1. Faculty of Tourism &Hotel Management Hotel Management DepartmentEVALUATING THE EXPERIMENT OF LOCAL RESTAURANT CHAINS COMPARED WITH THE INTERNATIONAL CHAINS IN EGYPT Thesis Submitted in partial fulfillment of the requirements of Helwan University for Master of Science in Hotel ManagementBy Hany Atef Kouzmal B. Sc., Hotel Management, 2000 Under the Supervision ofProf. Dr. Ahmed Nour El-Din Elias Prof; Hotel Management Department Faculty of Tourism & Hotel Management, Helwan University.Assistant prof. Rania Dinana Assistant Prof; Hotel Management Department Faculty of Tourism & Hotel Management, Helwan University.Dr. Mahmoud Roushdy El Maghraby Regional Vice President of Finance Middle East, Sonesta International 20091

2. APPROVAL SHEETTITLE: EVALUATING THE EXPERIMENT OF LOCAL RESTAURANT CHAINS COMPARED WITH THE INTERNATIONAL CHAINS IN EGYPTNAME: Hany Ateef Kouzmal MikhaielThis Thesis for the M.Sc. in Hotel Management has been approved by:Prof. Dr. ---------------------------------Prof. Dr.----------------------------------Prof. Dr.---------------------------------Committee in ChargeDegree Conferred in// 20092 3. DEDICATIONTO MY DEAR WIFE3 4. ACKNOWLEDGEMENTS Primarily, I would like to express my deepest respect and appreciation to Prof Dr Ahmed Nour El-Dein Elias Head of Hotel Management and Ex Dean Faculty of Tourism and Hotel Management, Helwan University, for his guidance, cooperation, and also his valuable advice which helped point me in the right direction. Therefore, because of his time, effort, and continual assistance brought about by his knowledge of this subject, I offer to him my sincerest gratitude, with great thanks.Also, I would like to thank Dr Rania Dinana, Assistant Prof; in Hotel Management, Faculty of Tourism and Hotel Management Department, Helwan University, for her supervision, guidance, encouragement, assistance, and her support throughout the preparation of this Thesis.Also, I would like to express my deepest respect and gratitude to Dr. Mahmoud Roushdy El Maghraby, Regional Vice President of Finance Middle East, Sonesta International, and Visitor lecturer, Hotel Management Department, Faculty of Tourism and Hotel Management, Helwan University, for his continuous support and encouragement, coupled with his invaluable advice.Finally I would like to express my deepest thanks to my dear family, and my friends, who supported me and encouraged me throughout the work on this Thesis.4 5. Table of Contents Page CHAPTER ONE: THE PROBLEM AND ITS SETTINGS 1.1. Introduction 1.2. Organization of the Research 1.3. Abbreviations 1.4. Limitation of the Research 1.5. The Research Objectives1 2 3 4 4CHAPTER TWO: REVIEW OF LITERATURE 2.1. Overview on Fast-Food Operations 2.1.1 Fast Food Concept 2.1.2 Customers Perception on Fast-Food 2.1.3 Local and International Restaurant Chains 2.2. Quality of Food and Service 2.2.1 Quality Concept 2.2.2 Product Quality 2.2.3 Food Quality 2.2.4 Food Service Quality 2.3. Elements of Competition 2.3.1 Location 2.3.2 Pricing 2.3.3 Demand 2.3.4 Training 2.3.5 Operational Systems 2.3.6 The Element of Risk/Failure 2.3.7 Product Branding 2.3.8 Product Value 2.3.9 Marketing 2.3.10 Promotional Element 55 8 911 12 1415 16 16 16 17 18 21 22 24 26 6. 2.3.11 Services for Children 2.3.12 Atmosphere (Surroundings) 2.3.13 Customer Satisfaction27 28 28CHAPTER THREE: MATERIALS AND METHODS 3.1. Materials 3.1.1 Population Survey 31 3.1.2 Samples 31 3.1.2.1 Samples from Independent Establishments 3.1.2.2 Samples from Local Establishments 3.1.2.3 Samples from International Establishments 3.2. Methods 3.2.1 Primary Data 3.2.1.1 Guest Questionnaire 3.2.1.2 In-depth Personal Interviews 3.2.1.3 Checklist 3.2.2. Secondary Sources 3.2.3. Pilot Study 3.2.4. Data Analysis34 35 35 36 36 37CHAPTER FOUR: RESULTS AND DISCUSSIONS 4.1. Introduction 4.2. Questionnaire Response Rate 4.3. Questionnaire Analysis Results and Discussion 4.4. Interview Response Rate 4.5. Interview Analysis Results and Discussion 4.6. Checklist Analysis Results and Discussion638 39 39 67 67 94 7. CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS 5.1. Summary 5.2. Conclusion 5.3. Recommendations REFERENCES APPENDICES APPENDIX (A1) Guest Questionnaire Form APPENDIX (A2) In-depth Personal Interviews Form APPENDIX (A3) Checklist Form ARABIC SUMMARY7111 114 118 119 127 137 143 8. List of Tables Table 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25TitlePageAbbreviations list The main features of modern fast food concepts Samples from the establishments Menu specialty of the selected Quick Service Restaurant QSR Questionnaire response rate. Customers' preferable meal Statistics for customers' restaurants preferences Statistics of important factors in QSR that attract customer Statistics for restaurants factors' evaluation Restaurant categories factors' ranking Personal data analysis Interview's response rate Statistics of restaurants factors' evaluation Restaurant categories factors' ranking according to their means Checklist results Exterior factors in independent restaurants Interior factors in international chain restaurants Interior factors in local chain restaurants Interior factors in independent restaurants Food quality factors in international chain restaurants Food quality factors in local chain restaurants Food quality factors in independent restaurants Guest service factors in international chain restaurants Guest service factors in local chain restaurants Guest service factors in Independent restaurants83 32 33 39 41 42 44 47 48 66 67 75 76 94 95 96 96 97 98 99 100 101 102 103 9. 26 27 28 29 30 31 32Employee appearance in international chain restaurants Employee appearance in local chain restaurants Employee appearance in independent restaurants Management behaviors/ functions in International chain restaurants Management behaviors/ functions in local chain restaurants Independent restaurants Restaurant categories rating scale9104 104 105 106 107 108 107 10. List of Figures FigureTitlePage1 2Customer's preferences to eat fast food. Customers' reasons for restaurants type preferences. 3 Important factors in Quick Service Restaurant QSR that attract customer (service quality, consistence standard and atmosphere). 45 4 Important factors in QSR that attract customer (brand name and menu variety). 5 Important factors in QSR that attract customer (location and promotional activities). 6 Brand name factor's evaluation in QSRs. 7 Location factor's evaluation in QSRs. 8 Price factor's evaluation in QSRs. 9 Food quality factor's evaluation in QSRs. 10 Managers' evaluation for local fast food operations. 11 Consistence standard factor's evaluation in QSRs. 12 Menu variety factor's evaluation in QSRs. 13 Atmosphere factor's evaluation in QSRs. 14 Promotional activities factor's evaluation in QSRs. 15 Customers' evaluation for the experiment of Egyptian QSRs. 16 Customers' problems with Egyptian QSRs. 17 Managers evaluation for QSRs in Egypt. 18 Egyptian market expectations about fast food concept. 19 Egyptian customers' needs and preferences.1140 4446 46 50 51 52 53 54 55 56 57 58 59 62 68 69 70 11. 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38Managers' ways to deal with customers' needs and preferences. International chain restaurants' attributes. Managers' evaluation for local fast food operations. Managers' opinions in using international concept by local fast food operations. Managers' evaluation of brand name factor in QSRs. Managers' evaluation of location factor in QSRs. Managers' evaluation of price factor in QSRs. Managers' evaluation of food quality factor in QSRs Managers' evaluation service quality factor in QSRs. Managers' evaluation consistence standard factor in QSRs. Managers' evaluation of atmosphere factor in QSRs. Managers' evaluation of promotional activities factor in QSRs. Labor turn over rate in QSRs . Means to decrease turn over rate in QSRs. Managers' evaluation of training level in QSRs. Managers' evaluation for marketing strategies in QSRs. Managers' evaluation for quality level in QSRs. The extent of product development to meet customers' needs in QSRs. Customers satisfaction measuring methods in QSRs.1171 72 73 74 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 12. CHAPTER ONETHE PROBLEM AND ITS SETTINGS12 13. 