Fast Food Industry Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay The thought of fast food is not new. In the early 19th century, at the beginning of the industrial age when individuals had to work 12 to 14 hours a day, there was almost no time for long breaks to eat. The first snack bars and kiosks arose in front of the factories. Today, fast food outside the home has become an indispensable part of our lifestyle. The emergence of the fast food industry has transformed the urban food culture in India to some extent. In India, fast food culture emerged after independence. Eating at home was a significant aspect of Indian culture. However, over time, with the growth in the number of households, economic growth and increase in per capita income, as well as globalization, fast food culture has gained prominence. Similarly, children have also turned to fast food due to their exposure to global urban culture and Western cuisine, which has accelerated their desire for cheap and delicious fast food. Furthermore, fast food costs less than traditional meals that start with an appetizer and end with dessert. With the liberalization of the economy in 1992, the new multinational fast food giants targeted India as a huge potential market with their outlets. Burger King, Pizza Hut, Domino's Pizza, McDonald's and KFC outlets are active in shopping centers and other public areas. Changing consumer behavior and favorable demographic trends have led India to witness tremendous growth in the fast food restaurant sector (Shanker, 2010). Fast food is the term given to food that can be prepared and served very quickly. While any meal with little preparation time can be considered fast food, the term generally refers to food sold in a restaurant or store with low-quality preparation and served to the customer in packaged form for takeout/takeout. The fast food industry in India has evolved with the changing lifestyles of India's young population. The huge variety of gastronomic preferences between regions, whether inherited or acquired, has led to the creation of different modules across the country. It may take some time for local business to mature to the level of international players in the industry. Many of the traditional dishes have been adapted to suit emerging fast food outlets. The basic adaptation is to reduce processing and service times. For example, the typical meal that required being served by an always attentive employee is now offered as a Mini-Meal at the counter. In its traditional version, first a plate or a banana leaf was placed on the floor or table. Several helpers then served the diner, distributing the different courses and filling them as they ended up on the plate. The strong fragmentation of consumers nowadays represents a trend that should be taken into consideration, to identify and improve the qualitative dimensions of products important for each category of consumers. Young people don't care about food preparation and that's why they prefer to eat out. They usually go to fast-food restaurants, especially when there is no one to cook for them and also when they want to socialize. Although they have the necessary knowledge about the nutritional value of food and its effects on the body, they do not act accordingly. Fast food restaurants are famous because they serve food very quickly, are cheap and replace food easilyhomemade. Although people who are usually very busy working find fast food beneficial, we should all be aware of the fact that fast food products are high in calories, fat, sugar and salt. Nonetheless, young people admit that it is very difficult for them to change their eating habits, especially because they do not have the time and discipline to do so. The accessibility of the geographical location is another reason why young people prefer fast food. Unlike restaurants, which are located in less accessible areas for young people, fast-food restaurants are found on the way home or in the center, and are more numerous. The ease of finding a fast-food restaurant could be associated with lack of time or being in a hurry. The choice of a particular fast food restaurant depends on its flexibility and ability to adapt to the needs of young people. These needs are in fact the desires of young people to easily find a place to eat, open at any time, with products on display, to be able to order quickly, eat the food ordered quickly, have a place to socialize with friends and take away the food or order it at home when they don't want or don't have time to eat a fast-food meal. (Source: Journal of Tourism, 2014) The beginning of fast food culture The concept of fast food emerged in the 1920s. The 1950s witnessed their rapid proliferation for the first time. Several factors that contributed to this explosive growth in the 1950s were: (1) America's love affair with automobiles. (2) The construction of a major new highway system. (3) The development of suburban communities. (4) The post-World War II baby boom. “Fast food chains initially targeted car owners in the suburbs. The concept of “fast food” reflects American culture where speed and efficiency are highly valued.” India: Emerging Market for Global Players The percentage share held by foodservice in total consumer spending on food increased from a very low base to one hundred in 2001. Eating at home remains very much ingrained in Indian culture and changes in eating habits are proceeding very slowly with barriers to consuming food outside the home entrenched in some sectors of Indian society. Traditionally, eating out was looked down upon in Indian society. The growth of nuclear families, particularly in urban India, exposure to global media and Western cuisine, and an increasing number of women entering the workforce have impacted out-of-home consumption trends. Eating out is becoming more and more synonymous with fun. And very often it is preferred to cooking as a time-saving solution. It's no surprise that takeaways are becoming increasingly popular. India is among the top three countries in the world with the largest number of people in terms of spending power in the age group of 25 to 49 years. India ranks second in the 2004 Global Retail Development Index, an annual ranking of retail investment attractiveness among 30 emerging markets. Lack of consolidation and retail model concepts in India offers better opportunities to global players. Over 400 shopping malls, multiplexes, fast food giants, restaurants etc. are being planned or built across the country. Fast food is one of the fastest growing types of food in the world. The Indian fast food industry is growing at 40% a year and is expected to generate $1 billion in sales by 2005. The multinational segment of the Indian fast food industry is worth up to ₹6 billion, a figure that expected to reach 70 billion this year. 2005. By 2005, the value of theIndian dairy products will be 1,000,000 million. In the last 6 years, foreign