comparative study on customer perception
TRANSCRIPT
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CERTIFICATE
This Is To Certify That The FollowingStudents Of
B P College of Business Administration, Gandhinagar,Have Submitted Their Capstone Project Report
On
Comparative Study on Customer Perception
towards Fast Food in AhmedabadIn The Academic Year 2012-13in Partial Fulfillment of the
Requirements for the Paper CAPSTONE PROJECT
In SEMESTERVI of B. B. A. Programme Under
KADI SARVA VISHWA VIDYALAYA.
Sl. No Name of Student Roll No.
1
2
3
4
5
6
7
--------------------------- -----------------------------------Prof. Mathew John Dr. Ramakanta Prusty
(Faculty Guide) (Head of the College)
SarvaVidyalayaKelvaniMandal (Kadi), Sanchalit
B P COLLEGE OF BUSINESSDMINISTR TION
(A Constituent College of KADI SARVA VISHWAVIDYALAYA)Sector 23, GH 6 Road, Gandhinagar
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Comparative Study on Customer Perception towards
Fast Food in AhmedabadCapstone Project Report
Batch: 2010-13
Bholabhai Patel College of Business Administration, Gandhinagar
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A
Capstone Project Report
On
Comparative Study on Customer Perception towards Fast
Food in Ahmedabad
Submitted in the Partial Fulfillment of the Requirement for the Degree of
BACHELOR OF BUSINESS ADMINISTRATIONKADI SARVA VISHWAVIDYALAYA, GANDHINAGAR
Submitted By:
Group No. E-70
Sr. No. Name Enrollment No. Roll No.
1 SHARMAJAYDIPKUMAR K. 1013BBA482 430
2 NAVIN SINGH 1013BBA181 431
3 PATEL PARTH V. 1013BBA346 432
4 SOLANKI RINUBEN I. 1013BBA492 4335 THAKOR KINJAL B. 1013BBA524 436
6 VAGHELAKOMALBEN G. 1013BBA539 438
7 RATHOD JAYDEEPSINH S. 0912BBA364 176
Project Guide: Prof Mathew John
B.P College of Business Administration, Gandhinagar
Year: 2012-13
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ACKNOWLEDGEMENTS
I am indebted to the powerful almighty of God for all the blessing he showered on me and being
with me throughout the study.
I would like to express my sincere thanks to all the employee of Pizza Hut, Dominos, KFC,
McDonalds and Subway. Who co-operated with me throughout the project. I am deeply obliged
to Dr. Ramakanta Prusty for his exemplary guidance and support without whose help this
project would most have success.
I would like to place my sincere gratitude and appreciation to my project guide Prof. Mathew
John for his kind co-operation and guidance which enabled me to complete my project.
I also take this opportunity to express my gratitude to my loving parents and friends who are
constant source of motivation and there never ending support and encouragement during the
project.
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EXECUTIVE SUMMARY
With rapidly growing middle class population and changing lifestyle, India is blessed with one of
the fastest growing fast food market of the world. The Indian fast food market is growing at the
rate of 30-35% per annum. All most all big fast food brands of the world have succeeded in
making their presence felt in the country and most of them are posting appreciable growth.
Consequently, all the popular fast food chains have chalked out massive plans for expending
their business and presence throughout the country. Moreover, foreign fast food chains are
aggressively increasing their presence in the country. For instance, Dominos has planned to
open 60-65 outlets every year for the next three years (2010-2012).
According to Indian Fast Food Market Analysis, although the market has witnessed a robust
growth in the past couple of years, it remains largely underpenetrated and concentrated into
metropolitan cities. However, there is large room for growth in tier-II cities and tier-III cities,which are mostly untapped. Therefore, the future of Indian Fast Food Industry lies in the masses
that live in tier-II and tier-II cities.
The report provides extensive research and objective analysis on the fast expanding Indian fast
food market. The report analyzes all the vital industry trends and possible growth areas for future
expansion. It also analysis important driving forces in detail, which will help clients to
understand the market better.
Moreover, we have also identified the important players operating in the sector and have made a
separate chapter which talks about their business expansion plans in detail. Most importantly, the
report also features forecast on fast food sales in the country. The forecast is based on the
correlation between past market growth and growth in base drivers such as growth in middle
class, urbanization, cultural shift and lifestyle changes.
Fast food players such as Pizza Hut and McDonalds focused on introducing new food items,
such as Veg. Wraps to their menus in 2011. Additionally, fast food chains such as McDonald
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have also continued to offer value for money combo deals which were promoted by persuasive
advertisements. Additionally, fast foods good satiety value and rich taste available at affordable
prices continued to attract consumers aged between 15-25-years-old.
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Table of Contents
Chapter No. No. Content Page No.
I Cover page
II Front page
III Certificate
IV Acknowledgement I
V Executive Summary II
I Introduction to the Project1.1 Introduction or the Background of the Project 2
1.2 Rational of the Study or why this topic has been selected 2
1.3 Objective of the Study 3
1.4 Data source and Methodology 4
1.5 Chapterisation Scheme 6
1.6 Limitation of the study 7
II Fast Food Industry
2.1 What is Fast Food? 10
2.2 What is Junk Food? 12
2.3 On the go 132.4 Cuisine 14
2.5 Filling Station 14
2.6 Street Vendors and Concession 15
2.7 Criticism of Fast Food 15
III Top Fast Food Providers in Ahmedabad
3.1 McDonalds 17
3.2 Subway 23
3.3 Pizza Hut 30
3.4 Dominos 37
3.5 KFC 46
IV Factors Affecting Perception
4.1 Affordable meals drive sales at fast food chains 65
4.2 Rivals Dominos, Pizza Hut each target Indian market 68
4.3 Abstract 68
4.4 Factors affecting consumer behavior 69
4.5 Rivalry among existing competitors 75
V Data analysis and Interpretation 77
VI Findings 109
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VII Conclusion 111
Annexure III
Bibliography IV
List of Pie-Charts
1 Genders that prefer to eat fast food 77
2 Age bracket of youngsters who prefer to eat fast food 78
3 Preferred fast food outlets by the respondents 79
4 How often respondents eat fast food? 80
5 First thing that strikes respondents mind about Fast Food 81
6 Respondents think more improvement 82
7 Problem faced by respondents in fast food outlets 83
8 Fast food outlets adequate 84
9 Important thing for choosing a particular fast food outlet 85
10 Vegetarian and Non-Vegetarian Ratio 86
Part-A
11 Favorite Vegetarian fast food product 87
12 Rank the Veg. Product from 1 to 7 (1 being the worst qualityand 7 as the best quality)
88
13 Respondents favorite Bread product 94
14 Respondents believe fats food outlets put chemical in their food 95
15 Respondents believe in nutrition facts at the fast food outlets 96
16 Respondents who seen nutrition facts at fast food outlets and
trust it
97
Part-B
17 Favorite Non-Vegetarian fast food product 98
18 Rank the Veg. Product from 1 to 7 (1 being the worst quality
and 7 as the best quality)
99
19 Respondents favorite Bread product 105
20 Respondents believe fats food outlets put chemical in their food 106
21 Respondents believe in nutrition facts at the fast food outlets 107
22 Respondents who seen nutrition facts at fast food outlets and
trust it
108
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Chapter: I
Introduction to the Project
LEARNING OBJECTIVES
After reading this chapter, you should be able to:
Introduction or the background of fast food. Objectives of preliminary research. Exploratory research. Research Methodology.
-Research objectives.
-Research Scope.
-Secondary Data.-Primary Data.
-Sampling.
-Time Frame.
-Age Group.
-Data analysis and tools used.
Chapterisation Scheme-McDonald
-Subway
-Pizza Hut
-Dominos
-KFC
Limitation of the Study.
CONTENT
Introduction or theBackground.
Rational of the studyor why this topic hasbeen selected.
Objective of theStudy.
Data Source andMethodology.
ChapterisationScheme.
Limitation of theStudy.