1.1 Introduction Food service away from home is essential to tourism. Food service industry becomes one of the fastest growing industries, because of many social and commercial changes around the world. Most modern industry requires that individual travel and work at a distance from home; thus, food service industry plays a required supporting role in providing food for these individuals. In addition to food and beverage away from home, food service industry provides convenience, communication settings and a wide variety of outputs contributing to life's quality. Among the latter, entertainment / diversions; and ambiances are contributing to variety in living experiences. Food service industry is a major generator of jobs. The group of firms providing food and restaurant supplies has been found a substantial source of economic base in itself. Food service industry also supports the community infrastructure through utility systems and local taxes. Recently, fast food restaurant chains have spread out, blossoming all around the world. Such chains are based on some factors for their success: such as cleanliness, food quality, value, atmosphere, location, and speed of service. In Egypt there are many of fast food restaurant chains; some of which are domestic in origin, like Wessaya, Mo`Men, Cook Door, Felfela, Makani, and Gado, other chains such as McDonald's, Burger King, Hardee's, and Kentucky fried chicken (KFC), are international franchised operations. These domestic chains are seeking to compete with the international chains in quality, level of services offered, universal reach and spreading around the Arab and foreign countries. This can be achieved by a good reputation that will give better profits. Therefore, it is necessary to carry out a comparative study to evaluate the experiment of the local restaurant chains compared to the international restaurant chains running in Egypt. 13 14. 1.2. Organization of the Research With regard to the organization of the paper, this thesis has been developed over five chapters; Chapter One: "the Problem and its Settings". This chapter sets out the basic framework of the thesis. The components include an introduction, organization, a definition of terms and abbreviations, limitations, and objectives. Chapter Two: "Review of Literature". This chapter looks at the literature upon which the subject has been researched. Chapter Three: "Materials and Methods". This shows the way in which the data was collected. The information includes the population, research, the design, treatment of the data and the instruments used for the research. Chapter Four: "Results and Discussion". This sets out the analysis of the data in exactly the same way as chapter three concerning the points of research. Chapter Five: "Summary and Recommendations". This chapter provides a summary based upon the informations received or suggested, the obtained results and recommendations of the study.14 15. 1.3. Abbreviations Abbreviations used throughout the thesis are defined as follows: Table 1: Abbreviations list Professor prof Quick Service Restaurant QSR National Restaurant Association NRA Information Technology IT Quality Control QC Quality Assurance QA Total Quality Management TQM Continuous Quality Improvement CQI Number NO Define - Measure - Analyze - ImproveDMAIC Control Quality Function Development QFD Product Life Cycle PLC Critical Control Points CCPs New Product Development NPD Points of Distribution PODs Hazard Analysis Critical Control Point HACCP Designated Market Area DMA Strengths, Weaknesses, Opportunities, and SWOT Threats On the Job Training OJT Skills Based Pay SBP Electronic Point-of-Sales EPOS Target Restaurant TR Public Relations PR Product, Price, Place, and Promotion 4Ps Unique Servicing Proportion USP Point of Sales POS Identification Data ID Other People Data OPD Chamber of Tourism Establishments CTE Statistical Package for Social Science SPSS Standard std 2 X2 Signification X sig 15 16. 1.4. Limitations of Research Study limitations are represented in the following points:1.4.1. Place limitation: Unfortunately, it was difficult to assess many of the fast food chains in Egypt due to, costs, time involved, and the accessibility to these chains. For these reasons, the ones which were looked at were limited to four samples from the independent fast food restaurants in Sharm El Sheikh, four from the famous local fast food chains as well as four international chains in Sharm El-Sheikh. 1.4.2. Time limitation: The field study was implemented in the period from September 2006 to August 2007.1.5. Research Objectives This study is aimed at : 1. Evaluating the experiment of local restaurant chains as compared with the international ones. 2. Defining the factors needed to development the local restaurant chains to reach the international standard. 3. Evaluating international chains product developing.16 17. CHAPTER TWOREVIEW OF LITERATURE17 18. 2.1.Overview on Fast-Food Operations2.1.1Fast Food ConceptThe National Restaurant Association (NRA) defines the food service industry as "encompassing all meals and snacks prepared outside the home". This definition therefore includes all take out meals and beverages. Khan (1991) Ball (1992) agreed with Samle (1980) that the fast food restaurant, a place where a customer should be served within five minutes of entering the outlet even at peak periods. While Melaniphy (2005) classified fast food according to the product as it is prepared and cooked quickly, with a service delivery varying between 2 to 15 minutes, a low price, easily consumed with fingers or disposable cutlery. Brymer (1995) defined a quick service restaurant as a "firm with a mission to provide quicker service and core technology geared towards this mission. However, Walker (2006) considering that quick-service restaurants offer a quick service. Negl (2002) identified that as fast service restaurants in recognition of the fact that the service is fast, not the food. Lane and Duper (1997) explained that in preference to fast food restaurant tend to be located near highways, malls and down town areas which offer a standard menu with limited choices that attempt to satisfy a hungry audience. Moreover, Walker (2006) highlighted that quickservice restaurants have increased in popularity because of their location strategies. They are situated for convenience in every possible area. Their menus are limited, which makes it easy for customers to make quick decisions on what to purchase. Classification of fast food operations according to according menu specialty Walker (2006) agreed with Brymer (1995) in that classifying the quick service restaurants segments is according to the menu specialty. That specialty could be hamburger, pizza, chicken, snacks, sandwich, Mexican, or seafood. They are the leaders for each segment according to the spread, the popularity, and the volume of sales 18 19. Classification of fast food operations according to restaurant characterization Traditional fast-food restaurants Ball (1992) reported that the traditional fast food operations include fish and chip shops, ethnic, take away and sandwich bar operations, they are mostly owned by individuals. Scanlon (1998) stated that the traditional fast - food restaurants are concentrated on items from the menu such as hamburgers, pizza and chicken, Modern fast food restaurants These have been identified with fast food chains, which are designed around systems of catering which have been linked to manufacturing production lines with the design and layout of restaurants, the scheduling and planning of a work place, etc., being systematically planned to produce consistently standardized products. Simplified menus characterize these restaurants and chains which dominate a high standard of service, training and decor. Modern operations usually offer a combination of eat on the premises, take away drive. The main features of modern fast food concepts are shown in Table 2 as suggested by Ball (1992).19 20. Table 2: The main features of modern fast food concepts Features Food materials Type of products OrganizationDescription Consistent and controllable quality, precisely specified, equally portioned. Suitable for quick and retention for short periods without deterioration. Highly organized routines with precise job specifications and procedures. Operation Usually planned for large throughput and high sales volume (including counter sales) Cost control Prices portion and cost control, permitting relatively small margins and competitive pricing. Quality Standard preparation, cooking and serving routines laid control down, including the discarding or sub-standard food (e.g. maximum time for keeping food before serving). Hygiene Exacting equipments emphasized as a part of product reliability, including measures to reduce litter (in store and neighborhood). Packing Products distinctively packaged (disposables), easy to handle (usually finger held, suitable for over-thecounter or table meals). Research Product research and consumer response testing essential. On-going research into changing food preference sand attitudes is necessary to develop concepts. Variety May be provided in product range offered or by variations in one basic product (dressings, fillings, supplements). Markets Usually targeted at wide, classless society, primarily young of family group. Promotion Emphasis is given to value for money, consistent quality and cleanliness. Particular products may be differentiated by originality, size, cost competitiveness, variety of choices or fillings, healthy eating, and friendly service. Source : Ball (1992) 21 21. 