Mcdonald

PRESENTATION ON

McDONALD’S & DOMINO’S SUPPLY CHAIN

UNDER GUIDANCE OF:MR. ANOOP R OHRI

PRESENTED BY:KIRANDEEP KAURDEEPIKA SHARMANIKHIL RANAVISHALJASMEET SINGH

DOMINO’S

• Founded in 1960• Domino's is the second-largest pizza

chain in the United States • over 9,000 corporate and franchised stores in 60 countries

and all 50 U.S states • Pizza, sandwiches,  pasta, chicken wings , desserts• Focus on delivering great tasting Pizzas and sides, superior

quality, exceptional customer service and value for money offerings.  

• Domino’s pizza believes strongly in the strategy of ’Think global and act local’. 

HISTORY OF DOMINO’S

• In 1960, Tom Monaghan and his brother, James, purchased Domi Nick's,  a small pizza store in Ypsilanti, Michigan near Eastern Michigan University.

•   Monaghan renamed the business Domino's Pizza, Inc. in 1965.• In 1967, the first Domino's Pizza franchise store opened in

Ypsilanti • On May 12, 1983, Domino's opened its first international store,

in Winnipeg, Manitoba, Canada • In 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

DOMINO’S IN INDIA

• It entered India in 1996• Through franchise agreement with Delhi based

industrial Vam Bhartiya Corp.• In late 1999, Indocean Chase (private Equity fund)

bought 25% stake in Domino’s operations from Bhartiya

• Advised to go beyond its 16 outlets in Delhi to exploit the potential in the pizza delivery business.

• By 2002 it had around 150 outlets covering over 20 major cities in India

CURRENT STATUS

Domino’s pizza targeting to double its outlets in India to more than 800 over the next five years.Currently, there are 411 Domino’s stores in India. India is the fifth largest market for the domino’s after US, UK, Mexico and Australia.In India, Jubilant foodworks ltd operates domino’s pizza stores with exclusive rights for India, Nepal, Bangladesh & Sri Lanka. Domino’s is the market leader in the organized pizza market in India. With over 50% market share and 70% share in the pizza home delivery segment.

In metros, domino’s focuses on on –time delivery

tag line/slogan – khushiyo ki home delivery ; Hungry kya ?

USP - Home delivery in 30 minutes else free

In term of top global markets for Domino’s, India is currently ranked at ninth position.

Home delivery contributes about 60% of the revenue.

INTRODUCTION

• World's largest chain of hamburger

 fast food restaurants• Dealing in 123 countries .•  Headquarter in the United States• More than 33,000 restaurants worldwide• More than 4,00,000 employees  • Fast food:

hamburgers,  chicken, french fries,  soft drinks, coffee, milkshakes, salads, desserts,  breakfast.

•  The  McDonald’s  philosophy  of  Quality,

 Service,  Cleanliness  and  Value (QSC&V) is  the  guiding  force  behind its service to the customers.

• Reconnect with customers through contemporary global marketing direction “I’m lovin’ it”

Background • The company began in 1940 as a barbecue restaurant in California• operated by the eponymous RICHARD AND MAURICE McDONALD• In 1948 , they reorganized their business as a hamburger stand• Businessman RAY KROC  joined the company as a franchise agent in 1955 and later on purchased the chain from the McDonald brothers and oversaw its worldwide growth.• Regarded as a symbol of globalization and the spread of the American way of life.

FOOD INDUSTRY IN INDIA

In India, food industry and

particularly informal eating out market is very small. In India, over quarter of a million customers visit McDonald’s family restaurants every day. The Indian fast food market is valued at $1-billion (Rs 4,547 crore) approx.

Business model

Only 15% of the total number of restaurants are owned by the Company & remaining 85% is operated by franchisees

In addition to ordinary franchise fees and marketing fees, McDonald's also collect rent, which is calculated on the basis of sales.

Condition of franchise agreements vary by contract, age, country, and location

In most of the countries,  restaurants are operated by joint ventures and other, local entities or governments.

To boost sales, McDonald’s is looking at new business channels instead of rapid expansion. New business channels include home delivery, kiosks, breakfast, extended hours and drive-throughs. 

 comprehensive framework of training and monitoring of its franchises to ensure that they adhere to the Quality, Service, Cleanliness and Value propositions offered by the company to its customers.

Act like a retailer and think like a brand

McDonald in INDIA

• first Indian outlet opened in Mumbai in 1996. • Beef and pork products were not offered•  meat and vegetarian meals are prepared in separate

areas of the restaurant because of religious laws In India 

• In 2009, McDonald’s India won the CNBC Awaaz Consumer Awards for the third time in the category of the Most Preferred Multi Brand Fast Food outlets.

• McDonald’s first launched home delivery of meals in Mumbai in 2004.

Target market

• Initial focus on metros- Mumbai, Delhi• Relatively high incomes• Exposure to western food & culture• Move to smaller satellite towns

(Gurgaon,Pune)• Positive spillover effects of reputation• Jaipur & Agra- To attract foreign tourists

• McDonald’s has a dedicated supply chain in India and sources 99% of its products from within the country.

• strong backward integration right up to the farm level.

Competitors in INDIA

• Pizza Hut• Domino’s Pizza• Papa John’s• Narula’s • KFC

Competitors

• Burger King —Second largest burger chain• Wendy's —World's third largest hamburger fast food chain• Jack in the Box —American fast food chain• Subway—Largest single-brand restaurant chain• Carl's Jr.—Fifth largest American fast food chain• Five Guys—American fast food chain• Whataburger —American fast food chain• Krystal —American fast food chain• White Castle —American fast food chain• Yum! —Largest multi-brand restaurant chain

Supply chain

critical for success strong local channels of suppliers and

distributers operation and training to match international

quality and hygiene standards invested 50 crore before setting up 1st store in

india

Suppliers

• Trikaya agriculture

QUESTIONS

1. What are the key changes which have made supply chain management a critical function to succeed in present day business world?

Ans 1

• growing urbanization• Improvement in overall education level• Increased scope of processed food• Integration of the economies of the world• Satisfying increased demand• Rapid development in IT• competition • Companies need• Long term collaboration with suppliers- need of the hour• Minimum cost

QUES…

2. How does an efficient supply chain lead to strategic competitive advantage?

Ans 2

• Affordable prices• Timely delivery of goods• Quality assurance• Increase in sales• Low wastage• Fulfill the demand of the customers

QUES…

3. How domino’s revamped its supply chain model in the wake of its extended spread in Indian industry?

ANS 3

WHEAT

DOUGH

WHAREHOUSE

RETAIL OUTLETY

REFRIGERATED TRUCK

Recomendations

• Understand latent demand• Delight needs• Innovations • Create demand