1

Faculty of Tourism &Hotel Management

Hotel Management Department

EVALUATING THE EXPERIMENT OF LOCAL

RESTAURANT CHAINS COMPARED WITH THE

INTERNATIONAL CHAINS IN EGYPT

Thesis Submitted in partial fulfillment of the requirements of Helwan University for

Master of Science in Hotel Management

By

Hany Atef Kouzmal B. Sc., Hotel Management, 2000

Under the Supervision of

Prof. Dr. Ahmed Nour El-Din Elias Prof; Hotel Management Department

Faculty of Tourism & Hotel Management,

Helwan University.

Assistant prof. Rania Dinana Assistant Prof; Hotel Management Department

Faculty of Tourism & Hotel Management,

Helwan University.

Dr. Mahmoud Roushdy El Maghraby Regional Vice President of Finance Middle East,

Sonesta International

2009

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APPROVAL SHEET

TITLE: EVALUATING THE EXPERIMENT OF LOCAL

RESTAURANT CHAINS COMPARED WITH THE

INTERNATIONAL CHAINS IN EGYPT

NAME: Hany Ateef Kouzmal Mikhaiel

This Thesis for the M.Sc. in Hotel Management has

been approved by:

Prof. Dr. ---------------------------------

Prof. Dr.----------------------------------

Prof. Dr.---------------------------------

Committee in Charge

Degree Conferred in / / 2009

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DEDICATION

TO

MY DEAR WIFE

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ACKNOWLEDGEMENTS

Primarily, I would like to express my deepest respect and

appreciation to Prof Dr Ahmed Nour El-Dein Elias Head of Hotel

Management and Ex Dean Faculty of Tourism and Hotel Management,

Helwan University, for his guidance, cooperation, and also his valuable

advice which helped point me in the right direction. Therefore, because

of his time, effort, and continual assistance brought about by his

knowledge of this subject, I offer to him my sincerest gratitude, with

great thanks.

Also, I would like to thank Dr Rania Dinana, Assistant Prof; in

Hotel Management, Faculty of Tourism and Hotel Management

Department, Helwan University, for her supervision, guidance,

encouragement, assistance, and her support throughout the preparation

of this Thesis.

Also, I would like to express my deepest respect and gratitude to

Dr. Mahmoud Roushdy El Maghraby, Regional Vice President of

Finance Middle East, Sonesta International, and Visitor lecturer, Hotel

Management Department, Faculty of Tourism and Hotel Management,

Helwan University, for his continuous support and encouragement,

coupled with his invaluable advice.

Finally I would like to express my deepest thanks to my dear

family, and my friends, who supported me and encouraged me

throughout the work on this Thesis.

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Table of Contents

Page CHAPTER ONE:

THE PROBLEM AND ITS SETTINGS

1.1. Introduction 1

1.2. Organization of the Research 2

1.3. Abbreviations 3

1.4. Limitation of the Research 4

1.5. The Research Objectives 4

CHAPTER TWO:

REVIEW OF LITERATURE

2.1. Overview on Fast-Food Operations

2.1.1 Fast Food Concept 5

2.1.2 Customers Perception on Fast-Food 8

2.1.3 Local and International Restaurant Chains 9

2.2. Quality of Food and Service

2.2.1 Quality Concept 2.2.2 Product Quality 11

2.2.3 Food Quality 12

2.2.4 Food Service Quality 14

2.3. Elements of Competition

2.3.1 Location 15

2.3.2 Pricing 16

2.3.3 Demand 16

2.3.4 Training 16

2.3.5 Operational Systems 17

2.3.6 The Element of Risk/Failure 18

2.3.7 Product Branding 21

2.3.8 Product Value 22

2.3.9 Marketing 24

2.3.10 Promotional Element 26

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2.3.11 Services for Children 27

2.3.12 Atmosphere (Surroundings) 28

2.3.13 Customer Satisfaction 28

CHAPTER THREE:

MATERIALS AND METHODS

3.1. Materials

3.1.1 Population Survey 31

3.1.2 Samples 31

3.1.2.1 Samples from Independent Establishments

3.1.2.2 Samples from Local Establishments

3.1.2.3 Samples from International Establishments

3.2. Methods

3.2.1 Primary Data

3.2.1.1 Guest Questionnaire 34

3.2.1.2 In-depth Personal Interviews 35

3.2.1.3 Checklist 35

3.2.2. Secondary Sources 36

3.2.3. Pilot Study 36

3.2.4. Data Analysis 37

CHAPTER FOUR:

