CHAPTER 1- INTRODUCTION

Consumer behavior is influenced by the several factors including the culture of a society which
shapes the attitudes and behavior of the populace. Emerging global cultural trends in consumer
behavior are brought about by changes in culture, demography, rising wealth, infrastructure and
values. The fast food industry in post liberalized India has grown significantly due to the addition
of MNC-operated fast food outlets to the existing Indian operated fast food outlets.
Globalization has created many opportunities and posed many challenges for MNCs who are
dealing with dynamic cultural elements and varied consumer behavior in extremely diverse
markets. There is strong evidence from existing academic literature to suggest that national
culture plays a critical role in the formation of an individual's attitudes, beliefs and values. It is
widely accepted amongst marketing scholars that culture plays an important role in determining
consumer perception and buyer behavior. Many scholars have contributed to human
understanding of culture and its implications in the business world. Many cultural changes have
occurred in the Indian society since it adopted liberalization and globalization. Demographically
India is one of the most diverse countries. The success and growth of the MNC-operated fast
food outlets in India may perhaps have been assisted by the emerging cultural trends in India.

Statement of the Problem.

Globalization has been referred to by many scholars as the second industrial revolution. Since
the last two decades global trade has increased significantly in terms of magnitude and
complexity. The international strategic decision making process in a MNC involves extensive
understanding of the cultural nuances of its target market to forecast the consumer behavior and
success of their products/services in their overseas markets. It must be noted that an
understanding of the cultural differences prevalent in the countries involved in international
business are important elements contributing to the accuracy and effectiveness of the
international strategic decision making process. However, the influence of culture on consumer
behavior is not easily measured yet it bears a critical impact on the success or failure of products
and services. Since India liberalized its economy in the early 1990s many MNCs have entered
the Indian markets to tap the potential of India's huge population base. Fast-food industry in

Bangalore has witnessed a boom in recent years dominated by giant MNCs like Pizza-Hut, KFC,
Subway, McDonalds, etc.

Purpose of the Study.

This study has been undertaken to assess and evaluate whether the emerging cultural trends
impact consumer behavior in a way which favors the proliferation of MNC fast food outlets in
Bangalore. This study analyses existing research in the field of consumer behavior, intercultural
studies and the fast food industry. The study analyzes demographically categorized consumer
behavior at MNC-operated fast food outlets in Bangalore to identify trends and patterns which
might indicate whether emerging cultural trends have contributed to the increase in MNCoperated fast food outlets in Bangalore. Bangalore is one of India's most cosmopolitan and multi
ethnic cities and provides an excellent opportunity to study emerging cultural trends.

Research Question.
This study attempts at evaluating the link between emerging cultural trends and the boom
witnessed in the MNC-operated fast food outlets in Bangalore. The research questions of this
study are as follows:* Do demographic variables affect consumer behavior at MNC-operated fast food outlets in
Bangalore?
* Do emerging cultural trends affect consumer behavior facilitating the boom in the MNCoperated fast food industry in Bangalore?

Scope and Limitations.

The word culture has many definitions and its meaning is very content sensitive. For the purpose
of this study, common elements across definitions relevant from a societal perspective are
adopted. Although cultural references are drawn from around the world the focus is primarily on
Indian cultural elements. The study also limits its scope to the urban population and MNC fast
food outlets in Bangalore. Though changes in cultural elements and consumption patterns of the
rural population in India are becoming more prominent this study ignores those aspects and
focuses only on the urban population of the city of Bangalore. All the elements in the sample are
limited to middle and upper-middle class families and a young urban population having similar

disposable income. The survey is conducted within Bangalore city and a similar survey in
Chennai, Kolkata or Delhi may produce different results. The study focuses on the proliferation
of MNC-operated fast food outlets while not paying as much attention to the impact of cultural
changes on fast food outlets owned and operated by domestic firms and entrepreneurs. The
primary data gathered and analyzed in this study contains only 200 completed questionnaires and
a larger sample using probabilistic techniques may produce better results. The study intends to
analyze the impact of cultural changes on consumer behavior and its correlation to the boom in
the MNC-operated fast food outlet while ignoring impact that the MNC-operated fast food
outlets may have on the local culture and the implications thereof. Though consumers are
becoming more and more health conscious this study does not accommodate any measurement
of health awareness related parameters.

CHAPTER 2 - LITERATURE REVIEW.

The analysis of existing literature in consumer behavior, cultural studies, economics, marketing,
psychology, sociology and fast food is essential to bring the reader up to date with the current
state of research and knowledge in these fields. In this chapter, literature review is presented in
three parts consisting of a conceptual analysis, followed by an analysis of empirical evidence and
contextual analysis of relevant existing literature in the areas of consumer behavior, cultural
studies and fast food.

2.1 Conceptual Review.

Conceptual review covers the major concepts namely culture, consumer behavior and fast food.
2.1.1 Culture.
Culture is a wide all encompassing term with many definitions Solomon describes culture as
accumulation of shared meanings, rituals, norms and traditions among members of an
organization or society. Hawkins et al. (1998) describe culture in a more complex manner
including knowledge, belief, art, law, morals, customs and other capabilities and habits acquired
by people as members of a society. Culture is basically a set of norms and beliefs that are shared
by a group of people who derive life guiding principles from them. For the purpose of this study
culture is defined as the way of life of people sharing common norms and beliefs which shape
their behavior.
The most widely used model of cultural dimension is the one developed by Geert HofstedeThe
five cultural dimensions according to Geert Hofstede are power distance, uncertainty avoidance,
individualism-collectivism, masculinity-feminity and short-long term orientation. Interestingly,
India's ranking in the uncertainty avoidance metric is 40 against a world average of 65 which
implies that Indians are more open to new unstructured ideas and situations and offer less
resistance to accept new cultural values. Hofstede's study is primarily oriented towards national
culture and his data is also restricted to employees working for organizations, besides his
findings are arguably outdated in the fast changing globalized scenario.

The concept of Cultural Intelligence (CQ) was introduced by Christopher Earle and Soon An and
it has gained wide acceptance in the contemporary business community. Their work revolves
around an individual's ability to interact with people from different cultures. Earle and An have
identified four categories in their model namely Cognition, Metacognition, Motivation and
Behavior. Earle and An work is primarily aimed at assisting the individual in improving his/her
cultural skills.
In a hallmark study in 2008, Priscilla Rogers and Joo-Seng Tan studied 50 years of work on
intercultural studies commencing from The Silent Language by Hall (1959). The study
identifies five different perspectives of intercultural studies namely universal, national,
organizational, interpersonal and intrapersonal and the key scholars associated with them.
However, the authors observed areas of overlap in the researcher's approaches, theories and
methodologies and suggested an integrative perspective proposing the use of three model, i.e.,
selected lens, sequential hierarchy or dialogic identity.
2.1.2 Cultural Identity and Globalization.
Cultural identity refers to a person's sense of belonging to a particular cultural, national or ethnic
group. John Tomlinson defines cultural identity as local, autonomous, distinct and well-defined,
robust and culturally sustaining connections between geographical place and cultural
experience. Cultures from the developing world are particularly at risk of losing their cultural
identity.
Throughout history, cultures have long influenced each other through trade, migration and even
war. As trade across political boundaries occur new cultural values become easily acceptable.
Although the term globalization was used by social scientist in the 1960s it only became popular
in the late 1980s and 1990s under the domain of economist and politicians promoting business
interests. Globalization is defined in many ways. In its simplest form it refers to the process of
integrating local and regional elements into global ones. Presently it is used to refer to the
economic integration of world economies. The World Trade Organization (WTO) was
established in 1995 to promote economic globalization and trade liberalization. The impact of
economic globalization can be observed in social, cultural, financial and technological
dimensions in today's world. Economic globalization leads to cultural globalization since it

discourages diversity and localization. People and cultures around the world are more connected
today than ever before.
One major impact of globalization on culture is the emergence of a new strong global cultural
identity where people are becoming increasingly sentient about their global identity in the
shrinking global village. According to Jeffrey Arnett, four major issues have been recognized in
the identity transformation of people:1. Bicultural/Hybrid identity means that one part of a persons' identity is rooted in local culture
while another part of the persons' identity is rooted in the global world. In earlier days, the
development of global identities was accredited to immigration and interaction with ethnic
minorities. Technological advances in media and communication such as global satellite
television and the internet have aided the growing sense of peoples' belongingness to the global
culture. This effect is particularly evident in the younger generation. However, people do not
desert their local cultural identity while adopting the global cultural identity. It is also observed
that the local cultural identity gets modified by the global cultural elements. The educated youth
of India serves as a good example of people who have adopted a global fast paced technological
lifestyle while still maintaining traditional cultural values such as religious beliefs, marriage
ceremonies and caring for aged parents.
2. Identity confusion refers to the state of cultural identity where people are unable to adapt to
rapid changes. This is particularly apparent in the experience of people belonging to non-western
cultures as a response to changes triggered by globalization. These individuals are confronted
with a scenario where the global cultural identity may seem out of reach, too alien or even
undermining their own local cultural values and beliefs. This process of being excluded from
both the global and local culture is commonly known as delocalization or displacement. Unlike
the bicultural/hybrid identities these people feel isolated and excluded from both their local
culture and the global culture. As these individuals grow in the void of cultural belonging they
develop an acute sense of alienation and impermanence often resulting in psychological
problems such as depression, suicidal tendencies and substance abuse. A sharp increase in the
instances of suicide and substance abuse by young people has been noted in a variety of cultures
that are moving rapidly to embrace the global culture.

3. Self-selected culture refers to the people who have formed groups with likeminded persons
who wish to have an identity that is uncontaminated by the influence of global culture. Amongst
the many critics of globalization, the erosion of local cultural identity is one of the strongest
opposing arguments. While self-selected cultural identity may have religion as a base for
commonality, it may also include groups propagating fundamentalism, regionalism and antiglobal views.
4. The spread of emerging adulthood refers to the social change where timing of transition to
adult roles such as work, marriage and parenthood occur at later stages than observed earlier.
This change is credited to the need to prepare oneself for getting desired employment in the
modern economy which is highly technological and information based. When longer periods of
emerging adulthood are prevalent individuals find more time to learn about themselves and
develop their identities. These people may experience different educational possibilities, jobs,
cultural affiliations and love relationships. They typically spend their late teens to mid twenties
exploring possibilities of self-discovery and self development. This trait is particularly prevalent
in the developed economic societies which free these individuals from the need to contribute to
their family's economic well-being[13]. In the poor and rural sections of the developing and
under developed economies the reverse is true where early work, marriage and parenthood is still
very common. It is observed that in many ways, the lives of middleclass youth in India, South
East Asia and Europe have more in common with each other than they do with those of poor
youth in their own countries.

2.1.3 Consumer Behavior.

According to the American Marketing Association, consumer behavior is defined as the
dynamic interaction of affect and cognition, behavior, and environmental events by which human
beings conduct the exchange aspects of their lives. Essentially consumer behavior is the study
on when, why, how, where and what consumers buy or don't buy. Consumer behavior as a
subject blends elements from sociology, psychology, anthropology, economics and sociopsychology.
Luna and Gupta provide a reinterpreted and integrated framework to cross-cultural consumer
behavior. They adopt an applied perspective to two distinct traditions in the study of culture and

consumer behavior. According to them, the next few decades will be most critical for marketers
and consumer researchers in trying to understand how culture influences consumer behavior.
According to Steadman, consumers expect more than just food when they go to a restaurant to
dine in or even take a take-away. Customers at fine dining restaurants want to be made to feel
special and different. Most consumers place a lot of importance to the service quality,
presentation of food and the ambience in the restaurants.
2.1.4 Fast Food.
The term fast food is generally used to describe food that can be prepared and served quickly.
Bender and Bender have defined fast food as a general term used for a limited menu of foods
that lends itself to production-line techniques; suppliers tend to specialize in products such as
hamburgers, pizzas, chicken or sandwiches. The term fast food was first recognized in a
dictionary by Merriam-Webster in 1951, the year when the first Jack in the Box restaurant was
opened in San Diego. Fast food is differentiated from other types of food away from home by its
fast and immediate service to customers. In this paper fast food refers to food sold in a restaurant
with low preparation time and available in take away packaging such as those provided by
MNC-operated outlets of Pizza Hut, McDonalds and KFC. Fast food is usually highly processed
and prepared in a standardized industrial manner with standard ingredients, cooking and
production methods.
In his ground breaking book Fast Food Nation, Eric Schlosser argues that the whole experience
of buying fast food has become so routine, so thoroughly unexceptional and mundane, that it is
now taken for granted, like brushing your teeth or stopping for a red light. It has become a social
custom as American as a small, rectangular, hand-held, frozen, and reheated apple pie.
2.2.1 Intercultural Studies.
Shalom H. chwartz identified universal values which flow from the most basic human needs.
Schwartz collected information from a sample of over 25,000 individuals who ranked 56
different values that were guiding principles of their lives. One major limitation of Hofstede' and
Schwartz' work is that they adopt a national and universal perspective to intercultural studies