2.1.2 Customer Perceptions Johnson and Clark (2005) illustrated that while the expectationperception approach to understanding service quality is extremely useful in focusing on the outcome of customer satisfaction and helps identity on mismatches between operational and customer views of quality, which does have some downsides. Service could be perceived to be 'good' when it is 'bad'. Service could be perceived to be 'bad' when it is 'good' Service that was 'good' last time may only be 'OK' this time. Satisfied customers may switch. King and Ronald (2006) differentiated between quality in fact and in perception and they stated that quality in fact relates to our internal standard, we get what we expect, so set high expectations. Quality in perception is how our customers perceive our service. Customer differences Foster (1993) highlighted that different people have different nations about what type of food tastes good, but a successful food and beverage operation is able to consistently satisfy the majority of its guests. Peppers and Rogers (1997) argued that customers are different in two primary ways: They need different things from the enterprise, and they have different value to the enterprise. A customer's value will depend largely on how long the customer remains loyal, and even small increases in the state of customer retention add significantly to customer's value. Knowing what different customers need involves much more than simply tallying what they've bought, because two customers might buy the same product for quite different reasons. Powers and Barrows (2006) illustrated that the guest is also apart of the service transaction. A guest who is not feeding well or who takes a dislike to member of the staff may have a bad experience in spite of all efforts to please.21 22. 2.1.3 Local and International Restaurant Chains Independents restaurants King and Ronald (2006) declared that independent is one who is not bound by or definitively committed to another, and it a particular brand or company. While Walker (2006) highlighted that one or more owners, usually involved in the day-to-day operation of the business, typically own individual restaurants (also called Indies). Even if the owners have more than one store, each functions independently. These restaurants are not affiliated with any national brand or name. They offer the owner independence, creativity and flexibility, but with an element of risk. Wade (2006) mentioned that between the independent and chains lies at least two other possibilities, some dependent operations are so successful that they open additional units without, however, becoming as large as to lose the hands on approach of the owner operator. Independent group operators are not exactly chains, but more a longer single unit. The other possibility and one that is pursued by thousands of business people are franchise operations. Chains restaurantsKing and Ronald (2006) defined chain as a group of enterprises or institutions of the same kind of function usually under a single ownership, management or control. Walker (2006) stated that chain restaurant comprises a group of restaurants, each identical in market, concept, design, service, food and name. Part of the marketing strategy of a chain restaurant is to remove uncertainty from the dining experience. The same menu, food quality, level of service and atmosphere can be found in any one of the restaurants, regardless of its location. Family run teams or other entrepreneurs usually own them. Wade (2006) agreed with Powers and Barrows (1999) in that chain are playing a growing role in food service. Moreover, they are prominent among the companies that recruit graduates for hospitality programs.22 23. Chains have strengths of seven different areas: (1) Marketing and brand recognition (2) Site selection expertise (3) Access to capital (4) Purchasing economies (5) Centrally administered control and information systems (6) New product development (7) Human-resource development International versus local fast food chain According to Lan, and Khan (1995) fast food operations are divided into two categories; international chains and local chains where each have a different approach to the operating and management. The international fast food chains have a core product (hamburger, chicken or pizza). They focus on image building through progressive marketing which gains mass production and the central distribution international fast food chains are expanding through franchising. Meanwhile the local fast food chains are expanding through private ownership and building their image through products. Local fast food operations do not have mass production or central distribution; therefore, they became labor intensive.23 24. 2.2.Quality of Food and ServiceQuality Concept Wyckoff (2001) highlighted that quality is the degree of excellence for what is intended add to this a controlled variation in order to achieve that excellence, where the end result is meeting customer requirements. While Schroeder (2004) stated that quality is meeting and exceed customer requirements now and in the future." This means that the product or service is fit for the customer's use. Fitness for use has related to benefits received by the customer and to customer satisfaction. Only the customer, not the producer, can determine it. Noel and Cullen (1996) mentioned that quality is a process, not a procedure and as such is never finished. The culture of quality promotes and sustains change. Stutts and Wortman (2006) added that quality could be defined as "The consistent delivery of product and services according to expected standards. King and Ronald (2006) stated that the other half of the definition of quality is "doing things right." Doing things right simply means meeting customers needs and expectations more rapidly and at a reduced cost. It is customer orientation, innovation, teamwork, and everyone's responsibility. Quality importance Field (1999) reported that quality is the major driver of overall satisfaction, while price and service tied for second place. Sideman and Johnson (2002) argued that providing consistent quality service has become a challenge for the quick service industry. Schroeder (2004) indicated that quality can both improve revenues and reduce costs. The cost of quality measures the lack of conformance to customer requirements. Quality costs can be convention or appraisal. Failure costs may be due to internal or external failures.24 25. 2.2.2. Product Quality Product concept The actual good or service offered for sale. It could include all of the features of the good or service as well as the packaging and brand name of the good or service. Powers and Barrows (1999) illustrated that in a restaurant, this involves not only the food service the way the server and guest interact and the atmosphere of the place. Reid and Bojanic (2006) agreed with Etzel (2004) in that product refers to all of the goods and services that are bundled together and offered to consumers. Nearly, every product sold includes tangible and intangible elements. Product Quality and Customer Satisfaction Peppers and Rogers (1997) indicated that there is, of course, no substitute for quality. No customer will return for more of a bad product, so having product quality at least on a par with the competition is essential for 1:1 enterprise. Customer satisfaction is the opposite of customer dissatisfaction, and dissatisfaction is one sure route to defection. Keep in mind, however, that customer satisfaction by itself is usually not sufficient to generate loyalty. Wade (2006) agreed with Negl (2002) in that customer feedback is vital to keep the menu fresh. Feedback from customers helps to improve product quality, which in turn increases sales and products higher profits.2.2.3. Food Quality Reay (1983) pinpointed that any food product specification involves consideration of factors such as those set out below: 1. The quantity of goods based on the standard recipe. 