- 1. Faculty of Tourism &Hotel Management Hotel Management
DepartmentEVALUATING THE EXPERIMENT OF LOCAL RESTAURANT CHAINS
COMPARED WITH THE INTERNATIONAL CHAINS IN EGYPT Thesis Submitted in
partial fulfillment of the requirements of Helwan University for
Master of Science in Hotel ManagementBy Hany Atef Kouzmal B. Sc.,
Hotel Management, 2000 Under the Supervision ofProf. Dr. Ahmed Nour
El-Din Elias Prof; Hotel Management Department Faculty of Tourism
& Hotel Management, Helwan University.Assistant prof. Rania
Dinana Assistant Prof; Hotel Management Department Faculty of
Tourism & Hotel Management, Helwan University.Dr. Mahmoud
Roushdy El Maghraby Regional Vice President of Finance Middle East,
Sonesta International 20091
2. APPROVAL SHEETTITLE: EVALUATING THE EXPERIMENT OF LOCAL
RESTAURANT CHAINS COMPARED WITH THE INTERNATIONAL CHAINS IN
EGYPTNAME: Hany Ateef Kouzmal MikhaielThis Thesis for the M.Sc. in
Hotel Management has been approved by:Prof. Dr.
---------------------------------Prof.
Dr.----------------------------------Prof.
Dr.---------------------------------Committee in ChargeDegree
Conferred in// 20092 3. DEDICATIONTO MY DEAR WIFE3 4.
ACKNOWLEDGEMENTS Primarily, I would like to express my deepest
respect and appreciation to Prof Dr Ahmed Nour El-Dein Elias Head
of Hotel Management and Ex Dean Faculty of Tourism and Hotel
Management, Helwan University, for his guidance, cooperation, and
also his valuable advice which helped point me in the right
direction. Therefore, because of his time, effort, and continual
assistance brought about by his knowledge of this subject, I offer
to him my sincerest gratitude, with great thanks.Also, I would like
to thank Dr Rania Dinana, Assistant Prof; in Hotel Management,
Faculty of Tourism and Hotel Management Department, Helwan
University, for her supervision, guidance, encouragement,
assistance, and her support throughout the preparation of this
Thesis.Also, I would like to express my deepest respect and
gratitude to Dr. Mahmoud Roushdy El Maghraby, Regional Vice
President of Finance Middle East, Sonesta International, and
Visitor lecturer, Hotel Management Department, Faculty of Tourism
and Hotel Management, Helwan University, for his continuous support
and encouragement, coupled with his invaluable advice.Finally I
would like to express my deepest thanks to my dear family, and my
friends, who supported me and encouraged me throughout the work on
this Thesis.4 5. Table of Contents Page CHAPTER ONE: THE PROBLEM
AND ITS SETTINGS 1.1. Introduction 1.2. Organization of the
Research 1.3. Abbreviations 1.4. Limitation of the Research 1.5.
The Research Objectives1 2 3 4 4CHAPTER TWO: REVIEW OF LITERATURE
2.1. Overview on Fast-Food Operations 2.1.1 Fast Food Concept 2.1.2
Customers Perception on Fast-Food 2.1.3 Local and International
Restaurant Chains 2.2. Quality of Food and Service 2.2.1 Quality
Concept 2.2.2 Product Quality 2.2.3 Food Quality 2.2.4 Food Service
Quality 2.3. Elements of Competition 2.3.1 Location 2.3.2 Pricing
2.3.3 Demand 2.3.4 Training 2.3.5 Operational Systems 2.3.6 The
Element of Risk/Failure 2.3.7 Product Branding 2.3.8 Product Value
2.3.9 Marketing 2.3.10 Promotional Element 55 8 911 12 1415 16 16
16 17 18 21 22 24 26 6. 2.3.11 Services for Children 2.3.12
Atmosphere (Surroundings) 2.3.13 Customer Satisfaction27 28
28CHAPTER THREE: MATERIALS AND METHODS 3.1. Materials 3.1.1
Population Survey 31 3.1.2 Samples 31 3.1.2.1 Samples from
Independent Establishments 3.1.2.2 Samples from Local
Establishments 3.1.2.3 Samples from International Establishments
3.2. Methods 3.2.1 Primary Data 3.2.1.1 Guest Questionnaire 3.2.1.2
In-depth Personal Interviews 3.2.1.3 Checklist 3.2.2. Secondary
Sources 3.2.3. Pilot Study 3.2.4. Data Analysis34 35 35 36 36
37CHAPTER FOUR: RESULTS AND DISCUSSIONS 4.1. Introduction 4.2.
Questionnaire Response Rate 4.3. Questionnaire Analysis Results and
Discussion 4.4. Interview Response Rate 4.5. Interview Analysis
Results and Discussion 4.6. Checklist Analysis Results and
Discussion638 39 39 67 67 94 7. CHAPTER FIVE: SUMMARY, CONCLUSION
AND RECOMMENDATIONS 5.1. Summary 5.2. Conclusion 5.3.
Recommendations REFERENCES APPENDICES APPENDIX (A1) Guest
Questionnaire Form APPENDIX (A2) In-depth Personal Interviews Form
APPENDIX (A3) Checklist Form ARABIC SUMMARY7111 114 118 119 127 137
143 8. List of Tables Table 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
17 18 19 20 21 22 23 24 25TitlePageAbbreviations list The main
features of modern fast food concepts Samples from the
establishments Menu specialty of the selected Quick Service
Restaurant QSR Questionnaire response rate. Customers' preferable
meal Statistics for customers' restaurants preferences Statistics
of important factors in QSR that attract customer Statistics for
restaurants factors' evaluation Restaurant categories factors'
ranking Personal data analysis Interview's response rate Statistics
of restaurants factors' evaluation Restaurant categories factors'
ranking according to their means Checklist results Exterior factors
in independent restaurants Interior factors in international chain
restaurants Interior factors in local chain restaurants Interior
factors in independent restaurants Food quality factors in
international chain restaurants Food quality factors in local chain
restaurants Food quality factors in independent restaurants Guest
service factors in international chain restaurants Guest service
factors in local chain restaurants Guest service factors in
Independent restaurants83 32 33 39 41 42 44 47 48 66 67 75 76 94 95
96 96 97 98 99 100 101 102 103 9. 26 27 28 29 30 31 32Employee
appearance in international chain restaurants Employee appearance
in local chain restaurants Employee appearance in independent
restaurants Management behaviors/ functions in International chain
restaurants Management behaviors/ functions in local chain
restaurants Independent restaurants Restaurant categories rating
scale9104 104 105 106 107 108 107 10. List of Figures
FigureTitlePage1 2Customer's preferences to eat fast food.
