Food Chain

EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Market value
The Indian fast food market grew by 14.6% in 2009 to reach a value of $8,560.9 million.
Market value forecast

In 2014, the Indian fast food market is forecast to have a value of $12,248.9 million, an increase of 43.1% since 2009.
Market volume
The Indian fast food market grew by 10.5% in 2009 to reach a volume of 52,047.5 million transactions.
Market volume forecast

In 2014, the Indian fast food market is forecast to have a volume of 77,385.8 million transactions, an increase of 48.7% since 2009.
Market segmentation I
Mobile & Street Vendors is the largest segment of the fast food market in India, accounting for 55.1% of the market's total value.
Market segmentation II
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India accounts for 12% of the Asia-Pacific fast food market value.
Market rivalry
While particular segments of the fast food market can be concentrated - for example, the burger segment is close to being a Burger King / McDonald's duopoly - the market as a whole is fairly fragmented, with many independents as well as larger chains.
India - Fast Food

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FIVE FORCES ANALYSIS

The fast food market will be analyzed taking fast food operators as players. The key buyers will be taken as consumers, and food ingredients providers and workforce providers as the key suppliers.
Summary
Figure 1: Forces driving competition in the fast food market in India, 2009
Source: Datamonitor
DATAMONITOR
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While particular segments of the fast food market can be concentrated - for example, the burger segment is close to being a Burger King / McDonald's duopoly - the market as a whole is fairly fragmented, with many independents as well as larger chains. The fast food market is not, as once thought, recession proof, but has had to work hard in the downturn to enhance growth. Industry players have attempted to enhance their business in the downturn by offering cheaper value offerings to encourage consumers to eat out of the home. As fast food giants continue to exploit the recession with pricing strategies coupled with economic recovery the overall fast food market is expected to grow over the coming years. The fast food market will be analyzed taking independent and chain restaurant companies as players and consumers as buyers. Players differentiate their offering via brand building on a range of foods with attractive discounts. While brand awareness strengthens consumer loyalty, buyer power weakens. Alternatively, supplier power is boosted in this market as suppliers usually have other profit foodservice and cost foodservice customers thereby decreasing their dependence on fast food players. The greatest threat, especially in times of economic malaise, is the likelihood of buyers turning to substitutes, such as purchasing the raw materials cheaply and cooking the meal themselves in their own kitchen. The degree of rivalry within the sector is strong as customers can switch from one player to another with relatively low switching costs (effectively zero) and players themselves can quite easily increase capacity. Consequently, players mitigate rivalry by competing via brand awareness, food quality ISIEmergingMarketsPDF in-glim01 from 49.248.87.247 on 2012-01-24 07:24:28 EST. DownloadPDF. and value pricing. As the market as a whole is fragmented rivalry is intensified. However, with little initial capital outlay required and low fixed costs, rivalry is reduced to a degree, as companies are not committed to a certain scale of operation in order to remain profitable. This also makes the likelihood of new entrants to the market a strong possibility.
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Buyer power
Figure 2: Drivers of buyer power in the fast food market in India, 2009
Source: Datamonitor
DATAMONITOR
Economic malaise resulting from the financial crisis has consequently strengthened buyer power as industry players secure price sensitive consumers with competitive pricing strategies. For example, players have started offering discounts and combination meals to raise revenue from all the corners. However, the main source of buyer power is the lack of switching costs: within a given price range, a consumer's choice of fast food provider is purely a matter of personal taste, and can vary from one day to the next. There is also likely to be relatively high price elasticity of demand, because fast food is not strictly essential to consumers. High transaction volumes, however, means that the impact of any one consumer on revenues is usually small. Furthermore, investment in brand building has driven customer loyalty, while the sheer convenience of fast food makes it more important to the consumer than a simple source of food. Buyer power is assessed to be moderate overall.
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Supplier power
