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It started as a drive-in-restaurant in the late 1940s. In 1966, McDonalds was listed on the New York Stock Exchange. In June 1967, McDonalds opened its first restaurant outside U.S in Canada. In 1996, McDonalds entered India in a joint venture. McDonalds now has a network of over 160 restaurants across the country
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
Vegetarian Menu
McDonalds
Supply chain is based on the threelegged 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)
McDonalds 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
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.
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 -35C.
Radhakrishna
Foodland
procurement quality inspection storage inventory management deliveries data collection recording and reporting
Dry and cold storage facility Transportation trucks maintained at 22 C Implemented ERP software.
ITEM Cheese
Dehydrated onions
Iceberg lettuce
Chicken patty
Veg. Patty, Veg. Nuggets, Pies Chicken (dressed)
Buns
Eggless mayonnaise Sesame seeds Fish fillet patties Vegetable for the patties Mutton and Mutton Patties
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.
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
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
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.
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.
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.
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 18C and of refrigerated trucks in which food is sent at a temperature range of between 1 to 4C.
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.
1.
WHEAT
wheat Retail outlet
RETAIL OUTLET
dough
REFRIGERATED truck
DOUGH
REFRIGERATED TRUCK
warehouse
WAREHOUSE
Tomatoes
Spice Baby Corn Exotic Vegetables Pepperoni Jalapeno
Bhubaneshwar, Orissa
South India Nepal Sri Lanka Australia Spain
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 eatingout 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) 3Fs ( Fun, Friendly and Familiar)
Sauted
In the past, Pizza Hut has successfully used the high/low pricing strategy when setting the retail price of its products. The high/low retail pricing strategy allows Pizza Hut to charge a price that is above the competition, but also promote frequent sales to lower the price below them. Pizza Hut will be able to sell two products together at a single price to suggest a good value. Different groups of customers are willing to pay different prices for the same product. Pizza Hut sets a high initial price for its products to send a signal to customers that its products are quality and the service is excellent
SUPPLIERS
Direct Suppliers
Indirect Suppliers
Meat market : Chicken from Brazil Vegetable market : Potatoes from Australia Sauce companies
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.
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
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.