Customers' reasons for restaurants type preferences. 3 Important
factors in Quick Service Restaurant QSR that attract customer
(service quality, consistence standard and atmosphere). 45 4
Important factors in QSR that attract customer (brand name and menu
variety). 5 Important factors in QSR that attract customer
(location and promotional activities). 6 Brand name factor's
evaluation in QSRs. 7 Location factor's evaluation in QSRs. 8 Price
factor's evaluation in QSRs. 9 Food quality factor's evaluation in
QSRs. 10 Managers' evaluation for local fast food operations. 11
Consistence standard factor's evaluation in QSRs. 12 Menu variety
factor's evaluation in QSRs. 13 Atmosphere factor's evaluation in
QSRs. 14 Promotional activities factor's evaluation in QSRs. 15
Customers' evaluation for the experiment of Egyptian QSRs. 16
Customers' problems with Egyptian QSRs. 17 Managers evaluation for
QSRs in Egypt. 18 Egyptian market expectations about fast food
concept. 19 Egyptian customers' needs and preferences.1140 4446 46
50 51 52 53 54 55 56 57 58 59 62 68 69 70 11. 20 21 22 23 24 25 26
27 28 29 30 31 32 33 34 35 36 37 38Managers' ways to deal with
customers' needs and preferences. International chain restaurants'
attributes. Managers' evaluation for local fast food operations.
Managers' opinions in using international concept by local fast
food operations. Managers' evaluation of brand name factor in QSRs.
Managers' evaluation of location factor in QSRs. Managers'
evaluation of price factor in QSRs. Managers' evaluation of food
quality factor in QSRs Managers' evaluation service quality factor
in QSRs. Managers' evaluation consistence standard factor in QSRs.
Managers' evaluation of atmosphere factor in QSRs. Managers'
evaluation of promotional activities factor in QSRs. Labor turn
over rate in QSRs . Means to decrease turn over rate in QSRs.
Managers' evaluation of training level in QSRs. Managers'
evaluation for marketing strategies in QSRs. Managers' evaluation
for quality level in QSRs. The extent of product development to
meet customers' needs in QSRs. Customers satisfaction measuring
methods in QSRs.1171 72 73 74 77 78 79 80 81 82 83 84 85 86 87 88
89 90 91 12. CHAPTER ONETHE PROBLEM AND ITS SETTINGS12 13. 1.1
Introduction Food service away from home is essential to tourism.
Food service industry becomes one of the fastest growing
industries, because of many social and commercial changes around
the world. Most modern industry requires that individual travel and
work at a distance from home; thus, food service industry plays a
required supporting role in providing food for these individuals.
In addition to food and beverage away from home, food service
industry provides convenience, communication settings and a wide
variety of outputs contributing to life's quality. Among the
latter, entertainment / diversions; and ambiances are contributing
to variety in living experiences. Food service industry is a major
generator of jobs. The group of firms providing food and restaurant
supplies has been found a substantial source of economic base in
itself. Food service industry also supports the community
infrastructure through utility systems and local taxes. Recently,
fast food restaurant chains have spread out, blossoming all around
the world. Such chains are based on some factors for their success:
such as cleanliness, food quality, value, atmosphere, location, and
speed of service. In Egypt there are many of fast food restaurant
chains; some of which are domestic in origin, like Wessaya, Mo`Men,
Cook Door, Felfela, Makani, and Gado, other chains such as
McDonald's, Burger King, Hardee's, and Kentucky fried chicken
(KFC), are international franchised operations. These domestic
chains are seeking to compete with the international chains in
quality, level of services offered, universal reach and spreading
around the Arab and foreign countries. This can be achieved by a
good reputation that will give better profits. Therefore, it is
necessary to carry out a comparative study to evaluate the
experiment of the local restaurant chains compared to the
international restaurant chains running in Egypt. 13 14. 1.2.
Organization of the Research With regard to the organization of the
paper, this thesis has been developed over five chapters; Chapter
One: "the Problem and its Settings". This chapter sets out the
basic framework of the thesis. The components include an
introduction, organization, a definition of terms and
abbreviations, limitations, and objectives. Chapter Two: "Review of
Literature". This chapter looks at the literature upon which the
subject has been researched. Chapter Three: "Materials and
Methods". This shows the way in which the data was collected. The
information includes the population, research, the design,
treatment of the data and the instruments used for the research.
Chapter Four: "Results and Discussion". This sets out the analysis
of the data in exactly the same way as chapter three concerning the
points of research. Chapter Five: "Summary and Recommendations".
This chapter provides a summary based upon the informations
received or suggested, the obtained results and recommendations of
the study.14 15. 1.3. Abbreviations Abbreviations used throughout
the thesis are defined as follows: Table 1: Abbreviations list
Professor prof Quick Service Restaurant QSR National Restaurant
Association NRA Information Technology IT Quality Control QC
Quality Assurance QA Total Quality Management TQM Continuous
Quality Improvement CQI Number NO Define - Measure - Analyze -
ImproveDMAIC Control Quality Function Development QFD Product Life
Cycle PLC Critical Control Points CCPs New Product Development NPD
Points of Distribution PODs Hazard Analysis Critical Control Point
HACCP Designated Market Area DMA Strengths, Weaknesses,
Opportunities, and SWOT Threats On the Job Training OJT Skills
Based Pay SBP Electronic Point-of-Sales EPOS Target Restaurant TR
Public Relations PR Product, Price, Place, and Promotion 4Ps Unique
Servicing Proportion USP Point of Sales POS Identification Data ID
Other People Data OPD Chamber of Tourism Establishments CTE
Statistical Package for Social Science SPSS Standard std 2 X2
Signification X sig 15 16. 1.4. Limitations of Research Study
limitations are represented in the following points:1.4.1. Place
limitation: Unfortunately, it was difficult to assess many of the
fast food chains in Egypt due to, costs, time involved, and the
accessibility to these chains. For these reasons, the ones which
were looked at were limited to four samples from the independent
fast food restaurants in Sharm El Sheikh, four from the famous
local fast food chains as well as four international chains in
Sharm El-Sheikh. 1.4.2. Time limitation: The field study was
implemented in the period from September 2006 to August 2007.1.5.
Research Objectives This study is aimed at : 1. Evaluating the
experiment of local restaurant chains as compared with the
international ones. 2. Defining the factors needed to development
the local restaurant chains to reach the international standard. 3.
Evaluating international chains product developing.16 17. CHAPTER
TWOREVIEW OF LITERATURE17 18. 2.1.Overview on Fast-Food
Operations2.1.1Fast Food ConceptThe National Restaurant Association
(NRA) defines the food service industry as "encompassing all meals
and snacks prepared outside the home". This definition therefore
includes all take out meals and beverages. Khan (1991) Ball (1992)
agreed with Samle (1980) that the fast food restaurant, a place
where a customer should be served within five minutes of entering
the outlet even at peak periods. While Melaniphy (2005) classified
fast food according to the product as it is prepared and cooked
quickly, with a service delivery varying between 2 to 15 minutes, a
low price, easily consumed with fingers or disposable cutlery.