Figure 3: Drivers of supplier power in the fast food market in India, 2009
Source: Datamonitor
DATAMONITOR
One key input for players in the fast food market is of course food. It is vital to maintain reliable upstream networks offering food of marketable quality, and in a generally low margin high volume business, keeping food costs down is pivotal. Suppliers may also have customers in the cost foodservice sector, or other segments of the profit foodservice sector. This decreases their dependence on fast food companies, strengthening supplier power. Many of the foodservice suppliers are large companies, and the high number of businesses they serve means that they themselves are under less pressure to keep their prices down, and therefore exert significant negotiating power, thus enhancing at the same time supplier power. The fast food business is labor intensive, and wages form a significant proportion of operating costs: around 25-30%. Thus, as a whole minimum wage legislation in India goes some way towards strengthening employees, considered here as suppliers of labor. Overall, supplier power is assessed as moderate.
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New entrants
Figure 4: Factors influencing the likelihood of new entrants in the fast food market in India, 2009
Source: Datamonitor
DATAMONITOR
Entry to the Indian fast food market does not require large capital outlay; setting up a single, independent fast food outlet is within the means of many individuals in India. Larger companies can reduce the cost of expanding into Italy by running some or all of their outlets as franchises. Franchisees run the majority of McDonald's outlets in India. They bear the costs of equipping outlets at sites owned or leased by the franchiser, and pay a fee for the franchise itself, as well as rents and service charges. (The franchisee enjoys something of the advantages of running their own business, while benefiting from the franchiser's brand strength, expertise, and scale economies.) Negligible switching costs for consumers mean that they are free to transfer their custom to a new player. However, market entrants face several other barriers. Retaliation by existing players, such as the launch of a price war, is a possibility, especially where a new entrant moves into a more concentrated segment. The brand strength of the major chains is considerable, which may negate much of the effect of low switching costs. Finally, revenue growth rates have been dramatic in recent years, making the market more attractive. Nevertheless optimistic rates are forecasts over the coming years. Overall, there is a strong likelihood of new entrants.
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Substitutes
Figure 5: Factors influencing the threat of substitutes in the fast food market in India, 2009
Source: Datamonitor
DATAMONITOR
Substitutes for fast food include other forms of profit foodservice, and also food retail (ready meals or ingredients for home cooking). The generic product of fast food is mainly considered as convenience. Convenience and availability are the main drivers for choosing fast food coupled with a focus on value. As the market consists of many differentiated fast food companies, customers have the option of choosing the best value products. Frozen re-heatable prepared food offers a strong competitive strength against regular take away fast food. The substitute product is convenient and offers both cheap value meals and quality products on a scale that matches the fast food industry. Many forms of fast food have attracted criticism for being unhealthy, while food retail offers consumers greater freedom to control their diet. For the calorie conscious consumer, the main substitute is preparing a home cooked meal where the switching cost is the opportunity cost of the time spent in the kitchen. Overall, substitutes present a moderate threat.
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Rivalry
Figure 6: Drivers of degree of rivalry in the fast food market in India, 2009
Source: Datamonitor
DATAMONITOR
While particular segments of the fast food market can be concentrated - for example, the burger segment is close to being a Burger King / McDonald's duopoly - the market as a whole is fairly fragmented, with many independents as well as larger chains. Rivalry is somewhat mitigated with the absence of high exit costs coupled with the ease with which capacity can be increased; chains can increase the number of outlets (the prevalence of franchising is a factor here) whilst independents can take on more staff or extend opening hours. As players of all sizes in this market are highly focused on fast food, profitability relies on low margin-high turnover operations. Price competition is thus prevalent amongst industry players, especially between value meals. In particular, the value meals range is a reaction to the shifting consumer trends and a larger focus on competition amongst industry players. This form of price dumping has become particularly prevalent as a result of a fragile wider economic environment. Brand power however forms the greatest competition in the fast food market, for example, McDonalds spent $650.8 million on advertising (globally) in 2009. Overall, rivalry is assessed to be moderate.
