Анализ рынка "Fast Food" в России

INTRODUCTION
1 GENERAL CHARACTERISTIC OF A FAST FOOD MARKET
1.1 Creation and development of a fast food (fast food)
1.2 Current condition of fast food in Russia
1.3 Franchise as the new concept of development of fast food
2 SEGMENTATION OF MARKET
2.1 General characteristic of fast food market
2.2 Segmentation of the market
2.3 Price policy
2.4 Competitive environment
2.5 Product promotion on the market
2.6 Development prospects of fast food in Russia
3 PROPOSAL FOR ACTIVITY OPTIMIZATION ON AN ENTERPRISE EXAMPLE
CONCLUSION
THE LIST OF LITERATURE

Анализ рынка "Fast Food" в России

Fast food restaurant’s offer customer self-service: clients stand in a queue in cash desk. At democratic restaurant waiter serves clients. The menu is laconic and limitated (a maximum of 20-20 basic dishes). Democratic restaurants menu is about 200 names.
Profitability of some fast food restaurants is presented on picture in comparison.
Pic. 2.2.3 - Fast food restaurant profitability, %21
2.4 Competitive environment
Nowadays the market strongly fragmented, a considerable share is occupied with single institutions of public catering. According to results of research in 2009 in the largest cities Russian and international networks of institutions of public catering were 393 (3 and more institutions uniting under one brand), and 10 largest networks made up about 30 % of total amount ofnetwork institutions of the public catering working in Russia.
There are some systems of the fast food enterprises have already operated in Russia.
Though "McDonald's" is the first who has stepped into the Russia, but the classical franchise in fast food sphere was brought by Subway American fast food operator. The first Subway has opened in the USA in 1965. Today this network totals more than 27000 restaurants in 86 countries of the world. Network Subway develops with tremendous speed - more than 1000 new restaurants open annually in the world, using advantages franchise schemes.
In Russia Subway is positioned as fast service systems with basis menu are sandwiches and salads. This network is developing since 1994 exclusively on a franchise, and it is engaged by Subway Russia Franchising Company. Now there are 39 enterprises of fast service in the Russian network Subway: Moscow, Moscow suburbs, St.-Petersburg and large regional cities.
Franchise Subway stands out for 20 years on the concrete address of one sandwich-type. Cost of Subway franchise is $12 thousand, and organization of one sandwich-type cost $120-200 thousand and a premise cost 100-150 sq. m, provided with the electric power, water and the water drain. Franchisee Subway pay to the head company monthly a royalty 8 % from a gain, and also payments in advertizing fund – 3,5 % from a gain. Average term of return of investments is 2 years.
The menu of Subway assumes not less than 15 various cold and hot sandwiches, the same quantity of salads and "rolls", hot and cold drinks. All dishes prepare within sight of the buyer, with use of qualitative products and fresh vegetables. Bread for sandwiches is baked directly in a hall. The system doesn't use hot kitchen and doesn't demand a special extract.
There is a certificated educational center In St.-Petersburg where franchisee and managers preparation for Russia, the CIS countries and the former socialist countries. Franchisee has possibility to receive the equipment for an opened institution in leasing.
Since 1994 first fast food restaurant GRILLMASTER has started to work in St.-Petersburg. The owner of a brand is the German fast food restaurants network GRILLMASTER SYSTEM. Since 2003 master franchisee GRILLMASTER SYSTEM in Russia is the company "Grill of Master-Moskva", based in Zelenograd. Its license powers extend, except Russia, to the CIS countries, Latvia, Lithuania and Estonia. In Russia "the Grill of Master-Moscow" has opened on a franchise 11 restaurants GRILLMASTER in different cities.22
Concept GRILLMASTER is a family fast food restaurant. The assortment of dishes includes firm baked pork fores hanks, German hamburgers and sausages, a hen-grill, shish kebabs from pork and a hen, stakes from fish, hot dogs, a pizza, French fries, salads, confectionery, ice-cream and cocktails, juice, tea, the coffee, the aerated drinks, some grades of beer on draft. For children at restaurant the game room is provided.
Lump-sum payment for GRILLMASTER franchise is $15 thousand. It is required $120-150 thousand investments for opening a restaurant by the area of 250-300 sq. m. This sum are necessary includes expenses on working out of the technological project, delivery and installation technological and a refrigerating machinery, POS-terminals, the software, a bar counter and furniture, personnel training. Overall payback period is 2-3 years. Franchisee gets constant consulting support from the head company. Franchisee monthly pays the companies "Grill of Master-Moskva" a royalty: 500 euros plus 3 % from restaurant total receipts.