respectively which excludes the possibility to analyze people on the basis of individual cultural
differences.
Tromp & Hampden-Turner adopted a business-organizational perspective to intercultural studies.
Tromp & Hampden-Turner gathered data from more than 15,000 managers from 28 countries in
their initial research. Tromp & Hampden-Turner discovered a number of relationship orientations
that assist in explaining cultural differences. Tromp & Hampden-Turner identified seven cultural
dichotomies namely Universalism vs. Particular Community vs. Individual, Neutral vs. Affective
Emotion, Diffuse vs. Specific, Achievement vs. Ascription, Sequential vs. Synchronic and
Internal vs. External Orientation.
International Fast Food Consumption.
Research work has been done in many parts of the world about consumer behavior and fast food
consumption pattern. This section reviews empirical evidence from existing literature on fast
food consumption patterns in United States, Turkey and India enabling one to have a wider
perspective from an international standpoint.
United States.
According to a USDA report Americans spent about 46 percent of their food budget on food
away from home in 2002 in comparison to 27 percent in 1962. Even food consumed at home is
increasingly becoming a take-away meal from a restaurant, a drive-through meal from a fast food
outlet, a ready to eat meal from a supermarket, or a meal delivered to the home. According to the
USDA's food intake surveys between 1977-78 and 1994-96, the share of daily caloric intake
from food away from home increased from 18 percent to 32 percent. While all age groups
experienced the increase, it was highest among younger adults. In 1994-96, men aged between
18 and 39 obtained 39 percent of their daily calories from food prepared away from home,
compared with only 23 percent in 1977-78. For women of the same age group, the 1994-96 share
was 37 percent compared with 21 percent in 1977-78. The rise in consumption of food away
from home has paralleled the growing prevalence of overweight and obesity among both juvenile
and adult populations in the United States, and many public health advocates have implicated an
increased appetite for such food as a contributing factor. The foodservice industry and restaurant
groups reject any link between the rising obesity rates and foods consumed in restaurants or

other away-from-home food sources. They point out that restaurants have a wide variety of menu
choices and that customers must choose responsibly and with moderation. USDA's food intake
data unambiguously show that away-from-home foods tend to be of lower nutritional quality
than food prepared at home. Foods prepared away from home contain more calories per eating
occasion (meals and snacks) and are higher in total fat, saturated fat, and cholesterol and lower in
dietary fiber, calcium, and iron on a per calorie basis than food prepared at home. Americans
who consume a poor quality diet based on the Healthy Eating Index tend to consume a greater
proportion of their daily calories away from home than those with a good quality diet. Compared
with those with good quality diets, individuals with poor quality diets have lower per capita
expenditures on food away from home, but their away-from-home diets contain more calories
per gram of food consumed.
McDonald's, the fast food industry leader came out with a proactive strategy to proliferate their
presence through satellite restaurants. These smaller outlets not only offer limited menu but are
also cost effective with lower construction and operating cost and often tend to be set up on
leased property further reducing the cost of expansion. According to the 1994 Annual Report of
McDonald's Corporation USA, McDonald's wants to have a site wherever people live, work,
play, or gather. Our Convenience Strategy is to monitor the changing lifestyles of consumers and
intercept them at every turn. As we expand customer convenience, we gain market share.
An empirical study in 2001 explored the connection between accessibility of fast food outlets
and the growth in demand for fast food. This study focused exclusively on fast food outlets and
emphasized the role of market penetration as an explanatory factor while also considering other
demand variables such as prices and income. The study examined consumption patterns across
markets to develop an accessibility measure. Along with the purchase and consumption of goods
and services, time is incorporated into the utility maximization problem (Becker, 1975).
Consumers are not only concerned with the retail price of the product but also with time cost
incurred when purchasing and consuming the product. The "full price" (P) is the sum of these
two components, i.e., P = P + vt, where P is the retail price paid at the counter, t is the time
necessary to complete the transaction, and v is the consumer value of time. It is observed that
fast food suppliers emphasize minimization of time costs, that is, the maximization of
convenience. The study indicated that the time spent traveling to the retail outlet is an important

10

component of the time cost of the customer. And since time spent on traveling is a direct function
of distance traveled, a new fast food outlet closer than before would lower the full price of the
product for the customer resulting in an increase of the frequency of purchase. The authors
examined U.S Department of Commerce / Bureau of the Census data from 1982 and 1992. The
demand equation derived is shown as:A study conducted in the urban area of Adana, Turkey investigated the relationship between
consumer fast food consumption frequency and their socio-economic and demographic
characteristics and attitudes. The study hypothesized that consumers with higher income and
education were spending more on fast food outlets than those consumers whose income and
education levels were lower. The study used Chi-square test of independence comparing the
consumers' fast food consumption frequencies on basis of never, low, moderate and high usage.
The study also used the sign and significance of coefficients and marginal effects to establish the
consumer consumption characteristics which determined their fast food consumption frequency.
The results of the 384 observations revealed the following:* About 55% of the customers consume fast food to add diversity to their diet
* About 46% of the consumers did not consume fast food in the month prior to the survey
* About 22% of the consumers consumed fast food once or twice in the last month
* About 21% of the consumers consumed fast food once a week
* About 13% of the consumers consumed fast food on a daily basis.
The study also suggested statistically significant relationships between fast food consumption
frequency and household characteristics. The results are as follows:* The households headed by highly educated people are more likely to consume fast food than
those households headed by lesser educated consumers
* Households with children are more likely to consume fast food than those households without
children
* Households with higher income are more likely to consume fast food than those with lower
income

11

* Smaller sized households with children consume fast food in higher frequency
* Households that never consumed fast foods are likely to have members who are above 50 years
of age
* Households with working women do not statistically affect fast food consumption.
The study also indicated consumers' attitudes, price, health concerns and child preferences highly
impacted the frequency of consumption of fast food.
India.
Food diversity in India is reflective of the diverse cultural background in India. Traditionally
Indians prefer to consume home cooked food which is accepted to be superior and purer than
food away from home. According to a study by Anita Goya and N P Singh, increasing awareness
and influence of western culture has caused shift in food consumption patterns among urban
Indian families. Since liberalization of the Indian economy in the early 1990s many foreign fast
food companies have entered the Indian markets which has caused a significant change in the
lifestyles and the food preferences of Indians. Fast food has particularly gained popularity and
wide acceptance in the Indian palate after the multinational fast food players began customizing
their product offering to suit Indian tastes. The MNC fast food companies began offering
vegetarian meals and selected non-vegetarian options excluding beef and pork totally from their
menu. The study focused on understanding the factors that affect the fast food consumption of
Indian youth and the factors determining their choice of fast food outlets. The study applied
multivariate statistical tools to estimate the importance of the various factors that affect the
choice of fast food outlets by young Indian consumers. The following is a brief of the findings of
the study:* The environment at home, educational environment, availability and accessibility of fast food
outlets and the social environment are the major factors that influence the food habits of young
Indians.
* The preference and the frequency of visiting the fast food outlets depends on factors such as
the emergence of traits of independence in their eating habits, nutritional education, divergence

12

of food preferences at home and at fast food outlets and the favorable socialization-friendly
ambience of the fast food outlet.
* 93 percent of the young Indians were influenced by peer preferences and decisions in choosing
the fast food outlet. Only 3% of the sample believed that fast food outlets offered healthy food.
* Of the factors contributing to the customers' preference of the fast food outlets, food taste and
quality were the most important attribute to the customer followed by ambience and hygiene,
service speed, price, variety of food choices and location of the outlet.
* Most of the young Indian consumers visit fast food outlets for a change in food variety and to
have a good time usually socializing with peers.
* 83 percent of the consumers believed that fast food outlets must provide information on
hygiene conditions; 68 percent of the consumers wanted to have nutritional information about
the food to be displayed in the restaurant; 70 percent believed that these information would help
them increase their frequency of visiting fast food outlets.
* A comparison of McDonalds with a local fast food company, the results suggested that
McDonalds scored higher on 6 of the 7 attributes, trailing only in variety.
However, an interesting aspect of the study was that 81 percent of the consumers preferred home
cooked food in comparison to food from fast food outlets. The reasons cited by the consumers
are:* Food from fast food outlets contain unhealthy food and is expensive
* The home ambience is considered better
* Home food is more nutritious, delicious, tasty, clean, fresh and healthy
* With home food people are sure about what is prepared and how it is prepared
There is relatively less work on the impact of cultural factors in Foreign Direct Investment (FDI)
flowing into India. A study in 2006 finds that amongst the social and explicit cultural variables
that have a measurable effect of FDI flows into India, urbanization stands out as the most
important factor.

13

SumantSarin and Clayton Barrows examined the current food and beverage trends in India while
assessing the potential demand for luxury food and beverage products in the Indian market. The
authors observe that in the period from 1995 to 2005 there has been a dramatic change in the
food and beverage sector in India as a result of changing socio-economic conditions,
liberalization of industries, entry of foreign companies, dismantling of quantitative restrictions
on imports, and increases in discretionary income. While these changes have occurred there has
been a drastic shift in tastes and preferences of the Indian consumer and the way the consumers
view everyday food and beverages. The study points out the following features:* Indian consumers' tastes and demands of the food and beverage sector are reaching new levels
of sophistication brought about through foreign travel and the effects of the media.
* As large industrial cities and urban centers continue to develop a new middle class and new
working class have emerged possessing a distinct social and cultural order.
* 6 crore households are well off by Indian standards and another 5 crore are approaching this
level with annual incomes of more than US$ 3100. Rising disposable incomes, increasing
consumerism and emergence of a credit culture are contributing to a growing demand for food
and beverage in India.
* Most consumers living in cities have an awareness of quality and international brands and are
willing to pay extra for premium goods and services.
* According to the National Council for Applied Economic Research (NCAER), there are five
classes of consumer households in India based on annual income namely
1. The Rich (above Rs.215,000p.a)
2. The Consuming Class (Rs.45,000-215,000)
3. The Climber (Rs.22,000-45,000)
4. The Aspirants (Rs.16,000-22,000)
5. The Destitute (below Rs.16,000)
Interestingly, the greatest growth in any segment between 1996 and 2007 has been in The Rich
class with about 416 % increase, followed by The Consuming class with an increase of 179 %

14

for the same period. More than 80 % of the total population of top households lives in the seven
Indian cities of Mumbai, Delhi, Chennai, Kolkata, Hyderabad, Ahmedabad and Bangalore
(NCAER, 1997).
* The average middle class person can afford to spend more on convenience and the luxury to
save time and energy which has in turn contributed to the growth in the instant and ready to eat
segment of processed foods and fast food outlets.
* India has a young population with more than 50 % of the population below the age of 20 and
more than 70 % below the age of 40.
* The number of households in the middle, upper and high-income categories has increased by
12 % annually in comparison to a national all category household increase of less than 3 %
annually between 1990 and 1998. The households with higher disposable income have a greater
propensity to spend on food and beverages.
* The average household size in India had declined from 5.9 in 1990 to 5.5 people per household
in 1998. Increase in the percentage of Indian population living in cities and the increase in
woman participation in the labor force have contributed to the growth in the number of
consumers opting for meals away from home.
* The rural market in India is growing at about 3-4 % annually. The increased enrollment in
schools and increased reach of mass media has triggered the rural demand for several lifestyle
and aspiration products. The branded food products in India's rural markets have increased
between 40-42 % in 2003 while categories of toiletries and cosmetics grew by 16 %.
* The slow market penetration of American styled processed foods is mainly due to the Indian
consumer's preference for fresh products and traditional spices and ingredients. This also
explains the dramatic growth experienced by MNC-operated fast food outlets as soon as they
adapted their menu offerings to cater to Indian tastes.
* As per recent consumer surveys there is an increase in the Indian consumer's spending on high
value food products such as milk, meat, eggs, fruits and vegetables.

