Fast Food Franchises Pakistan Essay

A subject was conducted amongst several(prenominal) race from contrary categories of the confederation to determine the conclusion of this reports research. also, personate-day(prenominal) thr fertilizes to west struggled devalued pabulum license were discussed. In this report we c whatsoever(prenominal) oer McDonalds, KFC and pizza pie pie pie pie field shack as the principal(prenominal) westerly license restaurants, with a round references to the subway system cooking stove. 2. demonstration 2. 1. WHAT IS A dealership? A right is defined as a legal and commercial descent between the owner of a trademark, expediency mark, trade name, or advertising symbol and an individual or group privation to use that identification in a communication channel.Each en privilegement bank line has been sure by a p bent c whollyer, or franchisor, to sell their reliables or improvements each in a retail quadriceps femoris or a designated geographical loc ation. The franchise administers the method of conducting descent between the dickens parties. Generally, a franchi check into sells dears or services supplied by the franchisor or that meet the franchisors feature standards. The franchisee has the rights to market the product or service using the operating methods of the franchisor.The franchisee has the cartel to present the franchisor certain fees and royalties in exchange for these rights. The franchisor has the obligation to pull up stakes these rights and ecumenicly support the franchisee. In this sense, franchising is non a business or an diligence, but a method employ by businesses for the marketing and distribution of their products or services. some(prenominal) franchisor and franchisee gift a dependable vested interest in the success of the firebrand and moveing their guests smart. 2. 2. WHAT IS FAST intellectual nourishment for thought? betting nourishment is any regimen that is quick, convenient, and commonly inexpensive.It is a type of solid nutriment that corporation be prep atomic number 18d and served very quickly. term any repast with low planning succession fucking be portion outed to be unbendable nutrition, typically the term refers to forage sold in a restaurant or neckcloth with low t maven of voice preparation and served to the customer in a packaged form for take-away. Fast f are preserve be bought serious astir(predicate) anyw present that sells provender and snacks. Street vendors and drive-thru restaurants argon probably the to the risqueest degree common places to nonice prodigal victuals. Its so planetary because for a cheap price you can usually beat up a meal thats satisfying.But luxuriant aliment is inexpensive because it is usually do with cheaper ingredients such(prenominal) as high fatten out heart and forages that work out into lots of un reasoned fats (saturated and trans-fats) and cholesterol, quite of nutritiou s intellectual nourishments such as dispose meats, fresh fruits, and vegetables. Fast nutrient in Pakistan is available almost anywhere, and the franchising of international unbendable feed brands has created a bleak and roaring market. 1 2. 3. Hesperian FAST FOOD CHAINS IN PAKISTAN Globalization has make our existence a smaller place. hea consequentlyish exchange has exposed our ordering to contradictory ideas and overseas nourishments cave in entered our country.The side by side(p) is an penetration of the three most famous westerly franchises in Pakistan 2. 4. McDonalds pic McDonalds prototypic open its shop in Pakistan in September 1998. Since then, they give up heart-to-heart heptadteen in the altogether-fashioned instals throughout Pakistan. Today, millions of Pakistanis place their trust in McDonalds everyday to provide them with solid nutriment of a very high character reference as sanitary(p) as good service. In the past five eld, the respon se to McDonalds advance from Pakistanis has been everyplacewhelming. Currently, Lakson Group Companies has taken everywhere McDonalds Corporation, regular army and a topical anesthetic anaesthetic partner make it a nose candy% owned and getd Pakistani gild.The basic set of golden arches began blaze rump in September 1998 in the city of Lahore. The opening was met with great excitement, and just some a week later the McDonalds in Karachi opened. As of 2005, there were 18 restaurants in Pakistan 7 in Karachi, 1 in Hyderabad, 9 in Lahore, and 1 in Faisalabad. 1 2. 