Brymer (1995) defined a quick service restaurant as a "firm with a
mission to provide quicker service and core technology geared
towards this mission. However, Walker (2006) considering that
quick-service restaurants offer a quick service. Negl (2002)
identified that as fast service restaurants in recognition of the
fact that the service is fast, not the food. Lane and Duper (1997)
explained that in preference to fast food restaurant tend to be
located near highways, malls and down town areas which offer a
standard menu with limited choices that attempt to satisfy a hungry
audience. Moreover, Walker (2006) highlighted that quickservice
restaurants have increased in popularity because of their location
strategies. They are situated for convenience in every possible
area. Their menus are limited, which makes it easy for customers to
make quick decisions on what to purchase. Classification of fast
food operations according to according menu specialty Walker (2006)
agreed with Brymer (1995) in that classifying the quick service
restaurants segments is according to the menu specialty. That
specialty could be hamburger, pizza, chicken, snacks, sandwich,
Mexican, or seafood. They are the leaders for each segment
according to the spread, the popularity, and the volume of sales 18
19. Classification of fast food operations according to restaurant
characterization Traditional fast-food restaurants Ball (1992)
reported that the traditional fast food operations include fish and
chip shops, ethnic, take away and sandwich bar operations, they are
mostly owned by individuals. Scanlon (1998) stated that the
traditional fast - food restaurants are concentrated on items from
the menu such as hamburgers, pizza and chicken, Modern fast food
restaurants These have been identified with fast food chains, which
are designed around systems of catering which have been linked to
manufacturing production lines with the design and layout of
restaurants, the scheduling and planning of a work place, etc.,
being systematically planned to produce consistently standardized
products. Simplified menus characterize these restaurants and
chains which dominate a high standard of service, training and
decor. Modern operations usually offer a combination of eat on the
premises, take away drive. The main features of modern fast food
concepts are shown in Table 2 as suggested by Ball (1992).19 20.
Table 2: The main features of modern fast food concepts Features
Food materials Type of products OrganizationDescription Consistent
and controllable quality, precisely specified, equally portioned.
Suitable for quick and retention for short periods without
deterioration. Highly organized routines with precise job
specifications and procedures. Operation Usually planned for large
throughput and high sales volume (including counter sales) Cost
control Prices portion and cost control, permitting relatively
small margins and competitive pricing. Quality Standard
preparation, cooking and serving routines laid control down,
including the discarding or sub-standard food (e.g. maximum time
for keeping food before serving). Hygiene Exacting equipments
emphasized as a part of product reliability, including measures to
reduce litter (in store and neighborhood). Packing Products
distinctively packaged (disposables), easy to handle (usually
finger held, suitable for over-thecounter or table meals). Research
Product research and consumer response testing essential. On-going
research into changing food preference sand attitudes is necessary
to develop concepts. Variety May be provided in product range
offered or by variations in one basic product (dressings, fillings,
supplements). Markets Usually targeted at wide, classless society,
primarily young of family group. Promotion Emphasis is given to
value for money, consistent quality and cleanliness. Particular
products may be differentiated by originality, size, cost
competitiveness, variety of choices or fillings, healthy eating,
and friendly service. Source : Ball (1992) 21 21. 2.1.2 Customer
Perceptions Johnson and Clark (2005) illustrated that while the
expectationperception approach to understanding service quality is
extremely useful in focusing on the outcome of customer
satisfaction and helps identity on mismatches between operational
and customer views of quality, which does have some downsides.
Service could be perceived to be 'good' when it is 'bad'. Service
could be perceived to be 'bad' when it is 'good' Service that was
'good' last time may only be 'OK' this time. Satisfied customers
may switch. King and Ronald (2006) differentiated between quality
in fact and in perception and they stated that quality in fact
relates to our internal standard, we get what we expect, so set
high expectations. Quality in perception is how our customers
perceive our service. Customer differences Foster (1993)
highlighted that different people have different nations about what
type of food tastes good, but a successful food and beverage
operation is able to consistently satisfy the majority of its
guests. Peppers and Rogers (1997) argued that customers are
different in two primary ways: They need different things from the
enterprise, and they have different value to the enterprise. A
customer's value will depend largely on how long the customer
remains loyal, and even small increases in the state of customer
retention add significantly to customer's value. Knowing what
different customers need involves much more than simply tallying
what they've bought, because two customers might buy the same
product for quite different reasons. Powers and Barrows (2006)
illustrated that the guest is also apart of the service
transaction. A guest who is not feeding well or who takes a dislike
to member of the staff may have a bad experience in spite of all
efforts to please.21 22. 2.1.3 Local and International Restaurant
Chains Independents restaurants King and Ronald (2006) declared
that independent is one who is not bound by or definitively
committed to another, and it a particular brand or company. While
Walker (2006) highlighted that one or more owners, usually involved
in the day-to-day operation of the business, typically own
individual restaurants (also called Indies). Even if the owners
have more than one store, each functions independently. These
restaurants are not affiliated with any national brand or name.
They offer the owner independence, creativity and flexibility, but
with an element of risk. Wade (2006) mentioned that between the
independent and chains lies at least two other possibilities, some
dependent operations are so successful that they open additional
units without, however, becoming as large as to lose the hands on
approach of the owner operator. Independent group operators are not
exactly chains, but more a longer single unit. The other
possibility and one that is pursued by thousands of business people
are franchise operations. Chains restaurantsKing and Ronald (2006)
defined chain as a group of enterprises or institutions of the same
kind of function usually under a single ownership, management or
control. Walker (2006) stated that chain restaurant comprises a
group of restaurants, each identical in market, concept, design,
service, food and name. Part of the marketing strategy of a chain
restaurant is to remove uncertainty from the dining experience. The
same menu, food quality, level of service and atmosphere can be
found in any one of the restaurants, regardless of its location.
Family run teams or other entrepreneurs usually own them. Wade
(2006) agreed with Powers and Barrows (1999) in that chain are
playing a growing role in food service. Moreover, they are
prominent among the companies that recruit graduates for
hospitality programs.22 23. Chains have strengths of seven
different areas: (1) Marketing and brand recognition (2) Site
selection expertise (3) Access to capital (4) Purchasing economies
(5) Centrally administered control and information systems (6) New
product development (7) Human-resource development International
versus local fast food chain According to Lan, and Khan (1995) fast
food operations are divided into two categories; international
chains and local chains where each have a different approach to the
operating and management. The international fast food chains have a
core product (hamburger, chicken or pizza). They focus on image
building through progressive marketing which gains mass production
and the central distribution international fast food chains are
expanding through franchising. Meanwhile the local fast food chains
are expanding through private ownership and building their image
through products. Local fast food operations do not have mass
production or central distribution; therefore, they became labor
intensive.23 24. 2.2.Quality of Food and ServiceQuality Concept
Wyckoff (2001) highlighted that quality is the degree of excellence
for what is intended add to this a controlled variation in order to
achieve that excellence, where the end result is meeting customer
requirements. While Schroeder (2004) stated that quality is meeting
and exceed customer requirements now and in the future." This means
that the product or service is fit for the customer's use. Fitness
for use has related to benefits received by the customer and to
customer satisfaction. Only the customer, not the producer, can
determine it. Noel and Cullen (1996) mentioned that quality is a
process, not a procedure and as such is never finished. The culture
of quality promotes and sustains change. Stutts and Wortman (2006)
added that quality could be defined as "The consistent delivery of
product and services according to expected standards. King and
Ronald (2006) stated that the other half of the definition of
quality is "doing things right." Doing things right simply means
meeting customers needs and expectations more rapidly and at a
reduced cost. It is customer orientation, innovation, teamwork, and
everyone's responsibility. Quality importance Field (1999) reported
that quality is the major driver of overall satisfaction, while
price and service tied for second place. Sideman and Johnson (2002)
argued that providing consistent quality service has become a
challenge for the quick service industry. Schroeder (2004)
indicated that quality can both improve revenues and reduce costs.