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LEADING COMPANIES
LEADING COMPANIES
Domino's Pizza, Inc.
Table 1: Domino's Pizza, Inc.: key facts 30 Frank Lloyd Wright Drive, Ann Arbor, Michigan 48106, USA 1 734 930 3030 1 734 930 4346 www.dominos.com December DPZ New York DATAMONITOR
Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange: Source: company website
Domino's Pizza is one of the world's leading pizza delivery companies. The company operates through a network of 8,999 company-owned and franchise stores, located in all 50 states of the US and across 60 countries worldwide. The company operates 16 regional dough manufacturing and supply chain centers, ISIEmergingMarketsPDF in-glim01 from 49.248.87.247 on 2012-01-24 07:24:37 EST. DownloadPDF. one thin crust manufacturing center, one vegetable processing supply chain center in the US, and six dough manufacturing and supply chain centers outside the US. Domino's operates in three business segments: domestic stores, domestic supply chain, and international. The domestic stores segment is comprised of 4,461 franchise stores and 466 company-owned stores. The domestic franchises are operated by entrepreneurs who own and operate an average of three to four stores. Six of the company's domestic franchisees operate more than 50 stores, including its largest domestic franchisee, which operates 143 stores. The principal sources of revenues from domestic store operations are company-owned store sales and royalty payments based on retail sales by its franchisees. The domestic company-owned store operations are divided into 11 geographic areas located throughout the US, while its domestic franchise operations are divided into four regions.
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LEADING COMPANIES
The domestic supply chain segment is comprised of dough manufacturing and supply chain centers that manufacture fresh dough on a daily basis and purchase, receive, store and deliver quality pizza-related food products and complementary side items to all of the company-owned stores and over 99% of its domestic franchise stores. This segment operates 16 regional dough manufacturing and supply chain centers. Each regional dough manufacturing and supply chain center serves approximately 300 stores. The international segment oversees the company's network of 4,072 international franchise stores in more than 60 countries. It also manufactures dough and distributes food and supplies in a limited number of international markets. The company has 589 franchise stores in Mexico, 562 franchise stores in the UK, 411 franchise stores in Australia, 329 franchise stores in South Korea, 319 franchise stores in Canada, 296 franchise stores in India and over 100 franchise stores in each of Japan, Turkey, Taiwan and France. The principal sources of revenues from its international operations are royalty payments generated by retail sales from franchise stores, and sales of food and supplies to franchisees in certain markets. Key Metrics The company recorded revenues of $1,404 million in the fiscal year ending December 2009, a decrease of 1.5% compared to fiscal 2008. Its net income was $80 million in fiscal 2009, compared ISIEmergingMarketsPDF in-glim01 from 49.248.87.247 on 2012-01-24 07:24:37 EST. DownloadPDF. to a net income of $54 million in the preceding year. The reason for the decline in revenues was primarily due to low company-owned store revenues and domestic supply chain revenues coupled with the negative impact of changes in foreign currency exchange rates from its international revenues. Domino's Pizza generates revenues through three business segments: domestic supply chain (57.1% of the total revenues during FY2009), domestic stores (33.1%), and international (9.8%). The international segment recorded revenues of $146.8 million in FY2009, an increase of 3% over FY2008.
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LEADING COMPANIES
Table 2: $ million
Domino's Pizza, Inc.: key financials ($) 2005 1,511.6 108.2 461.1 972.1 13,500 2006 1,437.3 106.2 380.2 945.1 13,300 2007 1,462.9 37.9 473.2 1,923.3 12,500 2008 1,425.1 54.0 463.8 1,888.4 10,500 2009 1,404.1 79.7 453.8 1,774.8 10,200
Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings
DATAMONITOR
Table 3: Ratio
Domino's Pizza, Inc.: key financial ratios 2005 2006 2007 2008 2009 5.7% (1.5%) (2.2%) (6.0%) 391.1% 17.4% $137,657 $7,814
Profit margin Revenue growth Asset growth Liabilities growth ISIEmergingMarketsPDF in-glim01 from Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings
7.2% 7.4% 2.6% 3.8% 4.5% (4.9%) 1.8% (2.6%) 3.1% (17.5%) 24.5% (2.0%) (2.5%) (2.8%) 103.5% (1.8%) 49.248.87.247 on 2012-01-24 07:24:37 EST. DownloadPDF. 210.8% 248.6% 406.4% 407.2% 23.8% 25.3% 8.9% 11.5% $111,970 $108,069 $117,032 $135,724 $8,015 $7,987 $3,032 $5,143