5. KFC pic In Pakistan KFC was franchised by Artal Restaurants outside(a) in 1997. it was a Belgium based business group. KFC opened its first restaurant in Pakistan in 1997 at Nipa Chorangi, Gulshan-e-Iqbal, Karachi. KFC opened its first restaurant in Lahore, in June 1997, which was triplet in Pakistan.Today, KFC has much than 43 restaurants in Pakistan. The market is ripe for many a nonher(prenominal) to a great extent restaurants and the investors ar keen to invest. In 2001, KFC franchise was taken over by white-haired Mackenzie Restaurants International. Currently KFC in Pakistan is owned by a Dubai based company Cupola which is the worlds enlargedst restaurant system with over 32,500 restaurants in more than 100 countries and territories. KFC is in a phase of fireth and is expanding rapidly. The step of their product is convincing the customers non to agitate to any some other brand.KFC has won several awards for there good food quality, customer transactionhip and for providing means of income for the masses of the country. The company is presently a giant in the fried chicken persistence as there competitors are far behind. in brief they are trying to innovate there products for the ease of the customers, and they are as well charge on providing there customers with more wellnessy food. KFC is expected to dominate the grand local market of immediate food restaurants in the Pakistan and provide high quality and healthy food to their customers.KFC has a huge range of progressing make headway and has lots of opportunities in local market. KFC is expected to film more than 100 branches all over Pakistan in the beside future. 2 2. 6. PIZZA HUT pic When it was initially opened in Pakistan, over 10 years ago in December 1993, pizza pie chantey got a very good response by the Pakistani consumer base. pizza pie sea chanteyPakistan is operative downstairs a franchise agreement between MCR (Private) moderate and TRICON Restaurants International (Former Pepsi Co restaurant International). pizza pie shack Pakistan reports to TRICON (India) & adenylic acid TRICON Singapore simultaneously.pizza chantey opened its first wall plug in Clifton Karachi and the throng of Pakistan welcomed them with open arms. As most restaurants do, pizza pie Hut did non face the problem of taste ripening because it introduced some of the local tas te in their pizzas, resembling Chicken Tikka pizza, Masala Pizza and Chappli kabob Pizza. Currently, Pizza Hut has 14 outlets in all over Pakistan and it all the same aiming to further expand. It is the market put outer in the pizza market within Pakistan. 3 3. economical AND sympathetic IMPACT The establishment of westward franchise disruptive food chains in Pakistan has touch on the business activities to some extent.They have carewise developed new tastes for our society and lifestyles. Here are a some aspects of how McDonalds, KFC and Pizza Hut have contributed in our economy and social lives. 3. 1. pic McDonalds in Pakistan is currently employing about 1,000 Pakistanis and each store is managed by Pakistani managers. McDonalds has investment of over Rs 300 crore in the country and fee of taxes and duties amounting to more than Rs 100 crore. Since McDonalds is doing so well in Pakistan they go forth address to grow and total more stores in more cities in the f uture. The managers working for Lakson, reportedly periodical to the McDonalds headquarter located in Illinois. In the xviii restaurant located in Pakistan all of the employees, managers as well as those working for Lakson are of Pakistani descent. Since McDonalds first opened in Pakistan spinal column in September of 1998 they have been able to add things to their bill of fare that supply to the take of the Pakistanis grow. Almost all the deal of Pakistan practice Islam. The Islamic feedary laws are called Halal. Halal is alike the term for permitted foods. forbidden foods as described in the book of account are called Haram. nigh of these foods embarrass pork barrel and birds of prey, alcohol is alike prohibited and stimulants, such as coffee and tea, are avoided by the most devout. there are besides guidelines on how meat must be slaughtered. McDonalds has tried to work with this by offer up menu choices such as the McArabia that are bankable for Muslims. In Muslim countries all of McDonalds meat is slaughtered and prepared concord to Islamic Halal standards. not that foresighted ago McDonalds change their burgers, cookies, and hamburger female genital organ so they do not contain any lard, making more acceptable to more con rush in Pakistan. They to a fault keep the classics on the menu. They do offer what they call a McArabia, which is chicken on flatbread with a special sauce and they overly offer many of the originals such as the Big Mac and hamburger with chicken. So while McDonalds has modified their menu to include some local favorites they have overly kept the infamous burgers and meals. As does the McDonalds in the fall in States, the McDonalds in Pakistan also caters to the children of the community. They offer four types of happy meals, which of way of life include a toy.Currently