The Evolution of FAST FOOD in INDIA.

Presented By-B. Shiva Abhishek

Kaushik JanaDivyansh Gupta

So what is Fast Food ?

• Food that can be PREPARED and SERVED very quickly.

• Food that is made with PREHEATED or PRECOOKED ingredients.

• Served in form of TAKE-OUT or TAKE-AWAY.

And how did it all began?

• Evolved during 1920’s with the start of hot dog stands in New York.

• In 1950’s growth in automobile sector led to the evolution of the concept of DRIVE THROUGHS. So America’s love for cars also contributed to growth of FAST FOOD.

FAST FOOD culture in INDIA.(What it used to be)

It used to be limited to small scale businesses.

Only local cuisines were available.

Limited market and Limited customers.

People preferred to eat at homes.

But what is it today?

• An industry that is growing at the rate of 40% every year.

• It will reach Rs 140 billion by 2015.

• Attracts new foreign investments each and every year.

• Each day Fast Food Companies are opening new stores and launching new products.

• Who brought this change?

• What were the major factors that helped to bring about these changes?

The Man behind it.oBorn on September 9, 1890 in Indiana, U.S.A.oHe dropped out of school when he was 12.oHe joined US Army at the age of 15.oIn 1930 he opened a service station in Corbin, Kentucky where he served chicken dishes.oHis local popularity grew and he moved to a motel with 142 seat restaurant.

Rise of KFC.• Over the next 9 years he developed his “secret

recipe” for frying chicken much faster than pan frying.

• Due to low customer traffic he took $105 from his social security and approached franchisees.

• In 1939 food critic Duncan Hines visited Sanders restaurant and listed his place in “Adventures in good eating”, a famous food guide in U.S.

• In 1952 along with Pete Harman he opened the first “Kentucky Fried Chicken” outlet in Utah, Salt Lake.

• By 1964 KFC was sold in over 600 franchised outlets in both US and Canada.

• By 1968 KFC was the largest fast food business in America and in 1969 it was listed in New York stock exchange.

What makes KFC “finger lickin good”?

• Sander’s original recipe of 11 herbs and spices remains a valuable trade secret and one of the benchmarks which differentiates it from others.

• In 1983 William Poundstone rated it as the one of the biggest business secret in his book “Big Secrets”.

KFC in the Great Indian Market.

• The first outlet of KFC was setup in Bangalore in June 1995.

KFC products in India.• Its offerings in India while staying rooted in the taste legacy of

Colonel Sanders secret recipie.• Its signature dishes is “crispy outside juicy inside” for hot and

crispy chicken.

For the Vegetarians

• To cater to the Indian vegetarian population KFC launched veg dishes.

Lets go back in time.

• In 1960,Tom Monaghan and his brother, James, purchased DomiNick's, a small pizza store in Michigan.

• The Monaghan brothers borrowed $500 with a $75 down payment to take over "Dominick's Pizza". In 1998 Tom Monaghan retired and sold Domino's pizza for nearly 1 billion dollars.

Tom Monaghan, the founder of Domino's Pizza, in his first restaurant somewhere in the 1960s.

• By 1970 Dominos had over 200 franchise stores in the states and it was ready to go international.

• By 1989 Dominos had over 5000 stores around the world.

Product Innovation• Domino’s revolutionised not only the process

of making pizza but also the way to deliver it.• Their promise “If it is more than 30 minutes

then it is free”.

• They made modern pizza ovens which reduced the time of making pizzas.

• They were the first to use cardboard delivery boxes which ensured that the pizzas were not damaged while delivery.

• They always knew that no one likes their pizza cold so they introduced the “Heat Wave”, a portable electrical bag system that keeps the pizza hot during delivery.

The Indian Market

• Domino’s was launched in India by Jubilant Foodworks Limited in 1996.

• The first pizza store was opened in Delhi.

• Today Domino’s is the leader in Pizza Stores with a 54% market share.

• It has 70% market share in home pizza delivery market.

• There are 489 Domino’s pizza stores in India.

• Domino’s has even started operations in many small towns.

The selling Motto.

• Domino’s motto for its Indian Operations is “Khushiyion ki Home Delivery”.

• It means that they deliver happiness to our homes.

Product Variety

• Domino’s knew it had to cater to local tastes if it wanted to survive in the Indian market.

• Hence most of the products have been designed to suit the taste of Indian consumers.

• Use of Indian spices and ingredients are common in Doimino’s pizzas.

Product Pricing.

• Domino’s believes in pricing pizzas at price that is suitable to the Indian consumers.

• Attractive offers and discount coupons provided with every purchase.

A Brief History• Dick and Mac Mcdonald open

McDonlad’s Bar-B-Q restaurant in California in 1940.

• They apply the concept of assembly line which was developed by Henry Ford to serve customers quickly.

• In 1954 a multimixer salesman named Ray Kroc visits McDonald’s and becomes interested in their business. He becomes the first franchising agent of McDonald’s.

• In 1956 Ray Kroc hires Fred Turner as a counterman for his McDonald’s restaurant. Turner would soon become head of McDonald’s operations defining the quality, service and cleanliness that continue till date.

By 1963There were 500 McDonald’s restaurants in the USA.

Their net income was over a million dollars.

They had sold a billion burgers.

Today McDonald’s is-

• A global foodservice retailer with more than 33500 restaurants across the world.

• They serve 68 million people daily.

• They employ over 1.7 million people.

How dose McDonald’s reinvent?

In 1970, McDonald’s franchise owner Jim Delligatti wanted to open shop from 7 AM rather than the usual 11 AM.

He started to sell breakfast items like coffee and pancakes but could not get the desired sales figures.

So he decided to innovate and create a new product for breakfast .

The birth of Egg McMuffin.

They began to modify the egg Benedict sandwich for McDonald’s assembly line process.The sandwich had poached eggs which did not fit in the process of manufacturing.Peterson developed a new utensil that would help poach the eggs to the right consistency without making them runny.The result was the first commercial item to be introduced by a fast food chain.

• By 1976 McDonald’s had perfected their breakfast menu elevating the brand above competitors.

• Till date breakfast contributes to 15% of total sales.

McDonald’s in India• First started operations in the year 1995.• Joint venture between McDonald Corp and two

Indian businessmen Amit Jatia and Vikram Bakshi.• First store opened in Vasant Vihar, New Delhi.

Localisation

• No pork or beef items are sold in Indian McDonald’s stores.

• Soft serve ice creams and McShakes are all eggless.

• Use of spices and flavours that are favoured by Indians.

Made in India for Indians.

Why it sells?• Pricing has been done to attract the growing

middle class population of India.

Best in Quality, Service and Cleanliness.

• The ambience inside a McDonald’s store attracts customer to come and have a good time while enjoying their meal.

Boom in Fast Food industry

• Working women

• Migration of Corporate Employees

• Increase in Income

• Willingness to purchase

• Localised food items

Pros of Indian Fast Food Industry.

• Employment Opportunities

• Purchase of food products

• Sophisticated Environment

• Quality and Speed of service

Cons of the Fast Food Industry

• Health related issues

• Junk Food Addiction

• Food Additives

• Decline of local food outlets

Thank You.