Today more than more than 1000 Italian restaurants "Sbarro" work in 30 countries, more than 600 is a franchise. Since 1997 the Russian firm "Brazers and the company" is exclusive franchise networks of the Italian fast food restaurants Sbarro in Russia. During this time it iwas opened more than 100 restaurants in the Moscow region, St.-Petersburg, Kazan and other Russian cities. The brand of "Sbarro" became widely known to the Russian consumers and associates with qualitative and tasty dishes for reasonable prices.
The menu of Sbarro restaurants consists of more than 500 various dishes, over 50 kinds of a pizza, 150 names of hot dishes and paste, more than 30 various salads, a wide choice of desserts and drinks.
Franchisee gets access to the unique system intended for designing, building, opening and operation of Sbarro restaurants. Franchiser offers two concepts of Sbarro restaurant: with buffet or without buffet. The total amount of the investments necessary for opening is an order $550 thousand, including a payment for the franchise ($40 thousand). The necessary investments is about 250-350 thousand USD for food court. All expenses are necessary for preparation of restaurant to opening are included a lump-sum payment, designing, repair and premise furnish, purchase, delivery and installation of equipment and furniture, personnel training.
"Brazers and the company" as franchiser strictly observe of corporate standards of conducting restaurant business in a network "Sbarro", applying for this purpose various ways of control for franchisee.
Since 1993 the Russian corporation "Rostik Groups" developed a network of public catering under own brand "Rostik’s". Today more than 100 corporate enterprises work in different cities of Russia. But in 2005 corporation "Rostik Groups" and the world's largest restaurant company Yum! have created a strategic alliance to become leaders in the market of the fast service enterprises in Russia and CIS countries. Enterprises opened on the basis of the license agreement. To work under a new brand the investors having financial resources and skills began to be invited.
Requirements to premises of " Rostik’s -KFC" depending on an enterprise format. It is 250-450 sq. m for the built in premises (in line) on 1st floor of the structure located in brisk streets of big cities. Investments for opening in line is from $400 thousand. Is necessary premise of 90-110 sq. m in the main shopping centers or large entertainment complexes for a restaurant court yard (food-court) format. It is required from $250 thousand for opening of a restaurant court yard.23
The third format is a separate premise (drive-through) the area of 250-400 sq. m, located near to the trading and entertaining centers, in densely populated city area, on the basic transport highways. There should be a parking at least on 30 cars. Investments into a similar format is from $900 thousand.
The lump-sum payment of the company-franchisee is $40900 (without the VAT). The size of a royalty and marketing deductions is accordingly 6 % and 5 % from monthly turn. The contract consists for 10 years with prolongation possibility for the same period. Franchiser gives to partners access to corporate contracts on equipment and raw materials delivery, business dealing standards, consultations, training.
There is some kind of champions of expenses for the business organization among domestic fast food franchising. The franchise of fast food restaurant "Edok" is such kind of company.
Company "Syntagma groups" is the leading supplier of the equipment for trading enterprises and public catering in the Nizhniy Novgorod and Chelyabinsk during 15 years. The company develops own network of fast food restaurants "Edok" since 2003. All of them are located in large trading and business centers. Restaurants are constructed by a principle free-flow with set of seats, a line of distribution and a transport tape for gathering of dirty ware. In daily assortment of restaurant is about 50 dishes, snack, salads and garnishes, 40 names of a batch and desserts, drinks and ice-cream. Dishes prepare only from fresh products, semifinished products aren't used. Edok" target audience isf 18-45 years old. The average check is about $10.
"The syntagma groups" invites partners which do not have experience in sphere of a public catering. Cost of the Edok franchise is 300 thousand euro. Besides, franchisee monthly pays to the head company for advertizing 1 thousand euro and a royalty 6 thousand euro under the contract. For the organization of restaurant a total area of 900-1000 sq. meters (on 160-200 seats) and 1 million euro are required. An important condition "the Syntagma of groups" is that the future restaurant shouldn't have large competitors in radius of 1-1,5 km.
Prospective monthly average turn of Edok restaurant is 100-150 thousand euro, and profit for the same period is 20-30 thousand euro. Payback period is 4-5 years.