15

* Urban Indian consumers are becoming increasingly aware of international cuisines such as
Continental, Chinese, Mexican, Italian, Thai and Japanese. An increasing number of consumers
are willing to try out new food.
J S Prasad and D Raghunath Reddy studied the role of demographic and psychographic elements
in food and grocery retailing in India. Their study was based on primary data collected from 200
retail customers in Hyderabad and relevant secondary data. The authors point out that the fast
changing trends in food and eating habits of Indian consumers have contributed to the
proliferation of modern retail formats. India's large proportion of young working population,
rising income levels, growing literacy, increasing woman participation in the labor force and
increasingly popular nuclear family structure have created an enormous change in the consumers'
demand for goods and services and has paved the way for modern retail formats such as
convenience stores, department stores, supermarkets, specialty stores and hypermarkets. Changes
in demand and supply, socio-cultural, demographic, psychographic, economic and technological
advancements have led to changes in consumer behavior. The retail sector is one of the fastest
growing sectors in India. Food and grocery is the second largest segment of the retail business in
India. According to IMAGES India Retail Report, 2007, the retail market in India is about
Rs.12,00,000crore and the food and beverage retail business is estimated at Rs.21,000 crore. The
organized food and beverage market is about 5 % of the total food and beverage market. In order
to analyze the role and impact of demographic and psychographic variables in the growth and
development of organized food and grocery retail formats the study hypothesized seven variables
to cause significant influence namely consumer age, gender, family size, occupation, income,
education and psychographic variables. The psychographic variables included activities,
opinions, interests, values and lifestyles. Various statistical tools such as Mean, Standard
Deviation and Chi Square tests were employed to test the hypothesis. The results are summarized
below:* 20 % of the consumers surveyed have been shopping at the retail outlet for less than 1 year, 58
% for 3 years, 15 % for more than 3 years and 7 % of the consumers are in the habit of changing
retail outlets as per their convenience. About 18 % of the respondents visited retail outlets once
in a week, 34 % frequented twice a month and 48 % visited the retail outlet once a month. These

16

results show a significant level of consumer preferences towards modern food and grocery retail
formats.
* Respondents below 35 years of age frequented the hypermarkets and supermarkets more than
other age groups indicating that they desired a lot more variety of branded and qualitative
products.
* Consumer's gender does not have any significant influence on the type of retail outlet.
* The family size has a significant impact on the type of food and grocery outlet chosen by
consumers. As the family size increases, consumers purchase from the nearest convenience store
or supermarket.
* Demographic variable with respect to consumer's occupation levels have significant impact on
the type of food and grocery retail outlet.
* Consumer's growing income levels and availability of larger disposable income have also
influenced their choice of food and grocery retail outlet.
* Customer's increasing knowledge, awareness and literacy levels have significant influence on
types of food and grocery retail outlets.
* The psychographic analysis of the respondents resulted in the finding of four clusters namely
hedonic (16.2 percent), utilitarian (34.8 percent), conventional (28.2 percent) and socialistic
(20.8 percent) type of customers. The study indicated that consumer's psychographic dynamics
plays an important role in their choice of food and grocery outlet.
* Consumer trends in India are changing rapidly as consumers are increasingly looking for vast
variety of quality products and services, pleasant ambience, self-service, and store services like
assistance with baggage, promotions and credit facilities among others.
Another empirical study conducted in Davangere

regarding consumer expectation and

perception of fast food outlets revealed the following insights:* Consumers find that in modern times cooking has ceased to be a productive chore especially
for consumers with busy lifestyle and dual income households

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* Sociological, ecological, technological factors and market perspectives have contributed to the
growth in fast food consumption
* The low price of fast food has made the business reasonably immune to periods of recession
* The fast food industry comprises of a large number of unorganized operators who are set up at
locations easily accessible to consumers
* Fast food consumption decision is driven by impulsive consumer behavior which explains why
in spite of being aware about the possible unhealthy prospects of fast food consumers still prefer
fast food.
ContextualReview.
A contextual review of existing literature on cultural dynamics, ethnic identity, consumer
behavior, food psychology and fast food trends follows.
Ethnic Identity and Consumer Behavior.
A study in 2004 by Jung Xu et al. on ethnic identity and socialization factors analyzed culture
specific consumption behavior. The study identifies significant challenges and opportunities for
marketers caused by the ethnic and cultural factors influencing adolescent consumer behavior in
culturally diverse America, specifically pertaining to the Asian American young adults. The
salient aspects of this study are given below:* The population of Asian American young adults is growing rapidly and their purchasing power
is increasing exponentially.
* The period of emerging adulthood, from 18 to 25 years of age, is a critical phase in an
individuals' identity development process. Ethnic young adults, in addition, develop their ethnic
identity which becomes an integral part of their social and self identity.
* As many young adults start new households they gain independence and financial
responsibility and begin to make long term decisions regarding their occupational preferences
and personal life. They not only acquire significant buying power in the marketplace but also
develop new consumption patterns which may influence their decisions later in life.

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* The degree to which an individual conforms to the norms of a new culture is known as
acculturation. Acculturation is multidimensional including parameters such as cultural identity,
language usage, religion and social activities of the individual (Hui et al., 1992; Jun et al., 1993).
The attitudes and behavioral patterns of the parents of ethnic adolescent groups influence the
strength of the adolescent's sense of ethnic identity.
* The degree to which an individual's ethnic identification conforms to his or her original culture
is known as cultural identification and it represents the individual's sense of belonging to an
ethnic group.
An adolescent's consumption related attitudes and behaviors are strongly influenced by the peer
group with whom the individuals interact frequently.
Changes in Consumer Behavior in India.
Himadri Roy Chaudhuri and SitanathMajumdar have drawn upon existing literature to discuss
aspects of conspicuous consumption and the transitional socio-economic background of India.
The study reveals the followings:* It is the evolution of capitalism that has dictated contemporary philosophy, cultural practices,
art and literature (Jameson, 1983).
* Production has lost its privileged status in culture and consumption is becoming the means
through which individuals define their self image. It is also in this (re)presentation of selfimage(s) through one's consumption that the consumer begins to conceive the self as a
marketable entity, to be customized and produced, to be positioned and promoted, as a product
(Firat et al. 1995, p. 42).
* The importance of self and social images has brought about a phenomenon where products are
evaluated as symbols and are consumed based on their symbolic content (Zaltman and
Wallendorf 1979).
* Consumers no longer purchase the product just for consuming the product; they consume the
symbolic meaning of the products and the image that goes along with it (Cova, 1996).
Consumption has in fact become a means of self realization and identification (Firat, 1991).

19

* There is empirical evidence that consumers tend to adopt a more conforming mentality or
social conformity to the majority of their membership group, subculture or societal micro-groups
(Festinger, 1954; Cova, 1996).
* Consumers world over have been observed to flaunt success, money, self and possession. The
author posits that the true dynamics of this phenomenon are evident only when one takes
changing socio-economic conditions and other consumption patterns into consideration.
* Though the Indian social structure, class behavior and economic resource distribution are
different than that in western societies, the recent socio-economic transitions have significantly
changed Indian consumption habits.
* Three distinct phases in consumer culture in India are identified as
1. Gandhian philosophy of simple living dominated the pre-independence era in India.
2. Socialistic ideology of community living and self reliance were characteristic of the post
independence era until liberalization in 1991.
3. Consumerism or the consumption culture has become highly popular in post liberalized India
since 1991.
* Certain products in India such as household appliances, toiletries and packaged foods are
becoming crucial indices of upward mobility rather than indicators of wealth (, 1999).
* The forerunners of social and cultural change in India is its middle class or volume consumer
who are embracing rationality, science and secularism, leading India out of its tradition,
superstition and ignorance ( 1983). The middle class is also an active element in India's transition
from feudalism to an industry based modern society (1988).
* The purchase and display of foreign or branded goods and services appears to be increasingly
associated with a higher quality of life in India (Monteiro, 1998; Ostellaand 2000). Ostella and
Ostella (2000) also point out significant changes in consumption behaviors and aspirations
amongst all social groups.

20

* One of the characteristics of the contemporary Indian middle class is their appetite for global
culture, and their pursuit of western lifestyles, possessions and values (Gupta, 2000; Lakha,
2000).
* Consumerism has been further propelled in India by the impressive growth of media since the
inception of private cable television in the 1990s. According to Mankekar (1999), these modern
television channels have mainly highlighted desirable upper middle class lifestyles, thereby
legitimizing consumerism, exhibitionism and material wants. The television acts as a mediator
of consumption practices and culture penetration (Hirschman, 1988). The Indian consumers'
exposure to television channels has resulted in increasing transference of consumption practices,
lifestyles and purchase of brands which is considered new, modern and advanced (Varman and
Vikas, 2005). Modern day Indian movies and magazines have also been dubbed to promote
material possessions and consumerism.
* The Indian society is in the midst of a major socio-cultural change, moving form the traditional
collective society (Hofstede, 1984) to the increasingly evident individualistic society (Sinha and
Tripathi, 1994). The empowerment of women, mass media penetration, changing consumption
patterns and higher levels of education in the middle class are evidence of the evolving social
order in India.
Food Psychology.
Price, income and information are important factors determining the consumption choices that
people make, but they are not the only factors in the food consumption choices of consumers. A
study incorporating findings from behavioral economics, food marketing and psychology
proposed the following insights into how people make food decisions.
* People have problems of self-control when choosing food either because of preference, of
immediate self-gratification or under the influence of a more primal need such as hunger.
* People easily give in to default options when choosing food reflecting an asymmetry in their
evaluation of gains in comparison to loss.

21

* Experimental studies point out that consumer behavior is anomalous where individuals are
willing to pay much less to acquire an item than they are willing to accept to part with it. For
example even when people know that French fries are unhealthy they may find themselves
choosing to consume it as it has been their default option easily and quickly available in a
location close to them.
* People categorize income through mental accounting which explains why food coupons are
more effective at raising food spending than an equal amount of cash.
* Food decisions are often based on emotional thought processing rather than rational thinking.
People tend to choose less healthy food over healthier food due to impulsive behavior based on
how the food is presented or even because of the stress levels they are experiencing.
* External factors such as noise levels, lighting, size and shape of food and food containers
influence the choice of food, the amount consumed and the perceived amount of consumption.
Fast Food Trends.
A study in 2004 by Hayden Stewart and Steven T. Yen applies a unique censored equation
system approach to identify how key economic and demographic variables impact the
expenditure of a household on the choice of outlet in their consumption of food away from
home. The study combined the findings with projections on how the population is changing in
the United States. The results suggested that to the extent that consumption and expenditure are
correlated, the relative strength of the full service segment is likely to grow more than that of fast
food outlets. The following points were noted in the study:* Contrary to popular belief, research indicates that nutritional quality of fast food is not poorer
than that of meals and snacks traditionally consumed at full service restaurants, although the two
types of foods have different nutritional characteristics (Lin &Frazao, 1999).
* Food away from home is dominated by the full service and fast food restaurants with 40.4
percent and 38.3 percent of the food service industry in 2003. Food away from home is generally
less healthy than food prepared at home. Full service meals and snacks tend to be higher in fat,
cholesterol and sodium while fast foods are higher in saturated fats.

22

* The lawsuits, unfavorable media focus and researchers' inclination to link increasing incidence
of obesity and ill health with fast food has arrested the recent increase in the share of fast food in
the food service market. Since 1995 the full service restaurant companies have slightly improved
their share of the food service market.
* Environmental changes such as rising incomes, the aging population and smaller household
sizes favor the increased demand for the kinds of services and varied menus traditionally
available at full service restaurants.
* Both fast food and full service restaurants provide respite for the person in charge of cooking in
a household. Households with higher income spend more on fast food and full service
restaurants, but spending at full service restaurants has shown to be most responsive to change in
income (McCracken & Brandt, 1987; Byrne et al., 1998).
* Fast food consumption is more in households where the person in charge of cooking works
longer hours in the labor force (Byrne et al., 1998).
* Households managed by older people consume lesser fast food and some ethnic minority
population is less likely to consume both fast food and full service food.
According to the Cygnus Business Consulting and Research, India has the highest per capita
food retail outlet in the world with approximately 5.5 outlets per 1000 people. A huge proportion
of the food retail in India is the unorganized retail outlets. The Indian food processing industry is
worth more than Rs.1280 billion and is one of the largest industries in the country and ranks fifth
in terms of production, consumption, export and expected growth. The Indian government
polices have given various concessions and incentives to the processed food industry such as
income tax deduction for 10 years for fruits and vegetables preserving and packaging industry,
excise duty waiver on dairy, poultry and fish products machinery and the establishment of food
parks. The article points out that eating out or food away from home has become a way of life.
Indians spend about US$ 5 Billion a year on food away from home, double of the amount spent a
decade ago and in just 5 years time it is expected to double to US$ 10 Billion.
Indian customers are not only demanding value for money but also quality, variety and service in
their food away from home options. Recent amendments in India's FDI policies to allow 51%
FDI in Indian retailing sector for single brand retailing encourages companies such as

