Description
PROJECT ON FAST FOOD INDUSTRY
Indian fast food industry
• India is blessed with one of the fastest growing fast food market of the world • The Indian fast food market is growing at the rate of 30-35% per annum • Foreign fast food chains are aggressively increasing their presence in India for e.g.. -Dominos has planed to open 60-65 outlets every year till 2010-2012 -yum brand inc. planning to open 1000 fast food outlets by 2015
Major players
About McDonald’s
Formed in 1954,mcd brand is the leading global food service retailer with more than 30,000 local restaurants serving nearly 50 million people in more than 120 countries QUICK FACTS mcd was started as a drive-in-restaurant by two brothers, Richard and Maurice McDonald in californium's in the year 1937
Ray kroc,distributor of milk shake machine,expressed interest in the business, and he finalized a deal for franchising with the McDonald's brother in 1954 He established a franchising company, the McDonald system inc. In 1961,he bought out the McDonald brother’s share for $2.7 million and changed the name of the company to McDonald’s Corporation
In India
1996 - First restaurant opens in India, at Basant Lok ,Vihar, New Delhi. McDonald's India is a 50 – 50 JV partnership between McDonald’s Corporation (U.S.A) and two Indian businessman Amit Jatia (Hardcastle Restaurants Private Limited, Mumbai)and Vikram Bakshi (Connaught Plaza Restaurants Private Limited, Delhi). Two separate operations in Northern & Western India.
Partners and their management teams trained extensively in Indonesia & the U.S. Approximately 75% of the menu available in McDonald’s in India is Indianized and specifically designed to woo Indian customers.
THE 3 LEGGED STOOL
The strength of the alignment between the Company and its employees, franchisees and suppliers has been critical to McDonald’s success. This business model enables McDonald’s to consistently provide customers locally-relevant restaurant experiences and be an integral part of the communities we serve. Franchisees – own and operate the majority of our restaurants Suppliers – provide food and packaging Company employees – support and deliver restaurant operations around the world
McDonald’s supply chain
Mcd’s supply chain is large and complex Also have large no. of indirect suppliers,farms and facilities thad grow and process the ingredient to direct suppliers
Have numerous direct suppliers that make or deliver final products for the restaurants
mcd indian supply chain
SUPPLIERS
Trikaya Agriculture
Supplier of Iceberg Lettuce
Vista Processed Foods Pvt. Ltd.
Supplier of Chicken and Vegetable range of products (including Fruit Pies)
Dynamix Diary
Supplier of Cheese
Amrit Food
Supplier of long life UHT Milk and Milk Products for Frozen Desserts
DISTRIBUTORS Radhakrishna Foodland Distribution Centres and cold storages. Completely dedicated distribution and supply chain. Matching supplier production with deliveries using ERP. Quality inspection Program, quality check at 20 different points in supply chain. HACCP(Hazard analysis critical control points) food safety standards emphasizing prevention of faults.
Outsourcing the ingredients
• ITEM
Cheese Dehydrated onions Iceberg lettuce Chicken patty Veg. patty,veg nuggets, pie's Chicken(dressed) Buns Eggless mayonnaise Sesame seeds Fish fillet patties Vegetables for the patties
Mutton and mutton patties
PLACE
dynamic dairy industries ltd , pune jain foods , jalgaon trikaya agriculture,pune vista foods,taloja kitran foods,taloja riverdale,talegaon cremica industries,phillaur quaker cremica pvt ltd,phillaur ghaziabad amalgam foods ltd,kochi finns frozen foods,nasik and jain foods,jalgaon al kabeer,hyderabad
logistics
Distributor Quality Management Process Operations and Customer Relations Quality Control (HACCP/QIP) Cold Chain Standards Hygiene Regulations Product Handling Standards Emergency and contingency plan Risk and Crisis management Continuous unannounced internal and 3rd party audits for DCs result in superior quality scores regularly
DOMINOS
• Domino's Pizza, Inc. is an international pizza delivery corporation headquartered in Ann Arbor, Michigan, United States. Founded in 1960, • Domino's is the second-largest pizza chain in the United States and has nearly 9,000 corporate and franchised stores in 60 international markets • The menu features pizza, pasta, oven-baked sandwiches, wings, boneless chicken, salads, breadsticks, cheese sticks, and a variety of dessert items.
