fast food industry

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CASE STUDY

GROUP MEMBERS:

ANKITA PAULANJALI SINGHAVINASH KOURCHIRANJEEB MONDALKUSAM LATA SAINILISHA ROY

INDUSTRY PROFILE

INTRODUCTIONHuge market shareHigh employment rate.(10 million jobs across the world)High growth rate.(India 40%,Globally 4.8%)Big business in India.Positive growth in future.

PROBLEMS IN FAST FOOD INDUSTRIES Growing restaurants.Health related issues.Changing trends.Changing consumer preferences.Long service hours.Profit repatriation.

MAJOR PLAYERS

HISTORY AND PAST TRENDSTHE START:Change in gender rolesSub-urban communitiesRise of automobilesNew highway systemDouble Income GroupRelaxation in rules and regulations

MAJOR TRENDS:Drive Through Service OR On the GoConsumerismFood for specific group(e.g., dieters, women, athletes, older adults)Menu diversificationConvenience food

PRESENT TRENDSEating away form homeFunctional or Healthy fast foodsConvenience fast foodsGreen fast foodsEthnic foodsLow calorie foodsThe TV dinnerFresh foodsRegional foods

Future Trends of Fast Food Industry

According to Observation of 2002-2010, The fast food companies have introduced healthier menu options.

By 2018-2025: The industry will begin to make larger internal and external business decisions. The food at fast food establishments will all be brought to an acceptable level of nutrition value.

By 2025 the fast food industry will have transformed from a food provider to one that serves a specic health benet.

Industry will move from healthy to functional. Food Industry will concentrate on basic nutrition. The balancing of the food will allow people to eat fast food meals and gain a balanced diet from every menu. One way to achieve this transformation is vitamin burgers. The positive evolution of the industry in the future will be healthy lifestyles. As technology progresses, scientists will nd ways to replace the unhealthy ingredients with healthier alternatives that keep taste consistent.The fast food industry will give importance to taste and health.Companies will Add nutritional meals in daily menu.

GROWTH OF FAST FOOD INDUSTRY

Fast-food restaurants seem to be big business in India, and so a many foreign chains have made an entry into the market to joint the early movers like McDonald's or KFC. According to Indian Fast Food Market Analysis, although the market has witnessed a robust growth in the past couple of years, it remains largely under penetrated and concentrated into metropolitan cities. It needs to cover up tier 1 and tier 2 cities.India is the worlds second largest producer of food next to china, and has the potential of being the biggest with the food and agricultural sector.The total food production in India is likely to double in next ten years.Health food and Health food supplement is another rapidly rising segment of this industry which is gaining vast popularity Amongst the health conscious.

Respond to social changes - by innovation within healthier lifestyle foods. Its move into hot baguettes and healthier snacks (fruit) has supported its new positioning.Use of CRM, database marketing to more accurately market to its consumer target groups. It could identify likely customers and prevent brand switching.Strengthen its value proposition and offering, to encourage customers who visit coffee shops and fast food giants.The new formats, McCafe, having Wifi internet links should help in attracting segments. Also installing childrens play-parks and its focus on educating consumers about health, fitness.

MAJOR FINDINGS HOT favourites .Variety and offers and discounts Congestion.Burger Satisfied with the pricing strategy of MCD.MCD -excellent, KFC -very good, Barista ,CCD as good and Pizza hut as average. service and quality as excellent.Price drives people to MCDHalf of the quality of food in MCD as excellent. PAN India operation of MCD . extension of facilities provided in MCD.

RECOMMENDATIONSMc. Donalds must make all its restaurant Wi-Fi. salads, momos shakes and mocktails.As Mc.Donalds has the facility of the celebration of the birthday parties and kitty parties;similarly, it can arrange the facility of conference rooms for the corporates.It can increase the variety of combo meals it offers like personalised menus at customised costs.

CASE STUDY

Issue One: McDonald's relationship with franchisees.Issue Two: Changing Consumers Preferences and Competition.Issue three: The performance of McDonald's restaurants

From year 2000 to March 2003 McDonalds has experienced a lot of bad experiences which had affected the companys profitability, growth, the brand image, the satisfaction of consumers and their loyalty as follows:By 1998, McDonald's posted its first-ever decline in annual earnings and then-CEO Michael R. Quinlan was out, replaced by Greenberg.Customers surveys show that service and quality now lag far behind those of rivals which led to Losing big market share and customer satisfaction and loyalty.Facing a rapidly fragmenting market and great competition from Americas recent immigrants who present the quick, testy and healthy meals. A lot of franchisees left the company due to bad performance and the company buys back franchises if they cannot be sold as well as bear the pretax charges.Franchises cannot survive with low profit margins and a lot have left the company to other competitors (faster-growing rivals) which affect the brand image.McDonalds came in third average service time with 163 seconds after Wendy and sandwich shop chick-fil-A.

IMPLEMENTATION:

we recommend to choose the "Decreasing the share of the franchisees in the upgrading costs" for the following reasons: Encouraging the franchisees to continue with McDonald's.By reducing the amount paid in the upgrading process, it can use these funds in enhancing the employee skills through training.The third step is applying "Encouraging the innovative new franchisees" for the following reasons: because It will change the customers perception about McDonald's traditional products and thought attracting new customers and keeping "McDonald's lovers" loyal to their favorite brand.Training the employees and motivate them and develop the feeling of belongingness in them.Promote and reposition the brand.Introduction of $1 meals for price sensitive customers.Introduction of McCafe in Europe.

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