Fast Food Industry

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MAJOR PROJECT REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF

BACHELOR OF BUSINESS ADMINISTRATION

MAJOR PROJECT REPORT ON

CUSTOMER TASTE AND PREFERENCES IN FAST FOOD SECTOR

Submitted By: Name of student: DEEPAK BHANDARI Enrollment No.: 05590401709 Batch: 2009-2012

INTERNAL GUIDE
Name: Miss Preeti Designation: Assistant Professor

EXTERNAL GUIDE
Name: Designation:

Trinity Institute of Professional Studies Affiliated To Guru Gobind Singh Indraprastha University

CERTIFICATE

TO WHOM SO EVER IT MAY CONCERN

This is to certify that the project work “CUSTOMER TASTE AND PRFRENCES IN FAST FOOD SECTOR” made by Deepak bhandari BBA (G) 5thSem; 2nd Shift, Enroll no. 05590401709 is an authentic work carried out by him under guidance and supervision of Miss. Preeti

The project report submitted has been found satisfactory for the partial fulfillment of the degree of Bachelor of Business Administration.

Internal Supervisor Miss. Preeti

Signature

INTRODUCTION

WHAT IS FAST FOOD?

“Fast foods refer to that eating item which can be prepared and served quickly.it can be in package form for take out and take away.”

A fast food restaurant, also known as a Quick Service Restaurant or QSR within the industry itself, is a specific type of restaurant characterized both by its fast food cuisine and by minimal table service. Food served in fast food restaurants typically caters to a "meat-sweet diet" and is offered from a limited menu; is cooked in bulk in advance and kept hot; is finished and packaged to order; and is usually available ready to take away, though seating may be provided. Fast food restaurants are usually part of a restaurant chain or franchise operation, which provisions standardized ingredients and/or partially prepared foods and supplies to each restaurant through controlled supply channels. The term "fast food" was recognized in a dictionary by Merriam–Websterin 1951.

Arguably the first fast food restaurants originated in the United States with A&W in 1916 and White Castle in 1921. Today, American-founded fast food chains such as McDonald's and KFC are multinational corporations with outlets across the globe.

Variations on the fast food restaurant concept include fast casual restaurants and catering trucks. Fast casual restaurants have higher sit-in ratios, and customers can sit and have their orders brought to them. Catering trucks often park just outside worksites and are popular with factory workers.

HISTORY
The concept of fast food pops up during 1920s. The 1950s first witnessed their rapid proliferation. Several factors that contributed to this explosive growth in 50s were America’s love affair with the automobiles, construction of new highway systems and development of sub-urban communities. Fast food chain initially catered to the automobiles owners in suburbia. Ancient Rome cities had street stands that sold bread and wine fixture of East Asian cities is the noodles shops, flatbread and falafel (like Indian vda pao) are today ever present in Middle East. Popular Indian fast food dishes include vada pav, panipuri and dahi vada.

In 2006, the global fast food market grew by 4.8% and reached a value of 102.4 billion. In India alone the fast food industry is growing by 40% a year. Major Fast Food giants include Mc Donald’s, Subway, Pizza Hut, Taco bell. Common menu items at fast food outlets include : fish and chips, sandwiches, pitas, Hamburgers, fried chicken, French fries, chicken nuggets, Tacos,Pizza, Hot dogs, and Ice cream.

Fast food industry in India has evolved with the changing lifestyles of the young Indian population. The sheer variety of gastronomic preferences across the regions, hereditary or acquired, has brought about different modules across the country. It may take some time for the local enterprise to mature to the level of international players in the field. 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. For example, the typical meal which called for being served by an ever alert attendant is now offered as a Mini-Meal across the counter. In its traditional version, a plate or a banana leaf was first laid down on the floor or table. Several helpers then waited on the diner, doling out different dishes and refilling as they got over in the plate.