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1.1Introduction or the Background of the Project
Food diversity in India is an implicit characteristic of Indias diversified culture consisting of
different regions and states within. Traditionally, Indians like to have home-cooked meals a
concept supported religiously as well as individually. However, with times due to increasing
awareness and influence of western culture, there is a slight shift in food consumption patterns
among urban Indian families. It started with eating outside and moved on to accepting a wide
variety of delicacies from world-over. Liberalization of the Indian economy in the early 1990s
and the subsequent entry of new players set a significant change in lifestyles and the food tastes
of Indians. Fast food is one which gained acceptance of Indian palate after the multinational fast
food players adapted the basic Indian food requirements viz. vegetarian meals and selected non-
vegetarian options excluding beef and pork totally from their menu. Multinational fast food
outlets initially faced protests and non-acceptance from Indian consumers. This was due to
primary perception that these fast food players serve only chicken and do not serve vegetarian
meals. In addition, fast food is perceived expensive besides being out-of-way meals in Indian
culture. Today, fast food industry is getting adapted to Indian food requirements and is growing
in India. It is gaining acceptance primarily from Indian youth and younger generations and is
becoming part of life. Keeping in view the Indian habits and changing preferences towards food
consumption, this study has its focus to understand the factors affecting the perception of Indian
youth, in the age group of 15-25 years, towards consumption of fast food as well as towards
making choice of fast food outlets.
1.2 Rational of the study or why this topic has been selected.
The Indian fast food market has been witnessing rapid growth on the back of positive
developments and presence of massive investments. Currently, market growth is largely fuelled
by the rising young population, working women, hectic schedules, and increasing disposable
income of the middle-class households. Some of the unique properties of fast food like quick
served, cost advantage, etc. are making it highly popular among the masses. Thus, India offers
enormous opportunities for both domestic as well as international players.
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1.3 Objective of the Study
Objectives of preliminary researchAfter discovering the problem, it needs to be defined and this should be a statement in the terms
used by the decision maker.
The objective of preliminary research is to gather data on the situationsurroundings the supposed problem to determine.
A correct definition of the problem. An understanding of its environment. Whether the initial feedback data, which triggered problem recognition
accurately, pictured the situation. Preliminary Research has no standard Techniques.
Exploratory research
The next Question is that whether there is sufficient need to conduct an exploratory study
such a studys main purpose/objective would be to determine the approximate area where the
problems rise and also to identify since attractive courses of action to solve it.
It may incidentally also enable a sharper definition of the problem to be made.
If an Exploratory study of alternatives were conducted. It would begin with identifying a
number of hypotheses that are already known to the firm.
Discussion with managers in the company would probably bring out a number of hypotheses
without having to leave the office/firm.
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1.4 Data Source and Methodology
Research objectives To identify the factors affecting the choice of (Indian youth) consumers for fast
Food.
To study the consumption pattern towards fast foods particularly with respect to The frequency of visits and choice of fast food outlets. To identify the impact of hygiene and nutritional value of fast foods on consumer
Purchase decision.
To study the consumer perceptions about popular fast food outlets inAhmedabad, Gujarat, India.
Research Scope S.G. Highway, Ahmedabad
Secondary Data Catalogues, Browsers, Support materials Websites Newspapers, Magazines
Primary Data Survey of 100 respondents/youngsters/consumers
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Sampling Probability Sampling method was used Simple Random Sampling method was used for primary survey in Ahmadabad The sample size of 100 was also chosen to support the analysis
Time Frame 6 Months 1stTwo Months = Data Collection Next Month = Preparing Draft Last Three Months= Questionnaire, Analysis, Recommendations & Suggestions.
Age Group
15 years25 years We consider the youngsters as people aged between 15 years 25 years and also
those who are Unmarried.
Data analysis and tools used After the data was collected through the Questionnaire, Data table was prepared and
an analysis was doing using Pie-Charts and Briefing a little Description about the
analysis.
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1.5 Chapterisation SchemeMcDonalds
McDonald's Corporation is the world's largest chain of hamburger fast food restaurants,
serving around 68 million customers daily in 119 countries.Headquartered in the United States,
the company began in 1940 as a barbecue restaurant operated by Richard and Maurice
McDonald; in 1948 they reorganized their business as a hamburger stand using production line
principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He
subsequently purchased the chain from the McDonald brothers and oversaw its worldwide
growth.
A McDonald's restaurant is operated either by a franchisee, an affiliate, or the corporation itself.
The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well
as sales in company-operated restaurants. McDonald's revenues grew 27 percent over the three
years ending in 2007 to $22.8 billion, and 9 percent growth in operating income to $3.9 billion.
McDonald's primarily sells hamburgers, cheeseburgers and chicken, French fries, breakfast
items, soft drinks, milkshakes and desserts. In response to changing consumer tastes, the
company has expanded its menu to include salads, fish, wraps, smoothies and fruit.
Subway
Subway is an American restaurant franchise that primarily sells submarine sandwiches (subs)
and salads. It is owned and operated by Doctor's Associates, Inc. (DAI). Subway is one of the
fastest growing franchises in the world with 37,881 restaurants in 98 countries and territories as
of November 7, 2012. It is the largest single-brand restaurant chain globally and is the second
largest restaurant operator globally after Yum! Brands (over 37,000 locations).
Subway's main operations office is in Milford, Connecticut; five regional centers support
Subway's growing international operations. The regional offices for European franchises arelocated in Amsterdam, Netherlands; the Australia and New Zealand locations are supported from
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Brisbane, Australia; the Asian locations are supported from offices located in Beirut, Lebanon,
Malaysia, Singapore and India and the Latin America support center is in Miami, Florida.
Pizza Hut
Pizza Hutis an American restaurant chain and international franchise that offers different stylesof pizza along with side dishes including salad, pasta, Buffalo wings, breadsticks, and garlicbread.
Corporately known as Pizza Hut, Inc., it is a subsidiary of Yum! Brands, Inc., the world'slargest restaurant company.
As of 2012, there were more than 6,000 Pizza Hut restaurants in the United States, and more than5,139 store locations in 94 other countries and territories around the world.
Dominos
Domino's Pizza is an American restaurant chain and international franchise pizza delivery
corporation headquartered in Ann Arbor Township, Michigan, United States, near Ann Arbor,
Michigan.Founded in 1960, Domino's is the second-largest pizza chain in the United States (after
Pizza Hut) and has more than 10,000 corporate and franchised stores in 70 countries and all 50
U.S. states. Domino's Pizza was sold to Bain Capital in 1998 and went public in 2004.
KFC
KFC (Kentucky Fried Chicken) is a fast food restaurant chain headquartered in Louisville,
Kentucky, United States, which specializes in fried chicken. An "American icon", it is the
world's largest fried chicken chain and the third largest restaurant chain after Subway and
McDonald's, with over 17,000 outlets in 115 countries and territories as of December 2011.
1.6 Limitations of the Study Sample size of 100 may be unreasonable Most of the secondary data was collected from the company websites.
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There was no tools available, which would measure and give the effectiveness of fastfood advertisements on the Youngsters
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Chapter: II
Fast Food Industry
LEARNING OBJECTIVES
After reading this chapter, you should be able to:
Define Fast Good Define Junk Food Fast food outlets are take-awayor take-out Cuisine of fast food Convenience Stores Vendors and Concession Criticisms of fast food
CONTENT
What is Fast Food? What is Junk Food? On the go Cuisine Filling Stations Street Vendors and
Concession
Criticisms of fast food
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2.1 What is Fast Food?
From onion rings to double cheeseburgers, fast food is one of the worlds fastest growing food types.
Fast foods are quick, reasonably priced, and readily available alternatives to home cooked food. While
convenient and economical for a busy lifestyle, fast foods are typically high in calories, fat, saturated fat,
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sugar, and salt. Many other definitions are proposed for fast foods in the literature. A few of these are
mentioned below:
Definition 1. Fast food have been defined by Bender and Bender (1995) as a general term usedfor a limited menu of foods that lend themselves to production-line techniques; suppliers tend to
specialize in products such as hamburgers, pizzas, chicken, or sandwiches.
Definition 2. In Data Monitors (2005) survey the fast foodmarket is defined as the sale of foodand drinks for immediate consumption either on the premises or in designated eating areas
shared with other foodservice operators, or for consumption elsewhere.
Definition 3. As per the free dictionary fast food is inexpensive food, such as hamburgers andfried chicken, prepared and served quickly.
Definition 4. According to Merriam-Webster online dictionary fast food is designed for readyavailability, use, or consumption and with little consideration given to quality or significance.
Fast food is a very fast growing industry in world as well as in India especially in urban areas (small and
large cities). However, not much research literature is available on fast food preferences of consumers
especially young consumers in India.