RESULTS AND DISCUSSIONS

4.1. Introduction 38

4.2. Questionnaire Response Rate 39

4.3. Questionnaire Analysis Results and Discussion 39

4.4. Interview Response Rate 67

4.5. Interview Analysis Results and Discussion 67

4.6. Checklist Analysis Results and Discussion 94

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CHAPTER FIVE:

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1. Summary 111

5.2. Conclusion 114

5.3. Recommendations 118

REFERENCES 119

APPENDICES

APPENDIX (A1) Guest Questionnaire Form 127

APPENDIX (A2) In-depth Personal Interviews Form 137

APPENDIX (A3) Checklist Form 143

ARABIC SUMMARY

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List of Tables

Table Title Page

1 Abbreviations list 3

2 The main features of modern fast food concepts

3 Samples from the establishments 32

4 Menu specialty of the selected Quick Service

Restaurant QSR 33

5 Questionnaire response rate. 39

6 Customers' preferable meal 41

7 Statistics for customers' restaurants preferences 42

8 Statistics of important factors in QSR that attract

customer 44

9 Statistics for restaurants factors' evaluation 47

10 Restaurant categories factors' ranking 48

11 Personal data analysis 66

12 Interview's response rate 67

13 Statistics of restaurants factors' evaluation 75

14 Restaurant categories factors' ranking

according to their means 76

15 Checklist results 94

16 Exterior factors in independent restaurants 95

17 Interior factors in international chain restaurants 96

18 Interior factors in local chain restaurants 96

19 Interior factors in independent restaurants 97

20 Food quality factors in international

chain restaurants 98

21 Food quality factors in local chain restaurants 99

22 Food quality factors in independent restaurants 100

23 Guest service factors in international chain

restaurants 101

24 Guest service factors in local chain restaurants 102

25 Guest service factors in Independent restaurants 103

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26 Employee appearance in international chain

restaurants 104

27 Employee appearance in local chain

restaurants 104

28 Employee appearance in independent

restaurants 105

29 Management behaviors/ functions in

International chain restaurants 106

30 Management behaviors/ functions in local

chain restaurants 107

31 Independent restaurants 108

32 Restaurant categories rating scale 107

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List of Figures

Figure Title Page

1 Customer's preferences to eat fast food. 40

2 Customers' reasons for restaurants type

preferences. 44

3 Important factors in Quick Service Restaurant

QSR that attract customer (service quality,

consistence standard and atmosphere). 45

4 Important factors in QSR that attract customer

(brand name and menu variety). 46

5 Important factors in QSR that attract customer

(location and promotional activities). 46

6 Brand name factor's evaluation in QSRs. 50

7 Location factor's evaluation in QSRs. 51

8 Price factor's evaluation in QSRs. 52

9 Food quality factor's evaluation in QSRs. 53

10 Managers' evaluation for local fast food

operations. 54

11 Consistence standard factor's evaluation

in QSRs. 55

12 Menu variety factor's evaluation in QSRs. 56

13 Atmosphere factor's evaluation in QSRs. 57

14 Promotional activities factor's evaluation

in QSRs. 58

15 Customers' evaluation for the experiment of

Egyptian QSRs. 59

16 Customers' problems with Egyptian QSRs. 62

17 Managers evaluation for QSRs in Egypt. 68

18 Egyptian market expectations about fast

food concept. 69

19 Egyptian customers' needs and preferences. 70

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20 Managers' ways to deal with customers' needs

and preferences. 71

21 International chain restaurants' attributes. 72

22 Managers' evaluation for local fast food

operations. 73

23 Managers' opinions in using international concept

by local fast food operations. 74

24 Managers' evaluation of brand name factor

in QSRs. 77

25 Managers' evaluation of location factor

in QSRs. 78

26 Managers' evaluation of price factor in QSRs. 79

27 Managers' evaluation of food quality factor

in QSRs 80

28 Managers' evaluation service quality factor

in QSRs. 81

29 Managers' evaluation consistence standard factor

in QSRs. 82

30 Managers' evaluation of atmosphere factor

in QSRs. 83

31 Managers' evaluation of promotional activities

factor in QSRs. 84

32 Labor turn over rate in QSRs . 85

33 Means to decrease turn over rate in QSRs. 86

34 Managers' evaluation of training level

in QSRs. 87

35 Managers' evaluation for marketing strategies

in QSRs. 88

36 Managers' evaluation for quality level

in QSRs. 89

37 The extent of product development to meet

customers' needs in QSRs. 90 38 Customers satisfaction measuring methods

in QSRs. 91

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CHAPTER ONE

THE PROBLEM AND ITS SETTINGS

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1.1 Introduction

Food service away from home is essential to tourism. Food

service industry becomes one of the fastest growing industries, because

of many social and commercial changes around the world. Most

modern industry requires that individual travel and work at a distance

from home; thus, food service industry plays a required supporting role

in providing food for these individuals. In addition to food and

beverage away from home, food service industry provides

convenience, communication settings and a wide variety of outputs

contributing to life's quality. Among the latter, entertainment /

diversions; and ambiances are contributing to variety in living

experiences. Food service industry is a major generator of jobs. The

group of firms providing food and restaurant supplies has been found a

substantial source of economic base in itself. Food service industry also

supports the community infrastructure through utility systems and local

taxes.

