Customer Perception towards Fast Food Chains in India- A Study on McDonalds, Dominos and Subway

BY: GAURAV BHATTACHARYA

Abstract

• Purpose: The research seeks to estimate importance of various factors affecting the choice of fast food outlets by Indian young consumers.

• Design/Methodology/Approach: The study applies to estimate importance of various factors affecting the choice of fast food outlets by Indian young consumers.

• In addition the consumption patterns, impact of hygiene and nutritional values, and rating of various attributes of McDonald’s, Dominos and Subway.

• Findings: Results indicate that the young Indian consumer has passion for visiting fast food outlets for fun and change and they opt for fast food because they find quick service in the fast food joints.

• They feel homemade food is much better than food served at fast food outlets. They have the highest value for taste and quality (nutritional values) followed by ambience, brand value and hygiene.

What is Fast Food

• From onion rings to double cheeseburgers, fast food is one of the world’s fastest growing food types.

• Fast foods are quick, reasonably priced, and readily available alternatives to home cooked food.

• While convenient and economical for a busy lifestyle, fast foods are typically high in calories, fat, saturated fat, sugar, and salt.

• As per “the free dictionary” fast food is “inexpensive food, such as hamburgers and fried chicken, prepared and served quickly”.

• According to Merriam-Webster online dictionary fast food is “designed for ready availability, use, or consumption and with little consideration given to quality or significance”.

Introduction to the Organizations

McDonald’s

• The McDonald's Corporation is the world's largest chain of hamburger fast food restaurants.

• Serving around 68 million customers daily in 119 countries.

• Headquartered in the United States, the company began in 1940.

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

• Following its philosophy of being sensitive to local food and cultural preferences, India was the first country in the McDonald's™ system where it served non-beef and non-pork products.

• More than 70 percent of the menu in India has been locally developed with complete segregation of vegetarian and non-vegetarian products right from the food processing plants to the point of serving the customers.

• McDonald's™ regular scrumptious menu includes wide range of products like

• McAloo Tikki™, Filet-O-Fish™, Spicy Range, Chicken McGrill™, McVeggie™, Veg Pizza McPuff™, Chicken McNuggets®, Fries, Wraps, an assortment of Sundaes, Soft Serve and refreshing beverages.

Domino’s • Domino's Pizza is an American restaurant chain and international

franchise pizza delivery corporation.

• headquartered at the Domino Farms Office Park, Michigan.

• Dominos India is being managed by Jubilant Food Works Limited (the Company) is a Jubilant Bhartia Group Company.

• The Company is the market leader in the organized pizza market with a 54% market share (Euromonitor Report 2010) and 70% share in the pizza home delivery segment in India.

Subway

• Subway (stylized as SUBWAY) is an American fast food restaurant franchise that primarily sells submarine sandwiches and salads.

• Subway's core product is the submarine sandwich (or "sub").

• In addition to these, the chain also sells wraps, salad, and baked goods (including cookies, doughnuts, and muffins).

• While some menu items vary between countries and markets, Subway's worldwide signature sub varieties include

• Italian B.M.T.• Roasted Chicken• Subway Club• Tuna• Meatball Marinara• Subway Melt• Chicken Teriyaki• Steak & Cheese

Overview of the Industry

• Food diversity in India is an implicit characteristic of India’s diversified culture consisting of different regions and states within.

• Traditionally, Indians like to have home-cooked meals – a concept supported religiously as well as individually.

• However, with times due to increasing awareness and influence of western culture, there is a slight shift in food consumption patterns among urban Indian families.

• Fast food is one which gained acceptance of Indian palate after the multinational fast food players adapted the basic Indian food requirements viz. vegetarian meals and selected non-vegetarian options excluding beef and pork totally from their menu.

• It is gaining acceptance primarily from Indian youth and younger generations and is becoming part of life.

• The fast food industry has evolved in India with the changing lifestyles of the young Indian population.

• The sheer variety of gastronomic preferences across the regions, hereditary or acquired has bought different modules across the country.

• Many of the traditional dishes have been adapted to suit the emerging fast food outlets.

• The basic adaptation is to decrease the processing and serving time.

Title of the Study

“Customer perception towards fast food chains in India a study on McDonalds, Dominos and Subway”

Objectives of the Study

1. To determine what consumer thinks before choosing these Brands.

2. To determine which factors influence the choice of consumers for fast food.

3. To determine the consumption pattern and frequency of visits, choice of outlets.

4. To determine what the consumer perceives about the product quality and taste of these giants.

5. To determine the consumer perception about the nutritional value of the products of these giants.

Research Instrument & Sampling Method • Research Instrument Used: A Structured Questionnaire

• Sampling Method: Judgemental, Convenience Sampling

Data Collection Method

Primary• Interview Method consisting • Personal Interview • Telephonic Interview

Secondary • Commercial Magazines• Research Papers• Articles• Books

Research Approach & Research Design • Qualitative Research Approach • Research Design: Exploratory

• Sampling Universe: Jaipur, Udaipur • Total Respondents: 75 • Data Collection Instrument:

Questionnaire • Data Collection Method:

Personal Interview & Telephonic Interview, through Google Forms

Findings and Analysis

Ratio of Male-Female

Male63%

Female 37%

Total Male Female 75 47 28

Total Male Female Surveyed

Ratio of Occupation

Total Student Employed Self-Employed75 38 30 7

Ratio of Occupation

Student51%Employed

40%

Self-Em-

ployed9%

Why do you for Fast Food

Total Quick Service Effi cient & Fast Delivery Good Ambience Others 75 32 27 8 8

Why do you opt for Fast Food Why to opt for Fast food

Quick Service

43%

Efficient & Fast Delivery36%

Good Ambience11%

Others 11%

Why do you prefer these brands in comparison to other traditional Fast Food (Multiple Choices)