investments in this sector have amounted to 3,600 million, or approximately a quarter of the total investments made in this sector. Due to the availability of raw materials for fast food, global chains are flocking to the country. (Source: Food Retailing: Fast Food Industry, 2005) Market Size and Key Players Dominated by McDonald's with as many as 75 outlets. Domino's pizza is in about 100 locations. Pizza Hut is also catching up and plans to open 125 outlets in late 2005. Subways has opened approximately 40 outlets. Nirulas is based only in Delhi and Noida. However, it claims to cater to 50,000 guests every day. The main fast food players are: McDonald's Nirulas Pizza Hut Domino's pizza Fast food multinationals have given their national competition a hard time. While McDonald's outsells Nirulas, Pizza Hut and Dominos do more business than Pizza Corner. Within nine years of their existence in India, starting in 1996, multinationals grew at a faster pace than their Indian counterparts. According to industry estimates, in 2001, while McDonald's achieved a turnover of around `125 crore (`1.25 billion), the local firm Nirulas, present in the country since 1934, could only raise `100 crore (`1 billion) turnover. Furthermore, both Dominos Pizza Hut and Dominos recorded a turnover of around 60 crore (600 million), but Pizza Corner lagged behind with a turnover of 25-30 crore (250-300 million). The main reason for the success of multinational chains is their expertise in product development, sourcing practices, quality standards, service levels and standardized operating procedures in their restaurants, a strength they have developed over years of experience all over the world. In recent years of competition with multinationals, local chains have learned some things, but there is still much room for improvement. We have applied our learning experience from other countries in all processes, including consistency, marketing, distribution and training to local market conditions. It's time that national chains realized the importance of such practices. Nirulas thus strengthens its organizational structure. Another key reason behind the success of multinationals is the ability to attract young people. While Mc Donalds has managed to attract people under 30, Dominos caters to those looking for "convenience". Nirulas, on the other hand, is known to appeal more to the over 30 consumer. It is no wonder that Nirulas has launched its '21' range of ice cream parlors to appeal to the younger crowd. The challenge for home-grown chains is also to reinvent themselves to attract younger consumers. However, national chains are at an advantage as they understand the behavior and eating habits of Indian consumers and their product offerings have been tailored accordingly. Multinational chains like McDonalds and Pizza Hut are still on a learning curve in trying to customize their menu based on Indian taste and food preferences. Pizza Hut, for example, has launched its range of masala pizzas and has also opened the world's first 100% vegetarian outlet in India. Domino's, on the other hand, has launched its vibrant paneer pizza keeping the Indian taste buds in mind. The food service market in India is estimated to be around 36,000 crore (360 billion), of which urban quick service fast food outlets account for around 1,000 crore (10 billion). This segment is witnessing high growth of around 25-30% annually, so the market has great potential togrowth. (Source: Food Retailing: Fast Food Industry, 2005)Reason for Emergence1. Gender Roles: Gender roles are now changing. The females started working out. So, they have no time for home and cooking food. Fast food is a simple solution because it can be prepared easily.2. Consumer sophistication and confidence: Consumers are becoming increasingly sophisticated. They don't want to prepare food and spend time and energy on housework. They are building their confidence in “ready-to-eat, easy-to-serve” foods.3. Time Scarcity: People don't have time to cook. Due to the emergence of working women and also numerous other entertainment items. Most of the time people work or want to have fun with family.4. Dual Income Group: The emergence of a dual income group leads to an increase in disposable income. Now people have more disposable income and can spend easily at fast food restaurants and other activities.5. Working women: Working women don't have time to cook, and if they do, they don't want to cook because they want to break away from traditionally defined gender roles. They don't want to limit themselves to housework and raising children. (Mayur Keshwani, 2009).EconomicFactor influencing industryI. Increase in per capita income: There is a continuous increase in the per capita income of Indian citizens. Greater disposable income translates into greater spending on comfort and entertainment and therefore ever-increasing spending on fast and ready-to-serve foods.II. Economic Growth: With economic liberalization in 1991, more foreign and private industries have entered the Indian market, which results in income generation for Indian residents – more income translates into mineral savings – more savings means more investments – more investments result in overall growth of the economy .III. Large Population: India being the second largest country in terms of population has a large potential market for all products/services. This results in the entry of a large number of fast food operators into the country.IV. Relaxation of Rules and Regulations: With the economic liberalization of 1991, most of the tariff and non-tariff barriers from India's borders were removed or minimized. This has significantly helped the entry of multinationals into the country. Growth in the number of women in the workforce: In recent years there has been an increase in the number of women in the workforce due to the improvement in the literacy rate and also due to the large number of jobs now available due to the entry of foreigners and private players in the Indian market.VI. Menu diversification: increased consumption of pizzas, burgers and other types of fast food. Challenges of Fast Food Industry: a) Social and Cultural Implications of Indians Switching to Western Food for Breakfast: Generally, Hindus avoid all foods that are believed to inhibit physical and spiritual development. Eating meat is not explicitly prohibited, but many Hindus are vegetarians because they adhere to the concept of ahimsa. Those seeking spiritual unity can avoid garlic and onions. The concept of purity influences Hindu dietary practices. Products derived from cows (e.g., milk, yogurt, ghee with ghee) are considered pure. Pure foods can improve the purity of impure foods when prepared together. Some foods, such as beef or alcohol, are inherently polluted and can never be made pure. But now Indians are switching to fast foods which contain all those things which are considered impure or contrary..