Fast food is the term given to food that can be prepared and served very quickly. While any meal withlow 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 term "fast food" was recognized in a dictionary by MerriamWebster in 1951
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.
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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.
2.2 What is Junk Food?
Junk foodis a derisive slang term for food that is of little nutritional value and often high in fat, sugar,
salt, and calories. It is widely believed that the term was coined by Michael Jacobson, director of the
Center for Science in the Public Interest, in 1972.
Junk foods typically contain high levels of calories from sugar or fat with little protein, vitamins or
minerals. Foods commonly considered junk foods include salted snack foods, gum, candy, sweet
desserts, friedfast food, and sugary carbonated beverages. Many foods such as hamburgers, pizza, and
tacos can be considered either healthy or junk food depending on their ingredients and preparation
methods with the more highly processed items usually falling under the junk food category. What is and
is not junk food can also depend on the person's class and social status, with wealthier people tending to
have a broader definition while lower-income consumers may see fewer foods as junk food, especially
certain ethnic foods.
Despite being labeled as "junk" consuming such foods usually does not pose any immediate health
concerns and is generally safe when integrated into a well-balanced diet.
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A Big Mac meal with French fries and Coca-Cola served at a McDonald's.
2.3 On the goFast food outlets are take-awayor take-outproviders, often with a "drive-through" service which allows
customers to order and pick up food from their cars; but most also have a seating area in which
customers can eat the food on the premises.
Nearly from its inception, fast food has been designed to be eaten "on the go", often does not require
traditional cutlery, and is eaten as a finger food. Common menu items at fast food outlets include fish
and chips, sandwiches, pastas, hamburgers, fried chicken, French fries, chicken nuggets, tacos, pizza,
hot dogs, and ice cream, although many fast food restaurants offer "slower" foods like chili, mashed
potatoes, and salads.
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McDonald's first two-lane drive-through was at the Rock N Roll McDonald's in Chicago.
2.4 CuisineModern commercial fast food is often highly processed and prepared in an industrial fashion, i.e., on a
large scale with standard ingredients and standardized cooking and production methods. It is usually
rapidly served in cartons or bags or in a plastic wrapping, in a fashion which minimizes cost. In most
fast food operations, menu items are generally made from processed ingredients prepared at a central
supply facility and then shipped to individual outlets where they are reheated, cooked (usually by
microwave or deep frying) or assembled in a short amount of time. This process ensures a consistent
level of product quality, and is key to being able to deliver the order quickly to the customer and
eliminate labor and equipment costs in the individual stores.
Because of commercial emphasis on speed, uniformity and low cost, fast food products are often made
with ingredients formulated to achieve a certain flavor or consistency and to preserve freshness.
2.5 Filling stations
Many petrol/gas stations have convenience stores which sell pre-packaged sandwiches, doughnuts, and
hot food. Many gas stations in the United States and Europe also sell frozen foods and have microwaves
on the premises in which to prepare them.
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2.6 Street vendors and concessions
Traditional street food is available around the world, usually from small operators and independent
vendors operating from a cart, table, portable grill or motor vehicle. Common examples include
Vietnamese noodle vendors, Middle Eastern falafel stands, New York City hot dog carts, and taco
trucks. Turo-Turo vendors (Tagalog for point point) are a feature of Philippine life. Commonly, street
vendors provide a colorful and varying range of options designed to quickly captivate passers-by and
attract as much attention as possible.
Depending on the locale, multiple street vendors may specialize in specific types of food characteristic
of a given cultural or ethnic tradition. In some cultures, it is typical for street vendors to call out prices,
sing or chant sales-pitches, play music, or engage in other forms of "street theatrics" in order to engage
prospective customers. In some cases, this can garner more attention than the food.
2.7 Criticism of fast food
Fast food chains have come under criticism over concerns ranging from claimed negative health effects,
alleged animal cruelty, cases of worker exploitation, and claims of cultural degradation via shifts in
people's eating patterns away from traditional foods. The intake of fast food is increasing worldwide. A
study done in Jeddah has shown that current fast food habits are related to the increase of overweight
and obesity among adolescents in Saudi Arabia.
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Chapter: III
Top Fast Food Provider in
Ahmedabad
LEARNING OBJECTIVES
After reading this chapter, you should be able to:
History Product Global Operation Slogan Advertisement
Of
McDonalds Subway Pizza Hut Dominos KFC
CONTENT
McDonalds Subway Pizza Hut Dominos KFC
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3.1 McDonald's
McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving
nearly 47 million customers daily. At one time it was the largest global restaurant chain; it hassince been surpassed by multi-brand operator Yum! (KFC, Taco Bell and others) and sandwich
chain Subway.
Each McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The
corporations' revenues come from the rent, royalties and fees paid by the franchisees, as well as
sales in company-operated restaurants. McDonald's revenues grew 27% over the three years
ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion.
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McDonald's primarily sells hamburgers, cheeseburgers, chicken products, French fries, breakfast
items, soft drinks, milkshakes, and desserts. In response to obesity trends in western nations and
in the face of criticism over the healthiness of its products, the company has modified its menu to
include such healthier alternatives as salads, wraps and fruit.
History
"Speedee"
The business began in 1940, with a restaurant opened by brothers Dick and Mac McDonald in
San Bernardino, California. Their introduction of the "Speedee Service System" in 1948
established the principles of the modern fast-food restaurant. The original mascot of McDonald's
was a man with a chef's hat on top of a hamburger shaped head whose name was "Speedee."
Speedee was eventually replaced with Ronald McDonald in 1963.
The first McDonald's restaurants opened in the United States, Canada, Costa Rica, Japan, the
Netherlands, Germany, Australia, France, El Salvador and Sweden in order of openings.
The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc,
in Des Plaines, Illinois on April 15, 1955, the ninth McDonald's restaurant overall. Kroc later
purchased the McDonald brothers' equity in the company and led its worldwide expansion and
the company became listed on the public stock markets in 1965. Kroc was also noted for
aggressive business practices, compelling the McDonald brothers to leave the fast food industry.
The McDonald brothers and Kroc feuded over control of the business, as documented in both
Kroc's autobiography and in the McDonald brothers' autobiography. The site of the McDonald
brothers' original restaurant is now a monument.
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With the expansion of McDonald's into many international markets, the company has become a
symbol of globalization and the spread of the American way of life. Its prominence has also
made it a frequent topic of public debates about obesity, corporate ethics and consumer
responsibility.
ProductsMcDonald's predominantly sells hamburgers, various types of chicken sandwiches and products,
French fries, soft drinks, breakfast items, and desserts. In most markets, McDonald's offers
salads and vegetarian items, wraps and other localized fare. Portugal is the only country with
McDonald's restaurants serving soup. This local deviation from the standard menu is a
characteristic for which the chain is particularly known, and one which is employed either to
abide by regional food taboos (such as the religious prohibition of beef consumption in India) or
to make available foods with which the regional market is more familiar (such as the sale of Mc-
Rice in Indonesia.)
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Global operations
Countries with McDonald's stores
McDonald's has become emblematic of globalization, sometimes referred to as the
"McDonaldization" of society. The Economist magazine uses the "Big Mac Index": thecomparison of a Big Mac's cost in various world currencies can be used to informally judge these
currencies' purchasing power parity. Scandinavian countries lead the Big Mac Index with four of
the five most expensive Big Mac's. Norway has the most expensive Big Mac in the world as of
July 2008, whilst the cheapest country is Malaysia.
Thomas Friedman once said that no country with a McDonald's had gone to war with another.
However, the "Golden Arches Theory of Conflict Prevention" is not strictly true. Careful
historians point to the 1989 United States invasion of Panama, NATO's bombing of Serbia in
1999, the 2006 Lebanon War, and the 2008 South Ossetia War as exceptions.
Some observers have suggested that the company should be given credit for increasing the
standard of service in markets that it enters. A group of anthropologists in a study entitled
Golden Arches East looked at the impact McDonald's had on East Asia and Hong Kong in
particular. When it opened in Hong Kong in 1975, McDonald's was the first restaurant to
consistently offer clean restrooms, driving customers to demand the same of other restaurants
and institutions. In East Asia in particular, McDonald's have become a symbol for the desire to
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embrace Western cultural norms. McDonald's have recently taken to partnering up with Sinopec,
China's second largest oil company, in the People's Republic of China, as it begins to take
advantage of China's growing use of personal vehicles by opening numerous drive-thru
restaurants.
