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 McDonalds
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 brothers
share for $2.7 million and changed the name of
the company to McDonalds 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 McDonalds 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
McDonalds 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 McDonalds success. This business
model enables McDonalds 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

McDonalds supply chain

Mcds supply
chain is large and
complex

Have numerous
direct suppliers
that make or
deliver final
products for the
restaurants

Also have large no. of

indirect suppliers,farms
and facilities thad grow
and process the ingredient
to direct suppliers

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
Dominos pizza opened its first store in India in
January 1996, at New Delhi. Today Dominos
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, dominos 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?(McDonalds)