Beginning of dominos pizza
• The Domino's franchise started out as just one tiny store. It was purchased and started by brothers Tom and James Monaghan in 1960. At that time, the restaurant was known, not as "Domino's," but as "Dominick's Pizza" and was located in Ypsilanti, MI. The two brothers only worked as a team until 1961, when James traded his half of the business to his brother for the price of a Volkswagen Beetle. In 1965, the name "Dominick's" was traded for "Domino's."
In india
• Domino’s pizza opened its first store in India in January 1996, at New Delhi. Today Domino’s pizza India has grown into a country wide network of more than 300 stores with a team of 9000 people. According to India retail report 2009, domino’s is the largest Pizza chain in India.
Dominos 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:
• The company operates in three segments:
– 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.
– 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
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.
• 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) • Delhi • Bangalore • Kolkata • Mumbai
• 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 ?18:C and of refrigerated trucks in which food is sent at a temperature range of between 1 to 4:C.
• Retail Outlets – Regular stores – Super stores : High traffic, More counters – Express stores : those where people were expected to walk in and order rather than ask for home delivery.
Outsourcing
• • • • • • • •
ITEM Wheat Cheese Tomatoes Spice Baby Corn Exotic Vegetables Pepperoni Jalapeno PLACE Jalandhar Karnal, Haryan Bhubaneshwar South India Nepal Sri Lanka Australia Spain
QUESTION:1
• What are the key changes which have made supply chain management a critical function to succeed in present day business world?
To remain successful companies need supply chain excellence and some will need to re-evaluate their current processes and performance with these key trends in mind:
• • • • • •
Demand planning Globalization Increased competition and price pressures Outsourcing Shortened and more complex life cycles Collaboration between stakeholders and extended supply chain
QUESTION:2
• How does an efficient supply chain lead to strategic competitive advantage?(McDonald’s)
doc_352904045.pptx
PROJECT ON FAST FOOD INDUSTRY
Indian fast food industry
• India is blessed with one of the fastest growing fast food market of the world • The Indian fast food market is growing at the rate of 30-35% per annum • Foreign fast food chains are aggressively increasing their presence in India for e.g.. -Dominos has planed to open 60-65 outlets every year till 2010-2012 -yum brand inc. planning to open 1000 fast food outlets by 2015
Major players
About McDonald’s
Formed in 1954,mcd brand is the leading global food service retailer with more than 30,000 local restaurants serving nearly 50 million people in more than 120 countries QUICK FACTS mcd was started as a drive-in-restaurant by two brothers, Richard and Maurice McDonald in californium's in the year 1937
Ray kroc,distributor of milk shake machine,expressed interest in the business, and he finalized a deal for franchising with the McDonald's brother in 1954 He established a franchising company, the McDonald system inc. In 1961,he bought out the McDonald brother’s share for $2.7 million and changed the name of the company to McDonald’s Corporation
In India
1996 - First restaurant opens in India, at Basant Lok ,Vihar, New Delhi. McDonald's India is a 50 – 50 JV partnership between McDonald’s Corporation (U.S.A) and two Indian businessman Amit Jatia (Hardcastle Restaurants Private Limited, Mumbai)and Vikram Bakshi (Connaught Plaza Restaurants Private Limited, Delhi). Two separate operations in Northern & Western India.
Partners and their management teams trained extensively in Indonesia & the U.S. Approximately 75% of the menu available in McDonald’s in India is Indianized and specifically designed to woo Indian customers.
THE 3 LEGGED STOOL
The strength of the alignment between the Company and its employees, franchisees and suppliers has been critical to McDonald’s success. This business model enables McDonald’s to consistently provide customers locally-relevant restaurant experiences and be an integral part of the communities we serve. Franchisees – own and operate the majority of our restaurants Suppliers – provide food and packaging Company employees – support and deliver restaurant operations around the world
McDonald’s supply chain
Mcd’s supply chain is large and complex Also have large no. of indirect suppliers,farms and facilities thad grow and process the ingredient to direct suppliers
Have numerous direct suppliers that make or deliver final products for the restaurants
mcd indian supply chain
SUPPLIERS
Trikaya Agriculture
Supplier of Iceberg Lettuce
Vista Processed Foods Pvt. Ltd.