Recently, fast food restaurant chains have spread out,

blossoming all around the world. Such chains are based on some

factors for their success: such as cleanliness, food quality, value,

atmosphere, location, and speed of service. In Egypt there are many

of fast food restaurant chains; some of which are domestic in origin,

like Wessaya, Mo`Men, Cook Door, Felfela, Makani, and Gado, other

chains such as McDonald's, Burger King, Hardee's, and Kentucky

fried chicken (KFC), are international franchised operations.

These domestic chains are seeking to compete with the

international chains in quality, level of services offered, universal

reach and spreading around the Arab and foreign countries. This can

be achieved by a good reputation that will give better profits.

Therefore, it is necessary to carry out a comparative study to

evaluate the experiment of the local restaurant chains compared to the

international restaurant chains running in Egypt.

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1.2. Organization of the Research

With regard to the organization of the paper, this thesis has been

developed over five chapters;

Chapter One: "the Problem and its Settings". This chapter sets

out the basic framework of the thesis. The components include an

introduction, organization, a definition of terms and abbreviations,

limitations, and objectives.

Chapter Two: "Review of Literature". This chapter looks at the

literature upon which the subject has been researched.

Chapter Three: "Materials and Methods". This shows the way in

which the data was collected. The information includes the population,

research, the design, treatment of the data and the instruments used for

the research.

Chapter Four: "Results and Discussion". This sets out the

analysis of the data in exactly the same way as chapter three

concerning the points of research.

Chapter Five: "Summary and Recommendations". This chapter

provides a summary based upon the informations received or

suggested, the obtained results and recommendations of the study.

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1.3. Abbreviations

Abbreviations used throughout the thesis are defined as follows:

Table 1: Abbreviations list

Professor prof Quick Service Restaurant QSR National Restaurant Association NRA

Information Technology IT

Quality Control QC

Quality Assurance QA

Total Quality Management TQM

Continuous Quality Improvement CQI

Number NO

Define - Measure - Analyze - Improve-

Control DMAIC

Quality Function Development QFD

Product Life Cycle PLC

Critical Control Points CCPs

New Product Development NPD

Points of Distribution PODs

Hazard Analysis Critical Control Point HACCP

Designated Market Area DMA

Strengths, Weaknesses, Opportunities, and

Threats SWOT

On the Job Training OJT Skills Based Pay SBP

Electronic Point-of-Sales EPOS

Target Restaurant TR

Public Relations PR

Product, Price, Place, and Promotion 4Ps

Unique Servicing Proportion USP

Point of Sales POS

Identification Data ID

Other People Data OPD

Chamber of Tourism Establishments CTE

Statistical Package for Social Science SPSS

Standard std

X2 Signification X

2sig

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1.4. Limitations of Research Study limitations are represented in the following points:-

1.4.1. Place limitation: Unfortunately, it was difficult to assess

many of the fast food chains in Egypt due to, costs, time involved, and

the accessibility to these chains. For these reasons, the ones which were

looked at were limited to four samples from the independent fast food

restaurants in Sharm El Sheikh, four from the famous local fast food

chains as well as four international chains in Sharm El-Sheikh.

1.4.2. Time limitation: The field study was implemented in the

period from September 2006 to August 2007.

1.5. Research Objectives

This study is aimed at :

1. Evaluating the experiment of local restaurant chains as

compared with the international ones.

2. Defining the factors needed to development the local restaurant chains to reach the international standard.

3. Evaluating international chains product developing.

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CHAPTER TWO

REVIEW OF LITERATURE

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2.1. Overview on Fast-Food Operations

2.1.1 Fast Food Concept

The National Restaurant Association (NRA) defines the food

service industry as "encompassing all meals and snacks prepared outside

the home". This definition therefore includes all take out meals and

beverages. Khan (1991)

Ball (1992) agreed with Samle (1980) that the fast food restaurant, a place where a customer should be served within five minutes of entering

the outlet even at peak periods. While Melaniphy (2005) classified fast

food according to the product as it is prepared and cooked quickly, with a

service delivery varying between 2 to 15 minutes, a low price, easily

consumed with fingers or disposable cutlery. Brymer (1995) defined a

quick service restaurant as a "firm with a mission to provide quicker

service and core technology geared towards this mission. However,

Walker (2006) considering that quick-service restaurants offer a quick

service. Negl (2002) identified that as fast service restaurants in recognition of the fact that the service is fast, not the food.