2. The quality and grade of ingredients. 3. The dimensions of the finished item, e.g. the thickness of the pastry and the weight and type of filling. 4. The nature of the glaze. 5. The degree browning. 25 26. 6. The type, size and shape of the garnish. 7. The type of packaging to be used 8. The layout and wording of labels 9. The product life 10. The storage requirements Wiley and Sons (2006) illustrated that the quality of food depends on two factors: the skill with which it's prepared, and the basic quality of the foodstuffs use to this might be added the perception of novelty factor Briggs (2000) stated that food, whether raw or cooked is a perishable commodity and has a limited life and so caterers have to ensure that they buy produce in the correct quality and quantity in relation to customer demand and that it is correctly stored and processed. The choice of food and drink revolves around the menu, which is limited or extensive, and whether it concerns a particular product, if there is a varied choice, and the quality of the product offered, and it is fresh or convenience. Other factors include portion sizes and the availability of children's menus along with consistency, range of tastes, textures, aromas, and colours and presentation of the food and drink. Dharmaraj (2002) believes that poor quality food can destroy the commercial credibility. Seidman and and Johnson (2002) argued that keeping consistency of food quality is a though task for all suick service restaurant QSR chains.26 27. 2.2.4 Food Service Quality Food Service Concept The service is all action and reactions that customers perceive whichthey have purchased. In hospitality, service performed for the guest by people or by systems. The emphasis in definition is on the guest's total experience. Indeed, from the guest's point of view, service is the performance of the organization and its staff. Schroeder (2004) mentioned that most definitions of service stress the intangible and cannot be easily quantified or defined. A better definition is that service is produced and summed simultaneously, and consumption. Reid and Bojanic (2006) defined a service as an intangible product that sold or purchased in the marketplace. Meanwhile Kotler and Armstrong (1996) stated that service means "all features, acts, and information that augment the customer's ability to realize the potential value of a product or service. Powers and Barrows (2006) confirmed that the basis of service strategy is market segmentation, largely on consumer service expectation. Successful service companies develop a service culture cased on commitment by top management. Consistency between policy and practice and well developed channels of communication. Because service people are a part of the product, a good service team is essential, service teams based on careful selection, training, and on motivational programs that include rewards and involvement in service planning. Because most hospitality products are strikingly similar, service is the most significant sustainable competitive advantage Noel and Cullen (1996) stated that zero defects is the standard that service organizations must set this very high standard, however, is set in the context of customer expectations for a particular segment and operation type. At a McDonald's waiting lines can expect during the rush hour and will accept as long as they move with reasonable speed. However, a dirty or cluttered McDonald's, even in a rush period, scents a defect. Zero - defects committee should formed from members of the quality improvement team. 27 28. 2.3.Elements of Competition2.3.1. Location Powers and Barrows (2006) stated that marketing place refers to the location, the place where the good or service is offered. Place refers not only to the property's location, but also to the channels of distribution. Reid and Bojanic (2006) agreed with Powers and Barrows (1999) in that the place component refers to the manner in which the products and services being delivered to consumers. Ridgeway and Ridgeway (1994) indicated that location is, of course, extremely important. All businesses are near potential customers but this may be less important for an outside catering company than for a restaurant. Moreover Briggs (2000) reported that the location of the food service facility might said to be the most important feature. Services, which are not appropriately located, may not successfully perform. Powers and Barrows (1999) stated that the success of most restaurants also enhanced by a location near the heart of major traffic patterns. The technique for analyzing location potential requires a special kind of knowledge, and chains can afford real estate departments that possess that expertise.Seidman and Johnson (2002) considered that location is an old topic but with new content. Chinese QSR chains are entering various non-traditional venues. These venues include shopping mall food courts, leading supermarket, retail chains, neighborhood centers, key intersections, university and college campuses, and airports, casinos, and sports arenas. Powers and Barrows (2006) stated that restaurant companies have developed downsized units for places where a traditional unit will not fit. These units often take the form of a mobile cart requiring minimal investment. The name given these new units is points of distribution (PODs). Wade (2006) argued that the presents of quick-service operations in every market of any size is a key characteristic of quick service and one28 29. of the main factors sporting its growth over the past 50 years. Because of their many locations, they make eating out convenient.2.3.2 Pricing The price is the amount of money and/or other items with utility needed to acquire a product. Recall that utility an attribute with the potential to satisfy wants. The price has a tremendous impact on the success or failure of a product. Etzel (2004) mention that price is significant in economy, in the costumer's mind, and in an individual firm let's consider each situation some prospective customers are interested primarily in law prices, whereas another segment is more concerned with other factors, such as service, quality, value, and brand image. It is safe to say that few, if any customers are attentive to price alone or are entirely oblivious to price. Powers and Barrows (2006) confirmed that there is a risk in price reduction, namely, that the lower price will denote a cheapened product to the customer. As with virtually all marketing activities, the key is to keep prices in line with customer expectations and to offer products that perceived to be a good value to the customer.2.3.3 Demand The market demand is the demand for a product or service.2.3.4. Training Stutts and Wortman (2006) agreed with Noel and Cullen (1996) in that training is the process of integrating personal and organizational goals. Donnelly et al. (1998) indicated that inadequate training can be a major barrier to quality. Hill and Jones (1998) found that a company that employs individuals with high skills is likely to be more efficient than one employing less skilled personnel. 29 30. 