23

McDonalds and Pizza Hut to expand operations in the country. The bill seeks to establish Food
Safety and Standards Authority of India as an apex body to look into the affairs of the food and
food processing industry.
A study by Vinnie Jauhari exploring the growth prospects of fast food in India revealed the
following information:* There is no Indian fast food chain that operates nationally though there are several Indian fast
food chains that have strong regional presence.
* The MNC-operated fast food chains have entered the Indian market since liberalization in early
90's. These MNC-operated fast food outlets are churning more business than local fast food
outlets. Nirulas, a home grown fast food outlet since 1934, has a turnover Rs.100 crore compared
with global giant McDonald's turnover of Rs.125 crore. Global players Dominos and Pizza Hut
had a turnover of more than Rs.60 crore while local Pizza Hut could manage only Rs.25-30
croreturnover (Gupta, 2002).
* The MNC-operated fast food chains use a mix of imported and local procurement of raw
materials. Stringent standards of quality check and increased coordination in the buyer supplier
relationship ensures the integrity of food products, its freshness and multinational value.
McDonald's Quality Inspection Programme involves quality checks at over 20 different points in
their cold chain supply system.
* Franchising is a popular method of business growth strategy amongst many MNC fast food
companies. McDonalds is recognized as one of the most successful franchising company with
about 70% of global operations through the franchise system.
* To cater to the Indian tastes the MNC fast food outlets provide a modified menu by including
food items like burgers and pizzas with Indian spice flavors. The MNC fast food companies are
also becoming more sensitive to the religious and cultural sentiments of the Indian populace. For
example, during the Hindu festival week of Navratras McDonalds offers a purely vegetarian
menu and beef is not offered in any McDonalds in India.
The conceptual review analyzed major concepts in the fields of cultural studies, globalization,
consumer behavior and fast food. Empirical evidence was reviewed for intercultural studies and

24

international food consumption. Contextual review covered existing work on cultural dynamics,
ethnic identity, consumer behavior, fast food psychology and fast food trends.
Download
Strategy.
Schiffman (1997) has observed that over the past several decades, there has been a trend
towards children playing an active role in what the family buys, as well as in the family decision
making process. This shift in influence has occurred as a result of families having fewer children,
more dual-income couples who can afford to permit their children to make a greater number of
the
choices and the encouragement by the media to allow children to express themselves. Still
further
single parent households often push their children towards household participation and self
reliance.
Claude Pecheux and Christian Derbix (1999) have said that childrens attitude towards
particular brand is more crucial to understand than their choice behaviour and this is important
not
only to understand their consumer behaviour as children but also their future behaviour as adults.
D. R. John (1999) classified consumer socialization stages of children as being the perceptual
stage (3-7 years), the analytical stage (7-11 years) and reflective stage (11-16 years). On the basis
of an exhaustive review, she contended that children in perceptual stage focus on perceptually
salient features of products use direct requests and emotional appeals to influence purchases, and
possess limited ability to adapt strategy to a person or a situation. They are expedient in making
decision, are egocentric (as validated by Johnson (1995), and have the emerging ability to adapt
to cost-benefit trade-offs. However, children in analytical stage are more thoughtful, focus on
important attribute information to generate an expanded repertoire of strategies (especially noncompensatory ones), and are capable of adapting strategies to tasks. In the reflective stage,
children have substantial brand awareness for adult-oriented as well as child-oriented product

25

categories, posses ability to gather information on functional, perceptual, and social aspects, and
are capable of adapting strategies to tasks in adult-like manner.

CHAPTER 3:HISTORY
1.
2.
3.
4.

MCDONALDS
DOMINOS
SUBWAY
KFC

26

PHOTO: The first McDonald's was built in 1940 by the McDonald brothers (Dick and
Mac).

1954
Ray Kroc became the first franchisee appointed by Mac and Dick McDonald in San
Bernardino, California.
1955
Ray Kroc opened his first restaurant in Des Plaines, Illinois (near Chicago), and the
McDonald's Corporation was created.
1957
Quality, Service, Cleanliness and Value (Q.S.C. & V.) became the company motto.
1959
The 100th McDonald's opened in Chicago.

PHOTO: The McDonald brothers (Dick right and Mac center)

discussing plans with an executive.
1961
Ray Kroc bought all rights to the McDonald's concept from the McDonald's brothers for $2.7
million.
Hamburger University opened in Elk Grove, near Chicago.
1963
One billion hamburgers sold.

27

The 500th restaurant opened.

The 500th student graduates from Hamburger University.
Ronald McDonald made his debut.
McDonald's net income exceeded $1 million.
1964
Filet-o-Fish sandwich introduced.
1965
McDonald's Corporation went public. Per earning ratio varies from 10 to 22 during year; stock
price range, 15 - 33.5.
1966
McDonald's listed on the New York stock exchange on the 7th May.
1967
The first restaurants outside of the USA opened in Canada and Puerto Rico.
1968
The Big Mac was introduced.
The 1,000th restaurant opened in Des Plaines, Illinois.
1970
McDonald'srestaurant in every US state.
Ray Cesca (Director of Global Purchasing of the McDonald's Corporation) has admitted that
when McDonald's opened stores in Costa Rica in 1970, they were using beef from cattle raised
on ex-rainforest land, deforested in the 1950's and 1960's.
New countries Virgin Islands, Costa Rica.

28

PHOTO: The first Japanese McDonald's in Tokyo.

1971
The Egg McMuffin sandwich was test marketed in the US as McDonald's first breakfast menu
item.
McDonald's Japanese President, Den Fujita, stated "the reason Japanese people are so short and
have yellow skins is because they have eaten nothing but fish and rice for two thousand years";
"if we eat McDonald's hamburgers and potatoes for a thousand years we will become taller, our
skin become white and our hair blonde".
New countries - Japan, Holland, Australia, Germany, Panama, Guam.
1972
Assets exceeded $500 million and sales surpassed $1 billion.
A new McDonald's restaurant opening every day.
New countries - France, El Salvador.
The 2,000th restaurant opened in Des Plaines, Illinois.
The Quarter Pounder was introduced.
Ray Kroc made a $250,000 donation to the controversial 1972 presidential campaign of Richard
Nixon, a donation which was perhaps a subject of investigation during the Watergate corruption
scandal. Passages in the 'Behind The Arches' book (written with McDonald's backing and
assistance) state that the donation came around the very time that McDonald's franchisees were
lobbying to prevent an increase in the minimum wage, and to get legislation (dubbed 'The
McDonald's Bill') passed to be able to pay a sub- minimum wage to some young workers.
1973

29

McDonald's Golden Arches Restaurants Limited founded in UK as a joint venture partnership

between the McDonald's Corporation and two businessmen; one British, one American.
New country - Sweden.
Egg McMuffin introduced.
1974
The 3,000th McDonald's restaurant was opened in Woolwich (south east London) in October,
the first in the UK. The company admitted that NOBODY went in and later decided to target
children with TV ads.
The UK Head Office was sited in Hampstead, North London.
Up to 1974, McDonald's employees in Puerto Rico were unionised, but the company was sold to
a new franchisee. A dispute followed, closing all the stores and McDonald's pulled out of Puerto
Rico. They reopened in 1980 with non-union labour.
New countries - England, Netherlands, Antilles, Guatemala.
The first Ronald McDonald House opened in Philadelphia.
At a San Francisco Labor Board hearing, McDonald's workers testified that lie-detectors had
been used to ask about union sympathies, following which the company was threatened with
legal action.

PHOTO: McDonald's buildings have undergone dramatic

changes from the first one opened by Kroc in 1955 (top) which is now preserved as a
museum, to this ultra modern restaurant opened in 1983 in New Orleans (bottom).

30

1975
The company's first Drive-Thru opened in Sierra Vista, Arizona.
New countries - Hong Kong, Bahamas, Nicaragua.
Fred Turner becomes Chairman, Ray Kroc Senior Chairman, and Ed Schmitt becomes President.
Broadcast advertising appeared in UK cinemas.
1976
McDonald's first UK TV advertisement was broadcast.
4,000th store opened in Canada.
New countries - Switzerland, New Zealand.
Largest restaurant opens - with 334 seats.
1977
New countries - Ireland, Austria.
Breakfast menu introduced, nationally in America.
1978
The 5,000th restaurant opened in Kanagawa, Japan and it made US $1 million in its first year.
Sundaes introduced in USA.
In one store in Chicago (USA), a majority of McDonald's workers joined a union. The company
then took legal action to stop recognition for the union unless they could get a majority in the 8
stores run by the franchisee.
New country - Belgium.
1979
A 7 month strike in Dublin (Ireland) lead to recognition of the ITGWU union. In 1985, two
union activists won a victory at a labour court after claiming victimisation and unfair dismissal.
New countries - Brazil and Singapore.
1980
The 6,000th restaurant opened in Munich.
After workers in a store in Detroit (USA) joined a union, the company organised a visit by a top
baseball star, staff disco, and 'McBingo' prior to elections for union representation.

31

First floating restaurant on a steamer in Missouri.

1,000th international restaurant opened.
1981
New countries - Spain, Denmark and Malaysia.
1982
Geoffrey Guiliano, a main Ronald McDonald actor, quit and publicly apologised, stating "I
brainwashed youngsters into doing wrong. I want to say sorry to children everywhere for selling
out to concerns who make millions by murdering animals".
7,000th restaurant opened in Washington DC.
McDonald's were responsible for food poisoning outbreak caused by E. Coli bacteria, which
affected 47 people in Oregon and Michigan, USA.
EgonRonay calls McDonald's burgers 'uninspiring'.
Breakfast was introduced to the British menu.

PHOTO: The $40 million 'Hamburger University'.

1983
The McDonald's Corporation became sole owners of McDonald's in the UK. The Company is
named McDonald's Hamburgers Limited.
Five consignments of Brazilian beef are secretly imported for McDonald's UK stores.
The 100th UK restaurant opened in Market Street, Manchester.
New country - Norway.
Introduction of Chicken McNuggets in USA.
New Hamburger University campus opens in Oak Brook, Illinois. Set in 80 wooded acres.
Training is provided for every level of McDonald's management worldwide. A lodge with 154
rooms in also on the same site.

32

In Arkansas (USA), the UFCW union, which was interested in recruiting McDonald's workers,
was involved in a union dispute at a chicken processing plant supplying McDonald's. The union
launched a boycott of McDonald's 'McNuggets' and picketed many of its stores. Stan Stein
(McDonald's

Head of

Personnel and Labour Relations) spent up to '80%' of a whole year

fighting the union's campaign.

1984
Founder Ray Kroc dies.
James Huberty shoots 22 people dead at a McDonald's in San Diego (USA).
50 billionth hamburger sold.
Ronald McDonald Children's Charities is founded in his memory to raise funds in support of
child welfare.
A McDonald's pamphlet which is distributed to health professionals in the UK states:
"There is a considerable amount of evidence to suggest that many of the diseases which
are more common in the western, affluent world - diseases such as obesity, diabetes, high
blood pressure, heart disease, stroke, and some forms of cancer - are related to diet. The
typical western diet is relatively low in dietary fibre (roughage) and high in fat, salt and
sugar."
McDonald's now serves 17 million customers a day - equivalent to serving lunch to the entire
population of Australia and New Zealand. If McDonald's lined up all the hamburgers sold since
1955, they would:

Circle the equator 103.75 times;

Reach to the moon and back 5 times.

33

PHOTO: Ray Kroc demonstrating

his fetish for

cleanliness.
1985
London Greenpeace (a radical group of civil rights and environmental campaigners, independent
of Greenpeace International) launches a campaign intended to expose the reality behind the
advertising mask of the fast food chains, including McDonald's.
Sergio Quintana, the sales director of Coop Montecillos (the sole supplier of beef to McDonald's
stores in Costa Rica since 1970), stated on camera that his company's beef was being supplied to
McDonald's in the USA.
1986
Drive-Thru restaurants opened in UK at Fallowfield, Dudley, Neasden and Coventry.
Four workers in Madrid who had called for union elections were sacked by McDonald's. The
company was forced to reinstate the workers after the labour court ruled that the dismissals were
illegal.

The 200th UK restaurant opened in 1pswich.

PICTURE: Cover of the "What's wrong with McDonald's?" factsheet produced by London
Greenpeace.
McDonald's became the first UK restaurant group to introduce nutritional information,
throughout the country, for the benefit of customers.
London Greenpeace published a 6-sided factsheet entitled "What's Wrong With McDonald's? Everything They Don't Want You To Know".
The first UK franchisee-operated restaurant opened in Hayes, Middlesex.

