Study On Restaurants in Vadodara - Strategic and Comparative SWOT Analysis Between Fine-Dine and Fast-Food Restaurants
Study On Restaurants in Vadodara - Strategic and Comparative SWOT Analysis Between Fine-Dine and Fast-Food Restaurants
Study On Restaurants in Vadodara - Strategic and Comparative SWOT Analysis Between Fine-Dine and Fast-Food Restaurants
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Abstract
In today's competitive business world, there is an intense competition between different types of food joints. The
businesses are all in a race of gaining more and more customer for their food joints. The new trend and tastes develop among
the consumers on frequent bases.
These days, trend for Fast-Food has boosted up and there is a mammoth increase in Fast-Food outlets. As a result,
other fine dining restaurants experience immense threat and competition in the restaurant industry and market.
This research paper includes the threats and opportunities that a fine dining restaurants suffer with the emergence of
fast food chains in Vadodara. Different parameters to judge and understand the consumer behaviours and determining
strategies which are used to attract customers by fine dining restaurants have been studied. It gave an idea about the
essential factors that are required now a day for an eating joint to attract customers in this competitive world.
Key Words : Restaurants, Fine-Dining, Fast-Food, SWOT
1. Introduction:
1.1 Definition:
A Restaurant is an entrepreneurial business where foods and drinks are served to customers in return for money, either
paid before the meal, with a running tab, or after the meal. People take meals which are generally served and eaten on
premises, but now a day's restaurants not only offer food and meals but also give food delivery services. In today's world the
concept of restaurants vary greatly in manifestation and offerings, customer tastes and priorities, including a large variety
of the main chef's cuisines and service models.
Restaurant word is derived from Restorer which means to restore and refresh which was first used in 18th century. In
ancient Rome, thermopolia, which were small restaurant- bars which served food and beverages to its customers. Thermopolium
usually had L-shaped counters into which large storage containers were sunken with sizzling or cold food.
In China's northern capital ,Kaifeng, for the period of the Song Dynasty (960-1279)AD food service establishments
also existed. The idea of tea house gave the origin of food service establishment which grew into an industry catering to
locals as well as people from various parts of China.
The modern restaurants originated in 18th century in France, although there are traces of public eateries since ancient
Rome and China. Restaurant in Rome originated from, restaurer which means "to restore". First ingestion house was time-
honoured in Paris in 1765. The proprietor was said to be a shop vendor.
Early days restaurant establishment were not so delight and many of them did not even have the basic sitting eating
concept i.e., tables to sit and eat. Thus those were the places where people could come in simple rooms and consume meals
to regain their energy especially if they were not feeling well or were weak. They were just a mere restaurant establishment
a place to eat and go away.
1.2 Classification of Restaurants
A huge variation has come forward today which classifies restaurants on a large scale with different needs and wants.
Restaurants are divided from a very expensive fine dining establishments to small scale establishment providing meals at
affordable prices. They are also classified based to the type of meal or cuisine they serve, taste and preference of the
customers, more importantly the current fantasy running in the market.
Today people became more sophisticated and the food offered and served has a strong effect on consumer 'perception
and so the classification is done. The prime factors are usually the food and drink itself; the cuisine and the style of offering.
1.2.1 Restaurants can be classified into the following categories.
• Bistro - A comfortable and small restaurant which also has the permit to serve wine.
• Brasserie - Usually not expensive but small restaurant which serves beer and wine as well as food.
• Brewpub - A combination of brewery and restaurant; here the beer is brewed for consumed on the premises and
served along with food
• Cafe, Coffee Bar, Coffee Shop, Coffeehouse - Beverages and Snacks are selling small restaurant
• Cafeteria - Self-service and paying restaurant
• Canteen - An establishment in a office, institution, factory etc. where employees can eat
• Mobile canteen, canteen - A restaurant on wheel outside; often for soldiers or policemen but now a days' serving
to general public in market at low price limited meals.
• Diner - A restaurant that bear a resemblance to a dining railway wagon or car.
• Greasy Spoon - An undersized restaurant which specialises in short-order fried foods.
• Grill, Grillroom, Barbecue - A restaurant where foodstuff is cooked on a grill.
• Hash House - An easy on the pocket restaurant
• Lunchroom - A restaurant in a provision, where lunch be capable of be purchased
1.2.3.1 Organized
• Multi-Cuisine Restaurant: Multi-Cuisine restaurant is an arrangement outlet which caters and offers to a wide
range of customers with variety of food & beverage of different ethnic group, nationalities, cultures, etc. It also
employs a specialist chef for each cuisine and may have separate sections for each cuisine. The chefs have good
and authentic knowledge about the cuisine and the dishes s/he creates as well as how its served in the native
land. Consequently a Multi-Cuisine restaurant is an concern which serves various cuisines like Indian, Italian,
Chinese, Thai, Mongolian, Continental, etc under one roof.