DATAMONITOR
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LEADING COMPANIES
Figure 1:
Domino's Pizza, Inc.: revenues & profitability
Source: company filings
DATAMONITOR
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LEADING COMPANIES
Figure 2:
Domino's Pizza, Inc.: assets & liabilities
DATAMONITOR
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LEADING COMPANIES
McDonald's Corporation
Table 4: McDonald's Corporation: key facts One McDonald's Plaza, Oak Brook, Illinois 60523, USA 1 630 623 3000 1 630 623 5004 www.mcdonalds.com December MCD New York DATAMONITOR
McDonald's is one of the world's largest foodservice retailing chains. All restaurants are operated either by the company or by franchisees, including conventional franchisees under franchise arrangements, and foreign affiliated markets and developmental licensees under license agreements. The company is primarily known for its burgers and fries which it sells through more than 32,478 fast-food restaurants in over 100 countries. It primarily operates in Europe, Asia-Pacific, and North America. The company's business is divided into four geographic segments: Europe, the US, APMEA (Asia-Pacific, Middle East and Africa), and other countries and corporate. Other countries and corporate includes Canada and Latin America, as well as corporate activities and certain investments. McDonald's restaurants offer a standardized menu, although there may be geographic variations. McDonald's key product offerings include hamburgers and cheeseburgers, chicken sandwiches, French fries, wraps, chicken nuggets, salads, desserts, sundaes, soft serve cones, pies, and cookies. It also offers beverages, such as milk shakes, soft drinks, coffee, and flavored tea. McDonald's restaurants in the US and many international markets also offer a wide range of breakfast menu items. The company's breakfast offerings include muffins, biscuits, hotcakes, and bagel sandwiches.
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LEADING COMPANIES
McDonald's markets its products under a wide range of brand names that include Big Mac, Big N' Tasty, Filet-O-Fish, McNuggets, McFlurry, McMuffin, and McGriddle, among others. McDonald's generates revenues through company operated restaurants and franchisee restaurants. Of a total 32,478 McDonald's restaurants, over 6,200 are operated by McDonald's and over 26,000 are operated by franchisees and affiliates. The company's revenue comprises sales from company operated restaurants and fees as well as rent from franchisees and affiliates. Under conventional franchise arrangement, franchisees provide a portion of the capital required by initially investing in the equipment, signs, seating, and decor of their restaurant businesses, and by reinvesting in the business over time. McDonald's owns the land and building or secures long-term leases for both McDonald's operated and conventional franchised restaurant sites.
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LEADING COMPANIES
Key Metrics The company recorded revenues of $22,745 million in the fiscal year ending December 2009, a decrease of 3.3% compared to fiscal 2008. Its net income was $4,551 million in fiscal 2009, compared to a net income of $4,313 million in the preceding year. The decrease in revenues in FY2009 was primarily caused by a shift to a greater percentage of franchised restaurants, where McDonald's receives rent and/or royalties based on a percent of sales. Asia/Pacific, Middle East and Africa (APMEA) accounted for 19.1% of the total revenues in FY2009. Revenues from APMEA reached $4,337 million in 2009, an increase of 2.5% over 2008.
Table 5: $ million
McDonald's Corporation: key financials ($) 2005 2006 2007 2008 2009 22,744.7 4,551.0 30,224.9 16,191.0 400,000
Revenues Net income (loss) Total assets Total liabilities ISIEmergingMarketsPDF in-glim01 Employees
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19,117.3 20,895.2 22,786.6 23,522.0 2,602.2 3,544.2 2,395.1 4,313.0 29,988.8 28,974.5 29,391.7 28,462.0 14,842.7 13,516.2 14,111.9 15,079.0 49.248.87.247 on 2012-01-24 07:24:37 390,000 EST. DownloadPDF. 447,000 465,000 400,000
DATAMONITOR
Table 6: Ratio
McDonald's Corporation: key financial ratios 2005 13.6% 2.8% 7.7% 8.8% 49.5% 9.0% $42,768 $5,821 2006 17.0% 9.3% (3.4%) (8.9%) 46.6% 12.0% $44,936 $7,622 2007 10.5% 9.1% 1.4% 4.4% 48.0% 8.2% $58,427 $6,141 2008 18.3% 3.2% (3.2%) 6.9% 53.0% 14.9% $58,805 $10,783 2009 20.0% (3.3%) 6.2% 7.4% 53.6% 15.5% $56,862 $11,378
Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings
DATAMONITOR
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LEADING COMPANIES
Figure 3:
McDonald's Corporation: revenues & profitability
DATAMONITOR
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LEADING COMPANIES
Figure 4:
McDonald's Corporation: assets & liabilities
DATAMONITOR
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LEADING COMPANIES
Nirulas Corner House Ltd

