Success Stories of Food Chains_Siddharth Chauhan

8/9/2019 Success Stories of Food Chains_Siddharth Chauhan

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PUNJAB ENGINEERING COLLEGE


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Subject :

Entrepreneurship

Submitted to: Dr. Hitesh

Kapoor


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Success

Stories of

Food Chains


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Contents


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Company Profiles


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McDonalds


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McDonald's Corporation is the world's largest chain of fastfood restaurants, serving nearly 47 million customers daily.McDonald's primarily sells hamburgers, cheeseburgers,chicken products, French fries, breakfast items, soft drinks,milkshakes and desserts. More recently, it has begun to offersalads, wraps and fruit. Many McDonald's restaurants haveincluded a playground for children and advertising gearedtoward children, and some have been redesigned in a more'natural' style, with a particular emphasis on comfort:introducing lounge areas and fireplaces, and eliminating hardplastic chairs and tables. In addition to its signaturerestaurant chain, McDonalds Corporation holds minorityinterest in Pret A Manger (a UK-based sandwich retailer),and owned the Chipotle Mexican Grill until 2006 and therestaurant chain Boston Market until 2007.


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With the expansion of McDonald's into many internationalmarkets, the company has become a symbol of globalizationand the spread of the American way of life. Its prominencehas also made it a frequent topic of public debates aboutobesity, corporate ethics and consumer responsibility.


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FACTS AND FIGURES

McDonald's restaurants are found in 119 countries andterritories around the world and serve nearly 47 millioncustomers each day. McDonald's operates over 31,000restaurants worldwide, employing more than 1.5 millionpeople. The company also operates other restaurant brands,such as Piles Caf, and has a minority stake in Pret aManger. The company owned a majority stake in ChipotleMexican Grill until completing its divestment in October2006. Until December 2003, it also owned Donatos Pizza.On August 27, 2007, McDonald's sold Boston Market to Sun

Capital Partners.


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Redesign

In 2006, McDonald's introduced its "Forever Young" brandby redesigning all of their restaurants, the first majorredesign since the 1970s.

The new design included the traditional McDonald's yellow

and red colors, but the red will be muted to terra cotta, theyellow will turn golden for a more "sunny" look, and olive andsage green will be added. To warm up their look, therestaurants will have less plastic and more brick and wood,with modern hanging lights to produce a softer glow.Contemporary art or framed photographs will hang on the

walls.


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Business Model

McDonald's Corporation earns revenue as an investor inproperties, a franchiser of restaurants, and an operator ofrestaurants. Approximately 15% of McDonald's restaurants areowned and operated by McDonald's Corporation directly. Theremainder are operated by others through a variety of franchiseagreements and joint ventures.

The McDonald's Corporation's business model is slightlydifferent from that of most other fast-food chains. In addition toordinary franchise fees and marketing fees, which arecalculated as a percentage of sales, McDonald's may alsocollect rent, which may also be calculated on the basis of sales.As a condition of many franchise agreements, which vary bycontract age, country and location, the Corporation may own or

lease the properties on which McDonald's franchises arelocated. In most, if not all cases, the franchisee does not ownthe location of its restaurants.


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McDonalds IN INDIA

McDonald's in India is a locally owned and managedcompany run by Indians, employing local staff, procures fromlocal suppliers to serve its customers. McDonald's Indiaopened its first family restaurant at Basant Lok in Oct, 1996;today it has 132 Restaurants across India. This vibrantdecade has seen McDonald's evolve Indian menus, Indiansensitivities and yet remain as globally innovative as ever.This journey has seen McDonald's develop a rich brandidentity amongst its customers and employees as well aspartners alike.


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As a leader in QSR segment (Quick Service Restaurant)McDonald's has pioneered various industry benchmarkpractices over the past decade of serving Indian customers,including new concepts such as

Oil Alliances in India by inking with petroleum giants BPCLand HPCL. Two such alliances with BPCL outlets are inMathura (2000) (UP) and Doraha (2002) (Punjab)

Novel menu formats such as an Express Model with alimited menu and Kiosks with a variety of dessert offerings

Home Delivery (McDeliveryTM-2004): Providing even moreconvenience to our customers. In 2006, McDelivery onbicycle at Chandni Chowk and 2007 All India single delivery

number (66 000 666) was introduced. First Drive Thru Restaurant in India at NOIDA (UP) in 1997


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KENTUCKY FRIED CHICKEN(KFC)


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KFC Corporation, based in Louisville, Kentucky, is the world'smost popular chicken restaurant chain, specializing in OriginalRecipe, Extra Crispy, Twister and Colonel's Crispy Stripschicken with home style sides.