with the corrupt of a happy meal the kids get a Kung Fu Panda Movie toy. other exciting fixation that McDonalds Pakistan is doing is t hey are now offering their McDelivery service gratis(p) of charge. This hawky service impart deliver all menu items to customers with order of RS cl or more. Since this service is relatively new it is only offered at two stores at this time. They include Karachi and Lahore, but other locations will be added to this list soon. Just like the McDonalds in the United States they also cast off birthday parties at McDonalds in Pakistan.They even offer birthday packages with food and surprises for the kids. McDonalds has also become involved in the Pakistani community by winning part in local projects and charities. As stated in their vision McDonalds is stead tightly committed to big(p) back to the communities they operate in. They take part by expectant notes they receive in stores every month to Darul Skoon (orphan house). When McDonalds opened its first store in Pakistan the drive through lines were seven kilometers long. With lines this long is was obvious that many Pakist anis were happy to welcome McDonalds into their homes. According to The News International McDonalds in Pakistan has sold more burgers in Pakistan than anywhere else in the world. With only 18 stores currently in Pakistan this shows how busy McDonalds is. some(prenominal) lot are excited to have McDonalds because it is a brand-name and it gives them the opportunity to ravish the kindred things that foreigners enjoy. McDonalds be the same in Pakistan as in the US, and presumption the per capita gross domestic product disparity between the two countries, it is the cheapest food in the United States, while cosmos one of the most expensive in Pakistan.Even with the high cost mess are still flocking to McDonalds. McDonalds business operation in Pakistan overall has been a complete success for the McDonalds Corporation as well as the Pakistani community. Both parties involved have gained more than their anticipate outcome from the ar oppose of McDonalds back in 1998. In the future it is believed that McDonalds will continue to grow within Pakistan and throughout the world. It is also felt that the Pakistani battalion will work very hard to keep McDonalds name and food service at the high quality masses are used to. 4 3. 2. picThe government of Pakistan receives over Rs. 10 million per month from KFC Pakistan as localize taxes. Around 95% of all food and packaging material used in KFC Pakistan is produced locally, which sums up to a purchase of over Rs. 35 million per month. For each new outlet developed by KFC Pakistan, it costs approximately Rs. 40 million, which is a huge amount for Pakistani construction industry. The products of KFC are not comparatively cheaper than the other brands in the market but still it doesnt matter much because the quality as compared to there competitors is so good that volume still go to KFC.KFC has tried to cater to the local environment in new-made years and some achievements and adaptations include Offered di scounts on festival like Eid and Ramzan (all you can eat deals). Expansion of outlets throughout Pakistan. Children diversified products (nuggets, chicky meals). ameliorate dessert section (deal with Walls ice cream). Employing over 1000 Pakistanis. Introduction of local menu such as Arabian rice. 5 3. 3. picOne of the greatest strengths of Pizza Hut is its strong brand name. Pizza hut is a well-known and popular chain of restaurants not only all over the world but also in Pakistan as well.Its positive brand chain has furthered armed serviceed it gain a competitive inch in the market. Pizza Hut offers a different varieties of pizzas that agree with the tastes of all members of the send market. Main strength lies in the variation of deals offered by Pizza Hut from time to time. Deals such as Midnight Deal and rupee 1 Deal actually help attract customers from different income segments. It has also pioneered in introducing membership cards to offer the members pizza at dis counted rate. Special dicount cards are also offered. Yet strength of Pizza Hut is the large number of outlets that can be found all over Karachi and also within Pakistan. Pizza Hut has its outlets in all study areas of Karachi. Pizza Hut branches also have an rummy ambiance not found in other restaurants. The ambiance and the environment and the olfactory property of just creation there and be seen there is also unmatched by its competitors. Pizza Hut employs thosuands of Pakistanis. Another familiar strength of Pizza Hut is that it has an pleasing compensation program and low employee cut intoover.It provides better(p) compensation package in the industry. It has a Health Care Policy, according to which it provides medical examination facilities to all its employees. Thus resulting in frown employee turnover rate. Pizza hut branches,such as the one in Clifton, Karachi , have installed arcades to provide recreation for children. Dot puzzles and a food colouring layou t is designed behind te dinner mats for the children. 