McDonald's Advertising"I'm lovin' it" redirects here. For the Justin Timberlake single, see I'm Lovin' It.
McDonald's has for decades maintained an extensive advertising campaign. In addition to the
usual media (television, radio, and newspaper), the company makes significant use of billboards
and signage, sponsors sporting events ranging from little League to the Olympic Games, and
makes coolers of orange drink with their logo available for local events of all kinds. Nonetheless,
television has always played a central role in the company's advertising strategy.
To date, McDonald's has used 23 different slogans in United States advertising, as well as a few
other slogans for select countries and regions. At times, it has run into trouble with its
campaigns.
HistoryThere have been many McDonald's advertising campaigns and slogans over the years. The
company is one of the most prevalent fast food advertisers. McDonald's Canada's corporate
website states that the commercial campaigns have always focused on the "overall McDonald's
experience", rather than just product. The purpose of the image has always been "portraying
warmth and a real slice of everyday life. Its TV ads, showing various people engaging in
popular activities, usually reflect the season and time period. Finally, they have never in their
advertising history used negative or comparison ads pertaining to any of their competitors; the
ads have always focused only on McDonalds alone.
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SloganIndia
I'm lovin' it(1989-present)
Current campaign
i'mlovin' it is an international branding campaign by McDonald's Corporation. It was created by
Heye& Partner, a longtime McDonald's agency based in Unterhaching, Germany, near Munich,
and a member of the DDB Worldwide Communications Group, Inc. It was the company's first
global advertising campaign and was launched in Munich, Germany on September 2, 2003,
under the German title ichliebees. The English part of the campaign was launched on September
29, 2003 with the music of Tom Batoy and Franco Tortora (Mona Davis Music) and vocals by
Justin Timberlake, in which the slogan appears. In 2007, after a public casting call which
received 15,000 submissions, McDonald's selected 24 people to appear as part of the campaign.
Images of those chosen, who had submitted a story and digital photograph which "captured ...
themes of inspiration, passion and fun," appear on McDonald's paper bags and cups worldwide.
In Spring/summer 2008, McDonald's underwent the first phase of their new image and slogan:
'What we're made of.' This was to promote how McDonald's products are made. Packaging was
tweaked a little to feature this new slogan. In fall 2008, McDonald's introduced new packaging,
eliminating the previous design stated above with new, inspirational messages, the "I'm lovin it"
slogan. (Appearing only once on most packages). McDonald's also updated their menu boards
with darker, yet warmer colors, more realistic photos of the products featured on plates and the
drinks in glasses. In 2009 they expect to have this entire nationwide.
3.2 Subway
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Subway is a fast food franchise that primarily sells submarine sandwiches, salads and single dish
pizzas. It is owned and operated by Doctor's Associates, Inc. (DAI). Subway is one of the fastest
growing franchises in the world with approximately 31,697 restaurants in 91 countries as of
September 2009. It is the largest single-brand restaurant chain globally and is the second largest
restaurant operator globally after Yum! Brands (35,000 locations)
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Subway's main operations office is in Milford, Connecticut, and five regional centers support
Subway's growing international operations. The regional offices for European franchises are
located in Amsterdam, Netherlands. Australia and New Zealand are supported from Brisbane,
Australia, the Middle Eastern locations are supported from offices located in Beirut, Lebanon,
the Asian locations from Singapore, and the Latin America support center is in Miami, Florida.
In the UK and Ireland the company hopes to expand to 2,010 restaurants by the year 2010.
Many restaurant analysts attribute Subway's fast growth to the growing concern on health by
restaurant customers, a trend that Subway has taken advantage of in its marketing. In 1999, an
Indiana University student named Jared Fogle lost 245 pounds (110 kg) with a diet made up
mostly of Subway sandwiches combined with exercise. The story is used by Subway as a large
part of their marketing campaign to this day...
4 Products
A Sub Sandwich A 6-inch hamsandwich
Subway's main product is the submarine sandwich, or "Sub". Many stores also offer Cookies,
muffins, and Danishes which may be purchased in a variety of flavors.
In 2001, Subway added seasoned breads and a line of specialty items to its menu and in 2003,
most Subway markets switched their beverage contracts to supply Coca-Cola products
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exclusively, having previously left it up to the individual market to decide whether to serve Coke
or Pepsi.
In order to ink the current deal with Coca-Cola, Coca-Cola helped pay for the initial rollout of
toaster ovens to all existing restaurants in North America. Subway gave customers the option to
have their sandwiches toasted in response to increased competition from a rival sandwich chain,
Quiznos, which popularized toasted submarine sandwiches. In Australia, the introduction of
Fresh Toasting enabled the Subway Franchise to prevent Quiznos from gaining market share.
The Turbo Chef and Merry chef toaster ovens are a microwave and convection oven hybrid. The
deal with Coca-Cola led to Quiznos switching to Pepsi chain wide, except in Canada.
One of the chain's best-known sandwiches is the BMT, which originally stood for Brooklyn
Manhattan Transit, but now stands for Biggest, Meatiest, and Tastiest. The sandwich contains
salami, pepperoni and ham. As of 2004, it was Subway's most popular cold sandwich in the
United Kingdom.
In 2006, the first kosher Subway restaurant in the United States opened in a suburb of Cleveland,
Ohio. Subway spokesman Jared Fogle was in attendance at the opening. "With slight
modifications, such as no pork-based products, and the use of soy-based cheese, the menu is
virtually identical to that of any other Subway restaurant.
Since then, kosher Subways have opened in New York, Los Angeles, Kansas City, and
Baltimore, as well as Livingston, NJ, and plans have been announced for Milwaukee, Boston,
and one inside the JCC in West Bloomfield, Michigan, a suburb of Detroit. Some of these
locations serve soy cheese, but most don't serve any form of cheese at all.
All Subway restaurants in Muslim countries serve a halal menu. There are also at least two
Subway restaurants in the United States that do the same, three in Canada, and a growing number
in the United Kingdom. The success of these stores has been mixed, but the company will open
more halal stores.
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Subway also offers items other than sandwiches; breakfast items include such baked goods as
bagels, egg & sausage sandwiches, and as of July and August 2006, "personal pizzas" are
available in select markets to their menu. The personal pizzas are made upon order (as with theirsandwiches) and heated "in less than 90 seconds" (cooking for 85 seconds) as advertised on
televised commercials. Breakfast and pizza items are only available in some stores. Most stores
offer additional toppings upon request.
5 Global locationsSubway is present in 91 countries and territories
31751 Restaurants in 91 Countries
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6 Subway AdvertisingSubway uses the advertising slogan "Eat Fresh" to explain how every sandwich is made on
freshly baked bread, using fresh ingredients, in front of the customer to their exact specification,
by employees who Subway terms "Subway Sandwich Artists".
In 2008, Subway began to offer "Five Dollar Foot-long" submarine sandwiches in the United
States as a limited time only promotion. Customer response prompted Subway to make a "Five
Dollar Foot-long Everyday Value Menu" that includes 8 foot long sandwiches (Spicy Italian,
Cold Cut Combo, Tuna, BLT, Black Forest Ham, Meatball, Veggie Delite& Oven Roasted
Chicken) a permanent menu item.] The jingle from the commercials advertising Five Dollar
Foot-longs has gained some popularity.
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In 2009, Subway brought back the "Five Dollar Foot-Long" sandwiches for a limited time. These
sandwiches included every sub excluding Double Meat and Premium subs.
In November 2007, Subway's US commercials featured the Peter Griffin character from Family
Guyin which he extols the virtues of its new Subway Feast sandwich. 31751 Restaurants in 91
Countries Subway has also used instant win competitions based on the game Scrabble as
promotional tools.
Subway also notably has a product placement television advertisement campaign for the US
series Chuck, ongoing since its first season. As ratings dwindled in the second season, a
campaign to "save Chuck" was launched by fans, which involves purchasing a foot-long
sandwich from Subway on April 27, 2009, the date of the season finale. Tony Pace, Subway's
marketing officer, reportedly called it the best product placement the restaurant chain has done
"in several years."
