HR policies within f & b department of fast food outlets

Project Report Submitted to Amrapali Institute of Hotel Management/Amrapali

Institute of Applied Science in Partial Fulfillment of the Requirement for the

Award of.

BHM Degree

By :Harish karayat

Under the supervision of Faculty: Mr. Amir Hussain

University Roll Number: 1694260040

COURSE : BHM-KU

BATCH: 2016 -2020

 Project Report on

HR policies within f & b department of fast food outlets

Project Report Submitted to Amrapali Institute of applied sciences in Partial

Fulfillment of the Requirement for the

Award of

BHM degree

By: Harish karayat

Under the supervision of Faculty Mr Amir Hussain

University Roll Number:1694260040

COURSE: BHM-KU

BATCH: 2016-2020

Submitted To: Amir Hussain

Date of Submission: ________________________

 UNDERTAKING

I declare that the work presented in this project titled HR policies within f & b
department of fast food outlets, submitted to the Amrapali Institute of Hotel
Management/ Amrapali Institute of Applied Science, Haldwani for the award of
the Bachelor of Hotel Management degree, is my original work. I have not
plagiarized or submitted the same work for the award of any other degree. In case
this undertaking is found incorrect, I accept that my degree may be unconditionally
withdrawn.

(Signature of Candidate)

Name: Harish karayat

University Roll Number: 1694260040

Date: ____________________
 CERTIFICATE BY THE GUIDE

This is to Certify that the Research Project entitled - HR policies within f & b
department of fast food outlets

is submitted by Mr HARISH KARAYAT of BHM-KU batch [B] is his own work

and has been done under my supervision. It is recommended that this Project be

placed before the examiner for evaluation.

(Signature of the Guide)

Name of Guide – Mr. Amir Hussain

Date: ________________
 Acknowledgements

I take upon this opportunity to acknowledge the many people whose

……………

I am deeply indebted to my mentor ………………….

I would like to thank ………………

I further thank to ………………….

I owe my sincere gratitude towards ………………….

My heartfelt thanks to ……………….

I also express my deepest gratitude to ………………….

Finally, I would like to wind up by paying my heartfelt thanks ……………

(Student Name)

Harish karayat
 ABSTRACT

This study reviews the human resource management practices of food and
beverage services. The performance is measured by the turnover rate for
managerial and non-managerial employees, labor productivity, and its return on
assets. This paper aims to review existing literature on HRM practices in the F&B
departments of hotels analyzing, the impacts of the framework of HRM practices.
This paper discusses the HRM practices model, and explains Cho`s HRM item`s
framework of HRM practices in the area of F&B and its application to Jordanian
hotels. The conceptual model suggests applications of the HRM practices in the
F&B department and encourages hotels to improve its management to better satisfy
their employees.similar across observations.
KEYWORDS- Human resource management practices; Food and
beverage services; Performance; Food outllets of india.
Fast Food Is One Of The World’s Fastest Growing Food Types. It Now Accounts
For Roughly Half Of All Restaurant Revenues In The Developed Countries, Where
It Continues To Expand. However, Some Of The Most Rapid Growth Is Occurring
In The Developing World; Where It Is Radically Changing The Way People Eat.
People Buy Fast Food Because It Is Cheap, Easy To Prepare, And Heavily
Promoted. Studies Of New Employees’ Socialization Have Gained Importance In
The Fast Food Industry In View Of The Demand For High Quality Service In This
Increasingly Competitive Business Environment. New Employees In The Industry
Are Unique In Terms Of Job Expectations. The Aim Of This Study Was To
Investigate The Unmet Expectations Of New Employees, And The Relationships
Between Unmet Expectations, Job Satisfaction And Organizational Commitment
In The Fast Food Industry. A Sample Of 203 Employees From The Industry Was
Collected. The Results Show That Expectations Are Normally Unmet, And Job
Characteristics, Training And Development, And Compensation And Fairness Are
Related To Satisfaction And Commitment.
 TABLE CONTENT

S.NO CONTENT PAGE NO.

INTRODUCTION TO FAST FOOD

1. 1.1 Objective of project.

FAST FOOD & ITS HISTORY

2. 2.1 What is fast food ?
2.2 Fast food industry overview.
2.3 Start of fast food industry.

3. HOW FAST FOOD INTRODUCE IN INDIA

3.1 growth of fast food in india.
3.2 India emerging market for global player

4. TOP 10 FAST FOOD OUTLETS OF INDIA

HUMAN RESOURCE STRUCTURE FOR FAST

5.
FOOD OUTLETS
5.1 Human resource structure for restaurant.

HUMAN RESOURCE POLICIES FOR FAST

6. FOOD OUTLETS
6.1 Why Your Restaurant Needs HR Policies.
6.2 What HR Policies Do we Need?
6.3 HR policies for restaurant required by federal law.
6.4 Join thousands of restaurants who trust Connecteam.

7. CONCLUSION
 CHAPTER-01

INTRODUCTION

FIGURE 1.1 FAST FOOD

Human resource management departments of food and beverage services are often
criticized for being a cost center . This criticism is raised for an unclear reason to see
the results of employee management and the difficult outcomes of human resource
management efforts. Human resource outcomes are generally measured with
intangible factors such as employee satisfaction, customer satisfaction, and customer
complaints. Therefore, the results of these measurements are often too indistinct to
see the impact on the bottom line. A rapid changing business environment featuring
a tight labor market, changing customer demands, and increasing competition, has
been a challenge for many of today`s hotels . Moreover, rapidly changing
technologies make it easier to share information and to replicate competitors’
strategies and work practices . To address these challenges, scholars and
academicians have emphasized the use of competitive strategies that account for
core competencies and capabilities with human resources. The emphasis of human
resources to improve food and beverage performance has become stronger , not only
because they cannot be easily imitated by competitors, but because they provide an
effectively fast response to market demands . Furthermore, several academicians
have asserted that human resource management is increasingly more important to
the food and beverage service performance under such labels as, hotel capabilities,
high performance work systems, process management, and high performance teams.

