INTRODUCTION OF FAST FOOD BUSINESS
Fast food is the term given to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with low quality preparation and served to the customer in a packaged form for take-out/take-away. Outlets may be stands or kiosks, which may provide no shelter or seating, or fast food restaurants (also known as quick service restaurants). Franchise operations which are part of restaurant chains have standardized foodstuffs shipped to each restaurant from central locations. The capital requirements involved in opening up a fast food restaurant are relatively low. Restaurants with much higher sit-in ratios, where customers tend to sit and have their orders brought to them in a seemingly more upscale atmosphere may be known in some areas as fast casual restaurants. FAST FOOD INDUSTRY IN INDIA
INDIA – EMERGING MARKET FOR GLOBAL PLAYERS
The percentage share held by foodservice of total consumer expenditure on food has increased from a very low base to stand at 2.6% in 2001. Eating at home remains very much ingrained in Indian culture and changes in eating habits are very slow moving with barriers to eating out entrenched in certain sectors of Indian society.. The growth in nuclear families, particularly in urban India, exposure to global media and Western cuisine and an increasing number of women joining the workforce have had an impact on eating out trends. FACTS AND FIGURES
Fast food is one of the world’s largest growing food type. India’s fast food industry is growing by 40% a year and is expected to generate a billion dollars in sales by 2005.The multinational segment of Indian fast food industry is up to Rs. 6 billion, a figure expected to zoom to Rs.70 billion by 2005. By 2005, the value of Indian dairy products is expected to be Rs.1, 00,000 million. In last 6 years, foreign investment in this sector stood at Rs. 3600 million which is about one-fourth of total investment made in this sector. Because of the availability of raw material for fast food, Global chains are flooding into the country.
MARKET SIZE & MAJOR PLAYERS
a)Dominated by McDonalds having as many as 75 outlets.
b)Domino’s pizza is present in around 100 locations.
c)Pizza hut is also catching up and it has planned to establish 125 outlets at the end of 2005. d)Subways have established around 40 outlets.
e)Nirulas is established at Delhi and Noida only. However, it claims to cater 50,000 guests every day.
Major players in fast food are:
The main reason behind the success of the multinational chains is their expertise in product development, sourcing practices, quality standards, service levels and standardized operating procedures in their restaurants, a strength that they have developed over years of experience around the world. The home grown chains have in the past few years of competition with the MNCs, learnt a few things but there is still a lot of scope for improvement.
STATEME NT OF THE PROBLEM
The research statement “ To study the attitude/behavior of consumer in choosing fast food outlets in Bangalore”. REVIEW OF LITERATURE
Fast food is the term given to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with low quality preparation and served to the customer in a packaged form for take-out/take-away. The behavior of the consumer with regard to purchase is affected by various factors and these factors are uncontrollable. These factors are also called the determinants of consumer buying behavior. These factors affect the consumer behavior differently . These are also called as the buying characteristics influencing consumer behavior. 1)Cultural factors
3) Personal factors
Different Age Groups on Consumer Behavior:
Fast food consumers of different age groups exhibit different behaviour according to their taste, nature and preferences. Let us see the consumer behaviour of each age group related to fast food industry one by one. Children:
According to modern research youngsters that are in the age of childhood like 5 to 12 years are : Influence of different age group on consumer behavior: Fast Food consumers of different age groups exhibit different behavior according to their taste, nature and preferences. Let us see the consumer behavior of each age group related to fast food industry one by one. more affected by the advertisements process than older. When they see the different types of burger and fry joints on the television or over the road sign boards then they are very much attracted towards them. Because it is the age of learning and 5 to 10 years old children learn very rapidly. They capture the each and every thing very closely. That is the main reason that when KFC or some other restaurants ads come on the television then children convince their parents to go for outing or for eating in the KFC, MacDonald and many other restaurants. Due to all these things many Fast Food Restaurants are giving priority to children relevant channels. Because they know that children have a great impact on the buying decisions of a family Teenagers:
According to the survey of CSFII, this age group is the main source of earning for the Fast Food Industry. Teenagers of 15-20 years really like to eat burger, fry joints and many other fast Food items from Macdonald, KFC etc. They always prefer to eat some tasty and high quality fast food. METHODOLOGY:
OBJECTIVES OF THE STUDY
To study the factor that influence patronage decision of consumer for fast food outlets. To study how the MC.Donald’s has been successful in encountering the acompetition. Type of data sources:
i.Tools of collecting primary data: Questionnaire
ii.Sample size: 100 consumers
iii.Sampling data: Non random sampling- convenience sampling.
iv.Tools of collecting secondary data:
H1. Consumer prefer fast food outlets because of Brand name.
H2. Consumer do not consider price while selecting fast food outlet.
(a)Statistical tools for hypothesis testing:
Chi-square test, q- test etc.
LIMITATION OF THE STUDY
1). Time constraint
2). Restricted to the youth between the age group of 18-28 years
3). Restricted to Bangalore north.