Table 7: Head office: Telephone: Fax: Website: Source: company website Nirulas Corner House Ltd: key facts C-135, Sector 2, Noida 201 301 (U.P.), India 91 120 4354080 91 120 435510 www.nirulas.com DATAMONITOR
Nirulas Corner House Ltd operates family style restaurants under the brand name Nirulas, and causal dining outlets under the brand Potpourri, as well as two hotels. The company operates in over 75 locations across India. Besides family style and casual dining restaurants, Nirula's has also more compact formats which range from between 100 to 400 square feet, tailored to fit high traffic locations. These formats include express outlets, food court units and ice cream kiosks. The menu includes quick bites, value meals, snacks, savories, beverages and an ice cream range. Nirula's new retail formats are located primarily in malls, ISIEmergingMarketsPDF in-glim01 from 49.248.87.247 on 2012-01-24 07:24:37 EST. DownloadPDF. movie multiplexes, hypermarkets and large commercial complexes. Key Metrics No financial information is available for the private company.
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LEADING COMPANIES
Yum! Brands, Inc.

Table 8: Yum! Brands, Inc.: key facts 1441 Gardiner Lane, Louisville, Kentucky 40213, USA 1 502 874 8300 1 502 454 2410 www.yum.com December YUM New York DATAMONITOR
Yum! Brands operates franchises and licenses a chain of restaurant brands including Kentucky Fried Chicken (KFC), Pizza Hut, Taco Bell, Long John Silver's (LJS) and All America Food (A&W). It operates more than 36,000 restaurants in 110 countries. Of the over 36,000 restaurants, 21% are operated by the company, 73% are operated by franchisees and unconsolidated affiliates and 6% are operated by licensees.
KFC restaurants in the US offer fried chicken-on-the-bone products, mainly marketed under the names Original Recipe and Extra Tasty Crispy. The restaurant's other principal items include chicken sandwiches (including the Snacker and the Twister), KFC Famous Bowls, Colonel's Crispy Strips, chicken wings, Popcorn Chicken and, seasonally, Chunky Chicken Pot Pies. KFC restaurants in the US also offer a variety of side items also, such as biscuits, mashed potatoes and gravy, coleslaw, corn and potato wedges, as well as desserts. While many of these products are offered outside of the US, international menus are more focused on chicken sandwiches and Colonel's Crispy Strips, and include side items that are suited to local preferences and tastes. Restaurant decor throughout the world is characterized by the image of Colonel Sanders. KFC operates in 109 countries throughout the world. As of 2008, KFC has 5,253 units in the US, and 10,327 units outside the US.
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LEADING COMPANIES
The Pizza Hut restaurant chain, headquartered in Dallas County, Texas, specializes in the sale of readyto-eat pizza products. The chain features a variety of pizzas, which include Pan Pizza, Thin 'n Crispy, Hand Tossed, Sicilian, Stuffed Crust, Twisted Crust, Sicilian Lasagna Pizza, Cheesy Bites Pizza, The Big New Yorker, The Insider, The Chicago Dish and 4forALL. Each type of pizza is offered with a variety of toppings. In some restaurants, Pizza Hut also offers breadsticks, pasta, salads and sandwiches. Menu items outside of the US are generally similar to those offered in the US, although pizza toppings are often matched to local preferences and tastes. Pizza Hut operates in 97 countries throughout the world. As of 2008, Pizza Hut had 7,564 units in the US, and 5,611 units outside the US. Taco Bell specializes in Mexican-style food products, including various types of tacos, burritos, gorditas, chalupas, quesadillas, salads, nachos and related items. Additionally, it also offers proprietary items such as Grilled Stuft Burritos and Border Bowls. Taco Bell restaurants feature a distinctive bell logo on their signage. Taco Bell operates in 17 countries and territories throughout the world. As of 2008, there were 5,588 Taco Bell units in the US and 245 units outside the US.
Long John Silver's (LJS) features a variety of seafood and chicken items, including meals featuring batterdipped fish, chicken, shrimp, hushpuppies and portable snack items. LJS restaurants basically feature a distinctive seaside/nautical theme. LJS operates in seven countries throughout the world. As of 2008, there were 1,022 LJS units in the US, and 38 units outside the US. All America Food (A&W) serves A&W draft Root Beer and its signature A&W Root Beer floats, besides hot dogs and hamburgers. A&W operates in 10 countries throughout the world. As of 2008, there were 363 A&W units in the US, and 264 units outside the US. Yum Brands consists of six operating segments: KFC-US, Pizza Hut-US, Taco Bell-US, LJS/A&W-US, Yum Restaurants International (YRI) and Yum Restaurants China (China). For financial reporting purposes, it combined the four US operating segments into a single reporting segment (the US). The China segment includes China, Thailand and Taiwan, and the international segment includes the remainder of its international operations.