34

The first World Day of Action Again McDonald's was held on 16th October (UN 'World Food
Day').
1987
The Attorneys General of Texas, California and New York threatened to sue McDonald's under
the consumer protection laws over an advertising campaign claiming that McDonald's food is
nutritious. The Attorneys General concluded that the campaign was deceptive because
"McDonald's food is, as a whole, not nutritious."
McDonald's is serving 20 million people a day in nearly 10,000 restaurants in 47 countries.
The UK Midlands regional training centre opened in Sutton Coldfield.
McDonald's started legal proceedings against the Trans nationals Information Centre (an
independent research and action group based in London) over a booklet they produced called
"Working for Big Mac" which was highly critical of the company's employment practices. The
TIC backed down lacking resources to fight the case to trial, discontinued publication and
distribution of the booklet (which was pulped), and the organisation itself went bust.
1988
McDonald's sponsored the Child of Achievement Awards.
CFCs ceased to be used for most of McDonald's foam packaging.
300th UK restaurant opened in Dagenham, Essex.

PHOTO:An ad in a German newspaper which aims to counter

criticism that McDonald's is changing German restaurant traditions for the worse.
1989

35

Italian designer Valentino attempts in a Rome court to stop McDonald's opening near the Piazza
di Spagna, complaining of "noise and disgusting odours".
McDonald's is listed on the Frankfurt, Munich, Paris and Tokyo stock exchanges.
The Bournemouth Advertiser (UK) is threatened with a libel action by McDonald's over an
article which discussed the captive-bolt method of slaughter for cattle. The newspaper backed
down and published an apology.
Michael Quinlan is appointed Chairman and Chief Executive Officer.
The UK company's name was changed to McDonald's Restaurants Limited.
McDonald's send undercover private investigators to infiltrate London Greenpeace over a period
of 20 months.
McDonald's charity for child welfare fundraising, Ronald McDonald Children's Charities, was
registered.
McDonald's Child of Achievement Awards were presented by UK Prime Minister Mrs Margaret
Thatcher.
The UK Manchester regional training centre was opened.
McDonald's stores in Philadelphia (USA) were independently surveyed and accused of having
racist differential wage rates between the inner-city stores (mostly black workers) and the
suburbs (mostly white workers).
1990
September - libel writs were served on five supporters of London Greenpeace, three of whom
feel unable to fight the case. The McLibel Support Campaign is set up to generate solidarity and
financial backing for the McLibel Defendants.
McDonald's opened in Pushkin Square and Gorky Street, Moscow.
McDonald's opened at a UK airport at North Terminal, Gatwick.
The first Ronald McDonald House opened at Guy's Hospital, London.
McDonald's Child of Achievement Awards attended by HRH The Princess of Wales.
1991
McDonald's were responsible for a serious food poisoning outbreak in Preston (UK), when
several customers were hospitalised as a result of eating undercooked burgers contaminated by
potentially deadly E.Coli 0157H bacteria.

36

The 150th Ronald McDonald House opened in Paris.

McDonald's opened in Beijing, China.
The 400th UK restaurant (and first in Northern Ireland) is opened in Belfast.
McDonald's opens in Hampstead (North London) despite strong opposition from local residents.

PHOTO: A 1950's newspaper advert.

1992
Mark Hopkins, a McDonald's worker in Manchester (UK), was fatally electrocuted on touching
a 'fat filtering unit' in the 'wash-up' area of the store.
The manager of a Newcastle store (UK) was jailed for 6 months for inducing a crew member to
phone through a hoax bomb threat to nearby Burger King in order to boost sales at McDonald's.
McDonald's Child of Achievement Awards attended by UK Prime Minister John Major.
McDonald's opened in a railway station at Liverpool Street, London.
A UK Health & Safety Executive report made 23 recommendations for improvements in the
safety of employees. One of its conclusions was "The application of McDonald's hustle policy
[ie. getting staff to work at speed] in many restaurants was, in effect, putting the service of the
customer before the safety of employees."
Visitors to Salisbury Cathedral (UK) are offered two burgers for the price of one if they buy a
commemorative parchment scroll. The idea is dropped when the bishop gets back from holiday.
First restaurant in a European hospital opened at Guy's Hospital, London.
1993
The first McDonald's at sea opened aboard the Silja Europa, the world's largest ferry sailing
between Stockholm and Helsinki.

37

The Paris planning authorities refuse permission for a McDonald's under the Eiffel Tower.
The second Ronald McDonald House opened at Alder Hey Children's Hospital, Liverpool.
500th UK restaurant opened in Notting Hill Gate, London.
First UK operated restaurant on a ship opened on the Stena Sealink ferry "Fantasia" sailing
between Dover and Calais.
McDonald's sponsored athletics in the UK through the McDonald's Young Athletes' League and
the International invitational meeting the McDonald's Games.
1994
McLibel Trial starts on 28th June.
Restaurants opened in Bahrain, Bulgaria, Egypt, Kuwait, Latvia, Oman, New Caledonia,
Trinidad and United Arab Emirates, bringing the total to over 15,000 in 79 countries on 6
continents.
McDonald's celebrated twenty years of operating in the UK.
McDonald's environmental image was revealed to be a sham, and customers being conned when
it was discovered that rubbish which customers were asked to put into separated recycling bins
throughout New Zealand stores was sent to the tip.
McDonald's achieved the highest ever grade under the Royal Society for the Prevention of
Accidents (RoSPA)Quality Safety Audit scheme.
McDonald's was voted the 'Most Parent Friendly' restaurant in the UK for the second successive
year by the Tommy's Parent Friendly Campaign, supported by the Daily Telegraph.
Workers in an Ontario store (Canada) joined a union, but the company managed to avoid
recognition by ensuring victory in Labour Board sponsored elections.
The McLibel Defendants issue a countersuit for libel against McDonald's over the company's
accusation in a leaflet that they are telling lies.
Five McDonald's managers are arrested in Lyon, France for trying to rig union elections.

On 1st October, McDonald's UK executives held a celebration along with a jazz band and clown
at their Woolwich store to mark 20 years since this first store opened in the UK. Twenty five

38

London Greenpeace and McLibel supporters gathered with a banner reading "20 Years of
McGarbage" and handed out 4000 "What's Wrong With McDonald's?" leaflets to passers-by.
In October, there is an demonstration at McDonald's European headquarters in London where
sackfuls of the company's litter picked up off the streets are returned. 500 people attend the
National March Against McDonald's through central London to protest against the company's
exploitation of people, animals and the environment.
The company threatens legal action against a topless restaurant in Australia called "McTits".

PHOTO:An ad in a German newspaper which aims to counter criticism that McDonald's is

changing German restaurant traditions for the worse.
1995
McLibel Trial becomes the longest libel trial in British history on Day 102 in March.
On 15th April, there were international protests to mark the 40th anniversary of the opening of
the world's first store of the McDonald's Corporation, and to celebrate 10 years of co-ordinated
international resistance to McDonald's.
On the first anniversary of the McLibel Trial (28th June), it becomes known that McDonald's
had initiated secret settlement negotiations and had twice flown members of their US Board of

39

Directors to London to meet with the McLibel Defendants in an attempt to bring the case to an
end.
12th October, the third anniversary of the death of Mark Hopkins, was a Day of Solidarity With
McDonald's Workers in the UK.
On 16th October, the 11th annual Worldwide Day of Action Against McDonald's, there were
protests in at least 20 countries. In the UK, at least 250 of the company's 600 stores were
leafletted.
On 11th December (Day 199 of the trial), the McLibel Trial becomes the longest civil case in
English history.
Following widespread opposition by local residents, McDonald's were refused permission to
open an outlet at their European headquarters in north London.
1996
February 16th 10am, the McSpotlight website was launched.
In March, the public's intense concern over the links between the cattle disease BSE and its
human equivalent CJD forced McDonald's UK to ban British beef. The company did not sell any
beef products for a week while supposedly waiting for beef supplies to arrive from other EU
countries.
The "Vegetable Deluxe" was launched in the UK.
McDonald's opened stores in India.
McDonald's and Disney announced a deal giving McDonald's exclusive rights to use characters
from Disney films in its promotions around the world for 10 years. Commentators called it the
biggest global marketing alliance yet devised.
McDonald's opened a store in Belarus, its 100th country.
The movie star Robin Williams turned down a million-pound offer to advertise McDonald's.
McDonald's threatened the owner of a UK sandwich bar called "McMunchies" with legal action
for breach of trademark. A retired Scottish school-teacher called Ronald McDonald, and the chief
of the McDonald clan in Scotland were both outraged at this further attempt by McDonald's to
claim global dominion over the prefix "Mc" and the name "McDonald" which has been an Irish
and Scottish family name for centuries.

40

The Supreme Court of Denmark ruled against McDonald's claim that a sausage stand called
"McAllan's" was in breach of its trademark.
Following widespread opposition by local residents in Winchmore Hill (north London) which
put a lot of pressure on the local MP (Michael Portillo, the Defence Secretary), McDonald's were
refused permission to convert the local Conservative Association HQ into a Drive-Thru.
McDonald's sued for breach of trademark a Jamaican fast-food company (called the
McDonald's Corporation Limited) which had been operating in Jamaica since the early 1970's.
The Jamaican company succeeded in getting information from the McLibel Trial taken from the
Internet ruled admissible in the case, and in getting an order barring McDonald's from opening
stores in the country until the courtcase was completed.
McDonald's succeeded in its trademark battle in South Africa, when an appeal court prohibited
competitors from using its name and the golden arches symbol.
McDonald's began spending $200 million on a promotional blitz in the USA & Canada to lure
adults to visit their outlets. This included the launch of the new adult burger, the "Arch Deluxe"
in May. Despite this blitz, US sales continued to fall.
The parents of a child, who died from E.Coli 0157 food poisoning after eating McDonald's
burgers in Spain and England, began legal proceedings for compensation in the USA.
Meanwhile, three children who suffered E.Coli 0157 food poisoning in England also from
McDonald's burgers were granted legal aid to sue McDonald's and their supplier McKey's.
McDonald's opened the world's first fast-food ski-through in the Lindvallen resort (Sweden).
The McLibel Trial became the longest trial of any kind in English legal history in November.
The evidence was completed in July, and the closing speeches in December, but the Judge
reserved his Judgment until the following year.

PHOTO: Ray Kroc

41

2.DOMINOS

Tom Monaghan, the founder of Domino's Pizza,

in his first restaurant somewhere in the 1960s.
Photo

credit

Maproom

Systems,

Brett

Schutzman
Dominos Pizza is the second largest franchised pizza chain in the U.S.A., and the history of
Dominos Pizza is similar to its rival Pizza hut; two brothers started it with borrowed equity in the
sixties. Tom and James Monaghan bought a small Michigan Pizzeria called Dominick's, which
was jointly run by them until James traded his share for a second hand car. Tom revitalized the
image by changing the name to DominosPizza .
By the late seventies there were over 200 franchise pizza businesses in the States and Dominos
Pizza was ready to go International. In 1983 Dominos Pizza opened its doors in Winnipeg, and in

42

the same year opened its one thousandth store. Later that same year Domino's corporate history
was to begin in Australia with its first franchise in Brisbane, on the East coast.
The locations for Dominos Pizza grew quickly from here as they sprung up in all sorts of diverse
places including Bogot. Despite Domino's Pizza springing up diverse locations, they were still
a very traditional company. Domino's Pizza menu had been kept very simple and streamlined;
they only sold one type of pizza crust which they named the regular pizza. Domino's Pizza dough
was shaped by tossing the dough and pulling it into shape. The pizza menu included just two
sizes of dough, it was not until much later that competition forced them to add a medium and
extra large sized pizza. There were no such things as side orders you could have Pizza, pizza or
Pizza and you could only drink a Coke with it.
In 1989 the history of Domino's Pizza was to change when the Deep Pan pizza was introduced,
for the first time in twenty five years the company was being forced to react to market demand.
This move consolidated the financial base and ensured the growth of Domino's Pizza , as the
same year they opened their five thousandth store.
The wind of change had started and by 1992 they were to introduce the first non pizzaitemto
their menu, this was obviously a reluctant move as it was bread sticks. Domino Pizza dough was
already on hand and the making of bread sticks is not so different.
For many years the company had advertised that if the delivery of their pizzas took longer
than thirty minutes then the pizza would be delivered free. This was parodied by the Teenage
Mutant Ninja Turtles movie which specified the "pizza dude has 30 seconds" to complete the
delivery. The turtles pizza was late and they received a refund of $3 for "being two minutes late,
dude!" However the benefits to Domino Pizza was enormous as millions of kids were to hear the
name of Domino Pizza endorsed on celluloid. In 1993 Domino Pizza discontinued this policy
and stated that if a customer was unhappy they could have a new pizza or a refund.
By 1994 Dominos Pizza marketing policy widened as chicken wings were introduced to the
menu. At the same time the company hit the African continent as they opened a store in Egypt .
By 1996 Dominos Pizza website was launched and the company declared global sales of nearly
$3 billion.

