Mcd temporary one

Presentation on QSR – McDonald’s

Submitted by: Jaymin Ahir

Sanket BhalodiaMilan Chanchad

Shweta Chandwani

Guided by: Dr. Renuka Garg

INDUSTRY PROFILE

Quick Service Restaurants

• Quick Service Restaurants is the term given to food that is prepared and served very quickly.

• Typically the term refers to food sold in a restaurant or store with preheated or precooked ingredients, and served to the customer in a packaged form for take-out/take-away.

• Some of the well-known quick service restaurants like McDonald’s, Domino’s, KFC, Pizza Hut, Nirula’s etc, operating in India.

• The quick service restaurant (QSR) sector is one of the sectors that has managed to grow even during the economic slowdown.

SIZE

• Currently the Indian fast food industry stands at a massive size of 47 billion.₹

• It is estimated to double from the current Rs 3,400 crore in the next three years, largely driven by demand from smaller cities.

• Smaller cities account for just about 25% of total stores, in the next 3 years, however, nearly 40-45 % of store additions will take place in these cities.

• Global brands currently constitute 63 per cent of the total QSR market.

• In value terms, pizzas, burgers and sandwiches still account for 83 per cent of the QSR market.

GROWTH RATE

• The QSR market will be worth around Rs.70 bn (US$ 1.13 bn) by the end of 2016 from its current value of Rs. 34 bn.

• The annual QSR spend per middle class household to rise by over 1.5 times to around Rs 6,000 by 2015-16 from about Rs 3,700 in 2012-13 in large cities(Tier 1).

• Growth is expected to be much higher in smaller cities(tier 2&tier 3), at about 2.5 times to Rs 3,700 by 2015-16.

• Currently, smaller cities account for just about 25 per cent of total stores, in the next three years, however, nearly 40-45 per cent of store additions will take place in these cities

MAJOR PLAYERS

• MCDONALDS• KFC• PIZZA HUT• DOMINOS PIZZA.• CAFE COFFEE DAY• NIRULA’S

COMPANY PROFILE

Mcdonald’s History

• It started as a drive in restaurant in the late 1940’s 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.

• In 1966, it was listed on the new york stock exchange.• In june 1967,McDonald’s opened its first restaurant outside

U.S in canada.• In 1996, McDonald’s entered India in a Joint Venture.

• The McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries across 35,000 outlets.

• A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself.

• McDonald‘s is the leading global foodservice retailer with more than 32,000 local restaurants serving more than 58 million people in around 130 countries each day.

• In India, the brand is managed by two business entities... Connaught Plaza Restaurants Private Limited, led by Mr. Vikram Bakshi, JV

Partner and Managing Director, North & East India Hardcastle Restaurants Private Limited, led by Ms. Smita Jatia, Managing

Director, South & West India

GROWTH RATE

• To open 175-250 restaurants in the next 5 years across west and south India.

• To establish 60%-70% of outlets in existing cities and the rest in new markets.

• Will invest over 750 crores.₹• Plans to open 75-150 McCafe in the next three years.• Almost 25% of revenues come from online and web

ordering McCafe acts as a key driver in optimising use of restaurants.

MARKET SHARE

Market share:

Year Revenue Market share

2001 ₹ 946 mn 14.20%

2005 ₹2656 mn 14.40%

2009 ₹6800 mn 15.90%

2013 ₹14259 mn 14.20%

CLOSEST COMPETITORS

KFC DOMINOS PIZZA

Year Revenue Market share

2001 ₹ 19 mn 0.30%

2005 ₹261 mn 1.40%

2009 ₹2489 mn 5.80%

2013 ₹12505 mn 12.50%

Year Revenue Market share

2001 ₹ 303 mn 4.50%

2005 ₹953 mn 5.20%

2009 ₹3956 mn 9.30%

2013 ₹16222 mn 16.20%

STRATEGIES

• McDonald‘s philosophy of QSCV (Quality, Service, Cleanliness and Value) is the guiding force behind its service to the customers in India.

• Affordability has been the cornerstone of McDonald’s global strategy. Some of its measures to achieve this include – Bulk buying, long-term vendor contracts, and manufacturing efficiencies which helped to keep its prices down.

• McDonald’s now has plans to launch web-based delivery service in India (across 75 McDelivery cities) in 2010, a pilot for which has already been tested by it in Hyderabad.

• McDonald’s does not offer pork or beef-based products. It’s menu is more than 50 per cent vegetarian. The fast food retail chain has separate production lines and processes for its vegetarian and non-vegetarian offerings.

• MFY (Made for You) food preparation platform.

• OOH Branding- McDonald’s India may be the largest out-of-home branding (OOH) in the country.

• New Business Channels- It includes home delivery, kiosks, breakfast, extended hours and drive-throughs. As per estimates, home delivery can increase store sales about 15% and drive throughs by 50%.

• McDonald’s adopts a cluster wise expansion strategy in India.

• All-vegetarian restaurants in various pilgrimage sites-There is already one at katra.

ANALYSIS

Interpretation: From the above table we can interpret that 35% of respondent visit twice in the month, 30% of respondent visit once on month, 15% respondent visit once in a week.

Frequency

Frequency Percent Valid Percent Cumulative Percent

Valid Once in Week 3 15.0 15.0 15.0

1 time in month 6 30.0 30.0 45.0

2 time in month 7 35.0 35.0 80.0

1-3 time in a year 1 5.0 5.0 85.0

10-12 time in a year 1 5.0 5.0 90.0

>2 time in a month 2 10.0 10.0 100.0

Total 20 100.0 100.0

McDonald is the first choice when I want to buy fast food

Frequency Percent Valid Percent Cumulative Percent

Valid Strongly Agrees 12 60.0 60.0 60.0

Agrees 4 20.0 20.0 80.0

Neutral 4 20.0 20.0 100.0

Total 20 100.0 100.0

Interpretation: From the above table we can interpret that 60% respondent strongly agrees

with the statement, 20% respondent agrees where as 20% neutral.

McDonald has never disappointed me

Frequency Percent Valid Percent Cumulative Percent

Valid Strongly Agrees 7 35.0 35.0 35.0

Agrees 7 35.0 35.0 70.0

Neutral 3 15.0 15.0 85.0

Disagrees 2 10.0 10.0 95.0

Strongly Disagrees 1 5.0 5.0 100.0

Total 20 100.0 100.0

Interpretation: From the above table we can interpret that 35% respondent agrees with the

statement, 35% respondent strongly agrees where as 15% neutral, 5% strongly disagrees and

10% disagrees.