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LEADING COMPANIES
Key Metrics The company recorded revenues of $10,836 million in the fiscal year ending December 2009, a decrease of 4.1% compared to fiscal 2008. Its net income was $1,071 million in fiscal 2009, compared to a net income of $964 million in the preceding year. Yum Brands generates revenues through three geographic business divisions: the US (45.4% of the total revenues during FY2008), China (27.7%) and Yum Restaurants International (YRI) (26.8%). YRI accounted for 26.8% of the total revenues in FY2008. Revenues from YRI reached $3,026 million in FY2008, a decrease of 1.6% compared with FY2007.
Table 9: $ million
Yum! Brands, Inc.: key financials ($) 2005 2006 2007 2008 2009 10,836.0 1,071.0 7,148.0 6,123.0 50,400
Revenues Net income (loss) Total assets Total liabilities ISIEmergingMarketsPDF in-glim01 Employees
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9,349.0 9,561.0 10,416.0 11,304.0 762.0 824.0 909.0 964.0 5,797.0 6,353.0 7,242.0 6,527.0 4,348.0 4,916.0 6,103.0 6,635.0 49.248.87.247 on 2012-01-24 07:24:37 EST. DownloadPDF. 59,840 53,200 48,160 49,000
DATAMONITOR
Table 10: Ratio
Yum! Brands, Inc.: key financial ratios 2005 8.2% 3.8% 1.8% 6.0% 75.0% 13.3% $156,233 $12,734 2006 8.6% 2.3% 9.6% 13.1% 77.4% 13.6% $179,718 $15,489 2007 8.7% 8.9% 14.0% 24.1% 84.3% 13.4% $216,279 $18,875 2008 8.5% 8.5% (9.9%) 8.7% 101.7% 14.0% $230,694 $19,673 2009 9.9% (4.1%) 9.5% (7.7%) 85.7% 15.7% $215,000 $21,250
Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings
DATAMONITOR
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LEADING COMPANIES
Figure 5:
Yum! Brands, Inc.: revenues & profitability
DATAMONITOR
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LEADING COMPANIES
Figure 6:
Yum! Brands, Inc.: assets & liabilities
DATAMONITOR
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MACROECONOMIC INDICATORS
Table 1: Year 2005 2006 2007 2008 2009 Source: Datamonitor India size of population (million), 200509 Population (million) 1,091.0 1,107.6 1,124.1 1,140.6 1,156.9 % Growth 1.6% 1.5% 1.5% 1.5% 1.4% DATAMONITOR
Table 2: Year 2005 2006 2007 ISIEmergingMarketsPDF 2008 2009
India gdp (constant 2000 prices, $ billion), 200509 Constant 2000 Prices, $ billion 648.8 711.8 776.8 07:24:46 EST. 832.5 892.5 % Growth 9.1% 9.7% 9.1% 7.2% 7.2%
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Source: Datamonitor
DATAMONITOR
Table 3: Year 2005 2006 2007 2008 2009
India gdp (current prices, $ billion), 200509 Current Prices, $ billion 764.4 872.7 1,127.4 1,244.6 1,403.0 % Growth 15.7% 14.2% 29.2% 10.4% 12.7% DATAMONITOR
Source: Datamonitor
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Table 4: Year 2005 2006 2007 2008 2009
India inflation, 200509 Inflation Rate (%) 3.3% 6.9% 8.1% 8.4% 10.9% DATAMONITOR
Source: Datamonitor
Table 5: Year 2005 2006 2007 2008 2009 ISIEmergingMarketsPDF
India consumer price index (absolute), 200509 Consumer Price Index (2000 = 100) 115.6 123.6 133.6 144.8 160.6 49.248.87.247 on 2012-01-24 07:24:46 EST. % Growth 3.3% 6.9% 8.1% 8.4% 10.9%
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Source: Datamonitor
DATAMONITOR
Table 6: Year 2005 2006 2007 2008 2009
India exchange rate, 200509 Exchange rate ($/Rs.) 44.1154 45.3188 41.3570 43.8145 48.8500 Exchange rate (/Rs.) 54.8337 56.8596 56.5898 64.1115 67.9264 DATAMONITOR
Source: Datamonitor
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MARKET FORECASTS
MARKET FORECASTS
Market value forecast
In 2014, the Indian fast food market is forecast to have a value of $12,248.9 million, an increase of 43.1% since 2009. The compound annual growth rate of the market in the period 200914 is predicted to be 7.4%. Table 1: Year 2009 2010 2011 2012 2013 2014 CAGR: 200914 Source: Datamonitor India fast food market value forecast: $ million, 200914 $ million 8,560.9 9,334.2 10,056.0 10,790.8 11,517.0 12,248.9 Rs. million 418,198.0 455,973.5 491,236.3 527,131.2 562,604.7 598,359.1 million 6,156.6 6,712.8 7,231.9 7,760.3 8,282.6 8,808.9 % Growth 14.6% 9.0% 7.7% 7.3% 6.7% 6.4% 7.4% DATAMONITOR
Figure 1:
India fast food market value forecast: $ million, 200914
Source: Datamonitor
India - Fast Food
DATAMONITOR
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MARKET FORECASTS
Market volume forecast