Lane and Duper (1997) explained that in preference to fast food

restaurant tend to be located near highways, malls and down town areas

which offer a standard menu with limited choices that attempt to satisfy a

hungry audience. Moreover, Walker (2006) highlighted that quick-

service restaurants have increased in popularity because of their

location strategies. They are situated for convenience in every possible

area. Their menus are limited, which makes it easy for customers to

make quick decisions on what to purchase.

Classification of fast food operations according to according

menu specialty

Walker (2006) agreed with Brymer (1995) in that classifying the

quick service restaurants segments is according to the menu specialty.

That specialty could be hamburger, pizza, chicken, snacks, sandwich,

Mexican, or seafood. They are the leaders for each segment according to the spread, the popularity, and the volume of sales

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Classification of fast food operations according to restaurant characterization

Traditional fast-food restaurants

Ball (1992) reported that the traditional fast food operations include

fish and chip shops, ethnic, take away and sandwich bar operations, they

are mostly owned by individuals. Scanlon (1998) stated that the

traditional fast - food restaurants are concentrated on items from the menu

such as hamburgers, pizza and chicken,

Modern fast food restaurants

These have been identified with fast food chains, which are designed

around systems of catering which have been linked to

manufacturing production lines with the design and layout of

restaurants, the scheduling and planning of a work place, etc.,

being systematically planned to produce consistently standardized

products. Simplified menus characterize these restaurants and

chains which dominate a high standard of service, training and

decor. Modern operations usually offer a combination of eat on the

premises, take away drive. The main features of modern fast food

concepts are shown in Table 2 as suggested by Ball (1992).

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Table 2: The main features of modern fast food concepts

Features Description

Food

materials

Consistent and controllable quality, precisely specified,

equally portioned.

Type of

products

Suitable for quick and retention for short periods

without deterioration.

Organization Highly organized routines with precise job

specifications and procedures.

Operation Usually planned for large throughput and high sales

volume (including counter sales)

Cost control Prices portion and cost control, permitting relatively

small margins and competitive pricing.

Quality

control

Standard preparation, cooking and serving routines laid

down, including the discarding or sub-standard food

(e.g. maximum time for keeping food before serving).

Hygiene Exacting equipments emphasized as a part of product

reliability, including measures to reduce litter (in store

and neighborhood).

Packing Products distinctively packaged (disposables), easy to

handle (usually finger held, suitable for over-the-

counter or table meals).

Research Product research and consumer response testing

essential. On-going research into changing food

preference sand attitudes is necessary to develop

concepts.

Variety May be provided in product range offered or by

variations in one basic product (dressings, fillings,

supplements).

Markets Usually targeted at wide, classless society, primarily

young of family group.

Promotion Emphasis is given to value for money, consistent

quality and cleanliness. Particular products may be

differentiated by originality, size, cost competitiveness,

variety of choices or fillings, healthy eating, and

friendly service.

Source : Ball (1992)

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2.1.2 Customer Perceptions Johnson and Clark (2005) illustrated that while the expectation-

perception approach to understanding service quality is extremely useful

in focusing on the outcome of customer satisfaction and helps identity on

mismatches between operational and customer views of quality, which

does have some downsides.

Service could be perceived to be 'good' when it is 'bad'.

Service could be perceived to be 'bad' when it is 'good'

Service that was 'good' last time may only be 'OK' this time.

Satisfied customers may switch.

King and Ronald (2006) differentiated between quality in fact and in

perception and they stated that quality in fact relates to our internal

standard, we get what we expect, so set high expectations. Quality in

perception is how our customers perceive our service.

Customer differences

Foster (1993) highlighted that different people have different nations

about what type of food tastes good, but a successful food and beverage

operation is able to consistently satisfy the majority of its guests. Peppers

and Rogers (1997) argued that customers are different in two primary

ways: They need different things from the enterprise, and they have

different value to the enterprise. A customer's value will depend largely

on how long the customer remains loyal, and even small increases in the

state of customer retention add significantly to customer's value. Knowing

what different customers need involves much more than simply tallying

what they've bought, because two customers might buy the same product

for quite different reasons. Powers and Barrows (2006) illustrated that

the guest is also apart of the service transaction. A guest who is not

feeding well or who takes a dislike to member of the staff may have a bad

experience in spite of all efforts to please.