2.3.5 Operational Systems Powers (1995) declared that a standard exterior appearance gives many chain operators a high recognition value. Hill and Jones (1998) indicated that standardization refers to the degree to which a company specifies how decisions are to been made so that employees' behaviour becomes predictable. Gouville and Soman (2001) explained that the hospitality industry commonly bundles goods and services. Firms routinely offer single units of different products or multiple units of the same product, for one price. Seidman and Johnson (2002) described that the quick service industry is characterized by regular interaction between customer and employee. Built around service encounters designed to be consistent and predictable, the nations of reutilization and standardization are central to the industry. Donnelly et al. (1998) argued that once the quality characteristics have defined, the next step is to determine the desired quality standards. These standards quantify the specific quality requirements for the organization's output. Quality standards serve as the reference point for comparing what is "ideal" to what actually "is". Reid and Bojanic (2006) considered that before you can evaluate the level of service provided by employees within your organization, you must establish the standards by which they will judge. Wade (2006) believes that the marketing plan must specify the restaurant's standards for food quality and consistency, beverage operations, cleanliness, and service. Clearly stating the standards in the document provides management with a written document to reference. From point of view of Wade (2006) the broke bone of the operating system is typicality a set of comprehensive operations manuals and a complete set of recipes that cover all products on the menu. The operation manual sets forth operating procedures from opening to closing and nearly everything in between. All major equipment operations and routine maintenance are been described in the operation manual or a separate equipment manual. Define how things been done based on experience, organization standards, and customer expectations. Organizational systems also explain who is involved and why.31 31. As the production is the process wherein the food is converted to the state in which it will be served. Pepper et al. (1984) illustrated that fast food operations handle huge amounts of food in a short time. They could never keep up with their customer's demands if they did not use mass production methods. Mass production means buying, preparing, and serving in large quantities. Powers and Barrows (2006) confirmed that some kinds of operations are ideally suited to the production-line approach to service. Quick service restaurants amusement parks and budget motels come to mind as having the need for the cost efficiency of the production approach. Powers (1995) mentioned that all of the quick service restaurants (QSR) operations try to simplify their production processes and use self-service.2.3.6 The Element of Risk and Failure Risk concept Wiley and Sons (2006) described that many people will tell that the restaurant business is the highest-risk business in the retail spectrum. This simply is not true. The failure rate for eating places in the general is below the average business failure rate nationwide. Camera, furniture, and apparel stores regularly top the failure list. Powers and Barrows (1999) argued that franchising is not risk free. The franchisee is generally completely dependent on the franchise company for not only marketing but often or purchasing and other operations-oriented assistance. Wade (2006) explained that failure is much less common among franchised restaurants than among independent operation. Elements of restaurants success and failure Powers and Barrows (1999) believed that all advertising will be effective only if consumers get exactly what expect. Therefore, chains concentrate on ensuring consistency of quality and service in operations. Customers know what to expect in each of the units and, in an increasingly mobile society that is important.31 32. Parsa et al. (2005) pinpointed the elements of success and failure as follows: 1. A. B. C. D.E. F. G. H. I. J. K. L.Elements of success Have a distinctive concept that been well researched. Ensure that all decision make long-term economic sense. Adapt desirable technologies, especially for record keeping and tracking customers. Educate mangers through continuing education at trade shows and workshops an environment that fosters professional growth has better productivity Effectively and regularly communicate values and objectives to employees in one instance. Maintain a clear vision, mission, and operation strategies, but be willing to amend strategies as the situation changes. Create a cost conscious culture, which includes stringent record keeping. Focus on one concentrated theme and develop it well. Be willing to make a substantial time commitment both to the restaurant and to family. Create and build a positive organization culture through consistent management. Maintain management flexibility. Choose the location carefully, although having a good location.2. Elements of failure: A. Lack of documented strategy; only informal or oral communication of mission and vision; lack of an organizational culture fostering success characteristics. B. Inability or unwillingness to establish and formalize operational standards; seat-of-the-pants management. C. Frequent critical incidents; managing operations by "putting out fires" appears to be a common practice. D. Focusing on one aspect of the business at the expense of the others. E. Poor choice of location. F. Lack of match between restaurant concept and location. G. Lack of business experience or knowledge of restaurant operations. H. Poor communication with consumers. Negative consumer perception of value price and product must match. 32 33. I. Inability to maintain operational standards leading to too manyservice gaps. Poor sanitary standards are almost guaranteed to kill a restaurant. Wiley and Sons (2006) pointed out that the stark reasons for business failure are worthy of study these include in competence, lack of line experience, lack of managerial experience and quite important, unbalanced experience. Inadequate funds run out of money before the restaurant attracts enough customers to go into profit. Poor management is a catchall phrase, but should not be dismissed on those grounds. The way to success Hill and Jones (1998) considered that avoiding failure requires a constant focus on the basic building blocks of competitive advantage, continuous improvement, learning identification, adoption of the best industrial practice, and victory over inertia. Huber and Pilmanis (2001) mentioned that there are primarily five customer sale channels: delivery, dining, takeout, pickup window and catering. In the QSR industry, IT has been commonly used for order processing, accounting, purchasing, marketing, consumer behavior and the location of new restaurants. Parsa et al. (2005) explained that perhaps the key finding was that a successful restaurant requires focus on a clear concept that drives all activities. In this finding, concept is distinct from strategy. A remarkable outcome of the interviews is that we found few differences in having a well-defined strategy between successful and failed restaurants owners but considerable differences in clarity Negl (2002) believed that restaurants are been designed to serve a basic meal quickly and affordably. Menus are usually limited and kitchens are designed to produce high volume in short periods. The customer expects quick service, low price, and consistency. Fast food establishments are those that serve food for which there is little or no waiting. From Wade (2006) point of view, the key to the success of quick service, nevertheless, is its simplicity. A key simplification remains quick services limited menu. Each item on the menu has been engineered to simplify and standardize its purchasing, production and service.33 34. Pepper et al. (1984) considered that a fast food operation has two main aims: to please the customer and to make a profit. The giant fast food chains were built on the belief that four things operating together will bring them their success, these four things are:Limited menu Fast service Low price High sales volume Brian De Silva (2006) pointed the top tips of WOW success as follows: Research market and area. Establish budget. Brief designer: Make sure choose a good designer. Agree concept: What will be famous for? Recruit the right team. Inspire team and guests. Market restaurant: Public relation and collateral, guest and staff incentives. Make changes when need to. Listen to staff and guests. Remember: you're only as good as your last drink.2.3.7 Product Branding Brand concept According to King and Ronald (2006) image is a popular conception (as of a person, institution, or nation) project especially through mass media importance of brand. Martina (1958) defined image as "the way in which a store isdefined in the shopper's mined, partly by its functional qualities and partly by an aural of psychological attributes. From this, two key elements in the construction of image can be identified. o Functional qualities such as the restaurant