Some trace the modern history of fast food in America to July 7, 1912, with the opening of a fast food restaurant called the Automat in New York. The Automat was a cafeteria with its prepared foods behind small glass windows and coin-operated slots. Joseph Horn and Frank Hardart had already opened the first Horn & Hardart Automat in Philadelphia in 1902, but their “Automat” at Broadway and 13th Street, in New York City, created a sensation. Numerous Automat restaurants were built around the country to deal with the demand. Automats remained extremely popular throughout the 1920s and 1930s. The company also popularized the notion of “take-out” food, with their slogan “Less work for Mother”. Some historians and secondary school textbooks concur that A&W, which opened in 1919 and began franchising in 1921, was the first fast food restaurant (E. Tavares). Thus, the American company White Castle is generally credited with opening the second fast-food outlet in Wichita, Kansas in 1921, selling hamburgers for five cents apiece from its inception and spawning numerous competitors and emulators. What is certain, however, is that White Castle made the first significant effort to standardize the food production in, look of, and operation of fast-food hamburger restaurants. William Ingram's and Walter Anderson's White Castle System created the first fast food supply chain to provide meat, buns, paper goods, and other supplies to their restaurants, pioneered the concept of the multistate hamburger restaurant chain, standardized the look and construction of the restaurants themselves, and even developed a construction division that manufactured and built the chain's prefabricated restaurant buildings. The McDonalds' Speedee Service System and, much later, Ray Kroc's McDonald's outlets and Hamburger University all built on principles, systems and practices that White Castle had already established between 1923 and 1932. The hamburger restaurant most associated by the public with the term "fast food" was created by two brothers originally from Nashua, New Hampshire. Richard (Dick) and Maurice (Mac) McDonald opened a barbecue drive-in in 1940 in the city of San Bernardino, California. After discovering that most of their profits came from hamburgers, the brothers closed their restaurant for three months and reopened it in 1948 as a walk-up stand offering a simple menu of hamburgers, french fries, shakes, coffee, and CocaCola, served in disposable paper wrapping. As a result, they were able to produce hamburgers and fries constantly, without waiting for customer orders, and could serve them immediately; hamburgers cost 15

cents, about half the price at a typical diner. Their stream production method, which they named the "Speedee Service System”, was influenced by the production line innovations of Henry Ford. By 1954, The McDonald brothers' stand was restaurant equipment manufacturer Prince Castle's biggest purchaser of milkshake blending machines. Prince Castle salesman Ray Kroc traveled to California to discover why the company had purchased almost a dozen of the units as opposed to the normal one or two found in most restaurants of the time. Enticed by the success of the McDonald's concept, Kroc signed a franchise agreement with the brothers and began opening McDonald's restaurants in Illinois.[4] By 1961, Kroc had bought out the brothers and created what is now the modern McDonald's Corporation. One of the major parts of his business plan was to promote cleanliness of his restaurants to growing groups of Americans that had become aware of food safety issues. As part of his commitment to cleanliness, Kroc often took part in cleaning his own Des Plaines, Illinois outlet by hosing down the garbage cans and scraping gum off the cement. Another concept Kroc added was great swaths of glass which enabled the customer to view the food preparation, a practice still found in chains such as Krispy Kreme. A clean atmosphere was only part of Kroc's grander plan which separated McDonald's from the rest of the competition and attributes to their great success. Kroc envisioned making his restaurants appeal to suburban families. At roughly the same time as Kroc was conceiving what eventually McDonald’s Corporation became, two Miami, Florida businessmen, James McLamore and David Edgerton, opened a franchise of the predecessor to what is now the international fast food restaurant chain Burger King. McLamore had visited the original McDonald's hamburger stand belonging to the McDonald brothers; sensing potential in their innovative assembly line-based production system, he decided he wanted to open a similar operation of his own.[6][7] The two partners eventually decided to invest their money in Jacksonville, Florida-based Insta-Burger King. Originally opened in 1953, the founders and owners of the chain, Keith J. Kramer and his wife's uncle Matthew Burns, opened their first stores around a piece of equipment known as the Insta-Broiler. The Insta-Broiler oven proved so successful at cooking burgers, they required all of their franchises to carry the device. By 1959 McLamore and Edgarton were operating several locations within the Miami-Dade area and were growing at a fast clip. Despite the success of their operation, the partners discovered that the design of the insta-broiler made the unit's heating elements

prone to degradation from the drippings of the beef patties. The pair eventually created a mechanized gas grill that avoided the problems by changing the way the meat patties were cooked in the unit