Becker and Gerhart argued that human resource management decisions influence
hotel performance by either improving hotel efficiency or increasing business
revenues. According to previous studies, human resource management practices
contribute to improving F&B performance including turnover rate labor
productivity asset and equity return, and profit margin . Numerous studies on the
impact of human resource management on hotel performance have been conducted
while, at the same time, dealing with many different industries . However, Cappelli
and Neumark stated that there is an advantage of studying within a single industry.
Such a limited population, they argued, ensures that a measured hotel performance
is comparable across observations, that measured hotels` performance is similar
across observations. supported the advantage of studying within a single industry by
suggesting the measurement of hotels` performance. Human resource practices, and
control variables were more precise when a study focused on a practical industry.
They also added that the automatic controls for factors differ among industries.
Despite the hospitality industry`s unique feature of labor intensity, only a few studies
have investigated the impact of human resource practices on food and beverage
performance such as decreased turnover rates, increased labor productivity, and
increased profit margin within the industry. Those few studies, moreover, examined
the impact of only a single human resource management practice on hotel
performance . Thus, the purpose of this study is to identify the items that affect
employee performance in F&B departments. First, this paper presents a brief review
of the literature regarding human resource practices of the food and beverage
performance. Secondly, it outlines the paper model followed by the conclusion of
the paper.Fast food or quick meals have become an essential part of Indian lifestyles.
Many people associate fast food with convenient food. Teenagers and young adults
are the primary targets of fast food centers.The fast food trend in India have finally
come of age. Urban Indians are amongst the top ten regular consumers of fast food
across the sphere world’s leading market research firm). According to the survey,
more than 70% of urban Indians consume food from take away restaurants once a
month or more regularly. Out of this 70%, 37% of the adult populations carry foods
from take away restaurants at least once a week. Out of the 28 countries surveyed,
India is among the top ten countries in terms of frequency of fast food consumption.
 1.1 OBJECTIVE OF THE STUDY

The three objectives of this study were to:

1. To investigate the unmet expectations among new employees in the fast

food industry;

2. To study the relationships between unmet expectations, job

satisfaction and organizational commitment; and

3. To make suggestions of ways in which industry practitioners

could motivate new employees.
 CHAPTER-02
What is fast food?

Figure 2.1

The term "fast food" means just that. However, the boundary between fast foods
and traditional dishes is fluid. In particular, it's difficult to provide a qualitative
distinction because fast foods can also include salads and fruit in addition to classic
offerings such as hamburgers, hot dogs, sandwiches, patties, French-fries, fish and
chips, etc. The best way to distinguish fast foods is to use formal
characteristics: Time required - those who eat fast foods do not want to spend a lot
of time selecting and eating, and if necessary will eat standing or walking, on the
bus, park bench, or at work. The variety of foods and beverages is usually very
limited Fast food frequently does not come with knives and forks, making it "finger
food." When silverware, cups and plates are necessary, they are disposable. The
characteristics of fast food, therefore, are that they require little time, offer a limited
selection, are finger food, and the silverware and plates are disposable. These
characteristics readily illustrate the difference from traditional dining culture. Many
people equate fast foods with convenience foods. This is incorrect since convenience
products are often eaten at home. They require active participation because they
must be heated, stirred, baked, thawed, etc., and are supplemented with other foods.
There are three general categories of fast food businesses: Self-service restaurants
with a fast-food palette like McDonalds, Wendy's, Burger King, Pizza Hut, etc.
Take-out (or take-away) businesses that sell ready-to-eat foods and beverages "on
the street corner" Hot-dog stands and snack stands with counters or a pair of stand-
up tables.

FAST FOOD INDUSTRY OVERVIEW

Figure 2.2

Fast food is a food prepared and served quickly at a fast food restaurant or a shop.
It is served usually in a carton or bags in order to minimize cost. Fast food outlets
often provide take away or take out foods in addition to sit down services. Fast food
is a multi billion industry continuing to grow at a rapid pace in coming years. Fast
food is often highly processed and prepared in an industrial fashion i.e., with
standard ingredient, methodical cooking and production methods.

THE START OF FAST FOOD CULTURE

 Figure 2.3

The concept of fast food pops up during 1920s.The 1950s first witnessed their rapid
proliferation. Several factors that contributed to this explosive growth in 50’s
were: (1) America’s love affair with the automobiles. (2) The construction of a
major new highway system. (3) The development of sub-urban communities. (4)
The baby boom subsequent to world war second. “Fast-food chains initially catered
to automobile owners in suburbia. The notion of "fast" food reflected American
culture in which speed and efficiency are highly prized.”
 CHAPTER-03

FAST FOOD INTRODUCE IN INDIA

The international fast food chains in India have redefined ambience, marketing
strategy, and menu, etc., according to the Indian taste and preference. The success
of McDonalds is because of its global and local mix of products and services. The
international strategy of McDonalds includes fun, quality, consistency, value,
convenience, quick service in their rating proposition.

17
 Figure 3.1

Indian strategy states McDonalds as a family restaurant and this can be seen in their
advertisements. Other international fast food joints in India are: Subway, Pizza Hut
and Dominos, Smoking’s Joes, McDonald’s, and Pizza Hut offers different menus
in some cities in India. For example, in Ahmadabad, there is a 100 % vegetarian
outlet that serves a special Jain menu. The vegetarian and non – vegetarian
preparations are prepared differently. Dominos has localized toppings for their
pizzas which the Indian consumer is fond of such as paneer pindi chana and chettinad
chicken.

Figure 3.2
Mumbai fast food restaurants such as Countdown, The Heart and the Indian brand
Nirulas are facing stiff competition from these international fast food chains and are
18
trying to keep their standards at par with any international fast food joint. The
psychology of Indians is that they are not satisfied after a burger or pizza. Changing
the existing habits is difficult. However, burgers, sandwiches, hot dogs, pizzas are
available at every nook and corner. There have been several

19
issues concerning fast food in recent times. Large fast food chains are being
questioned in the context of nutritional content of the food products and hygiene.
Fast food is a cause of great concern to children because it can lead to problems like
diabetes, obesity, etc. An unbalanced and fat rich food that is low in nutritive values
can lead to constipation and reflux.

