Introduction

Food that can be made and served rapidly is called fast food. It refers to any food which can be made in less time or a food which can be sold with ingredients in precooked form. It is a packaged food which customers can take away with them.Fast foods franchising started in 1930s. oward !ohnson first franchised a restaurant to his friend during the days of great depression. "he term fast food was used in 19#1 by $erriam%&ebster in dictionary. http'((www.franchisehelp.com(industry%reports(fast%food%industry%report Industry )nalysis *013 + ,ost - "rends http'((en.wikipedia.org(wiki(Fast.food $cdonalds /0F,/ pi11a hut and many other franchiser ship standardi1ed food ingredients to each of his restaurants from a central place. Fast food restaurant can be opened with little capital investment in ma2ority of the areas of the world. Pre-Feasibility Study Fast food restaurants are rapidly progressing segment of catering and hotel industry. 3ecause of rapidly increasing consumer demand/ the number of fast food restaurants increased so much throughout the world .It is easy to open a small fat food restaurant anywhere in the world but there are some ma2or problems related to labor and health that are rising day by day. Fast Food

The Fast Food Industry in Pakistan

4resences of many international food chains show that the fast food industry is very popular in 4akistan. $ultinationals chains such as 0F, /4i11a hut/ $c5onalds /6ubway etc are targeting higher income group and called upscale restaurants for fast food. "hese

multinational firms have altered their menus to meet the tastes of 4akistani people. "hese franchises are mostly owned by local franchisees so that cultural values can be accounted for. $oreover / international fast food chains are not the only fast food suppliers in 4akistan. $any local restaurants are also competing with multinational chains such as khan broast in 0arachi and providing items according to the tastes of specific region at lower cost. ,ompared to local restaurants /multinational fast food chains are more costly because of better atmosphere and more cleanliness. 6o lower to middle income people prefer to go local restaurants because of low cost food.

MCDONALDS
Back round!
7ay 0roc who was a seller of malted%milk mi8ing machine/ first ac9uired franchising rights of hamburger chain from 5ick and $aurice $c5onald in 19#:. )fter hearing that their restaurant have ; multi mi8ers which is highest of any other restaurant of this si1e /0roc in 19<1 bought out $c5onalds.

"ay#ond Albert $roc %&'()-&'*+,!

7ay 0roc was the founder of $c5onald=. 3y occupation he was a seller of multi%mi8er machines.

-hen is et started!
In 19## 7ay 0ro opened 5>6 4?)I@>6 restaurant. e earned A3<<.11 revenue on day first. @ow this restaurant is no more in operation and now building of 5es 4alines had become a museum which contains artifacts and memorabilia of $c5onalds along with multimi8er.

$c5onalds became public limited company in 19<# and offered its shares for public and listed on stock e8change. 6tarted from 100 shares which had a cost of A*/*#0 at that time/ now it has B:3<0 shares with worth of over A*.; million on 31 5ec 199;

Some Main Products

"Big Mac":
CIntroduced systemwide in 19<;/ the 3ig $ac was the brainchild of !im 5elligatti/ one of 7ay 0roc=s earliest franchisees/ who by the late 19<0s operated a do1en stores in 4ittsburgh.C

"Happy Meal":
6ince 19B9 the appy $eal has been making kids visits that much more special. ,hildren are mostly interested to collect appy $eals toys and bo8es.

McDonald's website:
)fter :3 years of its opening $c5onald=s came on web page/ which receives million of hits every week.

Expansion
"he first $c5onalds restaurant outside the Dnited 6tates opened in ,anada in 19<B. "he companys international division was formed in 19<9/ and today $c5onalds has e8panded to 1*1 countries on si8 continents. $c5onalds largest market outside the D.6. is !apan/ where the first Eolden )rches appeared in 19B1. "oday/ there are more than */#00 restaurants in !apan. 7ecent international e8pansion has included rapid growth for $c5onalds in the $iddle >ast and ,entral >urope. In 199B/ international restaurants contributed <0F of the companys total revenue.