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Despite their reluctance to add a wider range menu they have as a company given the pizza
industry many innovations that have now become standard. The belt driven pizza ovenwas the
invention of Domino Pizza and they began using corrugated cardboard delivery boxes which
were very effective at holding the heat within the pizza during the delivery time. Ever mindful of
the fact that a cold pizza must be about the worst dining experience on earth Dominos pizza
introduced the "Heat Wave," a portable electrical bag system that keeps the pizza hot during
delivery.

The Domino's Pizza Logo

By 1997 they had also had an internal modern facelift as their stores were all brightened up and
the company introduced a new logo. Domino Pizza continued to grow exponentially and in 1997
they opened seven stores in one day but on 5 different continents.
In 2004, Super Bowl Sunday was the most hectic pizza delivery day of the year when Dominos
Pizza solda over a million pizzas, which was an increase of 42 percent on their normal Sunday
trading volume. As the company continues to grow so rapidly it is just as well the practice of
adding a dot onto the logo was discontinued after three outlets as Dominos Pizza now has over
seven thousand outlets globally.

3. SUBWAY
Back in 1965, Fred DeLuca set out to fulfill his dream of becoming a medical doctor. Searching
for a way to help pay for his education, a family friend suggested he open a submarine sandwich
shop.

44

With a loan of $1,000, the friendDr. Peter Buckoffered to become Freds partner, and a
business relationship was forged that would change the landscape of the fast food industry.
The first store was opened in Bridgeport, Connecticut in August, 1965. Then, they set a goal of
having 32 stores opened in 10 years. Fred soon learned the basics of running a business, as well
as the importance of serving a well-made, high quality product, providing excellent customer
service, keeping operating costs low and finding great locations. These early lessons continue to
serve as the foundation for successful SUBWAY restaurants around the world.
By 1974, the duo owned and operated 16 submarine sandwich shops throughout Connecticut.
Realizing they would not reach their 32 store goal in time, they began franchising, launching the
SUBWAY brand into a period of remarkable growth which continues to this day.
Today, the SUBWAY brand is the world's largest submarine sandwich chain with more than
37,000 locations around the world. Weve become the leading choice for people seeking quick,
nutritious meals that the whole family can enjoy. From the beginning, Fred has had a clear vision
for the future of the SUBWAY brand. As we continue to grow, we are guided by his passion for
delighting customers by serving fresh, delicious, made-to-order sandwiches.

45

4.KFC

46

KFC was founded by Harland Sanders, an entrepreneur who began selling fried chicken from his
roadside restaurant in Corbin, Kentucky, during the Great Depression. Sanders identified the
potential of restaurant franchising, and the first "Kentucky Fried Chicken" franchise opened in
Utah in 1952. KFC popularized chicken in the fast-food industry, diversifying the market by
challenging the established dominance of the hamburger. By branding himself as "Colonel
Sanders", the founder became a prominent figure of American cultural history, and his image
remains widely used in KFC advertising. The company's rapid expansion saw it grow too large
for Sanders to manage, and in 1964 he sold the company to a group of investors led by John Y.
Brown, Jr. and Jack C. Massey.

KFC was one of the first fast-food chains to expand internationally, opening outlets in England,
Mexico and Jamaica by the mid-1960s. Throughout the 1970s and 1980s, KFC experienced
mixed fortunes domestically, as it went through a series of changes in corporate ownership with
little or no experience in the restaurant business. In the early 1970s, KFC was sold to the spirits
distributor Heublein, which was taken over by the R.J. Reynolds food and tobacco conglomerate,
who later sold the chain to PepsiCo. The chain continued to expand overseas, and in 1987 KFC
became the first Western restaurant chain to open in China.

In 1997, PepsiCo spun off its restaurants division as Tricon Global Restaurants, which changed
its name to Yum! Brands in 2002. Yum has proved a more focused owner than Pepsi, and
although KFC's fortunes have waned in the US, the company has continued to grow in Asia,
South America and Africa. The chain has expanded to 18,875 outlets across 118 countries and
territories, with 4,563 outlets in China alone, KFC's largest market.
Origin.
Harland Sanders was born in 1890 and raised on a farm outside Henryville, Indiana. When he
was five, his father died, forcing his mother to work at a canning plant. As the eldest son,
Sanders was left to care for his two siblings.After he reached seven, his mother taught him how
to cook. After leaving the family home at age 13, Sanders passed through several professions,

47

with mixed success. In 1930, he took over a Shell filling station on US Route 25 just outside
North Corbin, a small city on the edge of the Appalachian Mountains. By June, he had converted
a storeroom into a small eating area using his own dining table, and was serving meals such as
steaks and country ham to travelers.

The Harland Sanders Caf and Museum.

In 1934, Sanders purchased the larger filling station on the other side of the road and expanded to
six tables. It was then that he began to sell fried chicken. To improve his skills, Sanders took an
eight-week restaurant-management course at the Cornell University School of Hotel
Administration. By 1936, his business had proved successful enough for him to be given the
honorary title of Kentucky colonel by Governor Ruby Laffoon. In 1937, Sanders expanded his
restaurant to 140 seats, and in 1940 purchased a motel across the street, the Sanders Court &
Caf.

Sanders was dissatisfied with the 35 minutes it took to prepare his chicken in an iron frying pan,
but he did not want to deep fry. Although a much faster process, in Sanders' opinion it produced
dry and crusty chicken that was unevenly cooked. On the other hand, if he prepared the chicken
in advance of an order, there was sometimes waste at the end of the day. In 1939, the first
commercial pressure cookers were released onto the market, predominantly designed for
steaming vegetables. Sanders bought one and modified it into a pressure fryer, which he then
used to prepare chicken. The new method reduced production time to be comparable with deep
frying, yet (in Sanders' opinion) retained the quality of pan-fried chicken. In July 1940, Sanders
finalised what came to be known as his Original Recipe of 11 herbs and spices. Although he
never publicly revealed the recipe, he admitted to the use of salt and pepper, and claimed that the
ingredients "stand on everybody's shelf".

48

After being recommissioned as a Kentucky colonel in 1950 by Governor Lawrence Wether by,
Sanders began to dress the part, growing a goatee and wearing a black frock coat (later switched
to a white suit), a string tie, and referring to himself as "Colonel". His associates went along with
the title change, "jokingly at first and then in earnest", according to biographer Josh Ozersky.

Early franchisees.

The Sanders Court & Caf generally served travelers, so when the route planned in 1955 for
Interstate 75 bypassed Corbin, Sanders sold his properties and traveled the US to market his
chicken concept to restaurant owners. Independent restaurant owners would pay five cents on
each chicken sold as a franchise fee, in exchange for Sanders' "secret blend of herbs and spices",
his recipe and method, and the right to advertise using his name and likeness. In 1952 he had
already successfully franchised his chicken recipe to Pete Harman of South Salt Lake, Utah, the
operator of one of the largest restaurants in the city. Don Anderson, a sign painter hired by
Harman, coined the name "Kentucky Fried Chicken". Sanders adopted the name because it
distinguished his product from the deep-fried "Southern fried chicken" product found in
restaurants.

Harman claimed that in his first year of selling "Kentucky Fried Chicken", his restaurant sales
more than tripled, with 75 percent of the increase coming from the sale of fried chicken. In Utah,
a product from Kentucky was exotic and evoked imagery of Southern hospitality.

As a franchise-led operation, KFC's success depended on the work of the early franchisees, and
Harman has been described as the "virtual co-founder" of the chain by Sanders' biographer.

49

Harman trademarked the phrase "It's finger lic good", which was eventually adopted as a slogan
across the entire chain. In 1957 Harman bundled 14 pieces of chicken, five bread rolls and a pint
of gravy into a cardboard bucket, and offered it to families as "a complete meal" for US$3.50
(around US$30 in 2014).He first used the packaging as a favor to Sanders, who had called on
behalf of a Denver franchisee who did not know what to do with 500 cardboard buckets he had
bought from a traveling salesman.

Dave Thomas was a franchisee from the mid-1950s, and developed the rotating bucket sign that
came to be used at many KFC locations. Thomas reported that Sanders' fried chicken was a
"sensation" from the first day he offered it in his restaurant, with queues lining outside the door.
He was an early advocate of the take-out concept that Harman had pioneered, and introduced a
bookkeeping form that Sanders rolled out across the entire KFC chain. Thomas sold his shares in
1968 for US$1 million (around US$7 million in 2013), and became regional manager for all
KFC restaurants east of the Mississippi before founding the Wendy's restaurant chain in 1969.

In 1960, Sanders moved the company headquarters from Corbin to Shelbyville, Kentucky, which
had better transport links through which he could distribute his spices, pressure cookers, take-out
cartons and advertising material to franchisees.

Sale by Sanders.
KFC popularized chicken in the fast food industry, diversifying the market by challenging the
established dominance of the hamburger .In 1960 the company had some 200 franchised
restaurants; by 1963 this had grown to around 600, making it the largest fast food operation in
the United States. In 1963, Sanders met John Y. Brown, Jr, the son of his lawyer, John Y. Brown,
Sr., at a political breakfast. Brown told Sanders that he was keen to join the company, which had
developed a strong reputation in the Kentucky area. According to Brown, Sanders had lost
interest in the business operations of KFC. Sanders explained that he saw useful qualities in

50

Brown, such as youth, enthusiasm and vision. Brown and franchisee Dave Thomas agreed that
Sanders "wasn't a very good businessman".

Brown convinced the financier Jack C. Massey to provide 60 percent of the acquisition capital,
and provided a major contribution himself, with smaller contributions from franchise holder Pete
Harman and company officials Lee Cummings and Harlan Adams. Sanders then began to have
doubts about selling the company, as members of his family were against it. Knowing that
Sanders placed faith in astrology, Massey waited until he had a particularly positive and dramatic
horoscope before offering a price for the company .When Massey made the written offer,
Sanders read the figure, immediately consulted his horoscope, then agreed to sell. The group of
investors acquired the company from Sanders in 1964 for US$2 million (around US$15 million
in 2013). The contract included a lifetime salary for Sanders and the agreement that he would be
the company's quality controller and trademark. Harman believed that establishing a continuity
of leadership and a firm central control would prevent possible disputes among franchisees and
Sanders' family.

Rapid growth in the US.

Harland Sanders in character as "The Colonel" c. 1974

Massey and Brown introduced standardization to the fragmented company. After visiting Pete
Harman's operations in Utah, they began to implement the stand-alone take-out model across the
entire chain. Franchisees were ordered to delist their own menu items so that they could
concentrate on KFC products. The restaurants were re-branded with a distinctive red-and-white
striped color pattern and mansard roofs with cupolas. The roll-out of freestanding stores
accelerated the company's growth as outlets exclusively selling fried chicken proved to be more
appealing to potential franchisees.

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Sanders did not approve of all of the changes to the company that he had founded, and became
incensed when Massey moved company headquarters from Kentucky to Nashville, Tennessee,
which was closer to where Massey lived. Sanders bellowed, "This ain no goddam Tennessee
Fried Chicken, no matter what some slick, silk-suited sonofabitch says". Sanders also became
frustrated with some of the changes to the company, such as introducing an initial franchisee fee
of $4,000, and charging franchisees a percentage of total sales rather than a nickel per chicken
sold. Sanders also believed that the company had reneged on their contract with him when they
opened operations in Canada, because as he understood it, the contract had granted him the
exclusive rights to operate in the country .Sanders complained to the press The Washington Post,
"I don't like some of the things John Y. done to me. Let the record speak for itself. He overpersuaded me to get out". The outburst was embarrassing for Brown, who argued that he made
the management structure more efficient and treated the increasingly disgruntled Sanders with
tact and patience.

KFC was forced to renegotiate with Sanders regarding the Canadian activities, as he owned $1.5
million worth of stock and was using it to prevent Massey from listing the company publicly
until his points of issue were addressed. Brown and Massey claimed that Sanders only had the
rights to process chicken in Canada .After they renegotiated the contract to guarantee Sanders
exclusive rights over Canada, he sold his stock to them, and the company went public in
1966.After going public, the company bought out its 600 franchisees, and directly operated them
itself. Later that year, Massey resigned from day-to-day management of the company (although
he remained as chairman), and Brown announced that headquarters would be moved to
Louisville, Kentucky.