Fast food has been defined in a variety of ways, with no single definition or
interpretation gaining a consensus. Backman (1994) stated that fast food should have
four generic aspects: a low relative monetary price, quick service of the end product,
suitability for eating with fingers, and low finished product durability. The growth
of the industry in Mumbai has aroused concerns among practitioners and scholars
about human resource management. For example, it is considered that the fast food
industry is a service- and people-oriented business; to survive in such a competitive
market, it is crucial that customers are satisfied not only with the products and the
dining environment (hardware), but also with the service (software) provided by
employees. Although fast food is perceived as a relatively low-price product, this
does not lessen the level of customer expectations of quality food and services. Some
studies have found that employee satisfaction is important because customer
satisfaction can only be achieved when employees are content, and the level of
employee satisfaction is positively related to customer satisfaction (e.g. Rogers et
al., 1994). Job satisfaction is also found to be related to organizational commitment.
The latter is defined as a function of an individual’s involvement and identification
with an organization (Steers, 1977). It is reasonable to argue that employee

20
organizational commitment and job satisfaction are equally important to customer
satisfaction.

Corcoran and Johnson (1974) stated that most catering posts are perceived as “dead
ends”. Particularly in the fast food industry, the long working hours (for permanent
employees), the less competitive pay, the repetitive nature of the job, and low job
security have jeopardized new employees’ commitment and satisfaction. However,
new employees in this specific catering sector are rarely discussed in the literature.

A clean atmosphere was only part of Kroc's grander plan which separated
McDonald's from the rest of the competition and attributes to their great success.
Kroc envisioned making his restaurants appeal to families of suburbs. "Where
White Tower (one of the original fast food restaurants) had tied hamburgers to
public trand.

INDIA – EMERGING MARKET FOR GLOBAL PLAYERS

21
 Figure 3.3

The percentage share held by foodservice of total consumer expenditure on food

has increased from a very low base to stand at 2.6% in 2001. Eating at home remains
very much ingrained in Indian culture and changes in eating habits are very slow
moving with barriers to eating out entrenched in certain sectors of Indian society.
Traditionally, eating out was looked down upon in Indian society. The growth in
nuclear families, particularly in urban India, exposure to global media and Western
cuisine and an increasing number of women joining the workforce have had an
impact on eating out trends. Increasingly, eating out is becoming synonymous with
entertainment.

FACT AND FIGURES

22
 Fast food is one of the worlds largest growing food type. India’s fast food industry
is growing by 40% a year and is expected to generate a billion dollars in sales by
2005.The multinational segment of Indian fast food industry is up to Rs. 6 bn, a
figure expected to zoom to Rs.70 bn by 2005. By 2005, the value of Indian dairy
products is expected to be Rs.1, 00,000 million. In last 6 years, foreign investment
in this sector stood at Rs. 3600 million which is about one-fourth of total investment
made in this sector. Because of the availability of raw material for fast food, Global
chains are flooding into the country.

MARKET SIZE & MAJOR PLAYERS

Dominated by McDonalds having as many as 75 outlets. Domino’s pizza is present
in around 100 locations. Pizza hut is also catching up and it has planned to establish
125 outlets at the end of 2005. Subways has established around 40 outlets Nirulas
is established at Delhi and Noida only. However, it claims to cater 50,000 guests
everyday. Major players in fast food are:

 MCDONALDS
 NIRULAS
 PIZZA HUT
 DOMINOS PIZZA

23
 Figure 3.4

Multinational fast-food companies have given domestic competition a run for its
money. While McDonalds sells more than Nirulas, Pizza Hut and Dominos are doing
more business than Pizza Corner. Within nine
years of their existence in India since 1996, the multinationals have grown at a faster
pace than their Indian counterparts. According to industry estimates, in 2001, while
McDonald's clocked a turnover of about Rs 125 crore (Rs 1.25 billion), the home-
grown Nirulas, which has been present in the country since 1934, could only garner
Rs 100 crore (Rs 1 billion) turnover. Also, both Dominos Pizza Hut and Dominos
clocked a turnover of about Rs 60 crore (Rs 600 million) but Pizza Corner lagged
behind with a turnover of Rs 25-30 crore (Rs 250-300 million). The main reason
behind the success of the multinational chains is their expertise in product
development, sourcing practices, quality standards, service levels and standardized
operating procedures in their restaurants, a strength that they have developed over
years of experience around the world. The home grown chains have in the past few
years of competition with the MNCs, learnt a few things but there is still a lot of
scope for improvement. We have applied our learning experience from other

24
countries in all the processes including consistency, marketing, distribution and
training to the local market conditions. It's now that the domestic chains have
realized the importance of such practices. Nirulas is thus beefing up its
organizational structure. Another key reason behind the success of multinationals is
the ability to attract youngsters. While McDonalds has been able to attract people
below 30, Dominos is targeting the 'convenience-seeker.' Nirulas, on the other hand,
is known to appeal more to the 30-plus consumer. Small wonder, Nirulas has
launched its '21' range if ice cream cafes to attract the younger lot. The challenge for
the home grown chains is also to reinvent themselves to appeal to the younger
consumer. However, the domestic chains are at an advantage since they understand
the Indian consumer behaviour and eating habits and their product offerings have
been tailored accordingly. Multinational chains like McDonalds and Pizza Hut are
still on a learning curve trying to customize their menu to the Indian taste and food
preferences. Pizza Hut, for example, launched its masala range of
pizzas and also opened the world's first 100 per cent vegetarian outlet in
India. Domino, on the other hand, has launched its peppy paneer pizza keeping in
mind the Indian taste buds. The food service market in India is estimated to be
around Rs 36,000 crore (Rs 360 billion), of which the urban fast food quick service
restaurants is around Rs 1,000 crore (Rs 10 billion). This segment is witnessing high
growth of around 25-30 per cent per annum so the market has a lot of potential to
grow.

pizzas and also opened the world's first 100 per cent vegetarian outlet in
India. Domino, on the other hand, has launched its peppy paneer pizza keeping in
mind the Indian taste buds. The food service market in India is estimated to be
around Rs 36,000 crore (Rs 360 billion), of which the urban fast food quick service
restaurants is around Rs 1,000 crore (Rs 10 billion). This segment is witnessing high
growth of around 25-30 per cent per annum so the market has a lot of potential to
grow.