• Fine Dining Restaurants: Fine Dining restaurants are expressed as food and beverage business which provide
high quality food & service. Employees of these restaurants are highly skilled and use the best of supplies,
equipments and materials whilst operational. The standards of hospitality of these restaurants are ordinarily best
in standard and at the level of best star hotels. The décor, ambience & background, music, light etc. bestow a
comfortable, lavish & luxurious feel to dinner. The crockery & glassware, cutlery etc. used are of high quality.
Chefs of such establishments are innovative & creative and enough qualified. Fine-Dining restaurant normally
have some rules whilst dining at the edifice, for example dress code. Usually a la carte styles of service are
followed Fine-Dining restaurants, to provide a luxurious feel to its guests. Hence Fine-Dining restaurants provide
experience, not only a meal. Simply, these are establishments which serve a variety of cuisines with high quality
of food & service in a very well decorated, lavish and luxurious environment, employing proficient and specialists
for preparation, service and delivery, and maintain high quality standards.
• Fast-Food Chains: As the name itself suggest, Fast-food restaurants emphasize on speed of preparation and
service. Business range from small vendors, mobile-windows to multi-billion Rupees corporations like McDonald's
and Pizza Hut, Dominos' etc. Generally in these facilities, even if table seating is available, ordering is from a front
counter instead of from the table. As these are self-service outlet, Diners mostly are served themselves by
customers/guests.
• Kiosks: A kiosk is an open window on one side, local, unorganised retail food point/booth selling consumables
like: Sandwiches, Burgers, Grilled-items, Dosa and Curry, Chinese etc. containing Cold-Drinks and Cigarettes
sometimes. These are generally located inside and outside the compound of malls in Vadodara, Eg; Vadodara
Central Mall, Centre Square, More Mega Mall etc.
• Bars & Lounge: Bars are places where one can sit and enjoy different types of drinks, specially liquors'.
Generally alcoholic drinks are sold at these places, with entertainment factors like: jugglers, pianist, Band etc.
1.2.3.2 Unorganised
• Road Side Vendors: Road side vendors sell the food items at a specific place. They have fixed decided place from
where they sell the items from their carts but can move completely according to situation. They can be found on
Traffic Signals, Circles or Crossings nearby railways, roadways, parks, offices, courts, etc.
• Hawkers: A hawker may stationary or mobile, often promote by loud street cries or chants, and conduct banter
with customers, so to ttract attention and increase sales.
2. Motive behind Study:
2.1 Current Vadodara Market
This paper mainly focuses on restaurant business stressing upon comparison between Fine-Dining and Fast-Food
facilities which are very competitive and attracting dominantly large companies.
The growth and development of this city is the basic reason to do the research on this issue. People of Vadodara are
with diverse nature, culture and tastes and it occupies the large area of over 148.95 km2, and a residence of over mammoth
16, 66,703, provides me an opportunity to study the topic in a advanced and systematic manner.
Vadodara is continuously expanding large market for fast food with big giants like McDonald's, Subway, Pizza Hut, and
Dominos & KFC. Young populace in Vadodara get attracted to these places which are the major competitors for a fine dining
restaurant. Local restaurants which are a unique blend of fast food, local cuisine, South Indian cuisine and Chinese all under
one roof act as a major share of the market. These restaurants also provide meal plans at competitive rates to attract and
retain customers which are their basic objective. A few known establishments of this area are Havmor, Kalyan, Hot Bite,
White Potato, etc.
Vadodara also embrace Fine-Dining restaurants like Multi-Cuisine restaurants like Barbeque Nation, Main Land China,
Azure, TGB, My Restaurant, Rangoli etc. Food courts have also presence as a part of this market which's concept is very
similar to the ones present at shopping malls. Food courts possess stalls by different restaurants providing variety of
cuisines. Vadodara take account of various canteens and mess which provides a full meal to its customer, which mostly
consists of simple Indian food like daal, rice, rotis, subzi at a fixed and very reasonable price.
When it comes to breakfast, it is still a blue ocean out there. Globally, it is a popular concept but in India it is still to catch
on. "Consumers are eating out nearly six to seven times a month as per our research, as lifestyles are hanging. There is a huge
opportunity for us as we are targeting people on the move," McDonald's has about 300 stores across India in formats
including drive-through, full menu restaurants and kiosks.