By 1967, KFC had become the sixth largest restaurant chain in the US by sales volume, and 30
per cent of sales were take-out .Brown felt that the company had to expand quickly, or else
emerging rivals such as Church's Chicken would steal the company's lead; 863 outlets were
opened in 1968. The company's growth pushed its stock value to "stratospheric" levels,
according to Reuters, and in 1969 it was listed on the New York Stock Exchange. Meanwhile,

52

KFC entered into ventures with other companies. In 1969, Brown launched the "Kentucky Roast
Beef" restaurant chain, and "Colonel Sanders Inns" motels. Brown believed that the Colonel
Sanders brand could be used to market anything, but these two ventures quickly failed. That
same year, KFC entered a joint venture with the California-based fish and chips chain H. Salt
Esquire, which proved more successful, but was sold off in 1980.

Massey resigned as chairman of the company in March 1970, and Brown took over his role. The
chain had reached 3,000 outlets in 48 different countries by 1970, but expansion was often
chaotic and poorly executed. When he was promoted to regional manager, Dave Thomas
complained that the company had become too "corporate", sent him "a lot of Mickey Mouse
memos" and that Brown lacked motivational skill. A member of KFC senior management
described the international strategy as "throwing some mud against the map on the wall, and
hoping some of it would stick." The first outlet in Japan was opened after just two weeks
preparation, and it proved to be a costly failure, losing $400,000 during its opening month and
wasting more chicken than it sold. Operational problems became clear in July 1971, after the
company reported its first ever profit loss from the prior six-month period.
Strained relations with Sanders; R.J. Reynolds.

This sign displays the KFC logo as used between 1978 and 1991
Once too large for Sanders to manage, Kentucky Fried Chicken grew to overwhelm John Y.
Brown as well. In July 1971, Brown sold the company to the Connecticut-based Heublein , a
packaged food and drinks corporation, for US$285 million (around US$1.6 billion in 2013).
Brown personally gained around $35 million from the sale. Reuters opined that the takeover
probably saved the company from disaster. Heublein planned to increase KFC's volume with its
sales and marketing expertise.

53

Meanwhile, Church's Chicken began making inroads into KFC's market share with their "Crispy
Chicken" product. KFC responded in 1972 when it introduced "Extra Crispy Chicken". In 1973,
the introduction of barbecue spare ribs caused "tremendous" operating problems .After the
product was launched there was a shortage of pork, which pushed prices beyond what customers
were willing to pay. When management withdrew the product, they realized that fried chicken
sales had been decreasing. Meanwhile, Sanders increasingly regretting selling the company, and
his relationship with the new owners had soured .He began to complain of the company's
declining food quality to the media:

My God, that gravy is horrible. They buy tap water for 15 to 20 cents a thousand gallons and
then they mix it with flour and starch and end up with pure wallpaper paste ... And another thing.
That new crispy recipe is nothing in the world but a damn fried dough ball stuck on some
chicken.
The outburst prompted a KFC franchisee in Bowling Green, Kentucky, to unsuccessfully attempt
to sue Sanders for libel. In 1973, Heublein attempted to sue Sanders after he opened a restaurant
in Shelbyville, Kentucky, under the name of "Claudia Sanders, the Colonel's Lady Dinner
House". In retaliation, Sanders attempted to sue Heublein for US$122 million (around US$570
million in 2013) over the alleged misuse of his image in promoting products he had not helped
develop, and for hindering his ability to franchise restaurants. A Heublein spokesman described it
as a "nuisance suit". In 1975, Heublein settled out of court with Sanders for US$1 million
(around US$4 million in 2013), and allowed his restaurant venture to go ahead under the
reworked name: "Claudia Sanders Dinner House".

Overconfidence led KFC to fail in some overseas markets, such as Hong Kong, which the
company abandoned in 1975 after two years in operation. Sanders continued to attack Heublein
publicly, and in 1976 complained that the company "doesn't know what it's doing" and that it was
"downright embarrassing" to have his image associated with such a poor quality product.
Michael A. Miles was promoted by Heublein to run the chain in 1977 and is credited with

54

turning around the ailing company by instituting a back-to-basics formula. Miles lured Sanders
back, and listened to his recommendations for the business. Miles also embarked on an extensive
store refurbishment program, as outlets had become dated and run-down. From the late 1970s,
outlets in the United Kingdom and Australia began to be refurbished from take-out outlets into
sit down restaurants. Sanders died in 1980 from pneumonia, having continued to travel 200,000
250,000 miles a year up to this time, largely by car, promoting his product. By branding himself
as "Colonel Sanders", Harland became a prominent figure of American cultural history, and his
image remains widely used in KFC advertising. By the time of his death, there were an estimated
6,000 KFC outlets in 48 different countries worldwide, with $2 billion of sales annually.

KFC expanded internationally in the 1970s and 1980s, particularly in Japan, Australia and the
United Kingdom. After the General Cinema Corporation purchased 18 percent of its stock in
1983, Heublein feared it would be subject to a hostile takeover, and approached R. J. Reynolds,
the tobacco firm, to act as a white knight and acquire the company for $1.3 billion. That year,
Michael Miles resigned as chairman of KFC to take the role of CEO at Kraft Foods, and Richard
Mayer took over his role. Reynolds had to contend with the introduction of Chicken McNuggets
across the McDonald's chain in 1983; KFC introduced its own brand of chicken nuggets, called
"Kentucky Nuggets" in 1985. In 1984, Reynolds dedicated $168 million for capital expansion at
KFC.

Acquisition by PepsiCo.
In July 1986, Reynolds sold KFC to PepsiCo for a book value of $850 million (around US$1.8
billion in 2013). At the time, PepsiCo had interests in soft drinks and snacks, and also owned the
restaurant chains Pizza Hut and Taco Bell. Reynolds divested KFC in order to pay off debt
related to its recent purchase of Nabisco and to concentrate on its tobacco and packaged food
business. It was anticipated that PepsiCo would bring their merchandising expertise to the
company. Dan Koeppel of Adweek believed that the chain had been suffering from corporate
neglect, menu stagnation and mixed marketing messages; Nancy Giges of Advertising Age felt

55

that the chain had been "smartly revived" by R. J. Reynolds. KFC chairman Richard Mayer was
of the opinion that Reynolds had treated their restaurants division as a "hobby".

PepsiCo's acquisition was seen by some analysts as a means for the company to increase its soft
drinks sales. Before the takeover, only 1,000 of the 6,500 KFC outlets sold Pepsi Cola .PepsiCo
chairman D. Wayne Calloway stressed that soft drink preference was not a factor in the KFC
takeover. PepsiCo switched 1,800 company owned stores to their own soft drinks with
immediate effect. KFC management had previously given franchisees the freedom to sell any
soft drinks they wanted, but PepsiCo stated that it hoped it could convince them to stock Pepsi
products. The purchase of KFC by PepsiCo led to some fast food competitors switching from
Pepsi to Coca-Cola .One of the first to switch was Wendy's, whose chairman, Robert Barney,
stated, "In recent months, Pepsi has acquired another restaurant chain. Their interests are now in
conflict with Wendy's and we will not support a company that is trying to make our customers its
customers." In 1990, Burger King also switched to Coca-Cola from PepsiCo, citing the growth of
PepsiCo as a rival as a "large factor" in the switch.

By July 1987, the "Chicken Little", an inexpensive chicken slider made from dark meat, was
introduced across KFC's US stores, aimed at capturing the lunchtime market. Sales were
reportedly disappointing, despite a $31 million advertising campaign .In November 1987, KFC
became the first Western restaurant chain in China, with an outlet in Beijing. In 1989, first
quarter sales at KFC rose 30 percent to US$280 million. In July, president and CEO Richard
Meyer left KFC in order to become the CEO at Kraft Foods, and was replaced by John Cranor
III.

56

Zinger chicken burgers in India.

In August 1989, Cranor proposed amendments to the existing 1976 contract for US franchisees:
PepsiCo could take over weak franchises, existing restaurants would not be safeguarded against
competition from new outlets, and PepsiCo would have the right to increase royalty fees. The
contract proved controversial amongst franchisees, who countered with a lawsuit, and the issue
was not resolved until 1996. PepsiCo was accused of behaving in an imperious manner towards
franchisees, who it believed were holding back the firm's growth, while the franchisees believed
they had been the backbone of the company during a succession of indifferent corporate owners.

Cranor spent $42 million restructuring the company's operations worldwide. He invested an
additional $50 million to refurbish outlets and $20 million on a new computer system to link
outlet cash registers to the kitchen, drive-through window, manager's office and company
headquarters. Cranor also expanded the chain into non-traditional locations, beginning with a
150 sqft kiosk selling seven items at a General Motors assembly plant in Dayton, Ohio. Between
1986 and 1991, the chain built a further 2,000 outlets to bring its total number to 8,500, and sales
grew from $3.5 to $6.2 billion. The chain had to contend with the rise of grilled chicken as
Americans became increasingly health conscious. KFC found itself competing against the
growing El Pollo Loco restaurant chain, as well as with Burger King, which had just introduced
the BK Broiler, a grilled chicken burger. Delays in product development, cramped kitchens and
the ongoing franchisee contract dispute prevented the chain from rolling out a grilled product of
its own. Franchisee relations became tenser still when, in August 1990, PepsiCo announced plans
to roll out a home delivery service at all 5,000 US outlets by January 1991, without informing
franchisees beforehand.

The Double Down sandwich was launched in 2010.

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Tricon

was renamed Yum! Brands in May 2002. That year, the chain had to contend with

Burger King's launch of the Chicken Whopper, as well as fried chicken offerings from the
Domino's and Papa John's pizza chains. Within three months, the Chicken Whopper became
Burger King's most successful launch of all time, with sales of 50 million. In September 2002,
KFC sales were down 10 percent against the previous year. From 2002 to 2005, KFC
experienced three years of weak sales, when underinvestment in product development left the
brand looking "tired and poorly positioned", according to Restaurant Research, an independent
consultancy. A roast chicken product line introduced in 2004 proved unsuccessful, and the
worldwide avian flu scare of 2005 temporarily decreased sales by as much as 40 per cent.KFC
responded in March 2005 by adding a cheap, small chicken burger to the menu called the
Snacker. It proved to be one of the chain's most successful product launches to date, with over
100 million in sales. In international markets, KFC introduced the "Boxmaster", a meal-sized
wrap in a box. KFC also began a makeover of the US brand image, bringing back the full
"Kentucky Fried Chicken" name at some outlets and returning portraits of Colonel Sanders to
prominence.

In 2009, KFC International launched the Krusher (Krushem in some markets) line of frozen
beverages. The product was an attempt to introduce a between-meals snack to KFC, and was
marketed towards teenagers. In April 2010, the Double Down sandwich was launched. Criticised
as an unhealthy product, it featured two pieces of fried chicken in lieu of a conventional bread
bun.It has proved to be a success for the company, with 15 million Double Downs sold
worldwide between March 2011 and March 2013. In September 2012, the Chicken Little
sandwich returned in the US.

By December 2013, there were 18,875 KFC outlets in 118 countries and territories around the
world. KFC is the second largest restaurant chain in the world by sales after McDonald's.
In April 2014, Yum! announced that first quarter KFC sales had risen by 11 percent in China,
following a 15 percent fall in 2013.

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CHAPTER 4.SWOT

This is Subway SWOT analysis for 2013

Name
Industries served
Geographic areas served
Headquarters
Current CEO
Revenue
Profit
Employees
Parent
Main Competitors

Subway
Fast food restaurants
Worldwide
U.S.
Fred DeLuca
$ 16.2 billion (2010)
N/A
N/A
Doctor's Associates, Inc.
McDonalds Corporation, Burger King Worldwide Inc., Yum! Brand
Inc., Wendys Company.

Subway SWOT analysis

Strengths

Weaknesses

Great degree of subs customization

Largest fast food restaurant chain in the

High employee turnover

world by the number of outlets

Services are not consistent from store to store

Marketing and promotional strategies

Too much control over franchisees

Choice of healthier meals

Partnerships with Britain and American

Interior design of the outlets often looks cheap

Heart Associations

All

restaurants

are

owned

by

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franchisees

Low startup costs

Opportunities

Threats

Increasing demand for healthier food

Home meal delivery

economies

Changing customer habits and new

Trend towards healthy eating

customer groups

Local fast food restaurant chains

Introduction of drive-thru

Currency fluctuations

Lawsuits against Subway

Saturated fast food markets in the developed

SWOT analysis of KFC

.
Company background
Name
Industries served
Geographic areas served
Headquarters
Current CEO
Revenue
Profit
Employees
Parent
Main Competitors

KFC (Kentucky Fried Chicken)

Restaurants
Worldwide
U.S.
Roger Eaton
$ 9.5 billion (2012)
N/A
N/A
Yum! Brands
McDonalds Corporation, Burger King Worldwide Inc., Subway,
Wendys Company.