Slogans"Eat Fresh", first used in 2000 is the Subway chain's current worldwide slogan. Past slogans and
regional variations include:
"When You're Hungry, Make Tracks for Subway" (1979-1985) "My Way" (19851990) "The Place Where Fresh is the Taste" (19901995) "What a Sandwich" (19941995) "Right Before Your Eyes" (1995-96) "The Way A Sandwich Should Be" (19962000) "Eat Fresh." (2001-present) "Choose Well." (2004present) "I feel good" (2009-present in Australia/New Zealand) "You can have it my way, or Subway" (2005-present in Edinburgh SAS) "Subway, Where Winners Eat" (2009-present, During the 2009 Little League World
Series) "We've Got A Sub For That" (2009 in the UK and Ireland)
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3.3 Pizza Hut
Pizza Hut is an American restaurant chain and international franchise based in Addison, Texas(anorthern suburb of Dallas), offering different styles of pizza along with side dishes including
pasta, buffalo wings, breadsticks, and garlic bread. Pizza Hut is a subsidiary of Yum! Brands,
Inc., the world's largest restaurant company, with approximately 34,000 restaurants, delivery-
carry out units, and kiosks in 100 countries.
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HistoryThe chain was founded in 1958 by Dan and Frank Carney. The Original Pizza Hut building was
later relocated to the Wichita State University campus. Additional restaurants were opened, with
the first franchise unit opening in 1959 in Topeka, Kansas. At the same time Pizza Hut was
growing in and around Kansas, Shakey's Pizza was developing a stronghold along the West
Coast. The competition provided Pizza Hut the impetus to evaluate its mission and direction.
Dan and Frank Carney saw Shakey's expanding into their territory and realized that they needed
to determine if Pizza Hut should be in the entertainment business or if it should be a
neighborhood pizza restaurant. They decided to stick with the neighborhood business and
realized that they needed to have a good standard image. The Carney brothers began to
systematize operations and building designs to counter the competition from Shakey's. The
franchise network continued to grow through friends and business associates, and by 1964 a
unique standardized building appearance and layout was established for franchised and
company-owned stores, creating a universal look that customers easily recognized.
By 1972, with 314 stores nationwide, Pizza Hut went public on the New York Stock Exchange
under the stock ticker symbol PIZ. In 1977, Pizza Hut was acquired by PepsiCo, who later also
bought KFC and Taco Bell. In 1997, the three restaurant chains were spun off into Tricon, and in
2002 joined with Long John Silver's and A&W Restaurants to become Yum! Brands. The oldest
continuously operating Pizza Hut in the world is in Manhattan, Kansas, in a shopping and tavern
district known as Aggieville near Kansas State University.
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Pizza Hut's prototype version of a restaurant (19501961). This was only used at four
prototype Pizza Hut locations. There are only a few menu items on this version.
ProductsPizza Hut sells pizzas in four different sizes: personal (an individual serving), small, medium and
large, though most stores have done away with the small size. A variety of toppings are
available, plus "specialty" styles, including Meat Lovers, Pepperoni Lovers, Cheese Lovers,
Veggie Lovers, Double Cheeseburger, Supreme, Super Supreme and the newly introduced Pizza
Mia. The pan pizza has a thicker crust than most other commercially available pizzas.
Pizza Hut also sells Stuffed Crust pizza, with the outermost edge wrapped around a coil of
mozzarella cheese; Hand-Tossed, more like traditional pizzeria crusts; Thin 'N Crispy, a thin,
crispy dough which was Pizza Hut's original style; Dipping' Strips pizza, a pizza cut into small
strips that can be dipped into a number of sauces; and The Edge pizza, where the toppings nearly
reach to the edge of the pizza. There was also formerly a crust that was not as thick as Pizza
Hut's pan pizza, and not as thin as its thin crust. This crust was used on the Full House XL pizza
and discontinued in 2007.
In addition to pizza, also sold is garlic cheese bread (not in all locations), plus a number of side
dishes including bread sticks, cheese sticks, cinnamon sticks, mozzarella sticks, onion rings,
chicken wings (some stores have integrated with another chain known as Wing Street whichoffers a wide variety, such as Buffalo Burning Hot, Buffalo Medium, Buffalo Mild, Honey BBQ,
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Spicy BBQ, Garlic Parmesan, Cajun, Spicy Asian) boneless wings, chicken munchers, jalapeno
poppers, Quepapas (potato bites filled with cheese and jalapeo flavor),a basket of taters or tater
tots and fried apple pies.
Depending on the individual restaurant size, Pizza Huts also may offer pasta dinners such as
spaghetti and Cavatinaa mixture of Cavatelli (shells), Rotini (spirals), and Rotelle (wheels).
Pizza Hut Advertising
Pizza Hut's very first ad was "Putt Putt to Pizza Hut". It starts with a man apparently ordering
take-out and driving his 1965 Mustang JR to Pizza Hut, while some of the townspeople start
chasing him. He picks up his pizza and goes to his house, when all of the people who were
chasing him start eating all the pizza except the man who ordered it. Frustrated, he calls Pizza
Hut again.
Until early 2007, Pizza Hut's main advertising slogan was "Gather 'round the good stuff", and is
currently "Now You're Eating!". Pizza Hut does not have an official international mascot, but at
one time, there were commercials in the United States called 'The Pizza Head Show.' These
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commercials ran from 1993 to 1997 and were based loosely on the Mr. Bill shorts from Saturday
Night Live in the 1970s. The ads featured a slice of pizza with a face made out of toppings called
'Pizza Head'. In the 1970s Pizza Hut used the signature red roof with a jolly man named "Pizza
Hut Pete". Pete was on the bags, cups, balloons and hand puppets for the kids. In Australia
during the Mid to late 1990s, the advertising mascot was a delivery boy named Dougie, with
boyish good looks who, upon delivering pizza to his father, would hear the catchphrase "Here's a
tip: be good to your mother".
Early 2007 saw Pizza Hut move into several more interactive ways of marketing to the
consumer. Utilizing mobile phone SMS technology and their My Hut ordering site, they aired
several television commercials (commencing just before the Super Bowl) containing hidden
words that viewers could type into their phones to receive coupons. Other innovative efforts
included their "MySpace Ted" campaign, which took advantage of the popularity of social
networking, and the burgeoning user-submission marketing movement via their Vice President
of Pizza contest.
Pizza Hut is also advertised in anime such as Code GeassandDarker Than Black, though in the
translated versions of Code Geass the logo was removed, leaving only the red roof logo.
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Pasta HutPasta Hut logo (2008present)
On April 1, 2008, Pizza Hut in America sent emails to customers advertising that they now offer
pasta items on their menu. The email (and similar advertising on the company's website) stated
"Pasta so good we've changed our name to 'Pasta Hut'." The name change was a publicity stunt
held in conjunction with April Fools' Day, extending through the month of April, with the
company's Dallas headquarters changing its exterior logo to Pasta Hut. This name change was
also used to promote the new Tuscani Pasta line and new Pizza Hut dine-in menu. The first Pasta
Hut advertisement has the original Pizza Hut restaurant being imploded and recreated, but whenthey construct the new building, the sign saying "Pasta Hut" is placed on the building.
AustraliaOn January 19, 2009, Pizza Hut started a six-week online vote in Australia as to whether Pizza
Hut should become Pasta Hut. They are also co-branding two stores with the Pasta Hut logo.
Advertising for the new brand involved the production team creating a set of a restaurant called
"Toscani's". As the TVC suggests, the diners in the fictional restaurant, complete with signage
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and secret recording equipment; the customers were unaware they were eating pasta from Pizza
Hut.
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3.4 Domino's Pizza
Domino' s Pizza, is an international'fast food pizza delivery corporation, whose headquarter is
just outside Ann Arbor, Michigan, United States. It was founded by Tom Monaghan. There are
currently about 8,500 corporate and franchised stores in all 50 states in 55 countries. It was the
second-largest pizza chain behind Pizza Hut in the United States when it went public in 2004 for
just under $15 a share.
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From a Game to an Famous Outlet Name Dominos
History Early years
In 1960, Tom Monaghan and his brother, James, purchased Dominicks, a small pizza store in
Ypsilanti, Michigan. The deal was secured by a $75 down payment and the brothers borrowed
$500 to pay for the store. Eight months later, James traded his half of the business to Tom for a
used Volkswagen Beetle. As sole owner of the company Tom Monaghan, renamed the business
Domino's Pizza, Inc. in 1965. In 1967, the first Domino's Pizza franchise store opened in
Ypsilanti. Dominos continued to grow and in 1978 opened its 200th store.