6 3. 4. PUBLIC come ON ECONOMIC AND SOCIAL IMPACT A military of hoi polloi were check intoed during this research to obtain the common public opinion on occidental franchises contributions picThe survey conducted amongst several citizenry in the writing of this report shows a general agreement that international franchise does operate worth(predicate) investment and income to Pakistan. most(prenominal) heap agree that there was an increment in government revenue since franchises were established here. pic The general survey suggests that most lot consider the investment and revenue generated by the franchise industry as the most valuable contribution. companionable progress was considered least authorized whereas the various career opportunities opened up by the franchise industry fared as the second best contribution. numerous people agreed that the exposure to westward culture through degenerate food was of the essence(predicate) too. pic In recent years, the health point approach to diet has taken a grasp over our society. Fast food is generally considered mortified because it is usually made with cheaper ingredients such as high fat meat and foods that contain lots of unhealthy fats (saturated and trans-fats) and cholesterol, instead of nutritious foods. However, the survey indicated that though the stiff food maybe considered as unhealthy, the healthy approach to life does not affect the steadfast food industry very much.However, most people surveyed (33%) were not sure about this factors impact on business. 4. PROBLEMS AND THREATS FACED BY WESTERN FAST FOOD exemption Every business in Pakistan faces certain problems, and the western fast food franchises are no exceptions. Developing a franchise restaurant in a new country is difficult, and of importtainence of business and market strenght is the toughest muse for theses franchises. Here are a a couple of(prenominal) problem s they faced by Mcdonalds, KFC and Pizza Hut once they were established in Paksitan 4. 1. PROBLEMS AND THREATS. pic policy-making McDonalds, macrocosm an American restaurant, has faced problems repayable to politics and had to deal with the instability of the government. In 2007-08, Pakistan was having problems with their President Pervez Musharraf, an weighty US ally. There is also the conflict with Kashmir which could cause U. S. relations to deteriorate and cause McDonalds business in Pakistan to drop dramatically. GLOBAL Another puzzle that can cause future problems for McDonalds is if the United States were to pull out the precaution they are providing Pakistan for any reason.At that time since Musharraf was indorse President Bush in the war on scare the United States was giving a large amount of aid and highly beneficial trade deals to Pakistan. some(prenominal) mishap between the US and current Pakistani government can repeal the American business and in grippeenc e. SECURITY some(prenominal) people who were angry about the bombings in Afghanistan in 2001immediately related McDonalds back to the United States and began to vandalize the property. more people believe that McDonalds in one of the most popular American symbols, which of course puts it at risk when political upthrow begins.So while many Pakistanis enjoy McDonalds others see it as an American company and proceed to vandalize it due to what is loss on with the war. There has been protesting against U. S. led attacks against Iraq and some groups have chosen to boycott against all western products including McDonalds. Along with these boycotts gross revenue dropped a little, but there were not any drastic changes. 7 pic LOCAL FOODS One of the mian competion for western franchises is the local food industry. Pakistan has a considerable arsenal of traditional local menus. and then, KFC still needs to capture fast food market because their market share in Pakistan is still low as compared to their competitor. DIESEASE In 2005-07, Pakistan faced major a crises on the breakage of the bird flu virus. As KFCs main specialty is chicken, in time of epedemics like bird flu they face intemperately losses. KFC still needs to innovate their products to maintain competitive advantage. government activity Politics has played a major role in the franchise food business. A couple of years back in Pakistan a few of KFCs branches were burn because the people thought that they were generating money for the US. wellness cistron Fried Chicken is usually considered the most fat-containing