Key to Success

1. Fast Food : Concept & Reality
Amit Jatia
6th February 1999, Daman
McDonald’s Mumbai

2. Contents
Trends in Eating Out
McDonald’s - Behind The Golden Arches
McMarketing
International Trends

3. Trends In Eating Out
®

4. Classification Of Eating Out PlacesClassification Of Eating Out Places
Consumers classify the eating out places
into following categories
Punjabi / Mughlai / Chinese- Specialty restaurants
Udipis
Restaurants in 5 star hotels
Chaat & Sweet
Dhabas
Canteens
Fastfood = QSR (McDonald’s, Wimpy’s, Nirula’s,
Domino’s, KFC)
Source : 1997

5. In Mumbai,
Specialty and Udipi
followed by Fast Food
-Source, 1997.
Where Do People Go to Eat Out
MUMBAI DELHI
1918 1748
% %
5 star restt. 4 3
Udipi Restaurants 30 11
Speciality Restaurants 39 31
Chaat and Sweet Shops 1 5
Fast Food Restaurants 25 45

6. TOTAL GENDER SEC AGE MARITAL STATUS
M F A B 15-19 20-30 30-40 Unmarried Married Married
years years years children no children
n: 1918 1070 848 806 1133 332 860 726 1047 700 171
% % % % % % % % % % %
5 star restt. 4 3 4 5 5 2 3 6 2 6 0
Udipi Restaurants 30 26 35 31 29 20 35 29 27 31 45
Speciality Restaurants 39 38 39 34 42 44 36 39 38 43 27
Chaat and Sweet Shops 1 0 2 1 1 3 1 - 1 0 3
Fast Food Restaurants 25 30 19 27 24 32 24 25 30 18 25
FINDINGS
Specialty restaurant visited by all ages, SECs and
gender
Fastfood visited more by Males, Teenagers (15-
19yrs), Unmarried
Few consumers ‘with children’ visit Fast food
Profile Of Consumers Eating Out -
Mumbai
Source : 1997

7. Occasions For Eating Out
MUMBAI DELHI
TOTAL OUTLETS TOTAL OUTLETS
Udipi Speciality Fast Food Udipi Speciality Fast Food
Restt. Restt. Restt. Restt.
n: 1918 574 743 487 1748 189 550 795
% % % % % % % %
DECISION MADE
Decided beforehand 37 22 38 48 46 39 45 48
On the spot 61 77 61 48 52 61 25 49
Can't say 2 1 2 4 2 0 3 2
OCCASION
Special day/ occasion 13 10 11 24 21 17 29 16
Birthday/Anniversary 10 4 8 21 15 8 18 13
Date with opp. sex 1 0 1 2 2 3 1 3
While shopping 3 3 6 0 6 7 3 6
After a movie 6 4 8 6 3 2 4 2
Just for an outing 39 42 42 37 34 48 36 29
Just to eat outside 36 42 31 32 30 18 25 37
Others 2 0 3 0 5 5 1 8
FINDINGS
Eating out is not always pre-planned.
Special occasion not essential, though eating
out happens on b’day/anniversary
Eating out is for a change of Food & Mood
Leading to upliftment (of mood) , joy &
socializing.
Source : 1997

8. Meal Companions
MUMBAI DELHI
TOTAL OUTLETS TOTAL OUTLETS
Udipi Speciality Fast Food Udipi Speciality Fast Food
Restt. Restt.
n: 1918 574 743 487 1748 189 550 795
% % % % % % % %
Who went along
Alone 6 10 2 7 3 4 4 1
Husband/wife 22 23 28 8 40 58 53 28
Children 16 16 22 4 22 25 28 14
Parents 4 2 7 1 7 1 12 4
Brother/Sister 4 4 7 1 8 12 10 5
Other Relatives 5 1 7 6 2 5 4 1
Friends 52 45 45 72 47 27 28 67
Colleagues 6 9 8 2 2 0 2 1
Others 5 2 5 5 1 5 0 0
FINDINGS
Eating out mostly with Friends(more so in Mumbai)
Eating out with spouse high in Delhi; mostly to
Specialty / Udipi
Eating out with Family low in both cities; much
lower in Fastfood
Consumers go mostly with FRIENDS to Fastfood
Source : 1997

9. Commitment Levels - Mumbai
Commitment to Fast food lower than other
types
Large section of consumers not
committed to any one type
Willing to go to several types of
restaurants
Source : 1997

10. The QSR market
in Mumbai in
1998 has grown
by 30% over
that in 1997 in
terms of
consumer base
Conclusion

11. McDonald’s -
Behind the Golden Arches

12. McDonald’s - An Introduction
First opened in 1955 in Des Plaines, Illinois - USA
More than 24,500 restaurants all over the world in 114
countries across 6 continents as of today
A McDonald’s restaurant opening every 3 hours
somewhere in the world - be it on land, in air, at sea or
even on wheels
Serve more than 38 million customers everyday the world
over
First opened in India in 1996 [Delhi - 13th October,
Mumbai - 21st October]
15 restaurants in Mumbai and Delhi to date (6 in Mumbai)

13. Our Philosophy
Quality
Service
Cleanliness
Value
Delivering outstanding

14. So How Do We Do It ?

15. The McDonald’s Way
Supply Chain
Equipment
People
Food Safety & Hygiene

16. Sesame Seeds from
Ghaziabad, Uttar Pradesh
Special Veg [eggless]
Sauce from Quaker Cremica,
Phillaur, Punjab
Buns from
Shah Bector & Sons,
Khopoli, & Cremica,
Ludhiana
Fresh Iceberg Lettuce
from Trikaya Agriculture,
Talgeaon, Ooty Farms,
Ooty, Meena Agritech,
Delhi, Ferrocon Farms
Dehradun
Cheddar Cheese
from Dynamix Dairy,
Baramati
Batter & Breading
from Cremica EBI,
Ludhiana
Vegetable Patty
from Kitran Foods,
Taloja
The Taste of Freshness From
All Over India

17. Supply Chain
Supplier development & training
Each supplier is HACCP approved
Logistics - Cold Chain

18. Journey through the cold chain
Lettuce Farm Pre Chiller
®
Distribution Center
Quality Inspection Program

19. Journey through the cold chain
Quality Inspection Program Pre Chiller
®
Distribution Center
Processing Facility

20. Equipment
State-of-the-art equipment, all
standardized - so as to consistently
provide the same quality
In house kitchen design - walk-in chiller,
freezer
Emphasis on Food safety and Employee
Safety
Planned Maintenance to keep equipment
in shape

22. People
McDonald’s is more than a restaurant - a multi-crore business
requiring advanced business management skills
Average staffing at a McDonald’s restaurant ranges from 80 to
100 employees including crew and managers
World class training on an ongoing basis
All training is designed to make every employee level multi-
functional

23. People [contd.]
Management Training
Structured & focused
Manager Development Progam
Trainee Level to Restaurant Manager
Crew Training
Focused on customer satisfaction
Hygiene
Consistently maintaining high standards & proper
procedures

24. People [contd.]
Standardized tools used to evaluate and
develop individuals, eg.
Hygiene & Safety Checklist
Observation Checklist
DPSC HYGIENEOCLKBABOCL

25. McMarketing

26. McDonald’s Family Restaurant
Merchandising
Playland
Happy Meals
Birthday Party Package

27. International Trends

28. International Trends
McDonald’s “Made for
You” system
A system where the final
product is prepared upon
receiving customer’s order
without compromising on
service time

29. Thank you