layout, menu range, price levels and dcor. o Psychological attributes: The less tangible elements such as feeling of friendliness or a sense of excitement.34 35. Importance of brand Blackett (2003) told that branding is a binary process. First the name, logo, pack design, advertising and purchasing environment must create the promise; and then the product or service concerned has to deliver. If the brand lives up to expectations then trust been rewarded; if it does not then the buyer will look elsewhere. So good brand management is all about managing customer confidence so that he or she can buy without fear of risk can be a source of strong cash flowsBrand marketing Walker (2006) believed that brands are defined as unique that identify a product and set it apart from those of other producers or service providers. Today, brands are becoming a more and more important part of a company's marketing strategy, mostly because having a well-known brand tends to create brand identity. The most important considerations when developing a brand are these: It must be easy to remember. Guests need to associate the brand with value. It must have a positive connotation.Name selection and logo Wade (2006) agreed with Ridgeway and Ridgway (1994) in that the restaurant name and any subtitle it may use give people an immediate impression as to the type of restaurant it is. A name must be memorable and should be easy to pronounce, original, attractive, and easy to remember and say. A logo is the restaurant's identifying mark that the public will recognize. In restaurant industry, Mc Donald's has developed its brand and logo-the golden arches - to be automatically identifiable worldwide.35 36. 2.3.8 Product Value Product value concept Mattila (2001) mentioned that committed customers place a high value on a restaurant's social benefits, such as friendship and familiarity, in addition to good food and a fun atmosphere. Etzel (2004) defined that value is the ratio of perceived benefits to price and any other incurred costs. When we say a product has sample value, we do not necessarily mean it is inexpensive nor has a very low price. Rather, good value indicates that a particular product has the kinds and amounts of potential benefits such as quality, image, and purchase convenience consumers expect at a particular price level. Foster (1993) believed that value is a customer's satisfaction with a product in relation to the price. The value of a restaurant meal is a matter of perception how the customer views the quality of the dining experience. Johnson and Clark (2005) indicated that value is the customer's assessment of the benefits of the service weighed against all the costs involved. It is important to emphasis that the ultimate judge of value is the customer. Price value perception Etzel (2004) reported that a product's price has been affected by whether it is a new item or an established one. Over the course of a life cycle, price changes are necessary to keep the product competitive. Wade (2006) agreed with Negl (2002) in that price / value perception means consumers believe that they are receiving value for the price that they are paying, whether the customers are eating in a fast food restaurant or dining in the finest restaurant in the area. The dcor, ambience, and service standards must all contribute to the customer's perception of the dining experience.36 37. 2.3.9 Marketing Marketing concept Van Hoof et al. (1996) illustrated that marketing is all of activates designed to move goods and services from the producer to the consumer. Walker (2006) said that marketing is attracting guests and establishing a relationship with the guests that ensure their continuous loyalty. Everyone from the corporate executive to the line employee should be involved with marketing. Reid and Bojanic (2006) stated that: Marketing is the process of determining consumer needs, creating a product service mix that satisfies these needs, and promoting the product service mix in order to attain the goals and objectives of the firm. Marketing concept is a framework for the marketing philosophy that consists of three interrelated elements: an organization's basic purpose is to satisfy customer needs; satisfying customer needs requires integrated and coordinated efforts throughout the organization; and organizations should focus on long-term success. The marketing mix Powers and Barrows (2006) agreed with Reid and Bojanic (2006) also in that the marketing mix is conventionally though of as encompassing the four Ps: product, price, place, and promotion. The researcher agree with this opinion. Ronald and Nykiel (2005) added that there are many different perspectives on marketing and marketing strategy especially in everchanging environment. In the 1990s as we transitioned to a predominantly service-oriented economy and marketing environment, marketing strategies shifted to focus on the four Cs, as delineated by waterborne: Consumer wants and needs Cost to satisfy (want and needs) Convenience to buy Communication (creating a dialogue)37 38. In the current decade, while marketing must still focus on the four Ps and four Cs, marketing strategies appear to have shifted and are now more and more based on the new five Ps: Preparation Positioning Perception Proclamation Power thrusts Market segment Walker (2006) defined that market segment is a smaller, identifiable group that can be defined using any set of, such as moose found in geographic, demographic, or psychographic. Van Hoof, et al. (1996) indicated that marketers go through a process called market segmentation and separate people into distinct group based on their individual characteristics and buying habits. The target market Wade (2006) agreed with Negl (2002) in that the target market is the type of customer who the restaurant is attempting to reach and entice to frequent the establishment. Writing a menu requires understanding the customer's wants, needs, and expectations. A customer will judge a restaurant on several critical areas: food quality and presentation, service, ambiance, cleanliness, and value. The menu informs customers of the choices available to them. This is known as menu engineering. The goal of menu engineering is not to force the customer to purchase an unwanted item, but rather to place certain items in high visibility locations. Marketing and selling Reid and Bojanic (2006) agreed with Medik (1999) in that the difference between selling and marketing is very simple. Selling focuses mainly on the firm's desire to sell products for revenue. Marketing is different from selling because marketing focuses on the needs of consumers, whereas selling focuses on the needs of the seller. In addition, 38 39. the marketing concept advances the finical goals that the firm may have. The concept holds that if the consumer's needs and wants are very satisfied, then financial success will follow. The researcher agrees with this opinion.2.3.10 Promotional Element Promotion concept From Etzel (2004) point of view the extent to which the product is promoted by the producer or intermediaries and the methods used are added considerations in pricing if major promotional responsibility is placed on retailers. Walker (2006) said that having an excellent product at a good price and in the right place is not enough. Sales goals will not be obtained unless the consumer is aware of the product's existence. There are several ways of doing this with promotion. Stutts and Wortman (2006) illustrated that have one single overriding common purpose: to fulfill a marking need. This need may be to build trial (new) business, develop a greater share of existing business, keep businesses, or get repeat business regardless of the type of promotion the objective is to help the overall marketing effort. Promotional mix Reid and Bojanic (2006) agreed with Reid (1989) in that the promotional mix elements include advertising, personal selling, sales promotion, and public relations. Sales promotionSchultz et al. (1993) stated that sales promotion: usually short-term tactical incentives offering something over and above the normal product offering to encourage customers to act in particular ways. Product-based sales promotions: sales promotions that centre on some kind incentive connected with the product: extra product free, or samples. In addition Reid (1989) agreed with Gottleb (1982) in that sales promotion is a direct inducement offering an extra incentive to 39 40. take