Fast Food Industry Essay

â€Å"Fast food † this term was recognized in dictionary by Merriam-web star in year 1951 mostly we need small capital requirement to start a fast – food restaurant; small individually owned fast – food restaurant have become common throughout the world. Franchises are the part of restaurant chains which operations is to provide standardize food stuffs to the different locations for examples Pizza Hut, KFC, McDonald, Dunkin Donets, and many others. For starting any fast food business the capital requirement are relatively low than any other business. That is the reason all over the world individually owned fast food restaurant are increasing. The term fast food is use for which can be prepared and served quickly than other meal, minimum preparation time is considered for fast food, generally this term refers to food sale in restaurants and stores with low time preparation and served to customers in form of packaged for take away / takeout. This research was conduct to find out the factors for customer satisfaction. The feeling of pleasure and disappointment is known as Satisfaction. If the product was not satisfied person feelings then it will be dissatisfied, and if product satisfied person feelings after the use they will be satisfied. Customer is the key role in any business, without any customer it’s difficult to do business, and that the fact it’s the necessary work closely with your customer. Because customer can also create your business. Business runs though customer, without the customer there is no business. Satisfaction is an individual feeling of pleasure or the disappointment, if their expectation level meets, their level of satisfaction also increasing but if not then disappointment comes. Customer satisfaction is very important for every organization; either they are service sector or the private sector. It’s not every time to satisfy your customer. Since there are so many customers using products. And every customers uses it differently, take it differently, and speak it differently. The most dangerous part for any organization is word of mouth. You can’t stop every person’s mouth, even if you give your best of best, they still argue on your products which are not good for some time. Some customers likes your product and after use they speak good words for the product. But some use your product, and speak wrong word of mouth for the product. MAJOR PLAYERS. There are certain main players of fast food industries. Which are as follows. 1. McDonald corporation 2. Burger king 3. Wendy’s/Arby’s group 4. Starbucks corporation 5. Pizza hut 6. Dominos corporation 7. Yum! Brands, Inc 8. Popeye’s SWOT ANALYSIS Strengths: 1. Quick Service: – one of the biggest strengths of fast food is that it provides quick service. The biggest advantage of this is that it saves a lot of time. And in this modern world time is money hence quick service is the biggest strength. 2. Affordable: – Usually fast food is priced at a very affordable rate which starts from rupees 2. Though the prices are low in the fast food industry, the quantity is more and hence value for money. 3. Attraction: – The advertisements of fast food are very flashy and appealing especially to the youth and the younger generation. One of the most important people in the buying decision are the kids who are influenced by ads on TV who in turn influence their parents. Hence it boosts the sales. Weakness: Different Preferences: – India is a land of diversity. People in India have different preferences and taste. The fast food industry cannot cater to all the tastes and preferences of people. For e. g. some people eat Non – Veg and some don’t eat non – veg, thus creating a problem. Such problems have risen at KFC and McDonalds. Another difference in preference can be seen in the choice of the type of food. Some people prefer South Indian while some prefer North Indian. So a south Indian joint selling masala dosa , cannot start selling chole nature as per customers’ preference. 1. Lack of customization: – Fast food is usually pre-made and pre-packed and not fresh from the oven. So once the dish is made it cannot be altered according to the customer’s choice or preference. For e. g. a McDonalds burger is prepared much before the customer purchases it and he has to buy it as it is. Even if the customer wants the burger without onion or cheese still he has to purchase it due to lack of customization. 2. Unhygienic and unhealthy: – Most of the times though being tasty the oil content in fast food is very high. Hence people are now moving away from fast food. The fast food prepared is also unhygienic especially at the road side joints. Hence these are considered weaknesses to the fast food industry. Opportunities: 1. Growing nuclear families: – nowadays it is said to be the age of fast food. Parents and kids especially prefer fast food due to its quick service and for it’s satisfying appetite at affordable prices. This is a growing opportunity for the industry because families nowadays prefer eating out, rather than cooking at home. 2. Urban lifestyle: – The growth story of India is not limited to metro cities. Now it has also found its way into some rural areas and some semi – urban cities. Fast food joints are not a thing of big cities now. People in cities and towns are now having additional incomes in their pockets. Eating out now is a normal thing for the homely people in the semi urban areas. Threats: 1. Oppositions from various organizations: – Due to the various preferences in the food some opposition is received by the fast food industry. As reported in the papers organizations like PETA are opposing the use of beef fat in the items of McDonalds. There was also a huge hullabaloo when Kentucky Fried Chicken (KFC) was being introduced to India. This is a major threat to the fast food industry. 2. Location: – One of the major threats in India is from the location point of view. Fast food joints can’t be opened in certain locations even though there might be evidence of major consumer demand in the area. For e. g. A Hindu dominated area might pose a threat to joints serving beef related products since the cow is considered sacred to them. 3. Ready- to-eat: – Nowadays ready to eat products are more in demand in the market owing to the fact that consumers have to take minimum trouble in preparation out of which the results are healthy food, rich nutritional value, easy on pockets and higher value for money as compared to the foods available in a fast food joint. 