Kumar
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