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KFC is a fast food restaurant chain, which specializes in fried chicken. It is the world's largest
fried chicken chain with over 17,000 outlets in 105 countries and territories as of December
2011.
You can find more information about the business in its .

KFC SWOT analysis

Strengths

Weaknesses

Second best global brand in fast food

Untrustworthy suppliers

industry in terms of value ($ 6 billion)

Negative publicity

Original 11 herbs and spices recipe

Unhealthy food menu

Strong position in emerging China

High employee turnover

Combination of KFC Pizza Hut and

KFC Taco Bell

KFC is the market leader in the world

Lack of strong marketing efforts

among companies featuring chicken as

their primary product offering
Opportunities

Threats

Increasing demand for healthier food

Home meal delivery

developed economies

Introducing new products to its only

Trend towards healthy eating

chicken range

Local fast food restaurant chains

Currency fluctuations

61

Saturated fast food markets in the

SWOT analysis of McDonalds

Company background

62

Lawsuits against KFC

Name
Industries served
Geographic areas served
Headquarters
Current CEO
Revenue
Profit
Employees
Main Competitors

McDonald's Corporation
Restaurants, Food
Worldwide
U.S.
Don Thompson
$ 27.56 billion (2012)
$ 5.46 billion (2012)
1,800,000 (2013)
Burger King Worldwide,Inc., Yum! Brand Inc., Subway, Wendys

Company.
McDonalds is the worlds leading fast food restaurant chain with more than 34,000 local
restaurants serving approximately 69 million people in 119 countries each day. More than 80%
of McDonalds restaurants worldwide are owned and operated by independent local franchisees.

McDonalds SWOT analysis

Strengths

Weaknesses

Largest fast food market share in the

Negative publicity

world

Unhealthy food menu

Brand recognition valued at $40 billion

Mac Job and high employee turnover

$2 billion advertising budget

Low differentiation

Locally adapted food menus

63

Partnerships with best brands

More than 80% of restaurants are owned

by independent franchisees

Children targeting

Opportunities

Threats

Increasing demand for healthier food

Home meal delivery

Full adaptation of its new practices

Changing customer habits and new

Local fast food restaurant chains

customer groups

Currency fluctuations

Lawsuits against McDonalds

Saturated fast food markets in the

developed economies

Trend towards healthy eating

SWOT OF DOMINOS
Dominos
Parent Company

Dominos

Category

Fast food eating joints

Sector

Food Products

Tagline/ Slogan

Khushiyoki home delivery; Hungry Kya?

USP

Home delivery in 30 minutes else free

STP
People willing to have a hygienic and delicious non conventional
Segment

meal at a restaurant

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Target Group

Children and youth from middle and upper class

Positioning

Best pizza home delivery service

SWOT Analysis
1.Huge popular brand name and high brand loyalty
2.High number of products
3.Hygenic food and quick service
4. Leader in online & mobile ordering.
5. Strong brand equity supported by heavy advertising & marketing
campaigns.
6. Global franchise operations - more than 3,500 in over 50 countries
7. Efficient and effective supply chain management enables it
Strength

maintain its goodwill and promises

1. High fat and high calorie food not good for health conscious
people 2.Franchise management.

Weakness

3. High staff turnover due to lack of training and development

1.Improve efficiency and home delivery service
2. Introduction of new flavor additives and pizza toppings that are
region specific can be a good stride for Dominos.
3. The distribution network should be further strengthened so as to
ensure market penetration in the existing markets at maximum
optimum levels.
4. Growing presence in emerging markets, particularly in India,

Opportunity

China.

Threats

1. Intensive competition from a fragmented number of small

competitors

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2. Changing consumer habits towards healthier food choices.

Competition
1.KFC
2.Pizza Hut
3.McDonald's
4.Subway
5.Burger King
6.Smokin Joes
7.TacoBell
Competitors

8.Papa John's Pizza

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CHAPTER NO 5.CASE STUDY

How McDonalds Canada built trust and reputation with the help of social media

One of the largest fast food chains in the country, McDonalds Canada decided to facemyths and
misconceptions about the brand head on and gave the public a backstage pass on how things
work in the company. In the spring of 2012, McDonalds Canada launched a digital platform
called Our Food. Your

Questions. Giving

people a chance to ask the company anything

about its food.

Background
The first McDonalds Canada opened its doors in Richmond, British Columbia in 1967.
Today,2.5 million people visit the restaurants across the country every day.
Campaign
As described by Marketing magazine, being one of the countrys largest fast food chains,
McDonalds Canada was convinced there were certain myths and misconceptions surrounding its
packaging, product launches, the quality of its food and the way in which that food was prepared.
Research found that a lot of these myths were seeded and growing within the social space. For
that reason McDonalds decided to direct a bold campaign to face these misconceptions head on
and use transparency to put any negative to rest. As Karin Campbell, senior manager of external
communications at McDonalds Canada explained to Ad Age: We certainly could see pervasive
myths out there, so we decided to take on those myths head on and just clarify some of the info
by developing a platform.
Our Food. Your Questions. launched in the spring of 2012 with a YouTube video directing
visitors to a dedicated website where they could submit questions about the brand by logging in
through their Twitter or Facebook account. The questions on the site range from conspiracy
theories about food additives, to why the food looks so different from their advertising. And not
only tough questions like: How is it that a McDonalds burger does not rot? or Does your Egg
McMuffin use real eggs? They look too perfect, have been answered. McDonalds has also

67

released a series of videos that have gone viral. One of the most memorable and talked about
clips, as stated in Marketing magazine, features Hope Bagozzi, creative and national marketing
director at McDonalds Canada, explaining why a hamburger looks different in advertising than
it does when purchased from the restaurant and to date it has attracted more than eight million
views on YouTube.

DOMINOS

In early 2000, Pawan Bhatia (Bhatia), the CEO of Domino's Pizza India (Domino's) was a man
in a

hurry. Ever since Bhatia took over as the CEO of Domino's in November 1999, he had

beenfrantically reworking the pizza chain's India strategy. Bhatia was planning to open 150
newoutlets by the end of 2002 covering 23 cities,
Including Bhubaneshwar (Orissa) and Jamshedpur(Bihar). In late 1999, Indocean Chase, the
private equity fund bought a 25% stake in Domino' s operations in India from the Delhi-based
industrial family, the Bhartias, who held Domino's franchise in India. Domino's told investment
bankers at the fund that it planned to go in for aninitial public offering (IPO) in the next two
years. Indocean Chase advised Domino's to go beyond its 16 outlets in Delhi to exploit the
potential in the pizza delivery business. Unless a well-thought-out expansion plan was put into
place, the IPO was unlikely to find too many takers. As part of its expansion plans Domino's
revamped its entire supply chain operations, from sourcing raw materials to shipping them for
processing at a central location to delivering it to the customer's. Initially, Domino's had a simple
model. It had three self-contained commissaries in New Delhi ,Mumbai and Bangalore which
bought their own wheat, tomatoes and other ingredients, processed them, then delivered them in
refrigerated trucks to each outlet. However, volumes were expected to increase when Domino's
planned to open new outlets. Therefore, the existing model had to be revamped. Bhatia said, "It's

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crucial for us to build a low-cost supply chain operation which takes costs out of the system and
in turn gives us greater pricing flexibility inthemarketplace."Analysts felt that Domino's had to
rethink its supply chain operation because it was the biggest area of costs. Since 75% of
Domino's customers ordered either from office or home, it did nothave to lease large plots of
land in prime locations to attract traffic. Instead, it needed an efficiently managed call centre to
bring better returns (Refer Exhibit I).In the late 1950s, Dominick De Varti (Varti) owned a small
pizza store named Domi Nick's Pizza on the Eastern Michigan University campus in Ypsilanti,
Michigan. In 1960, two brothers how e re students of the University of Michigan - Thomas S.
Monaghan (Thomas) and James S. Monaghan (James) - bought the store for US$900. In 1961,
James sold his share of business to Thomas.

The pizza business did well and by 1965, Thomas was able to open two more stores in the town
-Pizza King and Pizza from the Prop. Within a year, Varti opened a pizza store in a neighbor
hood town with the same name, Domi Nick's Pizza. Thomas decided to change the name of his
first store, Domi Nick's Pizza, and one of his employees suggested the name Domino's
Pizza(Domino's). The advantage of this name Thomas felt was that it would be listed after
DomiNick in the directory. Domino's philosophy rested on two principles - limited menu and
delivering hot and fresh pizzas within half-an-hour. In 1967, it opened the first franchise store in
Ypsilanti, and in 1968, a franchise store in Burlington, Vermont. However, the company ran into
problems when its headquarters (the first store) and commissary were destroyed by fire. In the
early 1970s, the company faced problems again when it was used by Amstar, the parent company
of Domino Sugar for trademark infringement. Thomas started looking for a new name and came
up with Red Domino's and Pizza's Dispatch. However, there wasn't any need for it because
Domino's won the lawsuit in 1980.In 1982, Domino's Pizza established Domino's Pizza
International (DPI) that was made responsible for opening Domino's stores internationally. The
first store was opened in Winnipeg, Canada. Within a year, DPI spread to more than 50 countries
and in 1983, it inaugurated its1000th store (Refer Exhibit II for worldwide revenues). Around the
same time, new pizza chains like Pizza Hut and Little Caesar established themselves in the US.
Domino's Pizza faced intense competition because it had not changed its menu of traditional

69

hand-tossed pizza. The other pizza chains offered low-priced breadsticks, salads and other fast
food apart from pizzas .Domino's faced tough competition from Pizza Hut in the home delivery
segment also. Little was eating into Domino's market share with its innovative marketing
strategies. By 1989, Domino's sales had reduced significantly and cash flows were affected
due to the acquisition of assets. In 1993, Thomas took measures to expand Domino's product
line, in an attempt to revive the company and tackle competition. The company introduced pan
pizza and bread sticks in the US. In late 1993, Domino's introduced the Ultimate Deep Dish
Pizza and Crunchy Thin Crust Pizza. In 1994, it rolled out another non-pizza dish - Buffalo
Wings. Though Domino's did not experiment with its menu for many years, the company
adopted innovative ways in managing a pizza store. Thomas gave about 90% of the franchisee
agreements in the US to people who had worked as drivers with Domino's. The company gave
ownership to qualified people, after they had successfully managed a pizza store for a year and
had completed a training course. Domino's also gave franchises to candidates recommended by
existing franchisees. Out side the US, most of Domino's stores were franchise-owned. Domino's
was also credited for many innovations in the pizza industry and setting standards for other pizza
companies. It had developed dough trays, corrugated pizza boxes, insulated bags for delivering
pizzas, and conveyor ovens.

In 1993, Domino's withdrew the guarantee of delivering pizzas within 30-minutes of order and
started emphasizing on Total Satisfaction Guarantee (TSG) which read: "If for any reason,
youare dissatisfied with your Domino's Pizza dining experience, we will re-make your pizza orre
fund your money." Domino's entered India in 1996 through a franchise agreement with
VamBhartia Corp
In DelhiWith the overwhelming success of the first outlet, the company open edanother outlet in
Delhi. By 2000, Domino's had outlets in all major cities in India. When Domino's entered India,
the concept of home delivery was still in its nascent stages. I texisted only in some major cities
and was restricted to delivery by the friendly neighborhood fast food outlets. Eating out at
'branded' restaurants was more common. To penetrate the Indian market, Domino's introduced an
integrated home delivery system from a network of company outlets within 30 minutes of the

70

order. GouthamAdvani (Advani), Chief of Marketing, Domino's Pizza India, said, "What really
worked its way into the Indian mind set was the promised 30-minute delivery." Domino's also
offered compensation: Rs.30/- off the price tag if there was adelay in delivery. For the first
4 years in India, Domino's concentrated on its 'Delivery' strateg
ANALYSIS OF DATA
1. Involvement of women for the growth of fast food industry

Yes

No

2. Factor affecting buying decision of customer

71

Price
Other than price

3. Most preferred brand

Dominos
KFC
Subway
Macdonald

4.Fast food industry on scale of 1-5

72

concerned area

Taste
Hygenity
Quality
Price
Brand

5. Consumption of fast food

Sales

Daily
Weekly
Monthly
4th Qtr

6. Brand switching

73

Brand switching

Yes
No

7. Best slogan of fast food industry

Best Slogan

I am loving it
So good
Subway So Fresh
Yeh hai rishto ka time

8. Reason affecting growth

74

Reason for Growth

Service
Likely
Easily Available
Lack of time

9. Best home delivery fast food service

Best delivery service

Macdonald
KFC
Dominos
Subway

10. Chances of discontinueity

75

Discontinuity

Yes
No

76