In 2014, the Indian fast food market is forecast to have a volume of 77,385.8 million transactions, an increase of 48.7% since 2009. The compound annual growth rate of the market in the period 200914 is predicted to be 8.3%. Table 2: Year 2009 2010 2011 2012 2013 2014 CAGR: 200914 Source: Datamonitor India fast food market volume forecast: million transactions, 200914 million transactions 52,047.5 57,005.1 62,084.7 67,193.8 72,283.2 77,385.8 % Growth 10.5% 9.5% 8.9% 8.2% 7.6% 7.1% 8.3% DATAMONITOR
Figure 2:
India fast food market volume forecast: million transactions, 200914
Source: Datamonitor
DATAMONITOR
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MARKET OVERVIEW
MARKET OVERVIEW
Market definition
The fast food market is defined as the sale of food and drinks for immediate consumption either on the premises or in designated eating areas shared with other foodservice operators, or for consumption elsewhere. Datamonitor's definition excludes sales through vending machines and is restricted to sales in specific foodservice channels (please see channel definitions below). All market values are given in Operator Buying Prices, which is the amount spent by foodservice operators on the food and drink that they serve and not the amount the consumers spend on food and drinks (Operator Selling Prices - OSPs) in these channels. The difference is the mark up the foodservice operator adds in order to cover their other costs and generate a profit. This therefore values the market in terms of the amount of money for which food and drinks manufacturers are competing. All currency conversions were performed using constant 2009 average annual exchange rates. Market volumes are classed as the total number of visits by individuals to foodservice locations that involve the consumption of either food. Multiple purchases made during the same visit are counted as one transaction. The purchase of drink with food in the same location in the same visit is also considered as one transaction, not two. The market is broken down in to four segments: Quick Service Restaurants (QSR), Takeaways, Mobile & Street Vendors and Leisure Locations. QSR's are defined as: locations where the primary function is to provide full meals but where table service is not offered. Takeaways are defined as: establishments that provide freshly prepared food ISIEmergingMarketsPDF in-glim01 from 49.248.87.247 on 2012-01-24 07:25:24 EST. DownloadPDF. for immediate consumption and where typically 80% or more of revenues come from consumers who take the food off the premises to consume. Mobile & street vendors are defined as: either individual mobile stalls or vans that offer a limited range of freshly prepared food as well as beverages. Leisure locations are defined as: locations serving food and drinks for immediate consumption on premises within leisure outlets (such as Cinemas, Theatres, Racecourses etc.) that the leisure operator owns and operates itself. For the purposes of this report, Asia-Pacific comprises Australia, China, India, Japan, Singapore, South Korea, and Taiwan.
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MARKET OVERVIEW
Research highlights
The Indian fast food market had total revenue of $8.6 billion in 2009, representing a compound annual growth rate (CAGR) of 15% for the period spanning 2005-2009. Market consumption volumes increased with a CAGR of 13.2% between 2005-2009, to reach a total of 52 billion transactions in 2009. The performance of the market is forecast to decelerate, with an anticipated CAGR of 7.4% for the fiveyear period 2009-2014, which is expected to drive the market to a value of $12.2 billion by the end of 2014.
Market analysis
After reaching plateau in 2006, the Indian fast food market continued to enjoy double digit annualized growth rates, albeit at a marginally decelerating rate. The forecast period is expected to display declerating market growth rates; dropping to less than a third of 2006 peak levels by 2014. The Indian fast food market had total revenue of $8.6 billion in 2009, representing a compound annual growth rate (CAGR) of 15% for the period spanning 2005-2009. In comparison, the Chinese and Japanese markets grew with CAGRs of 12.6% and 0.3% respectively, over the same period, to reach respective values of $25.1 billion and $29.8 billion in 2009.
ISIEmergingMarketsPDF in-glim01 from 49.248.87.247 on 2012-01-24 07:25:24to 77.4DownloadPDF. billion transactions in 2009. The market's volume is expected to rise EST. billion transactions
Market consumption volumes increased with a CAGR of 13.2% between 2005-2009, to reach a total of 52 by the end of 2014, representing a CAGR of 8.3% for the 2009-2014 period. The mobile & street vendors segment was the market's most lucrative in 2009, with total revenue of $4.7 billion, equivalent to 55.1% of the market's overall value. The QSR segment contributed revenue of $3.8 billion in 2009, equating to 44.7% of the market's aggregate value. The performance of the market is forecast to decelerate, with an anticipated CAGR of 7.4% for the fiveyear period 2009-2014, which is expected to drive the market to a value of $12.2 billion by the end of 2014. Comparatively, the Chinese and Japanese markets will grow with CAGRs of 9% and 0.4% respectively, over the same period, to reach respective values of $38.5 billion and $30.5 billion in 2014.
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MARKET SEGMENTATION II
MARKET SEGMENTATION II
India accounts for 12% of the Asia-Pacific fast food market value. Japan accounts for a further 41.7% of the Asia-Pacific market. Table 1: Category Japan China India South Korea Rest of Asia-Pacific Total Source: Datamonitor India fast food market segmentation II: % share, by value, 2009 % Share 41.7% 35.0% 12.0% 3.3% 8.1% 100% DATAMONITOR
Figure 1:
India fast food market segmentation II: % share, by value, 2009
Source: Datamonitor
DATAMONITOR
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MARKET SEGMENTATION I
MARKET SEGMENTATION I
Mobile & Street Vendors is the largest segment of the fast food market in India, accounting for 55.1% of the market's total value. The QSR segment accounts for a further 44.7% of the market. Table 1: Category Mobile & Street Vendors QSR Takeaways Leisure Locations Total Source: Datamonitor India fast food market segmentation I:% share, by value, 2009 % Share 55.1% 44.7% 0.1% 0.1% 100% DATAMONITOR
Figure 1:
India fast food market segmentation I:% share, by value, 2009
Source: Datamonitor
DATAMONITOR
India - Fast Food