Total Better Taste Quick Service Offers/Discounts Effi ciency in Service Cleanliness Brand Value Quality 75 50 50 25 25 18 35 48

Why do you prefer these brands in comparison to other traditional Fast Food Chains (Multiple Choices)

1. Better Taste 2. Quick Service 3. Offers/Discounts 4. Efficiency Service 5. Cleanliness 6. Brand Value 7. Quality0

10

20

30

40

50

60

50 50

25 2518

35

48

How many times do you visit the Fast Food Chains in a month

Total 1. 0-1 Time 2. 2-5 Times 3. More than 5 TimesHow many times do you visit these fast food chains in a month

44%56%

1. 0-1 Time 2. 2-5 Times

How many times do you consume Fast food in a month

Total Occasionaly On a regular basis Rarely I do not consume Fast food 75 43 23 8

How many times do you consume Fast food in a month

Occasionaly58%

On a regular basis31%

Rarely11%

What are the attributes you look before you choose these Brands (Multiple Choices)

Total 1. Price 2. Food Variation 3. No. of Choices 4. Offers/Discounts 5. Cleanliness 6. Services 7. Ambience75 50 33 33 38 32 38 28

What are the attributes you look before you choose these brands (Multiple Choices)

1. Price 2. Food Variation 3. No. of Choices 4. Offers/Discounts 5. Cleanliness 6. Services 7. Ambience0

10

20

30

40

50

60

50

33 3338

32

38

28

Chart Title

Series1

How much would you rate these brands on a scale of 1-5

Total 1. 1 = Poor 2. 2 = Average 3. 3 = Good 4. 4 = Very Good 5. 5 = Exellent75 0 0 45 30 0

How much would you rate these brands on a scale of 1-5

3. 3 = Good60%

4. 4 = Very Good40%

What is your perception about these brands in your mind

Total 1. Quality Products 2. Value for Money 3. Possess Brand Equity 4. For the Niche market75 37 12 25 2

What is your perception about these brands in your mind

49%

16%

33%

2%

1. Quality Products2. Value for Money3. Possess Brand Equity4. For the Niche market

On what basis do you choose these outlets to have fast food

Total 1. Price 2. Food Variation 3. No. of Choices 4. Offers/Discounts 5. Cleanliness 6. Services 7. Ambience75 47 23 45 32 37 32 35

On what basis do you choose these outlets to have fast food

1. Price 2. Food Variation 3. No. of Choices 4. Offers/Discounts 5. Cleanliness 6. Services 7. Ambience0

5

10

15

20

25

30

35

40

45

50 47

23

45

3237

3235

What is your opinion on the product quality & taste of these brands

Total 1. Poor 2. Average 3. Good 4. Very Good 5. Excellent75 0 2 40 33 0

What is your opinion on the product quality and taste of these Brands

2%

40%33%

2. Average 3. Good 4. Very Good

Are the Food products of these brands value for money

Total 1. Yes 2. No 3. Maybe75 43 10 22

Are the food products of these brands value for money

58%13%

29%

1. Yes 2. No 3. Maybe

On what basis do you consume the products of these branded food chains

Total 1. Price 2. Food Variation 3. No. of Choices 4. Offers/Discounts 5. Cleanliness 6. Services75 47 38 37 25 37 42

On what basis do you consume the products of these branded food chains

1. Price 2. Food Variation 3. No. of Choices 4. Offers/Discounts 5. Cleanliness 6. Services

4738 37

2537 42

Do you have an brief idea about the nutritional values of the Fast food served in these Fast food Joints

Total 1. Yes 2. No 3. A Little Bit/Not Much75 22 25 28

Do you have a brief idea about the nutritional values of the fast food served in these fast food joints

1. Yes29%

2. No33%

3. A Little Bit/Not Much38%

Conclusion

• It has been concluded that according to the above study the consumers mainly consist of students.

• These students mainly consume fast food for around 2-5 times a month.

• The consumers prefers their fast service & delivery while choosing these fast food joints.

• Although the consumers also pay attention to the variety of the food products available in the fast food joints.

• Many consumers also prefer the variety that is the vegetarian or the non-vegetarian food.

• It is concluded that few people also prefer the ambience and the offers provided in these joints.

• However few consumers did mention that there is still need for better and attractive offers exists in these joints.

• The cleanliness is also an important factor mentioned by many consumers but they didn’t consider it as important as compared to the fast service.

• However the turning point is that even though a lot of people consume these foods for around 2-5 times a month, they don’t have much idea about the nutritional facts of the products being served.

• Only a few suggested that the nutritional facts should be clearly mentioned on the label, Else lack of knowledge of the nutritional facts may lead to obesity in the younger generation of the country.

Recommendations & Suggestions

• To provide more attractive offers and discounts to the consumers.

• To print and make the consumers aware of the nutritional facts.

• In addition to the fast food few health friendly food products can be added to the menu.

• To maintain their fast delivery and service. Also to maintain a stability in their services and quality of food.

• To provide a friendly environment for the consumers, that is friendly staff.

• Not only for the consumers but a work friendly environment should be provided for the staff.

• Attractive and innovative packaging as consumers do judge a book by its cover.

• Specials in the menu that are specific to that area.

• Food products must be verified by health Departments.

THANK YOU FOR YOUR PATIENCE