Every day, nearly eight million customers are served around theworld. KFC's menu includes Original Recipe chicken -- made

with the same great taste Colonel Harland Sanders createdmore than a half-century ago. Customers around the globe alsoenjoy more than 300 other products -- from a Chunky ChickenPot Pie in the United States to a salmon sandwich in Japan.

KFC has more than 11,000 restaurants in more than 80countries and territories around the world. And in quite a fewU.S. cities, KFC is teaming up with sister restaurants, A&W, All-

American Food, Long John Silver's, Taco Bell and Pizza Hut,selling products from the popular chains in one convenientlocation.


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Early television advertisements for KFC regularly featuredColonel Sanders licking his fingers and talking to the viewerabout his secret recipe and the importance of a family joiningone another for a meal. Despite his death in 1980, this anglewas quite common through the 1980s and up until the early-

mid 1990s. Throughout the mid 1980s, KFC called on Will Vinton

Studios to produce a series of humorous, Early televisionadvertisements for KFC regularly featured Colonel Sanderslicking his fingers and talking to the viewer about his secret

recipe and the importance of a family joining one another fora meal. Despite his death in 1980, this angle was quitecommon through the 1980s and up until the early-mid 1990s.


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KFC IN INDIA

KFC, the largest chicken restaurant brand in the world, has 13,000 outlets in 80nations. In India the brand is currently present in 9 cities with 34 outlets.Globally KFC is well-known for finger lickin good food due to its high qualitystandards and innovative offerings. Its signature dishes like Hot and CrispyChicken, Original Recipe and the Zinger Burger are popular worldwide. In India,KFC has a select and unique tasty vegetarian offering which include the VeggieSnacker.

In India, KFC has not established itself in any large way as opposed to anotherYum! brand-name restaurant, Pizza Hut, which is prevalent in most Indiancities. It has outlets in Chandigarh, Pune, New Delhi, Mumbai, Bangalore andKolkata. The success of the Mumbai restaurant led KFC to introduce the hotand spicy chicken flavor which is more acceptable to the Indian palate. Morerecently, KFC has opened outlets in Chennai, Tharamani and Mylapore.


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Hot Millions


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Harinder Mohini and Col. Anant Bir Singh together startedthe first outlet in 1979. The name Hot Millions uses the sameinitial's as in Harinder Mohini's name i.e. HM. Hot Millionsendeavour is to provide their guests the best in food andmake their visit memorable to any of their locations. Due the

centralization of the mother kitchen Hot Millions hasmaintained its quality and standard since all the items areprepared there in semi-cooked form. The dedication andhard work put in by the founders has made the group aregional brand in North India.


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Ever Expanding

Hot Millions is a strong regional brand in North India and anideal training ground for the young workforce. For students HotMillions also offers part time jobs.

Hot Millions is now expanding its family by building up afranchisee network. There are already four Franchises, one inMohali, one in Sector 35 Chandigarh, one in Ludhiana and one

in Dharampur in Himachal Pradesh on the Shimla road. EachFranchise has two outlets each, one for fine dining with a bar/pub and one for a quick service family restaurant, except thefranchise at Dharampur, however it does have additional itemson its menu including breakfast items keeping in mind thetraveler. The Hot Millions Group has taken over themanagement of a three Star Hotel called Hotel North Park in

Panchkula and Hotel AB's in Chandigarh. Another addition tothe group is their restaurant in Panchkula called the Cellarwhich is a lounge bar and a fine dining multi cuisine restaurantand bar.


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CAF COFFEE DAY


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Caf Coffee Day is a chain of coffee shops in India having it'shead quarters in Chikkamagaluru, Karnataka. A division ofAmalgamated Bean Coffee Trading Company Ltd. (ABCTCL), itis commonly known as Coffee Day or CCD. It opened its firstcafe in 1996 on Brigade Road in Bangalore, and today has the

largest cafe retail chain in India - with 650 cafes in 110 cities. Headquartered in Bangalore, a majority of its cafes are also

located in Bangalore. The cafe chain has had much successriding, and to some extent creating, the cafe culture wave thatswept across metropolitan India following strong economicgrowth resulting in an increase in youth spending power. It haseven tied up with WorldSpace and Microsense to enable itscafes with satellite radio and Wi-Fi, respectively. Its first Wi-Ficafe was opened on Lavelle Road, Bangalore.


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Innovation

Another model which CCD has adapted is to be present ineducational institutions and Corporate campuses either inthe form of detailed Cafes or its economical model of CCDexpress.