OBJECTIVES OF THE STUDY
The systematic and objective identification, collection, analysis,dissemination, and use information for the purpose of assisting management in decision making related to the identification and solution of problem and opportunities in fast food marketing.When an industry comes in the competitive fast food market then the main problem comes in front of him is, how can survive in thefast food market. For this purpose they have to know about their production process, employment process, distribution process, consumer needs and consumer behavior in fast food. The main purpose of the industry is to satisfy the consumer needs.Their all function rounds around the customer, they try to know the behavior of the customer and fulfill their goal and to know about the customer’s behavior they do fast food marketing research. In this era the fast food marketing research is the basic part of the industry. Fast foodMarketing research include the evaluation of the organization’s all functions like their production, manufacturing, distribution, marketing , financial and human resources.We can say it is the internal research of an industry. There are some external factor which affects the growth of the organization like customer behavior about fast food and the political, technological, economical, and legal environment. And the most important factor is consumer buying behavior because this factor is responsible for the utilization of the product and ultimately sells of the product. So industry also needs the research on the consumer buying behavior. When we do the research on the consumer behavior about fast food we should know the entire factor which affects the consumer fsat food buying behavior. Social environment, education, culture and traditions,income, society are the factors which affect the buying behavior of the consumer. We can also divide it into geographic, demographic, psychological factor. The main objective of this study are – To under stand why customer buy a particular product. To know the marketing opportunities. To know about customer acceptance of the product.

To analyze the customer expectation from the manufacturer. To help the company to know what consumer want in the product. Why consumer prefers imported goods instead of indigenous goods. In the marketing research we firstly design our research. Our research can be Descriptive, explorative and casual research design. Casual research design is based on survey and observation. In this research process we are selected descriptive research design.

CHAPTER (II)
RESEARCH METHODOLOGY

RESEARCH OBJECTIVE OF THE STUDY The objectives are as follows:  Taste of different consumer group  Approach of the market  To know the majority of consumer likes the fast food  Perception of consumer towards the fast food

RESEARCH METHODOLOGY
The research carried out under the topic, was based on the combination of primary and secondary data. The questionnaire method was adopted. A sample of 60 branches, which included private sector banks, was for this purpose. The customers and bank officials were surveyed.The sample of strategy applied in this regard was random. The research design was a blend of descriptive and exploratory method. The customers and staff members were given the questionnaires. The ranking scale method was applied in this process. The research comprises of defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data, making deductions and reaching conclusion; and at last carefully testing the conclusions to determine whether they fit formulating hypothesis

RESEARCH DESIGN A research design is a master plan or model for the formal investigation. Once the formal investigation is decided, the researcher must formulate the formal plan of investigation. A research design id the specification of methods & procedure, for acquiring the information needed for solving the problem. The formal investigation plan will concentrate on the selection of sources of information and the selection of methods and procedures for gathering the data. Data gathering forms are prepared. Questionnaires are tested, samples for investigations are planned. There are three basic types of research design:-

Descriptive

Exploratory

Casual

In my research I have used the descriptive research design

Descriptive Research Design:The descriptive study is typically concerned with determining frequency with which something occurs or variable vary together this study is guided by an initial hypothesis. Descriptive studies are those studies, which are concerned with describing the characteristics of a particular individual, or of a group. Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exits at present. In social science and business research we quit use the term Ex post facto research for descriptive research studi

DATA COLLECTION
There are two sources of data collection:  Primary data source  Secondary data source. Primary Data: Primary data are those data, which are obtained for the first time by the investigator has been made, the instance being recorded or itemized encountered. The source of primary data used in my project is the questionnaire. Primary are the raw data like raw material. Primary data are according to object of investigation and used without correction. The collection of primary data requires large sum, energy and time. Precautions are not necessary in the use of the primary data. Secondary Data: Secondary data means data that are already available i.e; they refer to the data, which have already been collected and analysed by someone else. When the researcher utilizes secondary data, then he has to look in to various sources from where he can obtain them. In this cause he is certainly not confronted with the problems that are usually associated with the collection of original data. Secondary data may either be published data or unpublished data. himself. In order

words, by primary data we mean those data, which are originally, i.e., those in which little or no grouping

SAMPLING DESIGN
Sampling plan consists of sampling unit, sampling size and sampling procedure therefore it is necessary to find out sampling plan if population is 100. Sample Design Consists of: • • • Experimental Research design Exploratory Research design Descriptive Research design.

