• India made a dramatic transition from

being a supply-constrained to a
demand-driven economy.
• The most important change in the
retailing pattern that led to the boom
in consumer spending has been the
rise of organised retailing
• At present the organised retail activity
is concentrated mainly in the apparel,
food & beverages and entertainment
segments.
• “Eating out” in India will continue to be significant due
to reasons like, increased average working hours;
increase in the number of working women and
decline in number of large family units.
• Therefore, there is a tremendous market potential in
the Indian fast Food market.
• There is an annual compounded growth rate of over
20% – much better than the 7-8% growth that the
industry has been witnessing in the last few years,
which makes it more lucrative for the multinational
players to enter the Indian market.
• The traditional Indian chains have also woken up to
the challenge and are aggressively on an expansion
drive and have altered their business strategies as
well.
•
• The food and beverages retail
business can be classified across
various segments but the main
focus of this study is on fast food
which is broadly classified as below:
 • Coffee house chains
 • Fast food chains
•
 Coffee house chains
• The forerunners in the business,
Barista and Café Coffee Day, today
have a total of around 400 retail
outlets across the country.
 Fast food chains
• Domino’s and Pizza Hut
• McDonald's, KFC, Sub Way etc
• Nirula’s, Kamat’s
• According to industry data, of the total
branded quick service restaurant
market of over Rs 1,200 crore, the
pizza chains contribute around 50% of
the sales. In fact, the two pizza chains
that currently dominate the branded
pizza quick service restaurant market
— Domino’s and Pizza Hut together
account for over 75% market share .
 Fast food and its different
categories:
• Indian fast food/finger food-local
• Family diners-udupi joints,thalis
• Sandwich & salad parlours-
Subway
• Multi-cuisine food courts-
Hangouts
• Ice-cream and juice/beverage
parlours-Baskins
Robins,Mamamia
• Indian "desserts" and "snack
• The multinational companies in India
have also established a network of
suppliers and supply chains, setting
new performance benchmarks for
local food service players.
• standard menu, organising supply
chains, and seeking to improve
economies of scale through
maximising the number of outlets in a
region under company ownership plus
under franchisees.
• Local chain went to a franchisee mode
Redefining Service Value
• enabling to go beyond the core
product
• enhance the value offered to the
customer through supplementary
offerings
• customer experience critical to the
overall customer satisfaction
• Delivery within 30 min
•
Redefining Product Value
• “Ghar ka khana”
• health promoting side-dish such as a salad
or juice
• There is an interesting observation at some
of the traditional south Indian restaurant
chain like Kamat’s- go past the time limit
and you don't get any
• upgraded themselves in terms of ambience
and service in lieu with the increased
competition while still maintaining the
traditional feel and essence
• The clothes worn by
• the waiter’s makes one feel as they have
reached the actual Gandhian era, where
 Growth and Expansion plans of
various players in Fast food sector
in India
• Nirula’s
 - its ‘21’ range of ice cream cafes to
attract the younger lot.
 - The advantage for the Indian chains is
that they know the Indian taste buds which
are a challenge for the foreign players.
 -Nirula’s has started putting in play
corner for kids with vibrant colors. The
menu is a mix of continental, Indian, South
Indian and Chinese with desserts and
bakery products. The menu has a quite a
range and as compared to McDonalds is
quite affordable.
• McDonalds
• The focus on training, employee
development and opportunities for
advancement were key factors in
its success
• Setting up this has involved the
transfer of state of art food
processing technology
• It has control over the system and
thereby uniformity throughout the
• Dominos
• The reason for dominos success in
India is – customization, consistent
quality, company’s strength in
supply chain and logistics
management which have created
unique brand equity
• unique selling proposition in terms of
delivery and take away therby
providing more value to the
customer.
• The multinationals have changed the
dynamics of the industry by
investing in product development,
sourcing practices, quality
standards, service levels and
standardizing operating procedures
which they have developed out of
year’s of experience.
• IT has become an integral part of the
company’s business vision
• KAMAT
• The differentiating strategy always
was a prime objective and so the
focus was on customer experience
with quality food items with latest
crockery, furniture and equipments
 positioning strategy
• McDonald is primarily seen as
Children and a family fun place
• Nirula’s as college going crowd
• Café coffee day as hang out for
young and professional crowd
•
• Barista
• It has positioned as an experiential lifestyle
brand and is a part of the $9 million Tata
Group
• The outlets offer coffee, beverages, cookies,
cake and desserts
• The merchandise basically reflects the
Italian spirit through Indian origin
• It focuses on consumer experiences and
emphasis was by greeting regular
customers by name, knowing their
preferences, creating right ambience, buy
a safe place for women to visit, lean
Factors that impact success
of a Restaurant
• Quality
• Location-Parking Convineince
• Food
• Service
• Menu
• Price
• Atmosphere-Ambience, furniture
• Management