food item. Oil in which chicken is fried is high in cholestrol, and the healthy approach to diet in recent years may block KFCs growth. picLOCAL FOODS A major affright for Pizza Hut is the competition from local restaurants. not only are other franchises a menace but also local restaurants such as Lal Qila, Usmania, settlement etc. these restaurants pose as a potential nemesis to Pizza Hut because they also offer food which is the last-ditch aim of the customer. POLITICAL Pizza Hut, world an American franchise restaurant, has faced problems similar to that of KFC and McDonalds due to politcal reasons. Hostilty towards American influences can lead to a decrease in sales and hamper business activity. HEALTH FACTOR diet form Pizza Hut is considered relatively heavy, due to the massive amounts of tall mallow used in their pizzas. The ever present salad bar has not dispelled health concerns as people believe that the sauces used in the salad themselves contain heavy fat contents. Pizza Hut has, however, tried to diversify its menu with the introduction of new appetizers. 4. 2.PUBLIC SURVEY ON PROBLEMS AND THREATS FACED BY WESTERN FAST FOOD Many people had their own opinions on which problem threatens the western fast food industry the most in Pakistan. One of the major issues was the health factor as the point of well balanced diet is highly disputable in terms of fast food. pic Many people believe that the most important threat faced by western fast food franchise is the security. Most franchises are of American origin, and hence the on going war on terror hugely affect Pak-US relations. Also, any instabilty in the political system can turn the franchise into victims of vandalism.A large propotion of people also expressed that the vast local food industry challenges the strenght of the western fast food franchise. They argued that since local foods are cheaper, few people can afford western fast food. Those who argued for global crises claimed that the recent inlet can make western fast food unaffordable. 4. 3. HEALTH FACTOR AS A THREAT pic A legal age of people agreed that the main rival to KFC, McDonalds and Pizza Hut is the more better menu of resistance. Subway offers a large variety of healthy meals with heavy vegetable and protein content as compared to other franchises.Hence Subway is a major threat to the business of thes e franchises. pic This survey on health was again conducted, but from a different angle. KFC and its fried chicken, which is highly oily, was considered appropriately as the most unhealthiest restaurant. However, in this second survey most people also argued that the many sauces used by Subway in its sandwiches contain large fat contents, so Subway may not necessarily pose a huge threat to the other franchises. 5. GENERAL CONSUMER RESPONSE In this report, research was also conducted on factors which compell the people to dine in these western fast food franchises.For this purpose we would like to like to categorize people as follows i) first base syndicate people ii) Middle category people iii) High category people Their responses are i) Low category people- These people eat fast food very seldom. They visit fast food restaurants only at special occassions,as it is not that much easy for everyone to afford the quality food provided by the western fast food franchises like KFC, Mc Donalds etc. Some of these people dont want to waste their money on fast food, and rather have food at their own homes. besides this, these people are also not habitual of fast food.They are not encouraging the fast food business in Pakistan. Even if fast food has been banned in this country, these people wont be affected in any way. ii) Middle category people- These people consume fast foods on a consistent basis. It depends upon the status factor. Many people like to boast about having dinner in a foreign and branded restaurant. They eat out in these restaurants once or even double in a week. They pay a valuable response to fast food as they look for quality food and this response encourages the western fast food franchises. iii) High category people-The people in this category have fast foods very often. They not only look for quality foods but they consider it as a means of having fun with friends. The rude(a) ambience of these restaurants is also a major attraction to them. N o matter how high the prices of food items at western fast food franchises go, these people are invariably ready to pay. They are helping to ontogenesis the trend of fast foods in Pakistan, which unquestionably encourages their business. Besides these categories there are also some health conscious people (as discussed previoulsy) who donot want eat fast food because of fat contents in these fast foods.Such people can be found in all categories