25
REASON FOR EMERGENCE GENDER ROLES:
gender roles are now changing. Females have started working outside. So, they have
no time for there home and cooking food. Fast food is an easy way out because these
can be prepared easily.

CONSUMER SOPHISTICATION AND CONFIDENCE:

consumers are becoming more sophisticated now. They do not want to prepare food
and spend there time and energy in house hold works. They are building there
confidence more on ‘ready to eat and easy to serve’ kind of foods.

PAUCITY OF TIME:

people have no time for cooking. Because of emergence of working women .

and also number of other entertainment items. Most of the time either people work
or want to enjoy with their family.

DOUBLE INCOME GROUP:

emergence of double income group leads to increase in disposable income. Now
people have more disposable income so they can spend easily in fast food and other
activities.

WORKING WOMEN:
working women have no time for cooking, and if they have then also they don’t
want to cook. Because they want to come out of the traditionally defined gender
roles. They do not want to confine themselves to household work and upbringing of
children’s.

MACRO-ECONMIC FACTOR AFFECTING THE INDUSTRY

1. Increase in per capita income: There is continuous increase in the per capita
income of the Indian citizens. More income in
26
 hand results into more spending in comforts and entertainment and thus
results into more and more spending on fast and ready to serve kind of foods.
2. Economic growth: With economic liberalization of 1991, more foreign and
private industries entered the Indian market that result into income generation
of the Indian residents – more income results into ore savings--- more savings
means more investment – more investment results into overall growth of the
economy.
3. Large population: India being a second largest country in terms of population
possesses large potential market for all the products/services. This results into
entry of large number of fast food players in the country.
4. Relaxation in rules and regulations: with the economic liberalization of 1991,
most of the tariff and non tariff barriers from the Indian boundaries are either
removed or minimized. This helped significantly the MNC’s to enter in the
country.
5. Growth in number of women's in the work force: there is increase in the
number of women work force in the recent years because of the improvement
in the literacy rate and also because of the large number of jobs are now
available because of the entry of foreign and private players in the Indian
market.
6. Menu diversification– increase in consumption of pizzas, burgers and other
type of fast foods.

CHALLENGES FOR THE INDUSTRY

27
 Figure 3.5
Social and cultural implications of Indians switching to western breakfast
food: Generally, Hindus avoid all foods that are believed to inhibit physical
and spiritual development. Eating meat is not explicitly prohibited, but
many Hindus are vegetarian because they adhere to the concept of ahimsa.
Those seeking spiritual unity may avoid garlic and onions. The concept of
purity influences Hindu food practices. Products from cows (e.g., milk,
yogurt, ghee-clarified butter) are considered pure. Pure foods can improve
the purity of impure foods when they are prepared together. Some foods,
such as beef or alcohol, are innately polluted and can never be made pure.
But now, Indians are switching to fast food that contain all those things that
are considered impure or against there beliefs.
 Some traditional and fundamentalist are against this transformation of
food habit and number of times they provoke their counterparts to
revolt against such foods. And that is what happened when
McDonald’s decided to enter the complexity of Indian business
landscape, counting only on its “fast food global formula”, without
any apparent previous cultural training.

 Emphasis on the usage of bio-degradable products: Glasses,

silverware, plates and cloth napkins are never provided with fast
28
 food. Instead, paper plates and napkins, polyurethane containers,
plastic cups and tableware, drinking cartons or PET (polyethylene
terephthalate) bottles are used, and these are all disposable. Many of
these items are tossed in the garbage instead of being recycled, or
even worse, merely thrown on the ground. This burdens nature
unnecessarily and squanders raw materials. In order to reduce soil
and water pollution, government now emphasis more on the usage of
bio-degradable products.

 Retrenchment of employees: Most of new industries will be capital

intensive and may drive local competitors, which have more workers,
out of business.

 Profit repatriation: Repatriation of profits is another area of concern

for Indian economy. As when multinational enters the any countries,
people and government hope that it will increase the employment rate
and result in economic growth. However, with the multinational
operation, host country experiences these benefits for a short time
period. In long run neither employment increases (because of capital
intensive nature of MNC’s) nor it increases the GDP or GNP because
whatever MNC’s earn they repatriate that profit back to their home
country.

PROBLEMS OF INDUSTRY

29
 Figure 3.6

Environmental friendly products cost high: government is legislating laws in

order to keep check on the fast food industry and it is emphasizing more on the
usage of bio-degradable and environment friendly products. But associated with
this issue is the problem that fast food player faces - the cost associated with the
environment friendly product. They cost much higher then the normal products
that companies uses for packaging or wrapping their products.

with the economic burden of protecting the environment. Thus, one can see that
one side pushes for higher standards and other side tries to beat the standard back,
thereby making it a arm wrestling and mind boggling exercise.

30
 Health related issues: obesity: ¾ Studies have shown that a typical fast food
has very high density and Balance between societal expectation and companies
economic objectives:

Figure 3.7

To a society’s expectation regarding environment food with high density causes

people to eat more then they usually need. ¾ Low calories food: Emphasis is now
more on low calorie food. In this line McDonald has a plan to introduce all white
meat chicken Mcnuugget with les fat and fewer calories.

TRENDS IN INDIAN MARKET

31
 Figure 3.8

Marketing to children's: fast food outlets in India target children’s as their major
customers. They introduce varieties of things that will attract the children’s
attention and by targeting children’s they automatically target their parents because
Children’s are always accompanied by their parents.