The cost of quality measures the lack of conformance to customer
requirements. Quality costs can be convention or appraisal. Failure
costs may be due to internal or external failures.24 25. 2.2.2.
Product Quality Product concept The actual good or service offered
for sale. It could include all of the features of the good or
service as well as the packaging and brand name of the good or
service. Powers and Barrows (1999) illustrated that in a
restaurant, this involves not only the food service the way the
server and guest interact and the atmosphere of the place. Reid and
Bojanic (2006) agreed with Etzel (2004) in that product refers to
all of the goods and services that are bundled together and offered
to consumers. Nearly, every product sold includes tangible and
intangible elements. Product Quality and Customer Satisfaction
Peppers and Rogers (1997) indicated that there is, of course, no
substitute for quality. No customer will return for more of a bad
product, so having product quality at least on a par with the
competition is essential for 1:1 enterprise. Customer satisfaction
is the opposite of customer dissatisfaction, and dissatisfaction is
one sure route to defection. Keep in mind, however, that customer
satisfaction by itself is usually not sufficient to generate
loyalty. Wade (2006) agreed with Negl (2002) in that customer
feedback is vital to keep the menu fresh. Feedback from customers
helps to improve product quality, which in turn increases sales and
products higher profits.2.2.3. Food Quality Reay (1983) pinpointed
that any food product specification involves consideration of
factors such as those set out below: 1. The quantity of goods based
on the standard recipe. 2. The quality and grade of ingredients. 3.
The dimensions of the finished item, e.g. the thickness of the
pastry and the weight and type of filling. 4. The nature of the
glaze. 5. The degree browning. 25 26. 6. The type, size and shape
of the garnish. 7. The type of packaging to be used 8. The layout
and wording of labels 9. The product life 10. The storage
requirements Wiley and Sons (2006) illustrated that the quality of
food depends on two factors: the skill with which it's prepared,
and the basic quality of the foodstuffs use to this might be added
the perception of novelty factor Briggs (2000) stated that food,
whether raw or cooked is a perishable commodity and has a limited
life and so caterers have to ensure that they buy produce in the
correct quality and quantity in relation to customer demand and
that it is correctly stored and processed. The choice of food and
drink revolves around the menu, which is limited or extensive, and
whether it concerns a particular product, if there is a varied
choice, and the quality of the product offered, and it is fresh or
convenience. Other factors include portion sizes and the
availability of children's menus along with consistency, range of
tastes, textures, aromas, and colours and presentation of the food
and drink. Dharmaraj (2002) believes that poor quality food can
destroy the commercial credibility. Seidman and and Johnson (2002)
argued that keeping consistency of food quality is a though task
for all suick service restaurant QSR chains.26 27. 2.2.4 Food
Service Quality Food Service Concept The service is all action and
reactions that customers perceive whichthey have purchased. In
hospitality, service performed for the guest by people or by
systems. The emphasis in definition is on the guest's total
experience. Indeed, from the guest's point of view, service is the
performance of the organization and its staff. Schroeder (2004)
mentioned that most definitions of service stress the intangible
and cannot be easily quantified or defined. A better definition is
that service is produced and summed simultaneously, and
consumption. Reid and Bojanic (2006) defined a service as an
intangible product that sold or purchased in the marketplace.
Meanwhile Kotler and Armstrong (1996) stated that service means
"all features, acts, and information that augment the customer's
ability to realize the potential value of a product or service.
Powers and Barrows (2006) confirmed that the basis of service
strategy is market segmentation, largely on consumer service
expectation. Successful service companies develop a service culture
cased on commitment by top management. Consistency between policy
and practice and well developed channels of communication. Because
service people are a part of the product, a good service team is
essential, service teams based on careful selection, training, and
on motivational programs that include rewards and involvement in
service planning. Because most hospitality products are strikingly
similar, service is the most significant sustainable competitive
advantage Noel and Cullen (1996) stated that zero defects is the
standard that service organizations must set this very high
standard, however, is set in the context of customer expectations
for a particular segment and operation type. At a McDonald's
waiting lines can expect during the rush hour and will accept as
long as they move with reasonable speed. However, a dirty or
cluttered McDonald's, even in a rush period, scents a defect. Zero
- defects committee should formed from members of the quality
improvement team. 27 28. 2.3.Elements of Competition2.3.1. Location
Powers and Barrows (2006) stated that marketing place refers to the
location, the place where the good or service is offered. Place
refers not only to the property's location, but also to the
channels of distribution. Reid and Bojanic (2006) agreed with
Powers and Barrows (1999) in that the place component refers to the
manner in which the products and services being delivered to
consumers. Ridgeway and Ridgeway (1994) indicated that location is,
of course, extremely important. All businesses are near potential
customers but this may be less important for an outside catering
company than for a restaurant. Moreover Briggs (2000) reported that
the location of the food service facility might said to be the most
important feature. Services, which are not appropriately located,
may not successfully perform. Powers and Barrows (1999) stated that
the success of most restaurants also enhanced by a location near
the heart of major traffic patterns. The technique for analyzing
location potential requires a special kind of knowledge, and chains
can afford real estate departments that possess that
expertise.Seidman and Johnson (2002) considered that location is an
old topic but with new content. Chinese QSR chains are entering
various non-traditional venues. These venues include shopping mall
food courts, leading supermarket, retail chains, neighborhood
centers, key intersections, university and college campuses, and
airports, casinos, and sports arenas. Powers and Barrows (2006)
stated that restaurant companies have developed downsized units for
places where a traditional unit will not fit. These units often
take the form of a mobile cart requiring minimal investment. The
name given these new units is points of distribution (PODs). Wade
(2006) argued that the presents of quick-service operations in
every market of any size is a key characteristic of quick service
and one28 29. of the main factors sporting its growth over the past
50 years. Because of their many locations, they make eating out
convenient.2.3.2 Pricing The price is the amount of money and/or
other items with utility needed to acquire a product. Recall that
utility an attribute with the potential to satisfy wants. The price
has a tremendous impact on the success or failure of a product.
Etzel (2004) mention that price is significant in economy, in the
costumer's mind, and in an individual firm let's consider each
situation some prospective customers are interested primarily in
law prices, whereas another segment is more concerned with other
factors, such as service, quality, value, and brand image. It is
safe to say that few, if any customers are attentive to price alone
or are entirely oblivious to price. Powers and Barrows (2006)
confirmed that there is a risk in price reduction, namely, that the
lower price will denote a cheapened product to the customer. As
with virtually all marketing activities, the key is to keep prices
in line with customer expectations and to offer products that
perceived to be a good value to the customer.2.3.3 Demand The
market demand is the demand for a product or service.2.3.4.