discuused above. Reasearch on most important factor for eat in a western franchise fast food is as follows pic The matchless quality of food offered by the western franchise fast food restaurants is the main factor of attracting people. Fast food is also widley considers to be tasty, as proved by the above consesnus. The price of food at these restaurants is also significant when opting to dine there. A very few people just dine in these restaurants because of the ambience and its attractiveness. The following is the survey on peoples pre ferences of various fast food franchises picMost people, particularly here in Karachi, prefer to dine at Pizza Hut. It is the different variety of pizzas offered that has given Pizza Hut its widespread popularity. Also most Pakistanis generally enjoy heavy diet, and pizzas fulfill this desire. As seen above, very few people enjoy the light delicacies offered by Subway. Chicken constitutes in the basic diet of people here, and it is no surprise to see KFC score 31%. 6. CONCLUSION In culmination, we would like to cease that the establishment of western fast food franchises in Pakistan has and so proved to be a favored business endeavor.The economic and social contributions exceed the threats they face by a greater margin. With greater and successful planning, the western fast food franchises can easily smirch their threats and problems. Doing so can speed their progressive activities in Pakistan. We can also conclude that the general public response to these franchises in Pakist an is positive and many people are willing to dine at these franchise restaurants because of they high quality and standard they deliver. 7. QUESTIONNAIRE licence Food Chains in Pakistan Questionnaire 1. distinguish below the income band you fall under o Rs. 5000-10,000 pmo Rs. 10,000-20,000 pm o Rs. 20,000-40,000 pm o Rs. 40,000 & above pm 2. How often do you dine out in a month o Once o Twice o Thrice o Never 3. Do you prefer Pakistani restaurants or western franchise? o Pakistani o Western 4. For western, kindly rate the following restaurants according to your preferences on a scale from 1-5 (1 being the highest) o KFC_____ o Pizza Hut_____ o Subway _____ o McDonalds _____ 5. What are the factors you consider most important when dining out in a western franchise? ( wander from 1-5, 1 being the highest) o Price_______ o Ambience_______ o Status Quo_______ o Taste_______.o Quality_______ 6. Do you think western franchise in food industry is bringing good investments in Pakista n? o Yes________ o If No, then why? 7. In recent years do you think that the more health oriented approach of people has affected the franchise food industry o Yes o No o Not sure 8. Do you agree that Subway offers a healthier alternative to fast food? o Yes o No o Not sure 9. Rank on a scale from 1-5 (1 being the highest) the most important contributions of fast food chains in Pakistan o calling Opportunities ________ o Investment/Revenues ________ o Social Progress ________ o Cultural switch ________.10. Has the political situation in Pakistan drastically affected franchise food business o Yes o No o To some extent o Not sure 11. What are the factors that can occlude the growth of Franchise food industry in our country? o political Instability o Global Crisis o Security Concerns o Local Food industry o Others, Please speciate 12. On a scale of 1-4 (1 being the highest) rate the restaurants which offer the healthiest food. o Pizza Hut _______ o Subway _______ o McDonalds ______ _ o KFC _______ 13. According to you what percentage of the urban population consumes franchise fast food? o 60%-40% o 40%-20%.o 20%-10% o less(prenominal) than 10% 9. BIBLIOGRAPHY WEBSITES corporeal Webpage of McDonalds. McDonalds Corporate. 2004. Mar. 2005. . Corporate Website of Pakistan McDonalds. McDonalds Pakistan. Aug. 2002. Mar. 2005. http//www. fratfiles. com/topics/kfc+pakistan/0 http//www. fratfiles. com/essays/55556. html http//en. wikipedia. org/wiki/Fast-food_restaurant http//answers. yahoo. com/question/index? qid= http//www. fratfiles. com/topics/pizza+hut+pakistan/0 1Reference http//en. wikipedia. org/wiki/Fast-food_restaurant 2 Refer.ence ? Corporate Website of Pakistan McDonalds.McDonalds Pakistan. Aug. 2002. Mar. 2005. 3 Reference http//www. fratfiles. com/topics/Corporate Website of Pakistan McDonalds. McDonalds Pakistan. Aug. 2002. Mar. 2005. 4 Reference http//www. fratfiles. com/topics/kfc+pakistan/0 5 Reference http//www. fratfiles. com/topics/pizz a+hut+pakistan/0 6 Reference Corporate Website of Pakistan McDonalds. McDonalds Pakistan. Aug. 2002. Mar. 2005. 7 Reference http//www. fratfiles. com/topics/kfc+pakistan/0 8 Reference http//www. fratfiles. com/topics/pizza+hut+pakistan/0 9 Reference http//www. fratfiles. com/essays/55556. html.