These innovative strategies have ensured that thecompetition is at bay and ensured CCD's dominance in theIndian market though many of its outlets are incurring losses.

Unique Format CAF


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Unique Format - CAFFORMAT

Caf Coffee Day has been experimenting with caf formatsfor quite sometime. Backed by the motivation of providingcustomers with exciting choices as well as constantlyredefining the caf experience, CCD has ventured into thefollowing formats:

Music Cafs provide customers with the choice of playingtheir favourite music tracks on the Digital Audio Jukeboxesinstalled at the caf! There are around 85 cafes with such

jukeboxes. 32 cafes also provide customers with the visualtreat of watching their favorite music videos by means ofVideo Jukeboxes.


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Book Cafs offer the perfect solution to people who thinkthat the coffee experience is incomplete without browsingthrough the bestsellers or reading a classic. CCDs bookcorners accentuate the age-old combination of coffee andbooks. This exciting concept has been successfully tested at

15 cafes in 12 cities across India and the numbers are set togrow exponentially. CCD has tied up with English BookDepot, one of Indias leading book distributors for placementand rotation of reading materials appealing to Caf CoffeeDays discerning customers.


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Highway cafs on the Bangalore Mysore highway and NH-8,presents the traveler en route not only with good coffee andscrumptious snacks amidst great ambience but also with cleanrestrooms to get rid of that weariness from the road!

Lounge cafs at Hauz Khas, Delhi and Southern Avenue,Kolkata(Southern Avenue) and Hyderabad (Jubilee Hills) combines

the style and luxury of a lounge with the lively ambience and comfortof a caf. With exquisite interiors, exotic menu and thematic musicCCD Lounge offers a whole new experience to the connoisseur whileassisting the latter through its team of hostesses who are poise andstyle incarnate and are looked upon as fashion icons.

Garden cafs at M.G Rd, Bangalore and GKII, New Delhi combine

the joy of rejuvenating amidst verdant landscapes and pots of coffee.


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DOMINOS


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Domino's Pizza, Inc. is an international fast food pizzadelivery corporation headquartered just outside Ann Arbor,Michigan, United States. It was founded by Tom Monaghan.As of 2006, it had 8,000 corporate and franchised stores inmore than 54 countries. It was the second-largest pizza

chain in the United States when it went public in 2004 for justunder $15 a share.


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History

Dominos Pizza began in 1960 when Tom Monaghan and hisbrother James bought "Dominick's Pizza", a small pizzeria inYpsilanti, Michigan. Over 8,000 stores worldwide nowoperate under the Dominos brand, with the opening of astore in Huntley, Illinois as the 8,000th store. All international

stores are franchised. The Dominos Pizza store in Tallaght,Dublin, Ireland, became the first in Domino's history to hit aturnover of $3 million (2.35 million) a year.


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ADVERTISING - A USP In 2008, Domino's introduced yet another mascot for North America,

"Pasta Dude". This was to introduce pasta dishes to its menu incompetition with Pizza Hut who had also added pasta to its menu. It wasa satirical take on blatant pandoring toward "urban youth culture". "PastaDude" is shown wearing a baseball cap backwards, a gold chain with alarge, square "Domino's Pizza" medallion and sneakers. All the while he

is rhyming about the new pasta line up and is shown doing various "HipHop Dance" inspired moves before being swatted by a spatula. Within afew weeks it was soon edited to remove a "questionable" dance move toprevent any bad press. The dance move in question looked as if "PastaDude" was depicting a sexual position. To be more accurate, "PastaDude's left hand looked as if it were placed on the small of an invisible

partner's back, while his right hand slapping their bottom from behind.


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DOMINOS IN INDIA Domino's Pizza India Ltd. was incorporated in March 1995

as the master franchisee for India and Nepal, of Domino'sPizza International Inc., of USA. Moreover, the companyholds the master franchisee rights for Sri Lanka andBangladesh through its wholly owned subsidiary. Mr. Shyam

S. Bhartia and Mr. Hari S. Bhartia of the Jubilant OrganosysGroup were the promoters of the company. Since inception,Domino's Pizza India Ltd. has proceeded to become one ofthe largest and fastest growing international food chains inSouth Asia. The first Domino's Pizza store in India opened in

January 1996, at New Delhi. Today, Domino's Pizza Indiahas grown into a countrywide network around 205 outlets in39 cities and is the leader in the fast food delivery segment.


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Ever since it was established, Domino's Pizza India hasmaintained its position of market leadership with its constantproduct innovation and maintenance of stringent servicestandards. More importantly, it has established a reputationfor being a home delivery specialist capable of delivering its

pizzas within 30 minutes to its community of loyal customersfrom its entire chain of stores around the country. Domino's

vision is focused on " Exceptional people ona mission to be the best pizza

delivery company in the world!".