Certainly, fast food is for large business. Small and average business are interested in modest projects. Such, as, for example, the franchise network Teaspoon that is offered by Petersburg holding company "Teaspoon". The company is created in 2001 and today consists of 46 in St.-Petersburg and 9 in regions (Moscow, Petrozavodsk, Tver, V.Novgorod, Perm, Novosibirsk, Kaluga) factory and office.
The teaspoon uses the high technologies of the organization of a fast food that allows to duplicate repeatedly tea not only in St.-Petersburg, but also in any other city of Russia, and abroad. The basic assortment includes three groups of products: pancakes with stuffings (19 kinds), salads (10 kinds), tea in a teapot (15 kinds). The network "Teaspoon" actively develops: in plans of the company opening more than 300 across all Russia.
Nowadays Teaspoon’s franchise costs $30 thousand, and the organization of one tea will cost $200-250 thousand. Franchise is given for a period of 10 years. The royalty is 5 % from a monthly gain. Deductions in advertizing fund aren't present. The premise is comprehensible. The area of 150-350 sq. m with ceilings not less than 2,9 m, corresponding to the sanitary code (an electricity, heating, water, the water drain) is required. The premise can settle down both in a separate building, and in a trading complex. Experience of operating tea testifies that the similar project pay back for 2,5 years.24
Kroshka-Kartoshka
Kroshka Kartoshka: the ultimate potato
This is the one fast food chain in Russia that has it all: it isn’t a franchise; it serves type of food offered by no one around the world; it’s 13 years on Russian market and is now spreading to Ukraine.
You can find these all around Moscow either at palatkas by metro or within food courts. What adds even more credits to this chain is that it has nothing modern fast food gets blamed for. It’s impossible to imagine anything on the menu cooked from genetically modified products or on a lot of oil. Salads and fillings look natural and actually taste well; potatoes are baked in foil in iron stove just there, on the spot.
On the menu: potatoes baked in foil, 20+ types of salad fillings, meat and vegetable pies, sandwiches (not hamburger-style ones). As for Russian specialties, there are vareniki and couple of soups: borsch and okroshka (Russian traditional dishes’ recipes will be published at B&V very soon). As for beverages—they offer traditional sodas plus kvass and beer.
Another Russian food dealer is ‘Teremok’. They are leading in a different type of food: Russian pancakes and porridges. And they have them galore and of highest-quality. There are a lot of porridges too: from sweetest Gurjevskaya porridge with honey and jam to the ‘Greek’ porridge with bacon, sheep cheese and dill. The pancakes are baked on the spot both in standalone restaurants and moveable kiosks—so it’s quite something to see.
As for drinks, under this brand they also make some old-style Russian drinks: kvass, birch tree juice and mors (a specially cooked berry juice). Except for them, of course, ‘Teremok’ offers the traditional range of sodas. One lovely trait of their corporate culture: all the cashiers address to the customers in old-Russian style: cударь, сударыня (soodar, soodahreenya).
‘Teremok’ isn’t the only one serving this kind of food but it by far is the most high-quality. His followers offer the same range of dishes but something is always not enough to call it a tie with ‘Teremok’, either high price in ‘Raspekay’ and ‘Ladooshki-Oladooshki’, or incomprehensible choice of dishes on the menu in ‘Melenka’, or low-quality service in all three of them. So Teremok is ahead, and way ahead.
Stardogs
Even though hotdogs by no means are traditional Russian cuisine, the high quality and almost no competitors supplied ‘Stardog!s’ with a lot of customers support and high profits. It is the only reliable place in Moscow to get your hotdog. What is shocking, is that this fast food chain has been existing in Russia for 17 years now! And it is very high quality and not overpriced either. And you can find one almost next to every station of Moscow metro which is very convenient—the basic feature of any successful fast food chain.
2.5 Product promotion on the market
In a competitive industry promotion may simply constitute a zero sum game in which participants battle over shares of market and not, in fact, increase the size of the market as a whole.
Empirical research generally supports arguments as many studies using aggregate, time-series data have shown that advertising primarily influences market shares and has little effect on aggregate consumption. In the fast food case, statements regarding the aggregate impact of fast food advertising and promotion have not been varied or refuted by careful academic research.