Low level customer commitment:

Because of the large number of food retail outlets and also because of the tendency
of customer to switch from one product to other (as food is one areas where
customer wants to try everything new that comes to the market), this industry faces
low level customer commitment.

Value added technology services:

32
There is continuous improvement in the technology as far as fast food market in
India is considered. The reason behind that is food is a perishable item and in order
to ensure that it remain fresh for a longer period of time, there is a need for
continuous upgradation in technology. Earlier, Indian people prefer eating at home
but now with the change in trend there is also need for improvement and
upgradation of technology in food sector.

Attracting different segments of the market:

Fast food outlets are introducing varieties of products in order to cater the
demands of each and every segment of the market. They are introducing all
categories of product so that people of all age, sex, class, income group etc can
come and become a customer of their food line.

INTERNATIONAL TRENDS USA:

 Fast food chains are under fire from legal action.

 A Fat tax is being considered for implementation.
 North America, Western Europe and Japan together account 86% of total
fast food market. UK:
 Fast food has grown by 5% since 2001and reached to $10.1 billion.
 Bakery sector dominates in fast food.
 Largest market is of sandwiches.
 Burger is one of the weaker performing sector‘ German:
 Grown by 2% since 2001.
 Primarily younger generation and single ones visit such outlets.
 Burger is the largest sector.
 Government policy is towards the reduction of garbage. Japan:
33
 Grown by 1.5% since 2001.
 Japan has tailored its fast food to its countries population without
sacrificing nutritional value. China:
 Growth of 14.6% since 2001.
 Western style fast food successful in china market. France:
 Growth of 5.8% since 2001.

 McDonalds France –most profitable subsidiary in Europe.

Figure 3.9
34
 CHAPTER-04

TOP 10 FAST FOOD OUTLETS OF INDIA

There is nothing wrong to say that taste is something that often makes people
forget about their health. It is quite true that Indians are very fond of taste and often
choose to eat dishes that are tastier yet healthier. On an average basis, Indians love
to eat outside at least once a week. This is one of the leading reasons why a lot of
fast food chains and restaurants are becoming extremely popular in India. In the
present time, India is a market with huge profits for a lot of food chains. The
reason is very simple to understand and i.e. the increasing craze of eating outside
(as already mentioned). You might have no idea but a lot of Indians spend around
25 percent of their salary on eating outside.

Actually, there are several restaurants that have attracted the attention of people
just because of their tastier yet healthier dishes. Several restaurants witness a very
large number of visitors. If you love eating outside, this post is meant for you. We
are going to spotlight the top 10 fast food chains in India in 2019 that have become
popular in the shortest possible time and have a lot of highly satisfied customers.

Table of Page Contents

10. Bikanervala
9. Haldiram
8. Burger King
7. Barbeque Nation
6. Dominos Pizza
5. Pizza hut
4. Subway
35
3. Café Coffee Day
2. KFC
1. McDonald’s

10. Bikanervala

FIGURE 4.1

It is basically an Indian fast food chain which was founded in the year 1950. It
36
serves around 5 million customers every year and in the present scenario, they
have branches and franchisees in almost every part of the country. It is a well-
known restaurant where you can enjoy Namkeens, bakery items, sweets as well as
pickles. Actually, they highly believe in quality and the good thing is that since last
few years, they have adopted world class standards in food preparation.

9. Haldiram

FIGURE 4.2

Haldiram started from making famous Indian product “Bhujia” and present they
own restaurants in all the major cities of India where you can enjoy sweets and
37
recipes with a very unique taste. There are a lot of factors which are responsible for
their success and the leading one among them is taste. This doesn’t actually mean
you need to compromise with your health. All the dishes are always freshly
prepared on Haldiram irrespective of the location/city of the restaurant.

8. Burger King

FIGURE 4.3

It is basically an American fast food chain which has attracted the attention of so
many people in India due to their delicious and yummy burgers. In addition to
burgers, you can enjoy French Fries, regional salads, hot dogs and desserts anytime
you want. They have invested a lot of money in India and there would hardly be
any major city where Burger King Restaurant is not present.

7. Barbeque Nation

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 FIGURE 4.4

Founded in the year 2006, this Indian fast food chain serves millions of food lovers
every year. There are certain mouth watering dishes and recipes which you can
enjoy here and the fact is there is no need for you to raise your heart beat about
quality. The dishes are hygienic and are best for all age people. You can enjoy
soups, salads, Kebabs, as well as grilled food. In addition to this, there are a lot of
other recipes which you can enjoy without compromising with your health.

6. Dominos Pizza

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 FIGURE 4.5

There are a very large number of Dominos Pizza lovers in India. In some of the
cities, dominos has witness record sales on weekend which makes it one of the
very popular and in fact trusted fast food chains in India. There are 1000 plus
outlets all over the India and there would hardly be any fast food lover in the
country who haven’t tasted their pizza. Actually, they are famous for delivering
pizza and other recipes at home provided some conditions are met. The 30 minute
delivery policy of fresh pizza and other fast food at home has enables them attract
more and more customers.

5. Pizza hut

40
 FIGURE 4.6

It is another fast food chain in India which is famous for Pizzas. Basically, it’s a
world class American-Italian fast food chain with presence not just in India but in
fact all over the world. They sell record number of pizzas every year in India. Also,
their quality and taste add a lot of new customers in their outlets. Pizza Hut is one
among the most liked fast food chains in India which has a lot of highly satisfied
customers.

4. Subway

41
 FIGURE 4.7

Subway is one among the best and in fact top fast food chains in India where you
can enjoy quality cuisines. It is known for its freshly prepared fast food which
visitors can customize as per their need. Actually, there are a few ingredients they
can choose as per their wish. Thus you can have dishes in subway exactly in the
way you want them.

3. Café Coffee Day

42
 FIGURE 4.8

Popular as CCD, most people think it’s a non-Indian brand but actually it is an
Indian café chain. It was established in the year 1996. Presently there are around
1540 outlets of CCD in India. In addition to coffee, you can enjoy several dishes
here such as sandwiches, cakes as well as a huge variety of hot and cold drinks
which are always freshly prepared.