action. Sales promotions seek to accomplish several broad objectives and can be used for several reasons: To increase consumer awareness To introduce new products and services To increase guest occupancy and customer counts. To combat competition To encourage present guests to purchase more. To stimulate demand in no peak periods.2.3.11 Services for Children Fast food restaurants and children Spurlock (2005) said that fast food chains make no secret of the fact that kids are their primary targets. Fast food restaurants are significantly more likely to be visited by respondents with children than those without. There is Happy Meal, launched nationally in 1979. It cost a buck in those days. Inside a cardboard box with a circus theme, kids found a McDonald stencil, a puzzle book, and a Mc Wrist wallet. The meal-plus-toys packaging proved to be an instant hit with the first star trek Happy Meals that very year. Hahm and Khan (2001) considered that parents with young children enjoy the conveniences of eating out, and they often take their young families to quick serve restaurants. They especially like to take their young families to those restaurants that are equipped with playgrounds or play areas, and those that offer give always to their children. From Spurlock (2005) point of view, parents are their children's primary role models kids learn their life habits, good and bad, from their parents. Hahm and Khan (2001) stated that in the future healthy option for to go kids meals could include carrot sticks instead of French fires, hand held yogurt stick such as Yoplait's Go-Curt, and flavored milks in aseptically packaged containers, these options meet the demand for hand held to go food, but also provide a healthy alternative to traditional quick service restaurant menu items.41 41. 2.3.12 Atmosphere (Surroundings) Atmosphere Briggs (2000) agreed with Pepper et al. (1984) in that atmosphere is the overall effect created by a restaurant's lighting, color scheme, furniture, and service. Wade (2006) highlighted that restaurant decor should support the overall concept and not be a haphazard collection of props, as the decor helps set the tone for the atmosphere. Wiley and Sons (2006) declared that a restaurateur who is largely dependent upon neighborhood business would do well to establish a friendly atmosphere, maintain consistent standards, and offer good value. A friendly greeting is the best possible start to a dining experience. People do not require heart, soul, and internal devotion, just a smile and a cheerful greeting.Cleanliness Pepper et al. (1984) stated that customers would stop coming if they feel a restaurant is not clean. Customers like to eat in clean surroundings. Constant attention to cleanliness keeps luncheonettes and chain restaurant dining areas attractive. Wade (2006) agreed with Negl (2002) in that the incidence of food-borne illness has increased as the food service system has become more complex and the number of operations has expanded. One case of food poisoning can seriously injure a restaurant's reputation. More than one can endanger an operation's survival.2.3.13 Customer Satisfaction Customer satisfaction Johnson and Clark (2005) agreed with Cooper and Lawson (2004) in that satisfaction is the outcome of the consumer's evaluation of a service, which sometimes refer to as perceived service quality, and can be represented on a continue from delight to extreme dissatisfaction. Lillicrap et al. (2002) pinpointed the factors contributing to the meal experience were summarized. Factors, which might affect the customer's 41 42. enjoyment of a specific meal experience in a particular operation, could be: The welcome, the dcor, and the ambience. Efficiency, has the booking been taken properly, using the customer's name. Location of the table. Menu and drinks list (presentation and cleanliness). The order is been taken recognition of the host. Availability of dishes / items. Speed and efficiency of service. Quality of food and drink. Courteousness of staff. Obtrusive / attentiveness of staff. Ability to attract the attention of staff. Other customer's behaviour. Methods in which complaints are handled. Methods of presenting bill / recovery payment. Departure attentiveness. Schroeder (2004) told that customer satisfaction is a relative concept that varies from one customer to another. Also, a customer may be satisfied with today's products but not satisfied in the future. For example, while one customer may consider a Ford automobile perfectly satisfactory, another may not. Seidman and Johnson (2002) argued that customer satisfaction is regards as the highest mission by the chains. Johnson and Clark (2005) described that customer satisfaction is something that can be managed to some extent by influencing customers' perceptions and expectations of service delivery. This demands in-depth understanding of this subject. Pepper, et al. (1984) stated that satisfied customers are return customers, which means good business. Improving customer service and customer satisfaction Bateson (1995) mentioned that customer satisfaction is depends on the production of services as well as their consumption. Field (1999) pointed out that a common five step process for developing a customer satisfaction program is:42 43. Identify the attributes of your product or service that are most important to customers. Measure customer satisfaction levels on these important attributes. Link satisfactions levels to key customer behavior (use levels, member retention). Identify and implement concrete actions that will improve customer satisfaction and correspondingly, customer behavior. Track results. Reid and Bojanic (2006) illustrated that improving customer service should be a top priority of all managers working in the hospitality and tourism industry. Walker (2006) said that we not only need to keep guests happy during their stay, but also to keep them returning-with their friends. It costs several times more to attract new guests than to retain existing ones. Employee satisfaction Easerbrook (2006) agreed with Dube and Renaghan (1999) in that the best way to drive growth and profit is by looking after the company's staff. Healthy profit has to start with people, if you get the people part right, the rest will follow. Gregory and Brieiter (2001) found that satisfied employees are more likely to exhibit customer-oriented behavior, which in turn will lead to guest satisfaction. Seidman and Johnson (2002) agreed with Ghislli et al. (2001) in that job satisfaction as one key to turnover seems to be a job's characteristics.43 44. CHAPTER THREEMATERIALS AND METHODS44 45. Materials and Methods Research methodology is the treatment that will be applied to the data collected. This includes the population, instrument, and analysis of the data. The aim of this chapter is to assign and define the limits of the sampling of the study, and to clarify the methods that will be used in this research in order to collect the desired information and data.3.1. Materials 3.1.1. Population survey: The aim of this study is evaluating the experiment of the local restaurant chains compared to the international ones in Egypt. To obtain results representing enough the actual conditions. The research conducted three groups four samples from each group. Four samples from independent fast food restaurants in Sharm El Sheikh, four of the famous local fast food restaurants chains as well as four international chains in Sharm El Sheikh.3.1.2. The Samples: 3.1.2.1. Samples from independent establishments (Quick Meals, Sharmawy Sharm, El Sheikh, Naama) 3.1.2.2. Samples from local establishments (Cook Door, Makani, Felfela, Gado) 3.1.2.3. Samples from international establishments (McDonald's, 45 46. Burger King, Hardee's, KFC)Table 3: Samples from the establishments Old Sharm Hadaba Marina Samples from independent establishments Quick Meals 1 Sharmawy Sharm 1 1 El Sheikh 2 Naama 1 -Cook Door Makani Felfela GadoSamples from local establishments 1 1 1 1Samples from international establishments McDonald's 1 Burger King 1 Hardee's 1 KFC 1 *Mean under preparation46* 1 12 1 1 47. According Menu Specialty of the selected QSR: Table 4: Menu specialty of the selected QSR.** * ** * * ** Local restaurant chains * * * ** * * * ** * * * ** * * * ** International restaurant chains ** * * ** ** * * ** ** * * ** * ** * ** -* -** **-* ** *--- Not serving * Serving ** The core product Walker (2006) agreed with Brymer (1995) in that classifying.47Sea foodIndependent restaurants * * ** * * **Foul & FalafelSandwichSnacksMcDonald's Burger King Hardee's KFCChickenCook Door Makani Felfela Gado* *PizzaQuick Meals Sharmawy Sharm El Sheikh NaamaBurgerRestaurant 48. 