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Research Objectives &Analysis


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Reasons for the growth of thefast food corporations

Fast food has become tremendously popular with themasses. Such has been their success of these food joints

that their numbers have grown in large numbers andgradually they have infiltrated previously unknown marketslike China, India in case of Mcdonalds and curry restaurantsin the UK etc. Through our survey we try to track the growthof these companies and estimate the reasons for theirstupendous growth.


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Expansion into foreignmarkets

We see the reasons as to how these companies were ableto see their products to otherwise unknown markets. How

their aggressive marketing strategies were responsible fortheir expansion.


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Selling fundamentals

Corporations used different USPs to push forward their

products. We discuss these points briefly.


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Advertising Campaigns

We touch upon the innovative advertising campaigns thatthey carried out which lead to their expansion.


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Research Methodology

Data are collected through the use of questionnaires, whichconsists of qualitative (e.g. ask open-ended questions) aswell as quantitative (e.g. use forced-choice questions)measures. Here we have useda Cross-SectionalSurveys(Cross-sectional surveys are used to gather

information on a population at a single point in time.). We have taken a representative sample wherein the

sample is an accurate proportional representation of thepopulation under study . This so because we have taken thesurvey of only those people who were in the venue and at

random times in the last 3 weeks and not of anyone whowasnt present in the venue, thus making the sample aproportional set of people under study.


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ANALYSIS

ANDCONCLUSIONS

Hi h Di bl


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High DisposableIncomes

Over the last decade or so the disposable incomes of allcountries have increased manifold. This has lead to peoplespending more and more on better food and service. Thishas also lead people to require better services since they arepaying more money. This has lead the food chain

corporations to build restaurants which have fancier andsportier decor.

Consequently, today we see shiny restaurants with swankyfurniture and this has become the new it places for the youthand high earning group.


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A i M k ti


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Aggressive MarketingStrategies All companies have adopted aggressive marketing strategies

over the years hiring advertisement firms which have comeup with creative ads which have captured the imagination ofeveryone, especially the youth who are more influenced bythem. These advertisements have used all mediums of

advertisement. In the earlier times when print media was theprinciple medium of advertisement extensive ad campaignswere launched when the company launched new schemesor any new products. After the advent of cable television inthe late 80s and 90s onwards we became familiar with the

likes of Ronald Mcdonalds and Col. Sanders of the KFCfame. Subsequently, the movies that were made showedscenes of people eating at these famous places.

W St t


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Women Startworking

Traditionally, women used to handle roles like cooking etc athome. With the emancipation of women and their steppingout of traditional roles they have found less time to cater totheir earlier responsibilities. Thus, more and more peoplefind it easier to eat out more often, and sometimes even eat

on the go.


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Innovative Schemes

Corporations like Mcdonalds Corporation have startedinnovative schemes like drive-ins and free home deliverywhereby people could get the food at their comfort or even ata nominally higher price. Dominos came out with the novel

scheme whereby if the delivery didnt reach within 30 minsand meal was given free of cost. These companies havealso tied up with cola giants like Pepsi and Coca Cola,providing their soft drinks free alongside their meals. Thishas also been seen as added incentive by people and theyhave flocked to these places.


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Universal Appeal As and when the big companies launched their chains in

stores in newer countries they suitably adapted to the tastesof the local people. A very fitting example for this case wouldbe that of the burgers that KFC sells in North India. While itstill has the Original Recipe Burger, the one which is sold in

US on its menu, the company has also come up with thespicier Spicy Zinger burger. McDonalds has also come withthe Chicken Maharaja Mac etc which was the equivalent ofthe Big Mac sold in the USA.

Target the youth and


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Target the youth andchildren

All the major ad campaigns have targeted the youth. All themajor chains have special menus for children, some haveeven gone as far as having special kids space for them.Young people today prefer to hang out at coffee joints andfood joints. They offer combos to students which are at

reasonable prices. They have emerged as places whereyoung people can socialize.


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Economies of Scale As and when these corporation have grown, economy of

scale have helped them make products at lesser prices.They have major contracts with major food suppliers whichhelp them procure at lower costs too.


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Graphical Analysis


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Thank You

Presented by:

Abhinav Saini(061009, IT)

Akshit Talwar(061043, IT)

Pulkit Aggrwal(061310, EEC)

Sahil Dewan(061362, CSE)

Siddharth Chauhan(061401, EE)

Success Stories of Food Chains_Siddharth Chauhan

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