McDonalds Franchising
We Have Always Been A Franchising Company

McDonald's has always been a franchising Company and has relied on its franchisees to play a major role in its success. McDonald's remains committed to franchising as a predominant way of doing business. Approximately 70 of McDonald's worldwide restaurant businesses are owned and operated by independent businessmen and women! our franchisees. A Recognized Premier Franchising Company McDonald's continues to be recogni"ed as a premier franchising company around the world. #erhaps the fact that McDonald's management listens so carefully to its franchisees has something to do with McDonald's being perennially named as $ntrepreneur Maga"ine's number one franchise. A Partnering Relationship McDonald%s franchising system is built on the premise that the Corporation can be successful only if our franchisees are successful first. &e belie'e in a partnering relationship with our owner( operators! suppliers and employees. )uccess for McDonald's Corporation flows from the success of its business partners.

McDonald.s in Pakistan
$c5onald=s has *%2oint ventures in 4akistan. First for the territory including the provinces of' 6indh 3alochistan

6econd for the territory including provinces of' 4un2ab @.&.F.4.

For second venture Gfor the territory of 4un2ab and @&F4H/ $c5onald=s has made franchise% contract with CEhouse )kbarC/ who is now the president of $c5onald=s %?ahore. Dntil now there are si8 stores of $c5onald=s/ operating in ?ahore. ,urrently $c5onald=s%?ahore is planning to e8pand its business to other cities by following preferences' 6ialkot

Faisalabad Eu2rawala 4eshawer $ultan.

$c5onald=s ?ahore is a 2oint venture between $c5onald=s ,orporation D.6.) and E)$ ,orp G4vt.H ?td. $c5onald=s made its debut in 4akistan on 19th 6eptember 199; when its Erand ,ountry Ipening was held in the provincial metropolis of ?ahore. "his made 4akistan the 113th country on the globe where the world renowned Eolden )rches were unfolded. )fter ?ahore/ $c5onald=s made Eolden )rches glitter in other cities of 4akistan/ Faisalabad is already open/ soon to be followed by other cities. $c5onalds has set the ball rolling in 4akistan with two modern/ state%of%the%art restaurants/ one in ?ahore and 0arachi each. "he $c5onald=s ?ahore 7estaurant is located on Eulbergs $ain 3oulevard while the one in 0arachi is situated on the $ain @orth @a1imabad 7oad. "he ?ahore $c5onald=s has scored another first in 4akistan with its 5rive%"hru + a modern customer service concept in 9uick service restaurants that has been introduced for the first time in 4akistan. "he customer simply drives into $c5onald=s/ places the order and pays at one window and collects the food within a minute at the ne8t + all without leaving the car. $c5onalds in ?ahore is a 2oint venture between $c5onalds E)$ ,orporation 4rivate ?imited and $c5onalds ,orporation D6). In 19th 6eptember 199; $c5onalds entered in 4akistan and its Erand opening was done in ?ahore. 4akistan became the 113 th country of the world these Eolden )rches were opened. $c5onalds then opened these Eolden )rches. In many other cities of 4akistan e.g Faisalabad and /any other are planned to open. 3y opening to modern restaurants in 4akistan that is one in ?ahore and other in 0arachi/ $c5onalds has took the form of a rolling ball .7estaurant of $c5onalds in ?ahore is situated on $ain 3oulevard Eulberg and in 0arachi it is located on $ain @orth @a1mabad.

?ahore $c5onalds has become e8tremely popular because of his drive thru facility which is a modern form of customer service in restaurants ."his concept was introduced first time in 4akistan by $c5onalds. ,ustomer 2ust drives into $c5onald/ order from the window and within few minutes get their food while sitting in the car

Co#/etition 0or $entucky Fried Chicken %$FC,

0entucky Fried ,hicken/ better known as 0F,/ is the largest chicken restaurant chain worldwide with almost 10/000 outlets located in well over B0 countries. eaded by ,>I/ 5avid 7odgers/ it is part of the )rtal Eroup/ which is a large multibillion%dollar food conglomerate. 6aid to be the second most famous and largest fast food franchise in the world is @o. 1 brand in )sia with market leadership in !apan/ ,hina/ $alaysia/ Indonesia and 0orea. 0F, primarily sells chicken in form of pieces/ wraps/ salads and sandwiches. &hile its primary focus is fried chicken/ 0F, also offers a line of roasted chicken products/ side dishes and desserts. Iutside @orth )merica/ 0F, offers beef based products such as hamburgers or kebabs/ pork based products such as ribs and other regional fare. "he company was founded as 0entucky Fried ,hicken by ,olonel arland 6anders in

19#*/ though the idea of 0F,=s fried chicken actually goes back to 1930. "he company adopted the abbreviated form of its name in 1991. 6tarting in )pril *00B/ the company began using its original name/ 0entucky Fried ,hicken/ for its signage/ packaging and advertisements in the Dnited 6tates as part of a new corporate re%branding programJ newer and remodeled restaurants will have the new logo and name while older stores will continue to use the 19;0s signage. )dditionally/ KumL ,ontinues to use the abbreviated name freely in its advertising.