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2.1.3 Local and International Restaurant Chains

Independents restaurants

King and Ronald (2006) declared that independent is one who is not

bound by or definitively committed to another, and it a particular brand or

company. While Walker (2006) highlighted that one or more owners,

usually involved in the day-to-day operation of the business, typically

own individual restaurants (also called Indies). Even if the owners have

more than one store, each functions independently. These restaurants are

not affiliated with any national brand or name. They offer the owner

independence, creativity and flexibility, but with an element of risk.

Wade (2006) mentioned that between the independent and chains lies

at least two other possibilities, some dependent operations are so

successful that they open additional units without, however, becoming as

large as to lose the hands on approach of the owner operator. Independent

group operators are not exactly chains, but more a longer single unit. The

other possibility and one that is pursued by thousands of business people

are franchise operations.

Chains restaurants

King and Ronald (2006) defined chain as a group of enterprises or

institutions of the same kind of function usually under a single

ownership, management or control. Walker (2006) stated that chain

restaurant comprises a group of restaurants, each identical in market,

concept, design, service, food and name. Part of the marketing strategy

of a chain restaurant is to remove uncertainty from the dining

experience. The same menu, food quality, level of service and

atmosphere can be found in any one of the restaurants, regardless of its

location. Family run teams or other entrepreneurs usually own them.

Wade (2006) agreed with Powers and Barrows (1999) in that chain are playing a growing role in food service. Moreover, they are prominent

among the companies that recruit graduates for hospitality programs.

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Chains have strengths of seven different areas:

(1) Marketing and brand recognition

(2) Site selection expertise

(3) Access to capital

(4) Purchasing economies

(5) Centrally administered control and information systems

(6) New product development

(7) Human-resource development

International versus local fast food chain

According to Lan, and Khan (1995) fast food operations are divided

into two categories; international chains and local chains where each have

a different approach to the operating and management.

The international fast food chains have a core product (hamburger,

chicken or pizza). They focus on image building through progressive

marketing which gains mass production and the central distribution

international fast food chains are expanding through franchising.

Meanwhile the local fast food chains are expanding through private

ownership and building their image through products. Local fast food

operations do not have mass production or central distribution; therefore,

they became labor intensive.

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2.2. Quality of Food and Service

Quality Concept

Wyckoff (2001) highlighted that quality is the degree of excellence

for what is intended add to this a controlled variation in order to

achieve that excellence, where the end result is meeting customer

requirements. While Schroeder (2004) stated that quality is meeting

and exceed customer requirements now and in the future." This means

that the product or service is fit for the customer's use. Fitness for use

has related to benefits received by the customer and to customer

satisfaction. Only the customer, not the producer, can determine it.

Noel and Cullen (1996) mentioned that quality is a process, not a procedure and as such is never finished. The culture of quality promotes

and sustains change. Stutts and Wortman (2006) added that quality

could be defined as "The consistent delivery of product and services

according to expected standards. King and Ronald (2006) stated that the

other half of the definition of quality is "doing things right." Doing things

right simply means meeting customers needs and expectations more

rapidly and at a reduced cost. It is customer orientation, innovation,

teamwork, and everyone's responsibility.

Quality importance

Field (1999) reported that quality is the major driver of overall

satisfaction, while price and service tied for second place. Sideman and

Johnson (2002) argued that providing consistent quality service has

become a challenge for the quick service industry. Schroeder (2004)

indicated that quality can both improve revenues and reduce costs. The

cost of quality measures the lack of conformance to customer

requirements. Quality costs can be convention or appraisal. Failure costs

may be due to internal or external failures.

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2.2.2. Product Quality

Product concept

The actual good or service offered for sale. It could include all of the

features of the good or service as well as the packaging and brand name

of the good or service. Powers and Barrows (1999) illustrated that in a

restaurant, this involves not only the food service the way the server and

guest interact and the atmosphere of the place. Reid and Bojanic (2006)

agreed with Etzel (2004) in that product refers to all of the goods and

services that are bundled together and offered to consumers. Nearly, every

product sold includes tangible and intangible elements.

Product Quality and Customer Satisfaction

Peppers and Rogers (1997) indicated that there is, of course, no

substitute for quality. No customer will return for more of a bad product,

so having product quality at least on a par with the competition is

essential for 1:1 enterprise. Customer satisfaction is the opposite of

customer dissatisfaction, and dissatisfaction is one sure route to defection.

Keep in mind, however, that customer satisfaction by itself is usually not

sufficient to generate loyalty. Wade (2006) agreed with Negl (2002) in

that customer feedback is vital to keep the menu fresh. Feedback from

customers helps to improve product quality, which in turn increases sales

and products higher profits.