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2. KFC

FIGURE 4.9

KFC is a popular fast food chain in India for those who love non-veg. However,
this really doesn’t mean you cannot visit here in case you need to eat veg. Actually,
KFC is not just famous in India but presently their restaurants operate in around
123 countries. In fact, it’s the world second largest fast food chain. You can enjoy
a lot of dishes here and because a lot of Indians love to eat at KFC, it is one of the
top fast food chains in India.

1.McDonald’s

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 FIGURE 4.10

McDonald’s is the number one fast food chain in India which serves a very large
number of customers. It has maximum customer satisfaction rate and there are a lot
of dishes you can enjoy in their restaurants. Most of the restaurants operate 24 × 7
in all major cities which enables visitors to enjoy food anytime they want. Their
hamburgers have no comparison with any other dish or hamburgers of any other
fast food chain.

These food chains in India have introduced people to a lot of dishes most of them
don’t even know. The fact is Indian recipes are famous all over the world. these
fast food chains have combined Indian dishes with western and have successfully
come out with recipes that are actually a perfect blend of Indian and western
cuisines. You can enjoy some of the best recipes in these restaurants anytime you
want and the good thing is that most of these fast food chains are present in all
major cities of India. A few of these restaurants are for pure vegetarian people
while other has separate sections for veg. and non-veg. diets.

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 CHAPTER - 05
HOW TO CREARE A STRONG HUMAN RESOURCE
STRUCTURE FOR A RESTAURANT

FIGURE 5.1

One of the common traits of a successful restaurant is a strong restaurant staff that
works tirelessly to deliver top-notch service to the customers. Customers visiting a
restaurant are not doing so merely for the food but for the experience and the
service which is created by the right staff. However, with severe competition in the
restaurant industry, high rentals, and rising costs, hiring the right staff and creating
the correct human resource structure for restaurants remains as one of the biggest
challenges for restaurant owners. The restaurant industry is notorious for high
employee attrition rates and so requires an efficient management system. Thus, it is
46
essential that you know the human resource plan of a restaurant, the different
levels of staff requirements and their job descriptions, qualifications, and
experience needed for each profile and the designated salary to offer while staffing.
Read how to hire better for your restaurant here.

4.1 Human Resource Structure for Restaurants

In this article, we will have a look at the basic human resource structure for
restaurants, various departments in a restaurant and job descriptions of each
employee in the HR Plan.

FIGURE 5.2

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There are generally five departments in any restaurant business – Kitchen Staff,
Managerial Staff, Floor Staff, Bar Tenders and Delivery Staff. However,
depending upon the restaurant format, the number of departments can vary. Thus
the human resource for the restaurant/food industry will be unique to your
restaurant and its various departments. The employee count will depend upon the
size of your establishment, and the role and responsibilities of HR in your
restaurant will vary according to the number of employees and their job
descriptions.

For example, in QSR format there would be only three departments- Kitchen Staff,
Managerial Staff and Delivery Staff. However, for a fine dining restaurant, all five
would be required. Further, each department has different requirements for
employees which are briefly explained below. Having the right restaurant
management software could help you keep a track of your human resources better,
and thereby run several incentive programs for them.

 Kitchen Staff

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 FIGURE 5.3

The kitchen is the heart of a restaurant. For smooth operations, a proper human
resource is required, especially in the food industry. In this particular department,
there are various levels such as Gourmet Chef(Head Chef), Sous Chef, Chef De
Partie, Commis, and helpers. However, in formats like QSRs, takeaways and
casual dining, the post of Head Chef and Sous Chef may not be required. Below is
a chart that discusses and explains the different levels of the department, job
profiles of different levels, qualification and experience required for each profile
and the average salary of each post.

 Managerial Staff

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 FIGURE 5.4

The second most important part of the human resource structure for restaurants is
the Managerial Staff. Human resources for your restaurants ensure that the
restaurant is in one piece and thriving towards a single goal. These people are the
intuitive soul of the restaurant, as the decisions of the Managerial Staff can make
or break the customer experience and expectations. Managing and allocating the
right resources at the right time can help the restaurant to achieve efficiency, which
can further help create a better experience for customers and better profit for
owners. Managerial Staff is broadly divided into three levels – Restaurant
Manager, Cashier, and Storekeeper. Below is a chart explaining different job
profiles, salary, qualifications and minimum experience required according to the
HR Plan of a restaurant.

 FLOOR STAFF

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 FIGURE 5.5

Employees working in this department of your restaurant are the brand

ambassadors of your restaurant, as they are the ones who are in direct contact with
the customers. Customers’ best and worst experience is often due to the floor staff.
Therefore, it is essential to have them well trained and on their toes.

The Floor Staff has a different set of employees such as Captains, Stewards, House
Keeper, and Guard. This department is primarily required in Fine Dining,
Restaurant cum Bar, and Casual dining formats.

4. Bar Staff

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 FIGURE 5.6

The Bar Staff handles the most precious and vital part of your menu: the drinks!
People in this department should be fully aware of the type of drinks they serve, be
it a cocktail or mocktail. Your bartenders can create a different kind of experience
for your customers and add a fun element to the whole environment of your
restaurant. It is thus essential to have a separate department set for the Bar staff in
your human resource plan for your restaurant. The number of employees in this
department is entirely dependent upon the size of the restaurant. Human resources
thereby become an integral part of the food industry.

 Delivery Staff

52
 FIGURE 5.7

Your Delivery Staff is as vital as floor staff, as these employees take your
restaurant brand out on the roads and to the homes of the customers. They are the
representatives of your brand and must be trained properly. Also, for delivery staff,
restaurant owners should be extra cautious about their driving licenses and
background verification.

Every person working for your restaurant is an integral part of the organization and
is an integral part of the human resource for food industry. It is essential to take
care while hiring someone, train them right, and keep them happy to retain them.
Learn how to keep your restaurant staff happy and motivated here.