Training Stutts and Wortman (2006) agreed with Noel and Cullen
(1996) in that training is the process of integrating personal and
organizational goals. Donnelly et al. (1998) indicated that
inadequate training can be a major barrier to quality. Hill and
Jones (1998) found that a company that employs individuals with
high skills is likely to be more efficient than one employing less
skilled personnel. 29 30. 2.3.5 Operational Systems Powers (1995)
declared that a standard exterior appearance gives many chain
operators a high recognition value. Hill and Jones (1998) indicated
that standardization refers to the degree to which a company
specifies how decisions are to been made so that employees'
behaviour becomes predictable. Gouville and Soman (2001) explained
that the hospitality industry commonly bundles goods and services.
Firms routinely offer single units of different products or
multiple units of the same product, for one price. Seidman and
Johnson (2002) described that the quick service industry is
characterized by regular interaction between customer and employee.
Built around service encounters designed to be consistent and
predictable, the nations of reutilization and standardization are
central to the industry. Donnelly et al. (1998) argued that once
the quality characteristics have defined, the next step is to
determine the desired quality standards. These standards quantify
the specific quality requirements for the organization's output.
Quality standards serve as the reference point for comparing what
is "ideal" to what actually "is". Reid and Bojanic (2006)
considered that before you can evaluate the level of service
provided by employees within your organization, you must establish
the standards by which they will judge. Wade (2006) believes that
the marketing plan must specify the restaurant's standards for food
quality and consistency, beverage operations, cleanliness, and
service. Clearly stating the standards in the document provides
management with a written document to reference. From point of view
of Wade (2006) the broke bone of the operating system is typicality
a set of comprehensive operations manuals and a complete set of
recipes that cover all products on the menu. The operation manual
sets forth operating procedures from opening to closing and nearly
everything in between. All major equipment operations and routine
maintenance are been described in the operation manual or a
separate equipment manual. Define how things been done based on
experience, organization standards, and customer expectations.
Organizational systems also explain who is involved and why.31 31.
As the production is the process wherein the food is converted to
the state in which it will be served. Pepper et al. (1984)
illustrated that fast food operations handle huge amounts of food
in a short time. They could never keep up with their customer's
demands if they did not use mass production methods. Mass
production means buying, preparing, and serving in large
quantities. Powers and Barrows (2006) confirmed that some kinds of
operations are ideally suited to the production-line approach to
service. Quick service restaurants amusement parks and budget
motels come to mind as having the need for the cost efficiency of
the production approach. Powers (1995) mentioned that all of the
quick service restaurants (QSR) operations try to simplify their
production processes and use self-service.2.3.6 The Element of Risk
and Failure Risk concept Wiley and Sons (2006) described that many
people will tell that the restaurant business is the highest-risk
business in the retail spectrum. This simply is not true. The
failure rate for eating places in the general is below the average
business failure rate nationwide. Camera, furniture, and apparel
stores regularly top the failure list. Powers and Barrows (1999)
argued that franchising is not risk free. The franchisee is
generally completely dependent on the franchise company for not
only marketing but often or purchasing and other
operations-oriented assistance. Wade (2006) explained that failure
is much less common among franchised restaurants than among
independent operation. Elements of restaurants success and failure
Powers and Barrows (1999) believed that all advertising will be
effective only if consumers get exactly what expect. Therefore,
chains concentrate on ensuring consistency of quality and service
in operations. Customers know what to expect in each of the units
and, in an increasingly mobile society that is important.31 32.
Parsa et al. (2005) pinpointed the elements of success and failure
as follows: 1. A. B. C. D.E. F. G. H. I. J. K. L.Elements of
success Have a distinctive concept that been well researched.
Ensure that all decision make long-term economic sense. Adapt
desirable technologies, especially for record keeping and tracking
customers. Educate mangers through continuing education at trade
shows and workshops an environment that fosters professional growth
has better productivity Effectively and regularly communicate
values and objectives to employees in one instance. Maintain a
clear vision, mission, and operation strategies, but be willing to
amend strategies as the situation changes. Create a cost conscious
culture, which includes stringent record keeping. Focus on one
concentrated theme and develop it well. Be willing to make a
substantial time commitment both to the restaurant and to family.
Create and build a positive organization culture through consistent
management. Maintain management flexibility. Choose the location
carefully, although having a good location.2. Elements of failure:
A. Lack of documented strategy; only informal or oral communication
of mission and vision; lack of an organizational culture fostering
success characteristics. B. Inability or unwillingness to establish
and formalize operational standards; seat-of-the-pants management.
C. Frequent critical incidents; managing operations by "putting out
fires" appears to be a common practice. D. Focusing on one aspect
of the business at the expense of the others. E. Poor choice of
location. F. Lack of match between restaurant concept and location.
G. Lack of business experience or knowledge of restaurant
operations. H. Poor communication with consumers. Negative consumer
perception of value price and product must match. 32 33. I.
Inability to maintain operational standards leading to too
manyservice gaps. Poor sanitary standards are almost guaranteed to
kill a restaurant. Wiley and Sons (2006) pointed out that the stark
reasons for business failure are worthy of study these include in
competence, lack of line experience, lack of managerial experience
and quite important, unbalanced experience. Inadequate funds run
out of money before the restaurant attracts enough customers to go
into profit. Poor management is a catchall phrase, but should not
be dismissed on those grounds. The way to success Hill and Jones
(1998) considered that avoiding failure requires a constant focus
on the basic building blocks of competitive advantage, continuous
improvement, learning identification, adoption of the best
industrial practice, and victory over inertia. Huber and Pilmanis
(2001) mentioned that there are primarily five customer sale
channels: delivery, dining, takeout, pickup window and catering. In
the QSR industry, IT has been commonly used for order processing,
accounting, purchasing, marketing, consumer behavior and the
location of new restaurants. Parsa et al. (2005) explained that
perhaps the key finding was that a successful restaurant requires
focus on a clear concept that drives all activities. In this
finding, concept is distinct from strategy. A remarkable outcome of
the interviews is that we found few differences in having a
well-defined strategy between successful and failed restaurants
owners but considerable differences in clarity Negl (2002) believed
that restaurants are been designed to serve a basic meal quickly
and affordably. Menus are usually limited and kitchens are designed
to produce high volume in short periods. The customer expects quick
service, low price, and consistency. Fast food establishments are
those that serve food for which there is little or no waiting. From
Wade (2006) point of view, the key to the success of quick service,
nevertheless, is its simplicity. A key simplification remains quick
services limited menu. Each item on the menu has been engineered to
simplify and standardize its purchasing, production and service.33
34. Pepper et al. (1984) considered that a fast food operation has
two main aims: to please the customer and to make a profit. The
giant fast food chains were built on the belief that four things
operating together will bring them their success, these four things
are:Limited menu Fast service Low price High sales volume Brian De
Silva (2006) pointed the top tips of WOW success as follows:
Research market and area. Establish budget. Brief designer: Make
sure choose a good designer. Agree concept: What will be famous
for? Recruit the right team. Inspire team and guests. Market
restaurant: Public relation and collateral, guest and staff
incentives. Make changes when need to. Listen to staff and guests.
Remember: you're only as good as your last drink.2.3.7 Product
Branding Brand concept According to King and Ronald (2006) image is
a popular conception (as of a person, institution, or nation)
project especially through mass media importance of brand. Martina
(1958) defined image as "the way in which a store isdefined in the
shopper's mined, partly by its functional qualities and partly by
an aural of psychological attributes. From this, two key elements
in the construction of image can be identified. o Functional
qualities such as the restaurant layout, menu range, price levels
and dcor. o Psychological attributes: The less tangible elements
such as feeling of friendliness or a sense of excitement.34 35.