In 1975, Domino's faced a lawsuit by Amstar Corporation, maker of Domino Sugar, alleging
trademark infringement and unfair competition. On May 2, 1980, a federal appeals court found
in favor of Domino's Pizza.
International expansionOn May 13, 1983, Domino's opened its first international store, in Winnipeg, Canada. That same
year, Domino's opened its 1,000th store overall, and by 1995 Domino's had 1,000 international
locations. In 1997, Domino's opened its 1,500th international location, opening seven stores per
continent on consecutive days.
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Sale of companyIn 1998, after 38 years of ownership, Domino's Pizza founder Tom Monaghan announced his
retirement and sold 93 percent of the company to Bain Capital, Inc. for about $1 billion and
ceased being involved in day-to-day operations of the company. A year later, the company
named David A. Brandon Chairman and Chief Executive Officer.
Current eraIn 2001, Dominos launched a two-year national partnership with the Make-A-Wish Foundation
of America. That same year, the company's stores in New York City and Washington D.C.
provided more than 12,000 pizzas to relief workers following the September 11 attacks on the
World Trade Center and The Pentagon. Through a matching funds program, the corporation
donated $350,000 to the American Red Cross' disaster relief effort.
Leading industry publicationPizza Todaymagazine named Dominos Pizza "Chain of the Year"
in 2003. That same year, Dominos teamed up with NASCAR for a multi-year partnership tobecome the "Official Pizza of NASCAR."
In 2004, after 44 years as a privately held company, Domino's Pizza rang the opening bell at the
New York Stock Exchange and began trading common stock on the NYSE under the ticker
symbol "DPZ". That year, Domino's also began its current partnership with St. Jude Children's
Research Hospital, participating in the hospital's "Thanks and Giving" campaign since it began in
2004, raising more than $1.3 million in 2006.
In a simultaneous celebration in 2006, Domino's opened its 5,000th U.S. store in Huntley,
Illinois and its 3,000th international store in Panama City, making 8,000 total stores for the
system. Also that year, the Domino's Pizza store in Tallaght, Dublin, Ireland, became the first in
Domino's history to hit a turnover of $3 million (2.35 million) peryear. As of September 2006,
it has 8,238 stores which totaled US$1.4 billion in gross income.
In 2007, Domino's introduced its Veterans and Delivering the Dream franchising programs and
also rolled out its online and mobile ordering sites.
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Franchisees
The exterior of a Domino's Pizza store in Spring Hill, Florida.
A make line at a Domino's
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The rights to own, operate and franchise branches of the chain in Australia, New Zealand,
France, Belgium, the Netherlands and the Principality of Monaco are currently owned by
Domino's Pizza Enterprises, having been sold off by the parent company between 1993 and
2007. The master franchises for the UK and Ireland were purchased by Domino's Pizza Group in
1993.
Major franchises Domino's Pizza Enterprises Domino's Pizza UK & IRL
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30 minute Guarantee
Starting in 1973, Domino's Pizza had a guarantee that customers would receive their pizzas
within 30 minutes of ordering, or they would receive the pizzas free. The guarantee was reduced
to $3 off in the mid 1980s. In 1992, the company settled a lawsuit brought by the family of an
Indiana woman who had been killed by a Domino's delivery driver, paying the family US$ 2.8
million. In 1993, Domino's settled another lawsuit; this one brought by a woman who was
injured when a Domino's delivery driver ran a red light and rear-ended her. The woman was paid
nearly US$ 80 million. The guarantee was dropped that same year because of the "public
perception of reckless driving and irresponsibility", according to Monaghan.
In December 2007 Domino's introduced a new slogan, "You Got 30," alluding to the earlier
pledge but stopping short of promising delivery in a half hour. However, in Brazil, Chile, India,
Indonesia, Lebanon, Mexico and Turkey, Domino's still guarantees delivery within 30 minutes,
or the order is free but online orders are not available. In Israel, late delivery results in cash back
on the spot anywhere from a fifth to half the price of the order (depending on the delay).
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Dominos Pizza AdvertisingIn the 1980s, Domino's Pizza was well known for its advertisements featuring The Noid. That
concept was created by Group 243 Inc. who then hired Will Vinton Studios to produce the
television commercials that they created. The catch phrase associated with the commercials was
"Avoid the Noid."
Due to a glitch on the Domino's website, the company gave away nearly 11,000 free medium
pizzas in March 2009. The company had planned the campaign for December 2008 but dropped
the idea and never promoted it. The code was never deactivated though and resulted in the free
giveaway of the pies across the United States after someone discovered the promotion on the
website by typing in the word "bailout" as the promotion code and then shared it with others on
the Internet. Domino's deactivated the code on the morning of Tuesday, March 31, 2009 and
promised to reimburse store owners for the pies.
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Global locations
Dominos restaurant in Oaxaca de Juarez, Oaxaca, Mexico
Domino's colored motorcycles used for home delivery in Gujarat, India
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3.5 KFC
KFC Corporation, or KFC, founded and also known as Kentucky Fried Chicken, is a chain of
fast food restaurants based in Louisville, Kentucky. KFC has been a brand and operating
segment, called a "concept", of Yum! Brands since 1997 when that company was spun off from
PepsiCo as Tricon Global Restaurants Inc.
KFC primarily sells chicken in form of pieces, wraps, salads and sandwiches. While its primary
focus is fried chicken, KFC also offers a line of roasted chicken products, side dishes and
desserts. Outside North America, KFC offers beef based products such as hamburgers or kebabs,
pork based products such as ribs and other regional fare.
The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952,
though the idea of KFC's fried chicken actually goes back to 1930. The company adopted the
abbreviated form of its name in 1991, Starting in April 2007, the company began using its
original name, Kentucky Fried Chicken, for its signage, packaging and advertisements in the
United States as part of a new corporate re-branding program; newer and remodeled restaurants
will have the new logo and name while older stores will continue to use the 1980s signage.Additionally, Yum! Continues to use the abbreviated name freely in its advertising
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History
The restaurant in North Corbin, Kentucky where Colonel Sanders developed Kentucky Fried
Chicken
World's first KFC in South Salt Lake, Utah, since replaced by a new KFC on the same site
Born and raised in Henryville, Indiana, Sanders passed through several professions in his
lifetime. Sanders first served his fried chicken in 1930 in the midst of the Great Depression at a
gas station he owned in North Corbin, Kentucky. The dining area was named "Sanders Court &
Caf" and was so successful that in 1936 Kentucky Governor Ruby Laffoon granted Sanders the
title of honorary Kentucky Colonel in recognition of his contribution to the state's cuisine. The
following year Sanders expanded his restaurant to 142 seats, and added a motel he bought across
the street. When Sanders prepared his chicken in his original restaurant in North Corbin, he
prepared the chicken in an iron skillet, which took about 30 minutes to do, too long for a
restaurant operation. In 1939, Sanders altered the cooking process for his fried chicken to use a
pressure fryer, resulting in a greatly reduced cooking time comparable to that of deep frying. In
1940 Sanders devised what came to be known as his Original Recipe.
The Sanders Court & Caf generally served travelers, often those headed to Florida, so when the
route planned in the 1950s for what would become Interstate 75 bypassed Corbin, he sold his
properties and traveled the U.S. to sell his chicken to restaurant owners. The first to take him upon the offer was Pete Harman in South Salt Lake, Utah; together, they opened the first
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"Kentucky Fried Chicken" outlet in 1952. By the early 1960s Kentucky Fried Chicken was sold
in over 600 franchised outlets in both the United States and Canada. One of the longest-lived
franchisees of the older Col. Sanders' chicken concept, as opposed to the KFC chain, was the
Kenny Kings chain.
The company owned many Northern Ohio diner-style restaurants, the last of which closed in
2004. Sanders sold the entire KFC franchising operation in 1964 for $2 million USD Since that
time, the chain has been sold three more times, most recently to PepsiCo, which made it part of
its Tricon Global Restaurants division, which in turn was spun off in 1997, and has now been
renamed to Yum! Brands. Additionally, Colonel Sanders' nephew, Lee Cummings, took his own
Kentucky Fried Chicken franchises (and a chicken recipe of his own) and converted them to his
own "spin-off" restaurant chain, Lee's Famous Recipe Chicken.
