22-01-2013, 01:55 PM
FAST FOOD INDUSTRY
FAST FOOD.ppt (Size: 3.97 MB / Downloads: 33)
World’s largest growing food type.
Industrial growth is 40% a year.
The organized pizza market in India is worth about Rs.675 crore.
Foreign investments are worth Rs.3600 million (1/4th total investment in this sector)
McDonalds India is the market leader in this industry.
McDonald’s History
It started as a drive-in-restaurant in the late 1940’s.
In 1966, McDonald’s was listed on the New York Stock Exchange.
In June 1967, McDonald’s opened its first restaurant outside U.S in Canada.
In 1996, McDonald’s entered India in a joint venture.
McDonald’s now has a network of over 160 restaurants across the country
McDonald’s System – the World’s Best QSR experience
World Market Leader in the QSR area (Quick Service Restaurant)
Franchise System (75%)
System employees: 1.6 million
Customers Per Day: 58 million
Corporate Strategy:
QSC&V: Quality, Service, Cleanliness and Value
Plan To Win -> Successful business revitalization
McDonald’s SUPPLY CHAIN
McDonald’s Supply chain is based on the three-legged stool concept : Company – Franchisees – Suppliers
Logistics
100 sales items in the restaurant
400 SKUs in the warehouse
200 restaurants per DC (~180 DCs globally)
Delivery frequency: ~3/wk, higher in urban areas
2-3 stops per route
Exclusive distributors (3PL)
Strong quality focus (Cold Chain, HACCP, QIP)
SUPPLIERS
Dynamix Dairy Industries (Supplier of Cheese)
Fully automatic international standard processing facility.
Network of milk collection centres equipped with bulk coolers.
Dedicated quality program.
Dedicated R&D centre
Specialized nursery with a team of agricultural experts
Drip and sprinkler irrigation in raised farm beds with fertilizer mixing plant.
The pack house, pre-cooling and cold room are located at the farms itself to ensure no delay.
OVERVIEW
Founded in 1965 by Tom Monaghan.
Second-largest Pizza chain in the United States.
about 8,500 corporate and franchised stores in 55 countries.
Domino's Pizza outlet in India opened in 1996.
Close to 274 outlets in 55 cities of India.
70 percent of its revenue comes from home delivery service & around 30 percent is over-the-counter sales.
CONCLUSION
Fast Food industry in India is growing at a fast rate. From the study done among the 3 fast food services – McDonalds, Dominos and Pizza hut, we can clearly come to the conclusion that McD with its superior supply chain management (cold chain) is able to balance between its quality and cost.
The setting up of cold chain has enabled it to cut down on its operational wastage.