Importance of brand Blackett (2003) told that branding is a binary
process. First the name, logo, pack design, advertising and
purchasing environment must create the promise; and then the
product or service concerned has to deliver. If the brand lives up
to expectations then trust been rewarded; if it does not then the
buyer will look elsewhere. So good brand management is all about
managing customer confidence so that he or she can buy without fear
of risk can be a source of strong cash flowsBrand marketing Walker
(2006) believed that brands are defined as unique that identify a
product and set it apart from those of other producers or service
providers. Today, brands are becoming a more and more important
part of a company's marketing strategy, mostly because having a
well-known brand tends to create brand identity. The most important
considerations when developing a brand are these: It must be easy
to remember. Guests need to associate the brand with value. It must
have a positive connotation.Name selection and logo Wade (2006)
agreed with Ridgeway and Ridgway (1994) in that the restaurant name
and any subtitle it may use give people an immediate impression as
to the type of restaurant it is. A name must be memorable and
should be easy to pronounce, original, attractive, and easy to
remember and say. A logo is the restaurant's identifying mark that
the public will recognize. In restaurant industry, Mc Donald's has
developed its brand and logo-the golden arches - to be
automatically identifiable worldwide.35 36. 2.3.8 Product Value
Product value concept Mattila (2001) mentioned that committed
customers place a high value on a restaurant's social benefits,
such as friendship and familiarity, in addition to good food and a
fun atmosphere. Etzel (2004) defined that value is the ratio of
perceived benefits to price and any other incurred costs. When we
say a product has sample value, we do not necessarily mean it is
inexpensive nor has a very low price. Rather, good value indicates
that a particular product has the kinds and amounts of potential
benefits such as quality, image, and purchase convenience consumers
expect at a particular price level. Foster (1993) believed that
value is a customer's satisfaction with a product in relation to
the price. The value of a restaurant meal is a matter of perception
how the customer views the quality of the dining experience.
Johnson and Clark (2005) indicated that value is the customer's
assessment of the benefits of the service weighed against all the
costs involved. It is important to emphasis that the ultimate judge
of value is the customer. Price value perception Etzel (2004)
reported that a product's price has been affected by whether it is
a new item or an established one. Over the course of a life cycle,
price changes are necessary to keep the product competitive. Wade
(2006) agreed with Negl (2002) in that price / value perception
means consumers believe that they are receiving value for the price
that they are paying, whether the customers are eating in a fast
food restaurant or dining in the finest restaurant in the area. The
dcor, ambience, and service standards must all contribute to the
customer's perception of the dining experience.36 37. 2.3.9
Marketing Marketing concept Van Hoof et al. (1996) illustrated that
marketing is all of activates designed to move goods and services
from the producer to the consumer. Walker (2006) said that
marketing is attracting guests and establishing a relationship with
the guests that ensure their continuous loyalty. Everyone from the
corporate executive to the line employee should be involved with
marketing. Reid and Bojanic (2006) stated that: Marketing is the
process of determining consumer needs, creating a product service
mix that satisfies these needs, and promoting the product service
mix in order to attain the goals and objectives of the firm.
Marketing concept is a framework for the marketing philosophy that
consists of three interrelated elements: an organization's basic
purpose is to satisfy customer needs; satisfying customer needs
requires integrated and coordinated efforts throughout the
organization; and organizations should focus on long-term success.
The marketing mix Powers and Barrows (2006) agreed with Reid and
Bojanic (2006) also in that the marketing mix is conventionally
though of as encompassing the four Ps: product, price, place, and
promotion. The researcher agree with this opinion. Ronald and
Nykiel (2005) added that there are many different perspectives on
marketing and marketing strategy especially in everchanging
environment. In the 1990s as we transitioned to a predominantly
service-oriented economy and marketing environment, marketing
strategies shifted to focus on the four Cs, as delineated by
waterborne: Consumer wants and needs Cost to satisfy (want and
needs) Convenience to buy Communication (creating a dialogue)37 38.
In the current decade, while marketing must still focus on the four
Ps and four Cs, marketing strategies appear to have shifted and are
now more and more based on the new five Ps: Preparation Positioning
Perception Proclamation Power thrusts Market segment Walker (2006)
defined that market segment is a smaller, identifiable group that
can be defined using any set of, such as moose found in geographic,
demographic, or psychographic. Van Hoof, et al. (1996) indicated
that marketers go through a process called market segmentation and
separate people into distinct group based on their individual
characteristics and buying habits. The target market Wade (2006)
agreed with Negl (2002) in that the target market is the type of
customer who the restaurant is attempting to reach and entice to
frequent the establishment. Writing a menu requires understanding
the customer's wants, needs, and expectations. A customer will
judge a restaurant on several critical areas: food quality and
presentation, service, ambiance, cleanliness, and value. The menu
informs customers of the choices available to them. This is known
as menu engineering. The goal of menu engineering is not to force
the customer to purchase an unwanted item, but rather to place
certain items in high visibility locations. Marketing and selling
Reid and Bojanic (2006) agreed with Medik (1999) in that the
difference between selling and marketing is very simple. Selling
focuses mainly on the firm's desire to sell products for revenue.
Marketing is different from selling because marketing focuses on
the needs of consumers, whereas selling focuses on the needs of the
seller. In addition, 38 39. the marketing concept advances the
finical goals that the firm may have. The concept holds that if the
consumer's needs and wants are very satisfied, then financial
success will follow. The researcher agrees with this opinion.2.3.10
Promotional Element Promotion concept From Etzel (2004) point of
view the extent to which the product is promoted by the producer or
intermediaries and the methods used are added considerations in
pricing if major promotional responsibility is placed on retailers.
Walker (2006) said that having an excellent product at a good price
and in the right place is not enough. Sales goals will not be
obtained unless the consumer is aware of the product's existence.
There are several ways of doing this with promotion. Stutts and
Wortman (2006) illustrated that have one single overriding common
purpose: to fulfill a marking need. This need may be to build trial
(new) business, develop a greater share of existing business, keep
businesses, or get repeat business regardless of the type of
promotion the objective is to help the overall marketing effort.