Today, some of the older KFC restaurants have become famous in their own right. One such
restaurant is located in Marietta, Georgia. This store is notable for a 56-foot (17 m) tall sign that
looks like a chicken. The sign, known locally as the Big Chicken, was built for an earlier fast-
food restaurant on the site called Johnny Reb's Chick, Chuck and Shake. It is often used as a
travel reference point in the Atlanta area by locals and pilots.
The Secret RecipeThe Colonel's secret flavor recipe of 11 herbs and spices that creates the famous "finger lickin'
good" chicken remains a trade secret. Portions of the secret spice mix are made at different
locations in the United States, and the only complete, handwritten copy of the recipe is kept in a
vault in corporate headquarters. On September 9, 2008, the one complete copy was temporarily
moved to an undisclosed location under extremely tight security while KFC revamped the
security at its headquarters. Before the move, KFC disclosed the following details about the
recipe and its security arrangements:
The recipe, which includes exact amounts of each component, is written in pencil on asingle sheet of notebook paper and signed by Sanders.
The recipe was locked in a filing cabinet with two separate combination locks. Thecabinet also included vials of each of the 11 herbs and spices used.
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Only two executives had access to the recipe at any one time. KFC refuses to disclose thenames and titles of either executive.
One of the two executives said that no one had come close to guessing the contents of thesecret recipe, and added that the actual recipe would include some surprises.
On February 9, 2009, the secret recipe returned to KFC's Louisville headquarters in a more
secure, computerized vault.
In 1983, writer William Poundstone examined the recipe in his book Big Secrets. He reviewed
Sanders' patent application, and advertised in college newspapers for present or former
employees willing to share their knowledge. From the former he deduced that Sanders had
diverged from other common fried-chicken recipes by varying the amount of oil used with the
amount of chicken being cooked, and starting the cooking at a higher temperature (about 400 F
(200 C)) for the first minute or so and then lowering it to 250 F (120 C) for the remainder of
the cooking time. Several of Poundstone's contacts also provided samples of the seasoning mix,
and a food lab found that it consisted solely of sugar, flour, salt, black pepper and monosodium
glutamate (MSG). He concluded that it was entirely possible that, in the years since Sanders sold
the chain, later owners had begun skimping on the recipe to save costs. Following his buyout in
1964, Colonel Sanders himself expressed anger at such changes, saying:
"That friggin' ... outfit .... They prostituted every goddamn thing I had. I had the greatest gravy in
the world and those sons of bitches they dragged it out and extended it and watered it down that
I'm so goddamn mad.
Ron Douglas, author of the book "America's Most Wanted Recipes," also claims to have figured
out KFC's secret recipe.
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Products
PackagingThe famous paper bucket that KFC uses for its larger sized orders of chicken and has come to
signify the company was originally created by Wendy's restaurants founder Dave Thomas.
Thomas was originally a franchisee of the original Kentucky Fried Chicken and operated several
outlets in the Columbus, Ohio area. His reasoning behind using the paper packaging was that it
helped keep the chicken crispy by wicking away excess moisture. Thomas was also
responsiblefor the creation of the famous rotating bucket sign that came to be used at most KFC
locations in the US.
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Menu items
This is a list of menu items sold at KFC.
Chicken
KFC's specialty is fried chicken served in various forms. KFC's primary product ispressure-fried pieces of chicken made with the original recipe. The other chicken
offering, extra crispy, is made using a garlic marinade and double dipping the chicken in
flour before deep frying in a standard industrial kitchen type machine.
Kentucky Grilled Chicken - This marinated grilled chicken is targeted towards health-conscious customers. It features marinated breasts, thighs, drumsticks, and wings that are
coated with the Original Recipe seasonings before being grilled. It has less fat, calories,
and sodium than the Original Recipe fried chicken. Introduced in April 2009.
KFC has two lines of sandwiches: its "regular" chicken sandwiches and its Snackers line.The regular sandwiches are served on either a sesame seed or corn dusted roll and are
made from either whole breast fillets (fried or roasted), chopped chicken in a sauce or
fried chicken strips. The Snackers line are value priced items that consist of chicken
strips and various toppings. In the UK, Australia and New Zealand, sandwiches are
referred to as "burgers"; there is the chicken fillet burger (a chicken breast fillet coated in
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an original-recipe coating with salad garnish and mayonnaise) and a Zinger Burger (as
with the former but with a spicier coating and salsa). Both of these are available as
"tower" variants, which include a slice of cheese and a hash brown.
A variety of smaller finger food products are available at KFC including chicken strips,wings, nuggets and popcorn chicken. These products can be ordered plain or with various
sauces, including several types of barbecue sauces and buffalo sauce. They also offer
potato wedges.
Several pies have been made available from KFC. The Pot Pie is a savory pie made withchicken, gravy and vegetables. In the second quarter of 2006, KFC introduced its
variation on Shepherd's pie called the Famous Bowl. Served in a plastic bowl, it is
layered with mashed potatoes or rice, gravy, corn, popcorn chicken, and cheese, and is
served with a biscuit. The bowl had been available at KFC's special test market store in
Louisville since the third quarter of 2005.
The KFC Twister is a wrap that consists of either chicken strips or roasted chicken,tomato, lettuce and (pepper) mayonnaise wrapped in a tortilla. In Europe, the Twister is
sold in two varieties: 1) the Grilled Twister (chicked strips and 2) the Grilled Mexican
twister/Spicy Toasted Twister (chicken breast supplemented by tortilla chips and salsa,
adds only salsa to pepper mayonnaise.)
KFC Fillers are a 9 in (23 cm) sub, available in four varieties over the summer period inAustralia.
Shish kebab - in several markets KFC sells kebabs.
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Other products
Coleslaw
In some international locations, KFC may sell hamburgers, pork ribs or fish. In the U.S.,KFC began offering the Fish Snackersandwich during Lent in 2006. The Fish Snacker
consists of a rectangular patty of Alaskan Pollock on a small bun, and is the fifth KFC
menu item in the Snackercategory.
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Three types of salads (which can be topped with roasted or fried chicken) are available atKFC: Caesar, house, and BLT salads (in the US).
The Boneless Banquet Zinger BurgerA regular sized burger which regularly consists of a boneless fillet of hot
and spicy chicken, lettuce and mayonnaise in a burger bun. Cheese, tomato, bacon and
pineapple can be added upon request. Barbecue sauce can also replace/join the
mayonnaise.
Parfait desserts"Little Bucket Parfaits" in varieties such as Fudge Brownie, ChocolateCrme (once called the Colonel's Little Fudge Bucket), Lemon Crme and Strawberry
Shortcake are available at most locations in the US.
Sara Lee DessertsAvailable in either Cookies and Cream Cheesecake or Choc CaramelMousse
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Sides Other than fried chicken, many KFC restaurants serve side dishes like coleslaw, various
potato-based items (including potato wedges, French fries and mashed potatoes withgravy), biscuits, baked beans, macaroni and cheese, macaroni salad, rice, steamedvegetables and corn on the cob.
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Discontinued products The Colonel's Rotisserie Gold This product was introduced in the 1990s as a response
to the Boston Market chain's roasted chicken products, and a healthier mindset of the
general public avoiding fried food. Purportedly made from a "lost" Col. Sanders recipe, it
was sold as a whole roaster or a half bird.
Tender Roast ChickenThis product was an off-shoot of 'The Colonel's Rotisserie Gold'.Instead of whole and half birds, customers were given quarter roasted chicken pieces. For
a time, customers could request chicken "original", "Extra Tasty Crispy", or "Tender
Roast".
Chicken Little sandwich a value oriented sandwich during the late 1980s and early1990s. It was a small chicken patty with mayonnaise on a small roll, similar to White
Castle's mini chicken sandwich.
Extra Tasty Crispy (ETC) Chicken much like the Extra Crispy served today, exceptETC was prepared using chicken that had been soaking for 15 minutes in a special
marinade machine. There is some speculation that the marinade may have been made
with trans-fats, and KFC boasts to no longer use trans-fats in their chicken, the known
ingredients were garlic and chicken stock. In the summer of 2007, KFC started marketing
the chicken just as "Extra Crispy" without the marinade.
