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

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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

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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

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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.

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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.

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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

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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.

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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.

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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

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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

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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.

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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.

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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.

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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

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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

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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.

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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

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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.

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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

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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

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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.

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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.

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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.

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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.

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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

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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.

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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

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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

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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.

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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.

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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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