Promotional mix Reid and Bojanic (2006) agreed with Reid (1989) in
that the promotional mix elements include advertising, personal
selling, sales promotion, and public relations. Sales
promotionSchultz et al. (1993) stated that sales promotion: usually
short-term tactical incentives offering something over and above
the normal product offering to encourage customers to act in
particular ways. Product-based sales promotions: sales promotions
that centre on some kind incentive connected with the product:
extra product free, or samples. In addition Reid (1989) agreed with
Gottleb (1982) in that sales promotion is a direct inducement
offering an extra incentive to 39 40. take action. Sales promotions
seek to accomplish several broad objectives and can be used for
several reasons: To increase consumer awareness To introduce new
products and services To increase guest occupancy and customer
counts. To combat competition To encourage present guests to
purchase more. To stimulate demand in no peak periods.2.3.11
Services for Children Fast food restaurants and children Spurlock
(2005) said that fast food chains make no secret of the fact that
kids are their primary targets. Fast food restaurants are
significantly more likely to be visited by respondents with
children than those without. There is Happy Meal, launched
nationally in 1979. It cost a buck in those days. Inside a
cardboard box with a circus theme, kids found a McDonald stencil, a
puzzle book, and a Mc Wrist wallet. The meal-plus-toys packaging
proved to be an instant hit with the first star trek Happy Meals
that very year. Hahm and Khan (2001) considered that parents with
young children enjoy the conveniences of eating out, and they often
take their young families to quick serve restaurants. They
especially like to take their young families to those restaurants
that are equipped with playgrounds or play areas, and those that
offer give always to their children. From Spurlock (2005) point of
view, parents are their children's primary role models kids learn
their life habits, good and bad, from their parents. Hahm and Khan
(2001) stated that in the future healthy option for to go kids
meals could include carrot sticks instead of French fires, hand
held yogurt stick such as Yoplait's Go-Curt, and flavored milks in
aseptically packaged containers, these options meet the demand for
hand held to go food, but also provide a healthy alternative to
traditional quick service restaurant menu items.41 41. 2.3.12
Atmosphere (Surroundings) Atmosphere Briggs (2000) agreed with
Pepper et al. (1984) in that atmosphere is the overall effect
created by a restaurant's lighting, color scheme, furniture, and
service. Wade (2006) highlighted that restaurant decor should
support the overall concept and not be a haphazard collection of
props, as the decor helps set the tone for the atmosphere. Wiley
and Sons (2006) declared that a restaurateur who is largely
dependent upon neighborhood business would do well to establish a
friendly atmosphere, maintain consistent standards, and offer good
value. A friendly greeting is the best possible start to a dining
experience. People do not require heart, soul, and internal
devotion, just a smile and a cheerful greeting.Cleanliness Pepper
et al. (1984) stated that customers would stop coming if they feel
a restaurant is not clean. Customers like to eat in clean
surroundings. Constant attention to cleanliness keeps luncheonettes
and chain restaurant dining areas attractive. Wade (2006) agreed
with Negl (2002) in that the incidence of food-borne illness has
increased as the food service system has become more complex and
the number of operations has expanded. One case of food poisoning
can seriously injure a restaurant's reputation. More than one can
endanger an operation's survival.2.3.13 Customer Satisfaction
Customer satisfaction Johnson and Clark (2005) agreed with Cooper
and Lawson (2004) in that satisfaction is the outcome of the
consumer's evaluation of a service, which sometimes refer to as
perceived service quality, and can be represented on a continue
from delight to extreme dissatisfaction. Lillicrap et al. (2002)
pinpointed the factors contributing to the meal experience were
summarized. Factors, which might affect the customer's 41 42.
enjoyment of a specific meal experience in a particular operation,
could be: The welcome, the dcor, and the ambience. Efficiency, has
the booking been taken properly, using the customer's name.
Location of the table. Menu and drinks list (presentation and
cleanliness). The order is been taken recognition of the host.
Availability of dishes / items. Speed and efficiency of service.
Quality of food and drink. Courteousness of staff. Obtrusive /
attentiveness of staff. Ability to attract the attention of staff.
Other customer's behaviour. Methods in which complaints are
handled. Methods of presenting bill / recovery payment. Departure
attentiveness. Schroeder (2004) told that customer satisfaction is
a relative concept that varies from one customer to another. Also,
a customer may be satisfied with today's products but not satisfied
in the future. For example, while one customer may consider a Ford
automobile perfectly satisfactory, another may not. Seidman and
Johnson (2002) argued that customer satisfaction is regards as the
highest mission by the chains. Johnson and Clark (2005) described
that customer satisfaction is something that can be managed to some
extent by influencing customers' perceptions and expectations of
service delivery. This demands in-depth understanding of this
subject. Pepper, et al. (1984) stated that satisfied customers are
return customers, which means good business. Improving customer
service and customer satisfaction Bateson (1995) mentioned that
customer satisfaction is depends on the production of services as
well as their consumption. Field (1999) pointed out that a common
five step process for developing a customer satisfaction program
is:42 43. Identify the attributes of your product or service that
are most important to customers. Measure customer satisfaction
levels on these important attributes. Link satisfactions levels to
key customer behavior (use levels, member retention). Identify and
implement concrete actions that will improve customer satisfaction
and correspondingly, customer behavior. Track results. Reid and
Bojanic (2006) illustrated that improving customer service should
be a top priority of all managers working in the hospitality and
tourism industry. Walker (2006) said that we not only need to keep
guests happy during their stay, but also to keep them
returning-with their friends. It costs several times more to
attract new guests than to retain existing ones. Employee
satisfaction Easerbrook (2006) agreed with Dube and Renaghan (1999)
in that the best way to drive growth and profit is by looking after
the company's staff. Healthy profit has to start with people, if
you get the people part right, the rest will follow. Gregory and
Brieiter (2001) found that satisfied employees are more likely to
exhibit customer-oriented behavior, which in turn will lead to
guest satisfaction. Seidman and Johnson (2002) agreed with Ghislli
et al. (2001) in that job satisfaction as one key to turnover seems
to be a job's characteristics.43 44. CHAPTER THREEMATERIALS AND
METHODS44 45. Materials and Methods Research methodology is the
treatment that will be applied to the data collected. This includes
the population, instrument, and analysis of the data. The aim of
this chapter is to assign and define the limits of the sampling of
the study, and to clarify the methods that will be used in this
research in order to collect the desired information and data.3.1.
Materials 3.1.1. Population survey: The aim of this study is
evaluating the experiment of the local restaurant chains compared
to the international ones in Egypt. To obtain results representing
enough the actual conditions. The research conducted three groups
four samples from each group. Four samples from independent fast
food restaurants in Sharm El Sheikh, four of the famous local fast
food restaurants chains as well as four international chains in
Sharm El Sheikh.3.1.2. The Samples: 3.1.2.1. Samples from
independent establishments (Quick Meals, Sharmawy Sharm, El Sheikh,
Naama) 3.1.2.2. Samples from local establishments (Cook Door,
Makani, Felfela, Gado) 3.1.2.3. Samples from international
establishments (McDonald's, 45 46. Burger King, Hardee's, KFC)Table
3: Samples from the establishments Old Sharm Hadaba Marina Samples
from independent establishments Quick Meals 1 Sharmawy Sharm 1 1 El
Sheikh 2 Naama 1 -Cook Door Makani Felfela GadoSamples from local
establishments 1 1 1 1Samples from international establishments
McDonald's 1 Burger King 1 Hardee's 1 KFC 1 *Mean under
preparation46* 1 12 1 1 47. According Menu Specialty of the
selected QSR: Table 4: Menu specialty of the selected QSR.** * ** *
* ** Local restaurant chains * * * ** * * * ** * * * ** * * * **
International restaurant chains ** * * ** ** * * ** ** * * ** * **
* ** -* -** **-* ** *--- Not serving * Serving ** The core product
Walker (2006) agreed with Brymer (1995) in that classifying.47Sea
foodIndependent restaurants * * ** * * **Foul &
FalafelSandwichSnacksMcDonald's Burger King Hardee's KFCChickenCook
Door Makani Felfela Gado* *PizzaQuick Meals Sharmawy Sharm El
Sheikh NaamaBurgerRestaurant 48. 3.2. Methods The collected data
has been divided into primary sources and secondary sources. Every
type of this data will be illustrated and discussed in some
details.3.2.1. Primary Data Primary sources have been collected
through the following methods:3.2.1.1. Guest Questionnaire The
guest questionnaire was designed and distributed at a sample of
fast food guests. This questionnaire form has been developed based
upon the relevant review of literature. The main purpose of this
questionnaire is to know How much does the guest like the fast food
and at which meal he prefers. The most important factor in a fast
food restaurant which attracts the guest to select fast food
chains. Evaluation the local fast food restaurant chains experiment
compared to the international chains. The advantages and
disadvantages in local fast food chains in Egypt. Any problem has
the guest ever met through his experiment with the local fast food
restaurant chains? Questionnaire form distribution took nearly one
year, starting at 15/9/2006 up till 1/8/2007. The questionnaire
form was written and distributed in Arabic and English languages.
