FAST FOOD

INDUSTRY
World’s largest growing food type.
Industrial growth is 40% a year.
The organized pizza market in India is
worth about Rs.675 crore.
Foreign investments are worth Rs.3600
million (1/4th total investment in this
sector)
McDonalds India is the market leader
in this industry.
MAJOR
PLAYERS
McDonald’s
History
It started as a drive-in-restaurant in the
late 1940’s.
In 1966, McDonald’s was listed on the
New York Stock Exchange.
In June 1967, McDonald’s opened its first
restaurant outside U.S in Canada.
In 1996, McDonald’s entered India in a
joint venture.
McDonald’s now has a network of over
160 restaurants across the country
McDonald’s System – the
World’s Best QSR
experience
World Market Leader in the QSR
area
(Quick Service Restaurant)
Franchise System (75%)
System employees: 1.6 million
Customers Per Day: 58 million
Corporate Strategy:
QSC&V: Quality, Service,
Cleanliness and Value
Plan To Win -> Successful business
revitalization
 Products
Vegetarian Menu
Non-Veg Menu
McCafe
Desserts
McDonald’s SUPPLY
CHAIN
McDonald’s Supply chain is based on
the three-legged stool concept :
Company – Franchisees – Suppliers

Logistics
 100 sales items in the restaurant
 400 SKUs in the warehouse
 200 restaurants per DC (~180 DCs
globally)
 Delivery frequency: ~3/wk, higher in
urban areas
 2-3 stops per route
 Exclusive distributors (3PL)
 Strong quality focus (Cold Chain, HACCP,
QIP)
McDonald’s took 4 years and
around Rs 450 crores to set up
the food supply chain even
before opening its 1st restaurant.

McD India has pioneered the

cold chain management system.

They provided assistance in the

Selection of high quality seeds
Drip-irrigation technology
Refrigerated transportation system
 SUPPLIERS
1. Dynamix Dairy Industries (Supplier of Cheese)

Fully automatic international standard processing facility.

Network of milk collection centres equipped with bulk coolers.
Dedicated quality program.
Dedicated R&D centre
2. Trikaya Agriculture
(Supplier of Iceberg
Lettuce)
Specialized nursery with a team of
agricultural experts

Drip and sprinkler irrigation in raised

farm beds with fertilizer mixing plant.

The pack house, pre-cooling and cold

room are located at the farms itself to
ensure no delay.
3) Vista Processed Foods Pvt.
Ltd.
(Supplier of Chicken and
Vegetable
products)

World class infrastructure

and support services.
Separate processing lines for
chicken and vegetable
foods.
Hi-tech refrigeration plants
for manufacture of frozen
food at temperatures as low
as -35⁰C.
DISTRIBUTION
Radhakrishna Foodland
Ltd.
Specialized in providing
services
procurement
quality inspection
storage
inventory management
deliveries
data collection
recording and reporting
Dry and cold storage facility
Transportation trucks
maintained at 22⁰ C
Implemented ERP software.
OUTSOURCING THE
INGREDIENTS

ITEM PLACE
Cheese Dynamix Dairy Industries Ltd., Pune
Dehydrated onions Jain Foods, Jalgaon
Iceberg lettuce Trikaya Agriculture, Pune

Chicken patty Vista Foods, Taloja

Veg. Patty, Veg. Nuggets, Pie’s Kitran Foods, Taloja

Chicken (dressed) Riverdale, Talegaon

Buns
Eggless mayonnaise
Sesame seeds
Fish fillet patties
Vegetable for the patties
Mutton and Mutton Patties
Cremica Industries, Phillaur
Quaker Cremica Pvt. Ltd., Phillaur
Ghaziabad
Amalgam Foods Ltd., Kochi.
Finns Frozen Foods, Nasik and Jain
Foods, Jalgaon
Al Kabeer, Hyderabad
Quality Inspection Programme (QIP)
carried out in the Cold Chain system.