4. Health Concerns: – Due to the low quality ingredients used in the majority of local fast food joints, the sanitation and the hygiene factors which are mostly not maintained, have given cause to various medical and other health related organizations and certain NGO’s who have taken it up to voice these issues and bring it to the attention of the general public. Thus directing the attention of the public to change the tastes to foods that are more hygienic and safe. Here canned foodstuffs stand to gain advantages. LITRETURE REVIEW. Customer Satisfaction: According to Zairi (2000) the feeling of pleasure and expectation fulfillment is known Satisfaction. If the product will not satisfied customer feelings they will be dissatisfied. and if product satisfied them after the use customer will be satisfied and become loyal to that product or brand. In other words customer satisfaction is goods or services which fulfill the customer expectation in terms of quality and service for which fulfill the customer satisfaction in terms of quality and services for which he paid. If customer satisfaction develops they will become loyal to that product and brand or their loyalty will be good for the company in the sense as a profit. Customer satisfaction is the part of marketing and play important , because if your customer is satisfied with your services or products, your position will be good in the market. Oliver (1981) describe in his study that customer satisfaction is the part of marketing and play important role in the market. In any organization satisfaction of customer is more important, because if your customer is satisfied with your services or products. Your position will be good in the market. In old times customers satisfaction was not too much important and people were not focused on the quality. But now a days competition is taught and customer is aware of all the products and companies due to education and learning environment and this is the reason that every business is concern to fulfill properly customers need and wants. Concerning all types of business organization customer satisfaction is the most important issue, and considered as most reliable feedback, for the excellence of any business organization (T .W . , 2001). Veloutsou (2005) describes in his study regarding customer satisfaction tangible products and services, there is a distinction . The distinction between tangible and intangible goods becomes coz different factors of customers satisfaction, and that is why they should be treated separate and distinct. Churcill (1982) customer satisfaction has overall reaction of expectation of consumption with a product or service on the base of perception, evaluation and psychological reaction. According to Kottler. (2000) satisfaction is the sum of attributes of products and services. Kurniawan (2010) customer satisfaction can change over the period of time, it is a dynamic process. The individual’s perception about the product’s or service’s performance leads to customer satisfaction Tat, Sook-Min , Ai-Chin, Rasli , & Hamid, (2011). Determinants of customer satisfaction: Huang (2011) promotions is different form of activities for attracting and getting attention of customer to purchase the product and services through personal selling and public relations, sales promotions and advertising. According to kurniawan (2010) promotion of product or services helps in the best way to builds relationship with customers, because everyone is looking for the best suitable deal for them. Athanasspoulos (2000) describe that customers want to see for what they are looking for. Myers (1998) promotion is reducing the feeling of guilt which is associated with the use of different product and service which result to customer satisfaction. Schefter (2000) another common factor which is useful for device customer satisfaction is website. Website is the advanced way use for the promotion, to aware the customer and satisfied them with offering vast array of functions and feature. Before making choice of product offering, potential customer has opportunity through website to make a detailed comparison Khatibi (2007). When information like discounted products travels in the public, could increase the level of customer satisfaction Kandampully (2002). Takeuchi (1983) quality is standard of something which consumer measure against the other different things; quality can be measured by giving grade, merit, attributes etc to the products and services. Consumer cannot differentiate between quality and its requirements. Service quality is evaluated when the out customer compare his/her perception and expectation of service delivery Gronroos (1984) By recognized the need of measures of service quality many researchers most often use service quality to measure customer satisfaction Zeithami (1985). For evaluating and estimating various dimension of service quality is the instrument accepted as standard Kurniawan (2010). Zeithami (1985) it is a scale with multiple items goods validity and reliability, many researchers use this instrument to understand and find the service expectation and consumer perception for improving the service quality. The expectation of the customer is important factor. The more service quality near to customer expectation more satisfaction and vice a versa Ayse Ozfer Ozcelik (1998). Customer satisfaction is reflected when he recognized the quality. While using the web, the (user interface) web is service and customer is user. They surf the internet retrieve the information and share the information when interact over the internet with others. The quality of internet service plays a greater role than service quality providing to the customers in other sectors, like hotel and hospital Kurniawan (2010). Schwager (2007) describe in his study that in the new millennium providing customers a unique experience is major key to capture the market and their heart and mind. Satisfaction or dissatisfaction is the consequences of customers consumption or experiences of services or expectation. Kurniawan (2010) Branding is one of the factor which has been identified repeatedly customer selection in selected product. Branding has impact on purchase decision of customers. The more a brand is succeeded in their earlier period the more value for its brand can be generated. Kuaniawan (2010) company formal introduction is today is branding. Brand is a set of guidelines or promise in customers mind. Brand is a product which adds other dimensions some way to differentiate it from other product Boukili (2008). Brand helps the customers the product and how he describe the company to others, opportunities can avail by branding. Branding by the American marketing association as a â€Å"Name†, sign, symbol or combination of them to identify and to differentiate the goods and services and seller, or from their competitors† . Lim (2010) customers ultimate satisfaction may have significant affect of atmosphere. Physical surroundings are helpful to create image in the mind of customer and to influence their behavior. Physical atmosphere of restaurant have the significant impact on the customer satisfaction. Lightning, furnishing, sent, music and different other atmospheric factors among them influence on customer satisfaction. Skinders(2009) there are millions of product in the world having different prices. Pricing a product is difficult thing to do. Prices are set according to the value of the product. Price from marketing mix Han (2009) state that one of the most flexible element that change quickly. In the literature of Khan (2011) marketing the most important factor indicated the customer satisfaction is price. Because the most of the customer estimate the value of the product or obtain service through price. Lim (2010) for the customer it is not necessary that a better quality can be better taste, If customer like the taste of food he/she will be willing to pay for it. Based on previous researches, in customer satisfaction and taste, there is a significant correlation found between them. Researchers found good taste of food have positive influence on customer satisfaction and it also increase the customer retention rate which is also depends on customers satisfaction. Therefore, restaurant focus on the taste of the food and services that has influences on customers satisfaction. RESEARCH FRAMEWORK Figure 1 influence show the theoretical framework of the study. There are two variables discussed in this study, i. e. independent and dependent variables. Customers satisfaction on fast food industry showing dependency on promotion, service quality, customer expectation, Brand, Physical Environment, Price and Taste of the product. Independent VariablesDependent Variable.