In doing so, company take into account many unique features of fast food demand. First, nutritionists, economists and marketing researchers have shown that fast food consumption is likely to be habitual. Second, fast food restaurants and the foods they sell are highly disorientated.
Given the importance fast food marketers place on product innovation and menu disorientation, an attribute-based approach to modeling the demand for fast food
is a logical one. Richards, Hamilton and Patterson estimate an attribute-based model of fast food pricing, but without quantity data cannot comment on impact of price promotion. T the choice of a fast food restaurant and decision regarding how much to purchase are more appropriately modeled in a three-stage, discrete / continuous choice framework.
In the firrst stage, the consumer decides whether to consume fast food or not. If the consumer chooses fast food, in the second stage he chooses a restaurant based on a number of factors: location, reputation, food quality (or taste), service quality, facilities for children and a host of other unobservable factors. The third stage, or how much to order, depends on another set of potentially overlapping factors, including the restaurantt’s marketing strategy and nature of their food. Chiang, Chintagunta and Nair, Dube and Chintagunta each estimate models of discrete continuous choice based on an approach proposed by Hanneman and showthat it is possible to use the resulting parameter estimates to decompose demand elasticity into purchase incidence, brand choice and purchase quantity. Fast food promotion strategies do indeed have an impact on category demand, and not just restaurant share. In fact, when measured by incremental units sales, and not just contribution to elasticity, a price change or promotion primarily influences fast food demand and has relatively little impact on market share.
While members of the fast food industry argue that they are competitive that most of the impact is dissipated in competitive rivalry, disorientation from bothspatial (food attributes) and temporal (brand loyalty) sources means that consumers tend to substitute very little among restaurants. Therefore, promotion tends to increase the total amount of fast food spending. Clearly, this result has significant implications for the design of potential price-based policies intended to influence fast food consumption as well as proposals for more intrusive policies regulating fast food promotion directly.
For the fast food restaurants it is a great value a presence of the so-called "anchor" providing a constant customer flow. Basically the competition among victualers follows the place-arrangement that is one of key competitive advantages. Today there is no common opinion, what concept will be the most successful and what efforts should be put for advancement of services. Today's experience shows that the most different concepts can be the successful. To generate uniform streams in dormitory areas very difficult, therefore it is necessary to be arranged under it. Besides, necessity will increase in dormitory areas in «cafe near the house», the groups of regular customers focused on formation, and some large network institutions (for example, McDonald's) erect in dormitory areas commercial real estate especially under the requirements.
To stand out from their competition in a crowded advertising marketplace, fast food restaurants force to reach their mutual market of "customers" more efficiently. Their cross-promotions include "bundled" offerings, cause marketing, co-branding, coop marketing, and shared space. Cross-promotion has the potential for a big marketing payoff because partners can successfully expand through one another's customer base. They can gain an inexpensive and credible introduction to more of their kind of customer more effectively than with the traditional "solo" methods of networking, advertising, or PR.
There are low-risk and high-opportunity ways of cross-promotion.
1. Print joint promotional messages on your receipts.
2. Offer a reduced price, special service, or convenience if customers buy products from you and your partner.
3. Hang signs or posters promoting one another on your walls, windows, or products.
4. Mention one another's benefits.
5. Drop one another's flyers in shopping bags.
6. Pool mailing lists and send out a joint promotional postcard.
7. Promote partner's products during their slow times, and ask them to do the same for you.
8. Share inexpensive ads in local shopping papers or a nonprofit event program.
9. Give a joint interview to local media.
10. Put one another's promotional messages on floor stands in waiting areas.
11. Encourage staff to mention how partner's products can be used.
12. Give partner's product to customers when they buy a large quantity of product, and ask your partner to do the same.
13. Use door hangers, posters, flyers, or postcards to promote special offers for one another's products.
14. Co-produce an in-store or office event - a demonstration, celebrity appearance, free service, or lecture.25
Recently for fast foods promotion innovative approaches begin to use. For promotiont following methods are used:
On-screen: any entertaining variants of promotion with use of screens:
a SMS chat with translation on the screen,
interactive games and quizes,
photocompetitions.
Information SMS mailings to visitors of irestaurants: convenient and service of mailing of SMS notifications completely operated through the Internet for constants and not only visitors.
The Mobile menu: suggest the potential visitors to learn more about an institution: to see the menu, photos of interiors, to read announcements of new dishes or offers, to learn about special actions."