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 CHAPTER - 06
HR POLICIES FOR FAST FOOD OUTLETS

6.1 Why Your Restaurant Needs HR Policies

We can’t cover the plethora of challenges that small restaurants face. We would
tire our little typing fingers and bore you (or worse) half way there. Instead, we’re
going to focus on one of the most common challenges to growth in the restaurant
industry: human resources.

According to a survey by Toast, 46% of restaurateurs listed hiring, training,

and retaining restaurant staff as their #1 challenge. So if “you just can’t find
any good help these days”, you’re not alone.

Sure, you can go ahead and hire a HR consulting firm, and be done with it. There
are even some aimed specifically at restaurateurs struggling with human resource
management. But these consultants can be pricey, so unless you’ve got a nice pile
to cash to throw at them? Better DIY.

Besides, you’re a hands-on kind of manager. And odds are, you’re reading this
post because you want to get it right yourself. With some help from the internet
experts at Connecteam.

You might notice that as your business grows, so do the number of HR policies
and their complexity. The best way to keep everything in order and ensure your
employees are aware of their rights and the policies they must comply with is an
employee handbook.

Your restaurant employee handbook is a bit like a cookbook but instead of tomato
soup recipes, you have recipes for cooking up mutually beneficial relationships
with your employees (did you like the analogy, took our team the good part of 20
minutes to come up with it).
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Don’t worry, compiling an employee handbook for restaurants is easier than you
think, we’ll provide some “cheats” and shortcuts, and you can create your own
restaurant employee handbook using one of many templates offered as part of your
employee app.

Now, creating policies may seem simple but it can get tricky. It’s worth noting
that the word “policy” in itself is not a pleasant one. To many, it’s perceived as “a
set of rules meant to police people”. No one likes to be policed.

But policies play an important role in keeping your business running, so if you
prefer you can call them “guidelines” if that makes you, or your employees, feel
more comfortable – go ahead. Just make sure they’re aware of the consequences
when these guidelines are not followed.

6.2 What HR Policies Do we Need?

Creating effective and legally compliant HR policies for a restaurant (or any
organization, really) is a unique process. So it’s up to you to recognize the needs of
your restaurant. You don’t want your employee handbook turning into a novel-
length saga. But you also don’t want to miss important guidelines unique to your
business, like a Code of Conduct.

Take the time to consider what policies match your business and its direction. Do
you have colleagues who manage restaurants with their HR policies already in
place? Then, it’s a good time to ask for some tips or templates. But don’t forget
that your restaurant is its own unique dish, and you need to consider what goes in
it.

For example, if you’re planning to grow your team and advance employees in the
ranks over time, having a detailed policy helps. Not only will it give your
employees incentive to excel, but it will also help retain them longer, keeping
knowledge and experience in your business.

Law & Order

55
The basic policies required to operate and grow a restaurant business are those
required by law. You can’t skip those, especially since ignoring labor laws can get
you in deep legal problems.

FIGURE 6.1

You should probably consult with your lawyer to get an up-to-date list of must-
have policies in your state. Note that many federal and state laws only apply to
businesses with a certain number of employees. So check which regulations apply
to you as your operation expands.

6.3 HR policies for restaurant required by federal law:

 Work hours

 Worker’s compensation

 Medical leave

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  Discrimination

 Pay

Policies that are required in some states, but are probably good to have no
matter where you operate:

 Termination of employment

 Harassment

A quick note about sexual harassment in the restaurant industry, because it

demands attention. According to statistics, the American restaurant industry is the
number one in sexual harassment claims.

That might be because, again, according to statistics, between two-thirds and 90

percent of all women working in the restaurant industry experience sexual
harassment. Which isn’t only awful, but can cost you, as the owner of the place,
your reputation and quite a bit of money.

So it’s crucial that you take a hard line against sexual (and other types of)
harassment and make the policy known and clear to your employees.

Keeping It Clean (and Safe)

If you’ve been running your restaurant for more than a day or so, you probably
know that you can’t do without food safety policies. Sure, you can check the
expiration dates regularly, and make sure the forks are clean.

57
But your employees need to make an effort to comply with regulations. You might
be well versed in the local legal requirements for a safe food preparation and
serving environment, but not all your employees are.

Food safety laws are there to protect your clients, which is important. But you also
want to keep your employees safe, and having clear policies on that helps. For
example, you might want to require employees to wear non-slip shoes, especially
in the kitchen. Some policies can save lives. And prevent you from being involved
in unwanted lawsuits.

Minimum Wage and Tips

The current federal minimum wage is $7.25 per hour, and has not gone up since
July 2009. However, there are some states, cities, and counties that impose a higher
minimum wage rate. In addition, when the state, city or county minimum wage rate
is higher than the federal rate, the employer is obligated to pay their workers the
higher amount. However, we need to make clear that the minimum wage for tipped
workers is actually lower than the regular minimum wage, but that does not mean
under any circumstance that employers can pay tipped workers less than regular
staff.

The Fair Labor Standards Act mandates that any employee who earns $30 or more
per month in tips must be paid at least $2.13 in wages. Therefore, a waiter,
bartender, or another service employee who does receive tips, then your employer
is only required to pay you $2.13 per hour in wages. With that in mind, the total
amount earned ($2.13/hour plus tips) must equal the federal minimum wage. As far
as HR policies for restaurants go, this one is pretty key.

Look Sharp Online and Off

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Dress code policies are important even if you don’t have branded uniforms for
your employees. Some aspects of the dress code have to do with aforementioned
safety and hygiene (like non-slip shoes and hair-nets). Others are mostly about
appearances.

For example, you might want all your servers to wear a uniform, while the
bartender is required to just look presentable but gets more freedom in her fashion
choices.

Another place you want to look sharp is online. Forget about the damage a
negative Yelp review can do, and remember the old “taco-licking” incident from a
few years back. It’s a hard one to forget. No restaurant owner wants to see their
business in the news, in some photo-gone-viral of a disgruntled employee doing
something disgusting. And potentially devastating to your business.