3.2. Methods The collected data has been divided into primary sources and secondary sources. Every type of this data will be illustrated and discussed in some details.3.2.1. Primary Data Primary sources have been collected through the following methods:3.2.1.1. Guest Questionnaire The guest questionnaire was designed and distributed at a sample of fast food guests. This questionnaire form has been developed based upon the relevant review of literature. The main purpose of this questionnaire is to know How much does the guest like the fast food and at which meal he prefers. The most important factor in a fast food restaurant which attracts the guest to select fast food chains. Evaluation the local fast food restaurant chains experiment compared to the international chains. The advantages and disadvantages in local fast food chains in Egypt. Any problem has the guest ever met through his experiment with the local fast food restaurant chains? Questionnaire form distribution took nearly one year, starting at 15/9/2006 up till 1/8/2007. The questionnaire form was written and distributed in Arabic and English languages. The questionnaire form been shown in Appendix (A1).48 49. 3.2.1.2. In-depth Personal Interviews In- depth interviews were been carried out with the restaurants and chains managers under the investigation. The purposes of these interviews were: Identifying the guest evaluation for the fast food chains. Egyptian market expectations, needs, and preferences of the Egyptian customer. And how do the chains deal with these needs and preferences? Common attributes of local and international restaurant chains. Training strategy in fast food ones. Evaluating marketing strategies in fast food chains. Evaluating quality levels in fast food chains, and what is quality assurance strategy in fast food chains. The extent of product development according to customer needs in their chains. Customer satisfaction measuring methods in fast food chains. Strengths and weakness points in fast food chains. The in-depth personal interview are been shown in appendix (A2).3.2.1.3. Observation Checklist The observation checklist has been designed to evaluate food service quality, cleanliness, atmosphere, staff and management performance. The checklist composed of six functional areas, which are: 1- Exterior 2- Interior 3- Food Quality 4- Guest Service 5- Employee Appearance 6-Managament Functions 49 50. The observation checklist has been shown in Appendix (A3).3.2.2. Secondary sources All sources of secondary data been illustrated in the previous chapter "Review of Literature". The sources of secondary data include: 3.2.2.1. Government Publications This source includes the data mentioned by the Egyptian Ministry of Tourism and the Chamber of Tourism Establishments (CTE). 3.2.2.2. Periodicals and Books Books, theses, as well as periodicals such as, journal of food service business research, Cornell quarterly, restaurant hospitality, and caterer and hotelkeeper and different articles from many sources. 1.2.2.3. Electronic Sources Internet websites related to the subject of research have been mentioned, illustrated and discussed.3.2.3. Pilot study The thesis shows a research questionnaire and an interview which entailed three separate interviews with lecturer's and assistant lecturers from Helwan University, Faculty of Tourism and Hotel Management, Also entailed by McDonald's training consultancy team and their training managers, Americana Company, Gulf Aria human resource corporate manager, Cilantro, quality assurance managers and Cinnabon training manager. This helped towards shaping the final questionnaire and interviews. The pilot study of questionnaire has been conducted on a limited 51 51. segment of guests from independent restaurants, local and international fast food restaurant chains. The questionnaire form has been revised and adopted according to the guests comments.1.2.3. Data Analysis Most data were then analyzed utilizing procedures of the SPSS (Statistical Package for Social Science) version 10.0 for windows. Frequencies standard deviation, percentages and cross-tabulation were calculated to determine which group differs significantly from each other and correlation between variables.51 52. CHAPTER FOURRESULTS AND DISCUSSION52 53. 4.1 Introduction The business of food service deals with the preparation and service of food for consumption by others, whether the food is made from scratch or is convenience food products that are finished in microwave or deep fryer, whether the service is over the counter or at the table. Food service is "the service of food and beverages to internal and external guests in an efficient, safe and hygienic manner, and in a way that will create guest satisfaction" Food service may be defined as "that phase the food flow (that is, from the purchasing of the foods to service to the guest) mainly concerned with the delivery and presentation of the food to the guest, after the completion of the food production". In some situations food service may include an element of transportation due to the separation of the service facilities from the food production, for example of a centralized cook-freeze operation serving peripheral units. Food service establishments are those engaged in providing food service. These establishments include not only the obvious examples of restaurants and college dining halls but also the salad bars and sandwich counters in food markets and such" distant relations" as food vending machines. Food service enterprises range from full-service restaurants to self-service buffets, from fine restaurants to takeout operations, and from company cafeterias to hamburger stands. Quick service or fast food restaurant offer limited menus featuring food such as hamburgers, fries, hot dogs, various finger foods and other items for the convenience of people on to the go. Customers order their food at a counter under a brightly lit menu featuring color photographs of food items. Quick-service restaurants have increased in popularity because of their locations. They can usually be found in very convenient places in every possible area. Their menus are limited, which makes it easier for customers to make quick decisions on what 53 54. to eat. 4.2 Questionnaire Response Rate The research targeted 1500 customers randomly in fast food operations. A total of 1248 usable replies were obtained, representing an effective response rate of 83.2 percent. Table 5: Questionnaire response rate CategoryCustomersNumber targeted1500Number shared1248Response rate83.2 %4.3 Questionnaire Analysis Results and Discussion The next evaluation of the questions is ranking according to the objectives of the questionnaire as follows.54 55. Question NO. (1):- Customers preferences to deal with fast food restaurants The aim of this question is to illustrate customers preferences to deal with fast food restaurants. Figure (1) shows this issue and illustrated that out of 1248 respondents who dealing with fast food restaurants; 16.3% of respondents deal with fast food restaurants always, 24.1% are usually preferred to deal with fast food restaurants usually. 45.2% of customers deal with fast food restaurants sometimes. While 14.4% of respondents indicated that they deal with fast food restaurants rarely. 45.2% 50.0 40.024.1% 16.3%14.4%30.0 20.0 10.0 0.0FewSometimesUsuallyAlwaysFigure 1: Customers preferences to eat fast foods. Cross tabulation analysis showed that 52.4% of category "from 15 to less than 25 years old" customers and 45.3% of category "from 25 to 40 years old " deal sometimes with fast food restaurants, while 33.3% of category "over 40 years old" respondents rarely deal with fast food restaurants. Also 44.4% of married with children customers and 47.4% of single respondents deal with fast food restaurants sometimes, besides 50% of female respondents and 43.1% of male respondents deal with fast food restaurants.55 56. Question NO. (2):- Customers' preferable meal The aim of this question is to illustrate customers' preferable meal. Data in table 6 show that most respondents prefer to have the lunch meal in fast food restaurants by mean 1.77. Statistically, X2sig=0,000 showed a significant variances among respondent as (P