- (Vikram Bakshi, Managing Director, Eastern Region, McDonald's India, 2014)
The entry of McDonald's in 1996 marked the beginning of the QSR concept in India. Many global brands have followed
suit since then, either through company-owned stores or the franchisee model, or a mix of both. Over the past 5-6 years,
many Indian QSR brands have also mushroomed across the country, serving either foreign cuisine or adapting Indian
cuisine to the fast food service format. This helped the Indian QSR market to expand rapidly to about Rs 34 billion by 2012-
13. CRISIL Research expects this strong growth to continue over the next three years, as global brands expand into smaller
cities. We expect the QSR market to reach a turnover of Rs 70 billion by 2015-16, growing at an average annual rate of about
27 per cent.
- (CRISIL Research, May 2013)
In today's competitive business world, the motive and objective of dining and fast food chain is not that simple, it is
always trying to attract and retain consumers with multiples and intense competition had entered in different kind of food
joints and the eaters is easily seen The restaurant businesses also are all in the race of gaining more and more customer with
the fact that the new trend and tastes frequently develop among eaters.
In present day, Fast-Food trend has boosted up and gargantuan increase in Fast-Food outlets is observed in Vadodara
too. Other traditional fine-dining restaurants are facing problems of attracting customers with the rapid growth in the fast-
food trends and opening up- of many Fast-Food restaurants at almost all the locations in Vadodara. From this it is easily
found out that the more and more customers are giving time on fast-food junctions than earlier, which may be resulting in the
decreased number of customers in Fine-Dining restaurants and also sometimes losing the customers or not may be a
research problem.
With the rationale of knowing the various eating habits of a consumer, to swot up on different opportunities and
threats faced by Fine-Dining due to the emergence of Fast-Food chains and, to find out and suggest possible solutions that
can bring occasion for both of the classes of restaurants, this topic was idyllic.
2.2 Research Methodology
The inhabitants of Vadodara who visit the restaurants were considered as a Universe for the study.
Sample Survey was the technique for collecting the primary data and information. The targeted Sample elements were
255 people, selected on the basis of convenience, which visited the restaurants frequently and surveyed.
The data collection tool was well constructed, tested and debugged Questionnaire in which 21 questions were asked
to the respondants from different eating joints and restaurants. Mainly Likert-Scale was used in the questionnaire among
different characteristics of restaurants.
Collected data were well tabulated through Excel and Word which helped to construct the necessary calculations and
diagrams. Mainly percentage and weighted average methods used for giving ranks.
3. Marketing Strategies and SWOT of Fast-Food Chains
Now days the Fast-food industry is extremely competitive and comprises large companies. Most of the companies
have various outlets in different areas of city, using many marketing strategies used to set up the chain stores.
3.1 Features: Self Service, Home Delivery, Standard Menu, No-Customised Service, Less Sitting Area, Heavy
Promotion using all types of Promotional Platforms, Tools and Methodologies.
3.2 Collectibles: Customers get attracted by fast food companies by realising collectibles, particularly those that
kids enjoy. Things related to movies like dolls, glasses or other mementos are distributed by companies. Until all
the collectibles are collected by the customers the fast food restaurant adopts these kinds of marketing strategies.
The popularly used theme in collecting the collectibles from the habitants is quite different from other restaurants.
3.3 Market Segmentation: Market segmentation is used as marketing tool by many small fast food restaurants in
Vadodara. Market segmentation is the process of finding out key buying groups and peers who are suitable and
preferred for ones restaurant for which information is largely obtained by means of the market research surveys,
focusing specially on demographic features like age, income and household size etc.
3.4 Loyalty Programs: Frequency is the most important constituent in loyalty programme by fast food companies.
So usually Frequency Card programs are popularly applied for fast food restaurants. People who often visit the
restaurant are rewarded based upon their frequency to come. For example, people who frequently come should be
given Free-Service like Drinks, Cup of Tea/ Coffee for First time where as Second time they are to be provided with
Starters, Snacks and Deserts kind of things. After this if it becomes habit for the people to come you and at that
time you can offer them Lunch or Dinner to be done with the suitable time frame like, 12 Visits repeatedly
quarterly/half-yearly etc.
4.2.4 Complementary Food Items: To promote some item/preparation or to offer spontaneous gift or on some special
occasions, some restaurants provide the customers with complementary food item along with the normal course
of meal.
Example: Saffron Restaurant provides the customer with "Khakhra" as a complementary item with unlimited
meal course.
5. Findings
5.1 The Distribution of respondent like 65% male and 35% female mainly from 20-50 years age group were surveyed.
The other demographic details like Income, Occupation, Marital Status and Family type-size were also surveyed
of which 100% visited restaurants but not informed here.
5.2 The frequency of Visiting Restaurants by all the respondents is reported in pie-chart below. Most of customers
visit restaurants monthly followed by weekly.
5.3 About 58% of people can afford 1 to 2 hours in eating in restaurants.37% of respondents afford to spend half an
hour to 1 hour in restaurants. There are 5% people who can also spend more than 2 hours in restaurants. But no
one spends less than 30 minutes in a restaurant.