Almost every employee now has a smartphone with a camera at their disposal, and
social media as a platform, so you may want to make sure your employees are
extra happy. Happy employees don’t post mean things about their
employers…usually.

However, since you can’t keep everyone happy all the time, the least you can do is
have clear policies for dealing with employee actions that hurt your brand’s
reputation. You want to deter poor employee behavior by taking consistent,
meaningful actions against those who break the employee code.

Actually, you can even provide your social media manager or marketing agency
with a checklist to complete whenever social drama happens.

create an open/close checklist

Easy-on, Easy-off
59
The restaurant industry is one with high turnover rates. Only very few of the 15
million restaurant employees bussing tables and flipping burgers will continue to
work in the industry. As much as you might want to keep employees with you
longer, and take steps to do so, your turnover rates will always be higher than it
would in most businesses.

Does that mean you should just say “to heck with it”? Absolutely not. What this
means for you is that you need to set hiring, training, and termination policies as
soon as possible, if you haven’t yet.

Policies are also an important tool in streamlining the training process. Instead of
hoping the other servers inform your new employees about breaks, employee
meals, and tipping policies? These should all be detailed in your restaurant
employee handbook. As part of the employee training process, you can even quiz
them on it.

Create an employee quiz

6.4 Join thousands of restaurants who trust Connecteam

Connecteam is your tool to manage employee engagement, development, and

relationship. You can streamline communication, give your employees a platform
to be heard, boost engagement, strengthen the company culture, align employees
with company policies, streamline daily operations, build professional skills and so
much more.

Feeding Your Employees

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If you choose to feed your restaurant employees then that’s actually an easy to boost
the value of the job and can even help lower your turnover rate. However, ensure
that you create policies around what meals employees can and cannot eat. For
example, if a dish calls for expensive ingredients then that’s probably one you don’t
want your staff to eat so be clear on the rules.

Additionally, allow your employees to take food home – especially the dishes
created that you couldn’t sell. It’s a win-win! You minimize waste while your
employee gets free food.

Drug Policy

Drug abuse is an epidemic many countries are facing, therefore you should make
sure that your restaurant has a clear substance abuse policy. Ensure that your
employees, current and new, know what the expectations are and be sure to
frequently remind them of how important following the policy is.

How you want to set up the policy is up to you – some restaurants have a zero
tolerance and may require unannounced drug testing. Other restaurants don’t allow
for any drug abuse that impairs the individual to the point that it dissatisfies
customers, reduce employee effectiveness and can even lead to a dangerous situation
for clients and staff.

Employees must know what the consequences are if they violate drug HR policies
for restaurant, where it’s a warning or losing their job.

Onboarding Checklist

Employee onboarding is the process your business takes in order to properly

welcome a new employee to the team and its culture. When correctly going through

61
onboarding, you have a higher chance of retaining employees and boosting
engagement. Follow these simple tips:

Take your time

Training takes time, so don’t rush it because studies have shown that 31% of new
hires leave within the first six months and 68% of those leave within three months.
Why? Because they’re still learning the ropes, how the company operates, where
they fit in and more. Processing that much information takes time so make sure the
onboarding process is not rushed and goes past the first day.
Set clear goals

Create clear goals and frequently check in to assess the progress, this helps the new
hire focus on what’s needed and their target. Don’t confuse the new hire so they’re
running around aimlessly instead be clear to avoid confusion and to make sure they
deliver on the goals you set forth. After all, no one is a mind reader.
Have veteran/seasoned mentors

A survey discovered that 56% of employees believe having a work mentor is key
when first starting out. A mentor helps break down the day-to-day grind, explains
how management works and is available to answer those “stupid questions”. By
having a mentor, the new hire feels happier and on track.
Get feedback

After the first day, the first week and the first month, be sure to ask the new hire for
feedback on their onboarding experience. By gaining feedback, you are able to make
changes accordingly so everyone one someone new joins the team, they are exposed
to the top training methods.

Cheating (with Legal Aid)

62
This is important so it’s worth repeating, you need your lawyer in the kitchen, so
to speak, when compiling your HR policies. But you’re not about to pay hundreds
of dollars making a lawyer write them out, nor are you about to build your
employee handbook from scratch. There’s no shortage of examples and templates
out there. We tried to provide a few but don’t hesitate to keep searching for what
you may need to better manage your workforce and grow your business.

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 CONCLUSION

success of fast foods arose from the changes in our living conditions:
 Many women or both parents now work/
 There are increased numbers of single-parent households.
 Long distances to school and work are common.
 Usually, lunch times are short .
 There's often not enough time or opportunity to shop carefully for groceries,
or to cook and eat with one's family. Especially on weekdays, fast food
outside the home is the only solution. Today, only 40% of young college-
age people eat lunch at home. Chiefly, but not exclusively, teenagers and
young adults use fast food facilities when they need to catch a bite on the go.
According to studies, 66% of young men and 33% of women in Switzerland
eat one to two hamburgers a week, and half the teenagers eat French-fries
once a week. The large chains have pulled out all the stops of modern
marketing, targeting primarily young consumers. They entice their potential
customers with TV spots, children's parties, gifts for small children, and an
ambiance that is generally child- and teenager-friendly. Large distributors,
bakers and butchers, snack bars, and so on, also exploit the fast food trend
and offer more take-out products. It's obvious that these campaigns are at the
expense of traditional home dining culture. Experts have coined the term
"McDonaldization" to describe this phenomenon. Some noticeable facts
about fast food industry are: Fast food had experienced fast growth in past
decade. Changing lifestyles, breakdown of joint family system, increasing
number of working women's and western influence in urban areas are
fuelling the demand for fast food. India already has the entire requirement
for a head start in food industry. Basic materials such as food, vegetables

64
and meat can be sourced locally or easily imported if local availability is not
adequate. Food outlets are just beginning to appear in India's big cities and
this is a time for international chains to set a foothold. Competition will
increase only with time.s

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