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MARKET VALUE
MARKET VALUE
The Indian fast food market grew by 14.6% in 2009 to reach a value of $8,560.9 million. The compound annual growth rate of the market in the period 200509 was 15%. Table 1: Year 2005 2006 2007 2008 2009 CAGR: 200509 Source: Datamonitor India fast food market value: $ million, 200509 $ million 4,891.7 5,836.8 6,741.1 7,472.8 8,560.9 Rs. million 238,958.2 285,126.0 329,304.2 365,045.9 418,198.0 million 3,517.9 4,197.6 4,848.0 5,374.1 6,156.6 % Growth 19.3% 15.5% 10.9% 14.6% 15.0% DATAMONITOR
Figure 1:
India fast food market value: $ million, 200509
Source: Datamonitor
DATAMONITOR
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MARKET VOLUME
MARKET VOLUME
The Indian fast food market grew by 10.5% in 2009 to reach a volume of 52,047.5 million transactions. The compound annual growth rate of the market in the period 200509 was 13.2%. Table 1: Year 2005 2006 2007 2008 2009 CAGR: 200509 Source: Datamonitor India fast food market volume: million transactions, 200509 million transactions 31,656.8 37,203.4 42,171.1 47,099.5 52,047.5 % Growth 17.5% 13.4% 11.7% 10.5% 13.2% DATAMONITOR
Figure 1:
India fast food market volume: million transactions, 200509
Source: Datamonitor
DATAMONITOR
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Food Chain

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EXECUTIVE SUMMARY

Market value forecast

Market volume forecast

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FIVE FORCES ANALYSIS

FIVE FORCES ANALYSIS

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India - Fast Food

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FIVE FORCES ANALYSIS

India - Fast Food

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FIVE FORCES ANALYSIS

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FIVE FORCES ANALYSIS

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FIVE FORCES ANALYSIS

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FIVE FORCES ANALYSIS

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FIVE FORCES ANALYSIS

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India - Fast Food

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Domino's Pizza, Inc.: revenues & profitability

Source: company filings

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Domino's Pizza, Inc.: assets & liabilities

Source: company filings

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Source: company filings

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McDonald's Corporation: revenues & profitability

Source: company filings

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