Kentucky Nuggets were a chicken nugget product available at KFC until 1996. No reasonhas been given for their discontinuation.
Smokey ChipotleIntroduced in April 2008. The chicken was dipped in chipotle saucethen doubled breaded and fried. It has been discontinued since August 2008.
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Nutritional valueKFC formerly used partially hydrogenated oil in its fried foods. This oil contains relatively high
levels of trans fat, which increases the risk of heart disease. The Center for Science in the Public
Interest (CSPI) filed a court case against KFC, with the aim of making it use other types of oils
or make sure customers know about trans fat content immediately before they buy food.
In October 2006, KFC announced that it would begin frying its chicken in Trans fat-free oil.
This would also apply to their potato wedges and other fried foods, however, the biscuits,
macaroni and cheese, and mashed potatoes would still contain Trans fat. Trans fat-free soybean
oil was introduced in all KFC restaurants in the U.S. by April 30, 2007. CSPI announced that it
would immediately drop its lawsuit against KFC and was hopeful that this would create a ripple
effect on other restaurants or fast food chains that prepare food rich in Trans fat. "If KFC, which
deep-fries almost everything, can get the artificial Trans fat out of its frying oil, anyone can,"
CSPI executive director Michael Jacobson said in a statement.
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KFC Advertising
KFC's logo used from 1997 until November 2006
Early television advertisements for KFC regularly featured Colonel Sanders licking his fingers
and talking to the viewer about his secret recipe. Despite his death in 1980 Sanders remains a key
symbol of the company in its advertising and branding.
Throughout the mid-1980s, KFC called on Will Vinton Studios to produce a series of humorous,Claymation ads. These most often featured a cartoon-like chicken illustrating the poor food
quality of competing food chains, mentioning prolonged freezing and other negative aspects. TV
ads also featured Foghorn Leghorn advising Henery Hawk to visit the restaurant for better
chicken.
In the 80s, KFC was an associate sponsor for Junior Johnson's NASCAR Winston Cup Series
cars, with such drivers as Darrell Waltrip, Neil Bonnett, and Terry Labonte.
In 1997 KFC briefly re-entered the NASCAR Winston Cup Series as sponsor of the #26 Darrell
Waltrip Motorsports Chevrolet with driver Rich Bickle at the Brickyard 400.
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A co-branded Long John Silver's and KFC
By the late 1990s, the stylized likeness of Colonel Sanders as the KFC logo had been modified.
KFC ads began featuring an animated version of "the Colonel" voiced by Randy Quaid with a
lively and enthusiastic attitude. He would often start out saying "The Colonel here!" and moved
across the screen with a cane in hand. The Colonel was often shown dancing, singing, and
knocking on the TV screen as he spoke to the viewer about the product.
The animated Colonel is uncommon today. Still using a humorous slant, the current KFC
campaign revolves mostly around customers enjoying the food. It also features a modified
version of LynyrdSkynyrd's "Sweet Home Alabama" as the theme song for practically all its
commercials, though the restaurant actually hails from Kentucky.
In 2006, KFC claimed to have made the first logo visible from outer space, though Ready-mix
has had one since 1965. KFC says "It marked the official debut of a massive global re-image
campaign that will contemporize 14,000-plus KFC restaurants in over 80 countries over the nextfew years." The logo was built from 65,000 one-foot-square tiles, and it took six days on site to
construct in early November. The logo was placed in the Mojave Desert near Rachel, Nevada. It
is located in the northern section of Rachel, Nevada at 373846N1154503W37.6460N
115.7507WKFC logo .
Many KFC locations are co-located with one or more of Yum! Brands restaurants, Long John
Silver's, Taco Bell, Pizza Hut, or A&W Restaurants. Many of these locations behave like a single
restaurant, offering a single menu with food items from both restaurants.
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The resurrected Kentucky Fried Chicken logo
One of KFC's latest advertisements is a commercial advertising its "wicked crunch box meal".
The commercial features a fictional black metal band called "Hellvetica" performing live, the
lead singer then swallows fire. The commercial then shows the lead singer at a KFC eating the
"wicked crunch box meal" and saying "Oh man that is hot".
In 2007, the original, non-acronymicKentucky Fried Chickenname was resurrected and began to
reappear on company marketing literature and food packaging, as well as some restaurant
signage.
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International operations Global locations
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Chapter: IV
Factors Affecting Perceptions
LEARNING OBJECTIVES
After reading this chapter, you should be able to:
Value for Money Indian fast food market Record of India fast food industry Factors like cultural, social, personal and psychological 7 Ps Rivalry among exiting competitors
CONTENT
Affordable meals drivesales at fast food chain.
Rivals Dominos, PizzaHut each target Indianmarket.
Factor affectingconsumer behavior
Consumer behavior7 Ps
Rivalry among existingcompetitors
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4.1 Affordable meals drive sales at fast-food chainsValue-for-money deals offered by fast-food chains are driving up sales as the economic downturn bites
price-sensitive Indian customers and force them to choose affordable eating-out and ordering-in meal
options.
For chains such as Dominos Pizza, McDonalds, KFC and Pizza Hut, the downturn is no cause for
applying the brakes on expansion, as most other industries are doing, but an opportunity to tap new
markets and customers.
In August last year, Dominos introduced a range called Pizza Mania, offering personal-sized pizzas at
Rs35 apiece. Two months later, Pizza Hut offered Magic Times pizza meals for as low as Rs99.
The decision to introduce Pizza Mania was not driven by the slowdown, but the timing simply
coincided with the slowdown in the market, said DevAmritesh, senior vice-president for marketing at
Dominos.
The range already makes up 25% of overall orders and 15-16% of revenue for the chain, which plans to
boost sales by launching new advertisements plugging it.
If we do a good job pushing this, it could cross 30% of overall transactions this summer, says
Amritesh, who expects revenue from the range to reach at least one-fifth of the total.
(The promoters of HT Media Ltd, which publishes Mint, and promoters of Dominos Pizza India Ltd are
closely related. The companies have no promoter cross-holding.)
Consumers are skimping and saving as they weather the economic downturn, which has brought with it
job losses and salary cuts, and are avoiding lavish dining options and expensive purchases. Thats
prompting companies to devise value-for-money deals to drive sales.
Pizza Huts Magic Times range now makes up 10% of sales. This is one reason well be able to grow
this year, said Anup Jain, marketing director of Pizza Hut. He said there was a 10% increase in the
number of customers at the chains restaurants when the range was introduced in October.
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KFC and McDonalds have always sworn by the value-for-money concept.
KFCs snacks are priced between Rs25 and Rs35. In India, because people often go out to eat in large
groups, KFC introduced the Chicken Bucket concept. The meal bundles, with sides and beverages
thrown in, cost about Rs100 per head and are therefore extremely popular, said UnnatVerma, director
of marketing at KFC.
Currently, during the downturn, snacks make up 15% of KFCs sales while another 25-30% comes from
the Chicken Bucket.
McDonalds value meals, that have an entry price of Rs49 going up to Rs119, makes up 20% of sales.
We are increasingly looking recession-resistant for our affordability, says VikramBakshi, managing
director of McDonalds for the northern and eastern regions.
McDonalds has seen sales growth of 25-28% every year.
With the value strategy reaping dividends, fast-food chains are working to expand business both in
existing markets and newer geographies in a country where eating out is a Rs26,000 crore industry,
according to the retail consultancy Technopak. The so-called organized sector that includes chain
restaurants makes up just 10% of the pie, and is growing about 20-25% annually.
Dominos Pizza is trying to dispel the impression that it is a premium brand and expand its customer
base. Amritesh says he found a security guard from a neighbourhood shop peeping into a Dominos
outlet, but hesitant to enter. The executive wants workers earning a monthly salary as low as Rs4, 000-
5,000 to regularly walk in on payday to get a taste of the Rs35 pizza.
Traditionally, taste and a service delivery guarantee of 30 minutes have been the two pillars of
Dominos sales strategy. It has now added a thirdvalue perception. The idea is to make the pizza a
product for the masses.
On the back of the value strategy, Dominos increased sales by about 45% year-on-year at the company
level (which includes both new stores and existing stores). The same-store growth rate was about 20%.
Same-store sales are def