fast food industry

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Indian fast food industry India is blessed with one of the fastest growing fast food market of the world The Indian fast food market is growing at the rate of 30-35% per annum Foreign fast food chains are aggressively increasing their presence in India for e.g.. -Dominos has planed to open 60-65 outlets every year till 2010-2012 -yum brand inc. planning to open 1000 fast food outlets by 2015

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Page 1: Fast food industry

Indian fast food industry

• India is blessed with one of the fastest growing fast food market of the world

• The Indian fast food market is growing at the rate of 30-35% per annum

• Foreign fast food chains are aggressively increasing their presence in India for e.g..

-Dominos has planed to open 60-65 outlets every year till 2010-2012 -yum brand inc. planning to open 1000 fast food outlets by 2015

Page 2: Fast food industry

Major players

Page 3: Fast food industry

About McDonald’s

Formed in 1954,mcd brand is the leading global food service retailer with more than 30,000 local restaurants serving nearly 50 million people in more than 120 countries QUICK FACTS

mcd was started as a drive-in-restaurant by two brothers, Richard and Maurice McDonald in californium's in the year 1937

Page 4: Fast food industry

Ray kroc,distributor of milk shake machine,expressed interest in the business, and he finalized a deal for franchising with the McDonald's brother in 1954 He established a franchising company, the McDonald system inc. In 1961,he bought out the McDonald brother’s share for $2.7 million and changed the name of the company to McDonald’s Corporation

Page 5: Fast food industry

In India

1996 - First restaurant opens in India, at Basant Lok ,Vihar, New Delhi. McDonald's India is a 50 – 50 JV partnership between McDonald’s Corporation (U.S.A) and two Indian businessman Amit Jatia (Hardcastle Restaurants Private Limited, Mumbai)and Vikram Bakshi (Connaught Plaza Restaurants Private Limited, Delhi). Two separate operations in Northern & Western India.

Page 6: Fast food industry

Partners and their management teams trained extensively in Indonesia & the U.S. Approximately 75% of the menu available in McDonald’s in India is Indianized and specifically designed to woo Indian customers.

Page 7: Fast food industry

THE 3 LEGGED STOOL

The strength of the alignment between the Company and its employees, franchisees and suppliers has been critical to McDonald’s success. This business model enables McDonald’s to consistently provide customers locally-relevant restaurant experiences and be an integral part of the communities we serve.Franchisees – own and operate the majority of our restaurantsSuppliers – provide food and packagingCompany employees – support and deliver restaurant operations around the world

Page 8: Fast food industry

McDonald’s supply chain

Mcd’s supply chain is large and complex

Have numerous direct suppliers that make or deliver final products for the restaurants

Also have large no. of indirect suppliers,farms and facilities thad grow and process the ingredient to direct suppliers

Page 9: Fast food industry

mcd indian supply chain

SUPPLIERS Trikaya Agriculture

Supplier of Iceberg Lettuce

Vista Processed Foods Pvt. Ltd. Supplier of Chicken and Vegetable range of products (including Fruit Pies)

Dynamix Diary Supplier of Cheese

Amrit Food Supplier of long life UHT Milk and Milk Products for Frozen Desserts

Page 10: Fast food industry

DISTRIBUTORS Radhakrishna FoodlandDistribution Centres and cold storages.Completely dedicated distribution and supply chain.Matching supplier production with deliveries using ERP.Quality inspection Program, quality check at 20 different points in supply chain.HACCP(Hazard analysis critical control points) food safety standards emphasizing prevention of faults.

Page 11: Fast food industry

Outsourcing the ingredients

• ITEM PLACECheese dynamic dairy industries ltd , puneDehydrated onions jain foods , jalgaonIceberg lettuce trikaya agriculture,puneChicken patty vista foods,talojaVeg. patty,veg nuggets, pie's kitran foods,talojaChicken(dressed) riverdale,talegaonBuns cremica industries,phillaurEggless mayonnaise quaker cremica pvt ltd,phillaurSesame seeds ghaziabadFish fillet patties amalgam foods ltd,kochiVegetables for the patties finns frozen foods,nasik and jain

foods,jalgaonMutton and mutton patties al kabeer,hyderabad

Page 12: Fast food industry

logistics

Distributor Quality Management ProcessOperations and Customer RelationsQuality Control (HACCP/QIP)Cold Chain StandardsHygiene RegulationsProduct Handling StandardsEmergency and contingency planRisk and Crisis managementContinuous unannounced internal and 3rd party audits for DCs result in superior quality scores regularly

Page 13: Fast food industry

DOMINOS

• Domino's Pizza, Inc. is an international pizza delivery corporation headquartered in Ann Arbor, Michigan, United States. Founded in 1960,

• Domino's is the second-largest pizza chain in the United States and has nearly 9,000 corporate and franchised stores in 60 international markets

• The menu features pizza, pasta, oven-baked sandwiches, wings, boneless chicken, salads, breadsticks, cheese sticks, and a variety of dessert items.

Page 14: Fast food industry

Beginning of dominos pizza

• The Domino's franchise started out as just one tiny store. It was purchased and started by brothers Tom and James Monaghan in 1960. At that time, the restaurant was known, not as "Domino's," but as "Dominick's Pizza" and was located in Ypsilanti, MI. The two brothers only worked as a team until 1961, when James traded his half of the business to his brother for the price of a Volkswagen Beetle. In 1965, the name "Dominick's" was traded for "Domino's."

Page 15: Fast food industry

In india

• Domino’s pizza opened its first store in India in January 1996, at New Delhi. Today Domino’s pizza India has grown into a country wide network of more than 300 stores with a team of 9000 people. According to India retail report 2009, domino’s is the largest Pizza chain in India.

Page 16: Fast food industry

Dominos 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:

Page 17: Fast food industry

• The company operates in three segments:– Domestic stores :

• Uses 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.

Page 18: Fast food industry

– Domestic supply chain :

• Vertically integrated supply system automatic delivery of raw materials cuts out a lot of the "back of-store" activities.

• Helps in keeping down food costsInternational :– 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.

Page 19: Fast food industry

• Procurement 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 • Bangalore• Kolkata • Mumbai

Page 20: Fast food industry

• 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 ₋18⁰C and of refrigerated trucks in which food is sent at a temperature range of between 1 to 4⁰C.

Page 21: Fast food industry

• Retail Outlets– Regular stores– Super stores : High traffic, More counters – Express stores : those where people were

expected to walk in and order rather than ask for home delivery.

Page 22: Fast food industry

Outsourcing

ITEM PLACE • Wheat Jalandhar• Cheese Karnal, Haryan• Tomatoes Bhubaneshwar• Spice South India• Baby Corn Nepal• Exotic Vegetables Sri Lanka• Pepperoni Australia• Jalapeno Spain

Page 23: Fast food industry

QUESTION:1

• What are the key changes which have made supply chain management a critical function to succeed in present day business world?

Page 24: Fast food industry

To remain successful companies need supply chain excellence and some will need to re-evaluate their

current processes and performance with these key trends in mind:

• Demand planning • Globalization• Increased competition and price pressures• Outsourcing• Shortened and more complex life cycles• Collaboration between stakeholders and extended

supply chain

Page 25: Fast food industry

QUESTION:2

• How does an efficient supply chain lead to strategic competitive advantage?(McDonald’s)