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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

                                 Also have large no. of
Mcd’s supply                     indirect suppliers,farms
chain is large and               and facilities thad grow
complex                          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                                       PLACE
Cheese                          dynamic dairy industries ltd , pune
Dehydrated onions               jain foods , jalgaon
Iceberg lettuce                 trikaya agriculture,pune
Chicken patty                   vista foods,taloja
Veg. patty,veg nuggets, pie's     kitran foods,taloja
Chicken(dressed)                 riverdale,talegaon
Buns                             cremica industries,phillaur
Eggless mayonnaise                quaker cremica pvt ltd,phillaur
Sesame seeds                      ghaziabad
Fish fillet patties              amalgam foods ltd,kochi
Vegetables for the patties       finns frozen foods,nasik and jain
                                 foods,jalgaon
Mutton and mutton patties        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                              PLACE
•   Wheat                               Jalandhar
•   Cheese                             Karnal, Haryan
•   Tomatoes                          Bhubaneshwar
•   Spice                                South India
•   Baby Corn                            Nepal
•   Exotic Vegetables                    Sri Lanka
•   Pepperoni                            Australia
•   Jalapeno                             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)

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Fast food industry

  • 1. 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
  • 3. 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
  • 4. 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
  • 5. 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.
  • 6. 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.
  • 7. 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
  • 8. McDonald’s supply chain Also have large no. of Mcd’s supply indirect suppliers,farms chain is large and and facilities thad grow complex and process the ingredient to direct suppliers Have numerous direct suppliers that make or deliver final products for the restaurants
  • 9. 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
  • 10. 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.
  • 11. Outsourcing the ingredients • ITEM PLACE Cheese dynamic dairy industries ltd , pune Dehydrated onions jain foods , jalgaon Iceberg lettuce trikaya agriculture,pune Chicken patty vista foods,taloja Veg. patty,veg nuggets, pie's kitran foods,taloja Chicken(dressed) riverdale,talegaon Buns cremica industries,phillaur Eggless mayonnaise quaker cremica pvt ltd,phillaur Sesame seeds ghaziabad Fish fillet patties amalgam foods ltd,kochi Vegetables for the patties finns frozen foods,nasik and jain foods,jalgaon Mutton and mutton patties al kabeer,hyderabad
  • 12. 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
  • 13. 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.
  • 14. 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."
  • 15. 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.
  • 16. 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:
  • 17. • 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.
  • 18. – 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.
  • 19. • 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
  • 20. • 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.
  • 21. • 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.
  • 22. Outsourcing ITEM PLACE • Wheat Jalandhar • Cheese Karnal, Haryan • Tomatoes Bhubaneshwar • Spice South India • Baby Corn Nepal • Exotic Vegetables Sri Lanka • Pepperoni Australia • Jalapeno Spain
  • 23. QUESTION:1 • What are the key changes which have made supply chain management a critical function to succeed in present day business world?
  • 24. 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
  • 25. QUESTION:2 • How does an efficient supply chain lead to strategic competitive advantage?(McDonald’s)