1istorical Back round O0 $FC!

3orn and raised in enryville/ Indiana/ 6anders passed through several professions in his

lifetime. 6anders first served his fried chicken in 1930 in the midst of the Ereat

5epression at a gas station he owned in @orth ,orbin/ 0entucky. "he dining area was named C6anders ,ourt - ,afMC and was so successful that in 193< 0entucky Eovernor 7uby ?affoon granted 6anders the title of honorary 0entucky ,olonel in recognition of his contribution to the state=s cuisine. "he following year 6anders e8panded his restaurant to 1:* seats/ and added a motel he bought across the street. &hen 6anders prepared his chicken in his original restaurant in @orth ,orbin/ he prepared the chicken in an iron skillet/ which took about 30 minutes to do/ too long for a restaurant operation. In 1939/ 6anders 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 19:0 6anders devised what came to be known as his Iriginal 7ecipe. "he 6anders ,ourt - ,afM generally served travelers/ often those headed to Florida/ so when the route planned in the 19#0s for what would become Interstate B# bypassed ,orbin/ he sold his properties and traveled the D.6. to sell his chicken to restaurant owners. "he first to take him up on the offer was 4ete arman in 6outh 6alt ?ake/ DtahJ together/ they opened the first C0entucky Fried ,hickenC outlet in 19#*. 3y the early 19<0s 0entucky Fried ,hicken was sold in over <00 franchised outlets in both the Dnited 6tates and ,anada. Ine of the longest%lived franchisees of the older ,ol. 6anders= chicken concept/ as opposed to the 0F, chain/ was the 0enny 0ings chain. "he company owned many @orthern Ihio diner%style restaurants/ the last of which closed in *00:.. 6anders sold the entire 0F, franchising operation in 19<: for A* million D65 6ince that time/ the chain has been sold three more times/ most recently to 4epsi,o/ which made it part of its "ricon Elobal 7estaurants division/ which in turn was spun off in 199B/ and has now been renamed to KumL 3rands. )dditionally/ ,olonel 6anders= nephew/ ?ee ,ummings/ took his own 0entucky Fried ,hicken franchises Gand a chicken recipe of his ownH and converted them to his own Cspin%offC restaurant chain/ ?ee=s Famous 7ecipe ,hicken. "oday/ some of the older 0F, restaurants have become famous in their own right. Ine such restaurant is located in $arietta/ Eeorgia. "his store is notable for a #<%foot G1B mH tall sign that looks like a chicken. "he sign/ known locally as the 3ig ,hicken/ was built for an earlier fast%food restaurant on the site called !ohnny 7eb=s ,hick/ ,huck and 6hake. It is often used as a travel reference point in the )tlanta area by locals and pilots.

"he original handwritten recipe is kept locked away at the 0F, corporate head9uarters in ?ouisville/ 0entucky as a closely%guarded secret. Inly two members within the KumL ,orporation knows the recipe in its entirety.

0F, in 4akistan'
0F, has come a long way/ perfecting its herbs and spicesJ they opened their first franchise in ?ahore in 199B in Eulshan%e%I9bal and wore the market leaders title in fast food industry. 5elicious food in a rela8ing environment had made 0Fc everyones favorite. 4resently 0F, is branched out in eighteen ma2or cities of 4akistan G0arachi/ ?ahore/ Eu2ranwala/ 6ukkur - $ureeH with more than <0 outlets nation%wide.0F, has also contributed a lot in the economic development of 4akistan as well as providing entertainment to its customers in a friendly environment. 4resently 0F, has provided to over 1*00 4akistanis/ which adds up to <000 individuals directly dependent in 0F, 4akistan. "he Eovernment of 4akistan receives over 7s.10 million per month from 0F, 4akistan as direct ta8es. 9#F of all food and packing material used in 0F, 4akistan is procured locally/ which sums up to a purchase of over 7s.3# million per month.

>ach new outlet developed by 0F, 4akistan costs appro8imately 7s.:0 million/ which is a huge amount for our construction industry.

) 7esearch 7eport onN,onsumer Involvement level of fast food industryO