Hazard Analysis Critical Control Point

(HACCP)

Based on HACCP guidelines, control

points and critical control points for all
McDonald's major food processing
plants and restaurants in India have
been identified.
SUPPLY CHAIN INTEGRATION
OVERVIEW
Founded in 1965 by Tom Monaghan.
Second-largest Pizza chain in the United
States.
about 8,500 corporate and franchised stores in 55
countries.
Domino's Pizza outlet in India opened in
1996.
Close to 274 outlets in 55 cities of India.
70 percent of its revenue comes from
home delivery service & around 30
percent is over-the-counter sales.
CORPORATE STRATEGY

“ Exceptional people on a mission

to be
the best pizza delivery company
in the
world! "
'Think global and act local’
Fun, happiness and convenience
PRODUCTS

Pizzas
Pastas
Breadsticks
Cheese Dips
Beverages
Chocolava
 OPERATIONS
Indian operations are ranked number one

for the past 3 years.

Delivers an average of 1 million pizzas
per day.
Over the last 2 years, they opened stores
in 15 new cities.
The company operates in three
segments:
1. Domestic stores
2. Domestic supply chain
3. International
1. Domestic Stores
uses its company-owned stores as a
testing ground for new products and
technologies which may then be passed
onto franchisees.
generates income from company-owned
stores in the form of store profits.

2. Domestic Supply Chain

Vertically integrated supply system
automatic delivery of raw materials cuts
out a lot of the "back of-store" activities.
Helps in keeping down food costs.
3. International

consists of 3,469 franchised

stores outside the United States.

operates six supply chain centers

which manufacture dough and
distribute food and supplies.

International segment accounts

for about 41% of Domino's store
sales worldwide.
 DOMINOS SUPPLY
CHAIN
1. Procurement of raw materials

Raw materials like wheat, baby corn,

tomatoes and spices are got, out of
which wheat was bought in from
jalandhar and then sent to the
commissaries in refrigerated trucks.

4 commissaries (Regional
Centralized Facilities)
1. Delhi
2. Bangalore
3. Kolkata
4. Mumbai
2.Distribution
Pizza dough processed from the wheat is
then sent to the retail outlets again in
refrigerated trucks.

Logistics requirement for sending frozen

foods, at a temperature of ₋18⁰C and of

refrigerated trucks in which food is sent
at a temperature range of between 1 to
4⁰C.
3. Retail Outlets

1. Regular stores
2. Super stores : High
traffic, More counters
3. Express stores : those
where people were
expected to walk in and
order rather than ask
for home delivery.
 SUPPLY CHAIN
DIAGRAM

RETAIL
WHEAT
OUTLET

REFRIGERATED
DOUGH
TRUCK

WAREHOUS
E
Outsourcing the
Ingredients

ITEM PLACE

Wheat Jalandhar (Punjab)

Cheese Karnal, Haryana

Tomatoes Bhubaneshwar, Orissa

Spice South India

Baby Corn Nepal

Exotic Vegetables Sri Lanka

Pepperoni Australia

Jalapeno Spain
OVERVIEW
one of the flagship brands of Yum!
Brands, Inc.
Frank and Dan Carney opened Pizza hut
in 1958
12,500 restaurants across 91 countries
Indian outlet opened in June 1996 in
Bangalore.
147 restaurants across 36 cities in India.
27 per cent market share of the eating-
out market and over 70,000 footfalls per
day.
CORPORATE STRATEGY

“We want to satisfy our customer by

offering them the best”
C.H.A.M.P.S
(Cleanliness, Hospitality, Accuracy,
Maintenance, Product quality and
Speed)
3F’s ( Fun, Friendly and Familiar)
PRODUCTS
Sauteed Pastas
Beverages
Appetizers
Soups and
Salads
Pizzas
Desserts
SUPPLY CHAIN
SUPPLIERS

Direct Suppliers
Pepsi
Cremica Group (Buns)

Indirect Suppliers
Meat market : Chicken
from Brazil
Vegetable market :
Potatoes from Australia
Sauce companies
COLD CHAIN LOGISTICS
Snowman Frozen Foods provides cold
storage facility
16 warehouses and 110 trucks
Equipped with Carrier and Thermo King
transport temperature control units.
Cold storage capacity is between 100
tonnes and 1,200 tonnes.
Teradata Warehouse
Miner

largest customer data warehouse

Profile and segment customer
households
Track phone orders & online orders
Increased ROI
Predict the success of a campaign
Simplified data management
CONCLUSION
Fast Food industry in India is
growing at a fast rate. From the
study done among the 3 fast food
services – McDonalds, Dominos and
Pizza hut, we can clearly come to the
conclusion that McD with its
superior supply chain management
(cold chain) is able to balance
between its quality and cost.
The setting up of cold chain has
enabled it to cut down on its
operational wastage.
Thank You