2.2.3. Food Quality

Reay (1983) pinpointed that any food product specification involves

consideration of factors such as those set out below:

1. The quantity of goods based on the standard recipe. 2. The quality and grade of ingredients. 3. The dimensions of the finished item, e.g. the thickness of the pastry

and the weight and type of filling.

4. The nature of the glaze. 5. The degree browning.

26

6. The type, size and shape of the garnish. 7. The type of packaging to be used 8. The layout and wording of labels 9. The product life 10. The storage requirements

Wiley and Sons (2006) illustrated that the quality of food depends on

two factors: the skill with which it's prepared, and the basic quality of the

foodstuffs use to this might be added the perception of novelty factor

Briggs (2000) stated that food, whether raw or cooked is a perishable

commodity and has a limited life and so caterers have to ensure that they

buy produce in the correct quality and quantity in relation to customer

demand and that it is correctly stored and processed. The choice of food

and drink revolves around the menu, which is limited or extensive, and

whether it concerns a particular product, if there is a varied choice, and

the quality of the product offered, and it is fresh or convenience. Other

factors include portion sizes and the availability of children's menus along

with consistency, range of tastes, textures, aromas, and colours and

presentation of the food and drink. Dharmaraj (2002) believes that poor

quality food can destroy the commercial credibility. Seidman and and

Johnson (2002) argued that keeping consistency of food quality is a

though task for all suick service restaurant QSR chains.

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2.2.4 Food Service Quality

ConceptService Food

The service is all action and reactions that customers perceive

whichthey have purchased. In hospitality, service performed for the guest

by people or by systems. The emphasis in definition is on the guest's total

experience. Indeed, from the guest's point of view, service is the

performance of the organization and its staff. Schroeder (2004)

mentioned that most definitions of service stress the intangible and cannot

be easily quantified or defined. A better definition is that service is

produced and summed simultaneously, and consumption. Reid and

Bojanic (2006) defined a service as an intangible product that sold or

purchased in the marketplace.

Meanwhile Kotler and Armstrong (1996) stated that service means

"all features, acts, and information that augment the customer's ability to

realize the potential value of a product or service.

Powers and Barrows (2006) confirmed that the basis of service

strategy is market segmentation, largely on consumer service expectation.

Successful service companies develop a service culture cased on

commitment by top management. Consistency between policy and

practice and well developed channels of communication. Because service

people are a part of the product, a good service team is essential, service

teams based on careful selection, training, and on motivational programs

that include rewards and involvement in service planning. Because most

hospitality products are strikingly similar, service is the most significant

sustainable competitive advantage

Noel and Cullen (1996) stated that zero defects is the standard that

service organizations must set this very high standard, however, is set in

the context of customer expectations for a particular segment and

operation type. At a McDonald's waiting lines can expect during the rush

hour and will accept as long as they move with reasonable speed.

However, a dirty or cluttered McDonald's, even in a rush period, scents a

defect. Zero - defects committee should formed from members of the

quality improvement team.

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2.3. Elements of Competition

2.3.1. Location

Powers and Barrows (2006) stated that marketing place refers to

the location, the place where the good or service is offered. Place refers

not only to the property's location, but also to the channels of distribution.

Reid and Bojanic (2006) agreed with Powers and Barrows (1999) in that

the place component refers to the manner in which the products and

services being delivered to consumers.

Ridgeway and Ridgeway (1994) indicated that location is, of course,

extremely important. All businesses are near potential customers but this

may be less important for an outside catering company than for a

restaurant. Moreover Briggs (2000) reported that the location of the food

service facility might said to be the most important feature. Services,

which are not appropriately located, may not successfully perform.

Powers and Barrows (1999) stated that the success of most

restaurants also enhanced by a location near the heart of major traffic

patterns. The technique for analyzing location potential requires a special

kind of knowledge, and chains can afford real estate departments that

possess that expertise.

Seidman and Johnson (2002) considered that location is an old

topic but with new content. Chinese QSR chains are entering various

non-traditional venues. These venues include shopping mall food

courts, leading supermarket, retail chains, neighborhood centers, key

intersections, university and college campuses, and airports, casinos,

and sports arenas. Powers and Barrows (2006) stated that restaurant companies have developed downsized units for places where a traditional

unit will not fit. These units often take the form of a mobile cart requiring

minimal investment. The name given these new units is points of

distribution (PODs). Wade (2006) argued that the presents of quick-service operations in

every market of any size is a key characteristic of quick service and one

29

of the main factors sporting its growth over the past 50 years. Because of

their many locations, they make eating out convenient.