 Basic Consumer Service
• Since the evolution of mankind, the
consumption of food has progressed
from a simple physiological need to
one that satisfies higher needs of self
esteem, social acceptance etc
• The need to be understood:

establishing a rapport and showing

empathy
• The need to feel welcome

• The need for comfort; Physiological and

Psychological
• The need to feel important; catering to

the human ego

 The 5 dimensions of
restaurants
• Tangibles: Appearance of physical facilities,
equipments, personnel and information
material.
• Reliability: Ability to perform the service
accurately and dependably
• Responsiveness : Willingness to help
customers and promptness
• Assurance : a combination of Competence,
Courtesy, Credibility and Security
• Empathy : a combination of Accessibility,
Communication, Understanding customer
needs.
Above factors put together are known as

SERVQUAL dimensions.
 Gaps between Service
expectancy and perception
• Gap 1: Difference between
management perceptions of what
customers expect and what
Consumers realy do expect
 - It exist because of not
knowing what customers expect.
• Gap 2: Difference between
management perceptions and service
quality specifications – the standard
gap.
 -It exists because of the
wrong service quality standards.
 Gaps between Service
expectancy and perception
• Gap 3: Difference between service quality
specifications and actual service delivery – are
standards consistently met.
 - Exist because of the service performance gap
where what management wants is not being
implemented
• Gap 4: Difference between service delivery and what
is communicated externally –are promises made
consistently being fulfilled.
 - Exist when promises do not match actual
delivery.
• Gap 5: Difference between what customers expect of
a service and what customers actually receive.
 -Exist because of the difference between customer
actual perception of the services and their prior
expectation
• Analyzing the above outcomes will help the Indian
 Findings
• The traditional players were initially focusing on the expansion plans but the
entry of new players forced them to come up with differentiating strategies
in terms of menu, price, quality and service
• The Indian players definitely have an edge over multinational players as they
are well aware with the eating habits and tastes of people in different
regions, so experimenting with menu is not a great task for them
• he study also finds that as a part of growth strategy there are tie-ups and
alliances happening, to merge the existing synergies of various companies
to achieve collective profitability.
• In this study, the concept of SERVQUAL is interpreted to understand the various
gaps in consumer expectations and management perception
• Several factors which were highlighted as grey areas are Accessibility,
Ambience and Service efficiency. These are the areas where Indian players
are not able to meet the consumer expectations
• They have improved in terms of variety, hygiene and entertainment but certain
issues as mentioned need to be addressed.
• It is found that majority of customers are not fully satisfied with the friendliness
of staff. So it is suggest that the stores should conduct soft skill training and
make them give more customer service .Regular monitoring of the staff
behavior towards customers is also suggest here.
• The main reason behind the success of
the multinational chains is their
expertise in product development,
sourcing practices, quality standards,
service levels and standardized
operating procedures in their
restaurants, a strength that they have
developed over years of experience
around the world. The home grown
chains have in the past few years of
competition with the MNCs, learnt a
few things but there is still a lot of
scope for improvement.