Supplier of Chicken and Vegetable range of products (including Fruit Pies)
Dynamix Diary
Supplier of Cheese
Amrit Food
Supplier of long life UHT Milk and Milk Products for Frozen Desserts
DISTRIBUTORS Radhakrishna Foodland Distribution Centres and cold storages. Completely dedicated distribution and supply chain. Matching supplier production with deliveries using ERP. Quality inspection Program, quality check at 20 different points in supply chain. HACCP(Hazard analysis critical control points) food safety standards emphasizing prevention of faults.
Outsourcing the ingredients
• ITEM
Cheese Dehydrated onions Iceberg lettuce Chicken patty Veg. patty,veg nuggets, pie's Chicken(dressed) Buns Eggless mayonnaise Sesame seeds Fish fillet patties Vegetables for the patties
Mutton and mutton patties
PLACE
dynamic dairy industries ltd , pune jain foods , jalgaon trikaya agriculture,pune vista foods,taloja kitran foods,taloja riverdale,talegaon cremica industries,phillaur quaker cremica pvt ltd,phillaur ghaziabad amalgam foods ltd,kochi finns frozen foods,nasik and jain foods,jalgaon al kabeer,hyderabad
logistics
Distributor Quality Management Process Operations and Customer Relations Quality Control (HACCP/QIP) Cold Chain Standards Hygiene Regulations Product Handling Standards Emergency and contingency plan Risk and Crisis management Continuous unannounced internal and 3rd party audits for DCs result in superior quality scores regularly
DOMINOS
• Domino's Pizza, Inc. is an international pizza delivery corporation headquartered in Ann Arbor, Michigan, United States. Founded in 1960, • Domino's is the second-largest pizza chain in the United States and has nearly 9,000 corporate and franchised stores in 60 international markets • The menu features pizza, pasta, oven-baked sandwiches, wings, boneless chicken, salads, breadsticks, cheese sticks, and a variety of dessert items.
Beginning of dominos pizza
• The Domino's franchise started out as just one tiny store. It was purchased and started by brothers Tom and James Monaghan in 1960. At that time, the restaurant was known, not as "Domino's," but as "Dominick's Pizza" and was located in Ypsilanti, MI. The two brothers only worked as a team until 1961, when James traded his half of the business to his brother for the price of a Volkswagen Beetle. In 1965, the name "Dominick's" was traded for "Domino's."
In india
• Domino’s pizza opened its first store in India in January 1996, at New Delhi. Today Domino’s pizza India has grown into a country wide network of more than 300 stores with a team of 9000 people. According to India retail report 2009, domino’s is the largest Pizza chain in India.
Dominos 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:
• The company operates in three segments:
– 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.
– 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
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.
• 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) • Delhi • Bangalore • Kolkata • Mumbai
• 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 ?18:C and of refrigerated trucks in which food is sent at a temperature range of between 1 to 4:C.
• Retail Outlets – Regular stores – Super stores : High traffic, More counters – Express stores : those where people were expected to walk in and order rather than ask for home delivery.
Outsourcing
• • • • • • • •
ITEM Wheat Cheese Tomatoes Spice Baby Corn Exotic Vegetables Pepperoni Jalapeno PLACE Jalandhar Karnal, Haryan Bhubaneshwar South India Nepal Sri Lanka Australia Spain
QUESTION:1
• What are the key changes which have made supply chain management a critical function to succeed in present day business world?
To remain successful companies need supply chain excellence and some will need to re-evaluate their current processes and performance with these key trends in mind:
• • • • • •
Demand planning Globalization Increased competition and price pressures Outsourcing Shortened and more complex life cycles Collaboration between stakeholders and extended supply chain
QUESTION:2
• How does an efficient supply chain lead to strategic competitive advantage?(McDonald’s)
doc_352904045.pptx