2.3.2 Pricing The price is the amount of money and/or other items with utility

needed to acquire a product. Recall that utility an attribute with the

potential to satisfy wants. The price has a tremendous impact on the

success or failure of a product.

Etzel (2004) mention that price is significant in economy, in the

costumer's mind, and in an individual firm let's consider each situation

some prospective customers are interested primarily in law prices,

whereas another segment is more concerned with other factors, such as

service, quality, value, and brand image. It is safe to say that few, if any

customers are attentive to price alone or are entirely oblivious to price.

Powers and Barrows (2006) confirmed that there is a risk in price

reduction, namely, that the lower price will denote a cheapened product to

the customer. As with virtually all marketing activities, the key is to keep

prices in line with customer expectations and to offer products that

perceived to be a good value to the customer.

2.3.3 Demand

The market demand is the demand for a product or service.

2.3.4. Training

Stutts and Wortman (2006) agreed with Noel and Cullen (1996) in

that training is the process of integrating personal and organizational

goals. Donnelly et al. (1998) indicated that inadequate training can be a

major barrier to quality. Hill and Jones (1998) found that a company that

employs individuals with high skills is likely to be more efficient than one

employing less skilled personnel.

31

2.3.5 Operational Systems Powers (1995) declared that a standard exterior appearance gives

many chain operators a high recognition value. Hill and Jones (1998)

indicated that standardization refers to the degree to which a company

specifies how decisions are to been made so that employees' behaviour

becomes predictable. Gouville and Soman (2001) explained that the

hospitality industry commonly bundles goods and services. Firms

routinely offer single units of different products or multiple units of the

same product, for one price. Seidman and Johnson (2002) described that

the quick service industry is characterized by regular interaction between

customer and employee. Built around service encounters designed to be

consistent and predictable, the nations of reutilization and standardization

are central to the industry.

Donnelly et al. (1998) argued that once the quality characteristics

have defined, the next step is to determine the desired quality standards.

These standards quantify the specific quality requirements for the

organization's output. Quality standards serve as the reference point for

comparing what is "ideal" to what actually "is". Reid and Bojanic (2006)

considered that before you can evaluate the level of service provided by

employees within your organization, you must establish the standards by

which they will judge. Wade (2006) believes that the marketing plan

must specify the restaurant's standards for food quality and consistency,

beverage operations, cleanliness, and service. Clearly stating the

standards in the document provides management with a written document

to reference.

From point of view of Wade (2006) the broke bone of the operating

system is typicality a set of comprehensive operations manuals and a

complete set of recipes that cover all products on the menu. The operation

manual sets forth operating procedures from opening to closing and

nearly everything in between. All major equipment operations and routine

maintenance are been described in the operation manual or a separate

equipment manual. Define how things been done based on experience,

organization standards, and customer expectations. Organizational

systems also explain who is involved and why.

31

As the production is the process wherein the food is converted to the

state in which it will be served. Pepper et al. (1984) illustrated that fast

food operations handle huge amounts of food in a short time. They could

never keep up with their customer's demands if they did not use mass

production methods. Mass production means buying, preparing, and

serving in large quantities. Powers and Barrows (2006) confirmed that

some kinds of operations are ideally suited to the production-line

approach to service. Quick service restaurants amusement parks and

budget motels come to mind as having the need for the cost efficiency of

the production approach. Powers (1995) mentioned that all of the quick

service restaurants (QSR) operations try to simplify their production

processes and use self-service.

2.3.6 The Element of Risk and Failure

Risk concept

Wiley and Sons (2006) described that many people will tell that the

restaurant business is the highest-risk business in the retail spectrum. This

simply is not true. The failure rate for eating places in the general is

below the average business failure rate nationwide. Camera, furniture, and

apparel stores regularly top the failure list.

Powers and Barrows (1999) argued that franchising is not risk free.

The franchisee is generally completely dependent on the franchise

company for not only marketing but often or purchasing and other

operations-oriented assistance. Wade (2006) explained that failure is

much less common among franchised restaurants than among independent

operation.

Elements of restaurants success and failure

Powers and Barrows (1999) believed that all advertising will be

effective only if consumers get exactly what expect. Therefore, chains

concentrate on ensuring consistency of quality and service in operations.

Customers know what to expect in each of the units and, in an

increasingly mobile society that is important.

32

Parsa et al. (2005) pinpointed the elements of success and failure as

follows:

1. Elements of success A. Have a distinctive concept that been well researched. B. Ensure that all decision make long-term economic sense. C. Adapt desirable technologies, especially for record keeping and

tracking customers.

