Patronizing Fast Food Retail Sector in India

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Executive summary3


Research design5

Main objective5


Sample and Research design5

Tools and Methods of Data Collection6


Data Processing and Analysis7

Analysis & Interpretation7

Major Findings14

Major suggestions:15


Fast Food Retail Outlet-Questionnaire16

Chi-square test19


Executive summary

In recent years, a major food consumption trend in urban parts of developing countries is that more consumers are eating more meals outside of their homes. Most of the growth in away-from-home eating has been in the fast food sector. In this increasingly competitive industry, while franchising has become a popular vehicle for the fast food sector's growth and maintaining profitability in the shrinking market share, it also provides target customers with high quality and efficient service. As a result, along with the socio-economic, demographic and behavioral changes, consumer demands for eating out and purchase of fast foods have drastically changed. The findings of this study offer need-oriented types of marketing strategies in India to enable fast food outlets to be more competitive. On the above research purpose this paper analyzes the behavior of consumers in selecting fast food retail outlet/s. The methodology includes exploratory research design i.e. qualitative research in form of focus group discussion and descriptive research in form of questionnaire. Initially the factors for consideration of fast food outlet are being highlighted through the focus group discussion among the group members. Based on the factors that emerged out of discussion, a questionnaire was designed. Based on the study it can be suggested that for patronizing the fast food retail outlets, the outlets should operate globally but act locally insuring highest quality food at the same time laying emphasis on reach of the outlets and also concentrating on the price structure, service quality offered by the outlet to gain competitive edge in the market.


Fast food retail industry

Fast food is one of the world’s largest growing food types. India’s fast food industry is growing by 40% a year and is expected to generate a billion dollars in sales by 2013.The multinational segment of Indian fast food industry is up to Rs. 6 billion, a figure expected to zoom to Rs.100 billion by 2010. In last 6 years, foreign investment in this sector stood at Rs. 3600 million which is about one-fourth of total investment made in this sector. Because of the availability of raw material for fast food, Global chains are flooding into the country. Major players in fast food are:

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.

But Fast food chains have also come under fire from consumer groups, such as the Center for Science in the Public Interest, a longtime fast food critic over issues such as caloric content, trans fats and portion sizes. These movements seek to preserve local cuisines and ingredients, and directly oppose laws and habits that favor fast food choices. Proponents of the slow food movement try to educate consumers about what its members considers the richer, more varied and more nourishing tastes of fresh, local ingredients that have been recently harvested.

Research design

Main objective

The main objective of our study is to provide valuable insight regarding the consumer behavior in...
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