SAMPLING PLANIt is a plan, which determines the type of respondents and their number from whom researcher has to collect the data. This plan calls for four decision. 1) Sampling Unit. 2) Sampling Size.
3) Sampling area

4) Sampling technique SAMPLING UNIT:In this the researcher designs the target population that will be sampled. Once the sampling unit is determined sampling frame has to be prepared so that each and every one in the target population has an equal chance of being sampled.

SAMPLING SIZE:-

In this researcher determines the 100 people to be surveyed.

SAMPLING AREA
Thus in short the research methodology of the survey is following:Research Design Data collecting Structured questionnaire with open ended & close Ended question. Primary data collected through questionnaire. Secondary data from books, Magazines, Sample unit Sample size Sampling technique Medium of collection sample Field work Internet kalash fast food restaurant Customer 100 Non probabilistic stratified random sampling. Personal interview using questionnaire DELHI CITY

SAMPLING TECNIQUE
In this the researcher determines the method through which the subject should be contacted. This include following three method. 1) Mail questionnaire 2) Telephone interviewing. 3) Personal interview.

QUESTIONAIRE Respected sir\madam, I am a student of TRINITY INSTITUTE OF PROFESSIONAL STUDIES. My name is DEEPAK BHANDARI student of Management. I am doing a research on “CUSTOMER TASTE AND PREFERANCES IN FAST FOOD SECTOR” In this regard I need your kind cooperation which will be kept confidential and will not be misused. The success of this research will depend on your true and clear response 1...Demographic information Gender: a)- Male ( Age:a)- Below 18 ( c)-: 25-45 ( ) ) b)- 18-25 ( d)- above 45 ( ) ) ) b)- Female ( )

Profession a)- Student ( C-business ( ) ) b)- Student ( d)- Housewife ( ) ) e)- Any Other ( )

Average yearly Income: a)-Less Than 1, 00,000 C-1,25,000-1,50,000 ( ( ) ) b)-1,00,000-1,25,000 ( ) d)- More than 1,50,000 ( )

2. Do you like a fast food? a. Yes ( ) b. No ( )

3. What type of fast food do you prefer? a.Pizza ( ) b.Berger ( ) c.Hotdog ( ) d.Finger chips ( ) e.Other ( )

4. How often do you visit a fast –food restaurant per week? A.Less then 2 times ( d. More then 7 time ( ) b. 2-4 times ( ) e. Other time ( ) ) c. 5-7 times ( )

5. The quality of food is excellent?

a. Strongly Disagree ( D.Somewhat Agree (

) b.Somewhat Disagree ( ) e. Strongly Agree ( )

) c. Neutral

(

)

6. Which fast food restaurant you mostly visit? a.MC.D ( d.kfc ( ) ) b.dominos ( ) c.pizza hut ( )

9. What time of day do you eat fast-food? a. Before 11am ( ) b.Between 11am and 2pm ( ) c. between 2pm and 6pm ( ) ) e. After 10pm ( ) f. other time ( ) d. Between 6pm and 10pm (

11. How often do you use fast-food services? a) Once a week ( b) Twice a week ( c) Once a month ( ) ) )

12. What facilities are most important to you within a fast-food restaurant?

a. Table & chair ( e. Lighting (

) b. Decoration (

) c. TV (

) d. Internet (

)

) f. Other facility

13. The food is served hot and fresh? a. Strongly Disagree ( D.Somewhat Agree ( ) ) b. Somewhat Disagree e.Strongly Agree ( ) ( ) c. Neutral ( )

17.

Are ( )

you

satisfied

with

the

packaging

of

fast

food?

a. Yes

b. No ( )

c. Can’t say ( )

18. How much would you spend on BREAKFAST at the fast-food restaurant? a. Below 18 rs( ) b. 18 – 25 rs ( ) c. Above 25 rs ( ) d.Other rupee

19. How much would you spend on LUNCH at the fast-food restaurant? . Below 30 rs( ) b. 30 – 50 rest ( ) c. Above 50rs ( ) d.Other rupee

20.How much would you spend on DINNER at the fast-food resturant? Below 30 rs( ) b. 30 – 50 rs ( ) c. Above 60rs ( ) d.Other rupee

21. Is fast food sector are playing the vital role in health problems? a. no( ) b. yes ( ) c. not completely ( )

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