The questionnaire form been shown in Appendix (A1).48 49. 3.2.1.2.
In-depth Personal Interviews In- depth interviews were been carried
out with the restaurants and chains managers under the
investigation. The purposes of these interviews were: Identifying
the guest evaluation for the fast food chains. Egyptian market
expectations, needs, and preferences of the Egyptian customer. And
how do the chains deal with these needs and preferences? Common
attributes of local and international restaurant chains. Training
strategy in fast food ones. Evaluating marketing strategies in fast
food chains. Evaluating quality levels in fast food chains, and
what is quality assurance strategy in fast food chains. The extent
of product development according to customer needs in their chains.
Customer satisfaction measuring methods in fast food chains.
Strengths and weakness points in fast food chains. The in-depth
personal interview are been shown in appendix (A2).3.2.1.3.
Observation Checklist The observation checklist has been designed
to evaluate food service quality, cleanliness, atmosphere, staff
and management performance. The checklist composed of six
functional areas, which are: 1- Exterior 2- Interior 3- Food
Quality 4- Guest Service 5- Employee Appearance 6-Managament
Functions 49 50. The observation checklist has been shown in
Appendix (A3).3.2.2. Secondary sources All sources of secondary
data been illustrated in the previous chapter "Review of
Literature". The sources of secondary data include: 3.2.2.1.
Government Publications This source includes the data mentioned by
the Egyptian Ministry of Tourism and the Chamber of Tourism
Establishments (CTE). 3.2.2.2. Periodicals and Books Books, theses,
as well as periodicals such as, journal of food service business
research, Cornell quarterly, restaurant hospitality, and caterer
and hotelkeeper and different articles from many sources. 1.2.2.3.
Electronic Sources Internet websites related to the subject of
research have been mentioned, illustrated and discussed.3.2.3.
Pilot study The thesis shows a research questionnaire and an
interview which entailed three separate interviews with lecturer's
and assistant lecturers from Helwan University, Faculty of Tourism
and Hotel Management, Also entailed by McDonald's training
consultancy team and their training managers, Americana Company,
Gulf Aria human resource corporate manager, Cilantro, quality
assurance managers and Cinnabon training manager. This helped
towards shaping the final questionnaire and interviews. The pilot
study of questionnaire has been conducted on a limited 51 51.
segment of guests from independent restaurants, local and
international fast food restaurant chains. The questionnaire form
has been revised and adopted according to the guests
comments.1.2.3. Data Analysis Most data were then analyzed
utilizing procedures of the SPSS (Statistical Package for Social
Science) version 10.0 for windows. Frequencies standard deviation,
percentages and cross-tabulation were calculated to determine which
group differs significantly from each other and correlation between
variables.51 52. CHAPTER FOURRESULTS AND DISCUSSION52 53. 4.1
Introduction The business of food service deals with the
preparation and service of food for consumption by others, whether
the food is made from scratch or is convenience food products that
are finished in microwave or deep fryer, whether the service is
over the counter or at the table. Food service is "the service of
food and beverages to internal and external guests in an efficient,
safe and hygienic manner, and in a way that will create guest
satisfaction" Food service may be defined as "that phase the food
flow (that is, from the purchasing of the foods to service to the
guest) mainly concerned with the delivery and presentation of the
food to the guest, after the completion of the food production". In
some situations food service may include an element of
transportation due to the separation of the service facilities from
the food production, for example of a centralized cook-freeze
operation serving peripheral units. Food service establishments are
those engaged in providing food service. These establishments
include not only the obvious examples of restaurants and college
dining halls but also the salad bars and sandwich counters in food
markets and such" distant relations" as food vending machines. Food
service enterprises range from full-service restaurants to
self-service buffets, from fine restaurants to takeout operations,
and from company cafeterias to hamburger stands. Quick service or
fast food restaurant offer limited menus featuring food such as
hamburgers, fries, hot dogs, various finger foods and other items
for the convenience of people on to the go. Customers order their
food at a counter under a brightly lit menu featuring color
photographs of food items. Quick-service restaurants have increased
in popularity because of their locations. They can usually be found
in very convenient places in every possible area. Their menus are
limited, which makes it easier for customers to make quick
decisions on what 53 54. to eat. 4.2 Questionnaire Response Rate
The research targeted 1500 customers randomly in fast food
operations. A total of 1248 usable replies were obtained,
representing an effective response rate of 83.2 percent. Table 5:
Questionnaire response rate CategoryCustomersNumber
targeted1500Number shared1248Response rate83.2 %4.3 Questionnaire
Analysis Results and Discussion The next evaluation of the
questions is ranking according to the objectives of the
questionnaire as follows.54 55. Question NO. (1):- Customers
preferences to deal with fast food restaurants The aim of this
question is to illustrate customers preferences to deal with fast
food restaurants. Figure (1) shows this issue and illustrated that
out of 1248 respondents who dealing with fast food restaurants;
16.3% of respondents deal with fast food restaurants always, 24.1%
are usually preferred to deal with fast food restaurants usually.
45.2% of customers deal with fast food restaurants sometimes. While
14.4% of respondents indicated that they deal with fast food
restaurants rarely. 45.2% 50.0 40.024.1% 16.3%14.4%30.0 20.0 10.0
0.0FewSometimesUsuallyAlwaysFigure 1: Customers preferences to eat
fast foods. Cross tabulation analysis showed that 52.4% of category
"from 15 to less than 25 years old" customers and 45.3% of category
"from 25 to 40 years old " deal sometimes with fast food
restaurants, while 33.3% of category "over 40 years old"
respondents rarely deal with fast food restaurants. Also 44.4% of
married with children customers and 47.4% of single respondents
deal with fast food restaurants sometimes, besides 50% of female
respondents and 43.1% of male respondents deal with fast food
restaurants.55 56. Question NO. (2):- Customers' preferable meal
The aim of this question is to illustrate customers' preferable
meal. Data in table 6 show that most respondents prefer to have the
lunch meal in fast food restaurants by mean 1.77. Statistically,
X2sig=0,000 showed a significant variances among respondent as
(P