5.4 Almost 78% respondents prefer to go to a restaurant in the evening time. 16% people visit the restaurants in the
night time. Only 6 % people go for lunch in the afternoon.
5.5 According to the survey, 49%of the respondents enjoyed going out to eat with their family. The next preference
was with friends which 30% respondents preferred. 6% people visited restaurants for business meets.
5.6 Nearly 69% respondents were fond of non-vegetarian food and 31% liked vegetarian.
5.7 When enquired about the types of service related to stay or take away at food points the amazing figure came out.
Now this is one of the main aspect in which one can decide whether the fast-food chain is a threat or not.
Dining was preferred by a mammoth of 85% of respondents. While Home Delivery and Self-service which
are considered to be the main features of fast food outlets were altogether preferred only by 13% of the respondents.
Also only 2% people preferred take away food facility. As a result one gets a hint that fast-food chain does not
behave like a threat to fine dining restaurants.
5.8 It is clear that the customers as respondents have mix choices related to every types of food served at food points
but at the same time, respondents prefer Punjabi food mostly followed by south Indian, Chinese, and Guajarati.
Thanks God Fast Foods come above the continental foods.
5.9 It is observed that respondents value most to Quality then Service, Variety, Ambience, Convenience and Parking.
Price is the least important factor of influence when selecting the food point as restaurant or fast food chain.
5.10 Reasons behind respondents go out for food are ranked as 1st Good Food, 2nd For Some Event, 3rd to Hang-out,
4th for Business-meet, and 5th avoiding Cooking.
5.11 It was observe that 46% of respondents were influenced by their friends to visit the restaurant or fast food
chains. 26% of the people were influenced by their children. 15% and 12% of respondents were influenced by
their spouse and parents respectively.
5.12 Major Eight Restaurants in Vadodara were asked then Challenges they consider to survive and growth and the
Factors they consider for attracting more customers. The comparative response on the respective 5 and 6 point
scales are shown under below.
6. Conclusions
From all of the above factors, research, survey, interpretation and analysis some conclusions in accordance with
different aspects and parameters can be seen below.
6.1 Theoretical Aspects
6.1.1 Vadodara city has more than 21 lacs population. Seeing to this digit, every restaurant; be it a Fast-Food outlet or
Fine-Dining restaurant has an equal opportunity to boost their sales.
6.1.2 The first problem fine-dining restaurants faces are that it does not have much scope of marketing as it incurs huge
cost. Secondly if it is not a franchisee then the problems of economies of scale arise.
6.1.3 Considering the edge of fine dining against the fast-food chains then it has various points.
a. It has a large variety of menu available.
b. Unlike fast-food outlet, it can innovate and restructure itself.
c. It has better team management than fast-food chains.
So, looking at this aspect we can come up with a statement that, though there are some threats and
problems in opening up a fine dining restaurant, one can still overcome these problems and thus it has an edge
over fast-food chain in case of theoretical prospect.
6.2 People's Voice - Survey and Analysis Aspect
In a survey conducted with 255 respondents, the following outputs that can help in throwing light towards
the topic's conclusion:
6.2.1 On the basis of duration of time spending this can be concluded that Fast-Food Chains are less preferred against
Fine-Dining Restaurants.
6.2.2 On the basis of timing of outing it can be say that, Schemes of Morning breakfast menus of fast-food outlets like
Mc Donald's, Subway etc. can attract the consumers but not for Dining much.
6.2.3 As Dining was preferred by a mammoth of respondents over Home Delivery and Self-service, one gets a hint that
Fast-Food Chain does not behave like a threat to Fine-Dining Restaurants.
6.3 Entrepreneur's Voice - Interaction with Restaurant Owners
6.3.1 Quality, Service, and Hygiene factors give Fine-Dining Restaurants edge over the Fast-Food Restaurants which
lack in these areas.
6.3.2 Main problems according to the owners is the increasing number of competitors in Fine-Dining where increasing
number of Fast-Food Joints also cannot be ignored and continuous Change in Consumer's Preference along with
High Cost of Production.
6.4 Finally there is no threat to the fine dining restaurants against the fast-food chains as per now. There may be
some small difficulties but those difficulties are negligible and thus they can be overcome.
Reference
1. http://www.academia.edu/3559289/to_analyse_the_consumer_behaviour_in_the_Indian_fast_food_industry_a nd_
investigating_the_factors_that_could_influence_their_buying_behaviour_towards_particular_brand
2. http://www.manipal.edu/institutions/hotelmanagement/wgshamanipal/cehtr/documents/avirup%20-%20fine%2 0dining
%20multi%20cuisne.pdf
3. https://www.census2011.co.in/census/city/338-vadodara.html