D. Educate mangers through continuing education at trade shows and workshops an environment that fosters professional growth has

better productivity

E. Effectively and regularly communicate values and objectives to employees in one instance.

F. Maintain a clear vision, mission, and operation strategies, but be willing to amend strategies as the situation changes.

G. Create a cost conscious culture, which includes stringent record keeping.

H. Focus on one concentrated theme and develop it well. I. Be willing to make a substantial time commitment both to the

restaurant and to family.

J. Create and build a positive organization culture through consistent management.

K. Maintain management flexibility. L. Choose the location carefully, although having a good location.

2. Elements of failure: A. Lack of documented strategy; only informal or oral communication

of mission and vision; lack of an organizational culture fostering

success characteristics.

B. Inability or unwillingness to establish and formalize operational standards; seat-of-the-pants management.

C. Frequent critical incidents; managing operations by "putting out fires" appears to be a common practice.

D. Focusing on one aspect of the business at the expense of the others. E. Poor choice of location. F. Lack of match between restaurant concept and location. G. Lack of business experience or knowledge of restaurant operations. H. Poor communication with consumers. Negative consumer

perception of value price and product must match.

33

I. Inability to maintain operational standards leading to too many

service gaps. Poor sanitary standards are almost guaranteed to kill a

restaurant.

Wiley and Sons (2006) pointed out that the stark reasons for

business failure are worthy of study these include in competence,

lack of line experience, lack of managerial experience and quite

important, unbalanced experience. Inadequate funds run out of

money before the restaurant attracts enough customers to go into

profit. Poor management is a catchall phrase, but should not be

dismissed on those grounds.

The way to success

Hill and Jones (1998) considered that avoiding failure requires a

constant focus on the basic building blocks of competitive advantage,

continuous improvement, learning identification, adoption of the best

industrial practice, and victory over inertia. Huber and Pilmanis (2001)

mentioned that there are primarily five customer sale channels: delivery,

dining, takeout, pickup window and catering. In the QSR industry, IT has

been commonly used for order processing, accounting, purchasing,

marketing, consumer behavior and the location of new restaurants. Parsa

et al. (2005) explained that perhaps the key finding was that a successful

restaurant requires focus on a clear concept that drives all activities. In

this finding, concept is distinct from strategy. A remarkable outcome of

the interviews is that we found few differences in having a well-defined

strategy between successful and failed restaurants owners but

considerable differences in clarity

Negl (2002) believed that restaurants are been designed to serve a

basic meal quickly and affordably. Menus are usually limited and

kitchens are designed to produce high volume in short periods. The

customer expects quick service, low price, and consistency. Fast food

establishments are those that serve food for which there is little or no

waiting. From Wade (2006) point of view, the key to the success of quick

service, nevertheless, is its simplicity. A key simplification remains quick

services limited menu. Each item on the menu has been engineered to

simplify and standardize its purchasing, production and service.

34

Pepper et al. (1984) considered that a fast food operation has two

main aims: to please the customer and to make a profit. The giant fast

food chains were built on the belief that four things operating together

will bring them their success, these four things are:-

Limited menu

Fast service

Low price

High sales volume

Brian De Silva (2006) pointed the top tips of WOW success as follows:

Research market and area.

Establish budget.

Brief designer: Make sure choose a good designer.

Agree concept: What will be famous for?

Recruit the right team.

Inspire team and guests.

Market restaurant: Public relation and collateral, guest and staff incentives.

Make changes when need to.

Listen to staff and guests.

Remember: you're only as good as your last drink.

2.3.7 Product Branding

Brand concept

According to King and Ronald (2006) image is a popular conception (as of a

person, institution, or nation) project especially through mass media importance of

brand. Martina (1958) defined image as "the way in which a store is

defined in the shopper's mined, partly by its functional qualities and partly

by an aural of psychological attributes. From this, two key elements in the

construction of image can be identified.

o Functional qualities such as the restaurant layout, menu range, price levels and dcor.

o Psychological attributes: The less tangible elements such as feeling of friendliness or a sense of excitement.

35

Importance of brand

Blackett (2003) told that branding is a binary process. First the name,

logo, pack design, advertising and purchasing environment must create

the promise; and then the product or service concerned has to deliver. If

the brand lives up to expectations then trust been rewarded; if it does not

then the buyer will look elsewhere. So good brand management is all

about managing customer confidence so that he or she can buy without

fear of risk can be a source of strong cash flows

Brand marketing

Walker (2006) believed that brands are defined as unique that identify

a product and set it apart from those of other producers or service

providers. Today, brands are becoming a more and more important part of

a company's marketing strategy, mostly because having a well-known

brand tends to create brand identity. The most important considerations

when developing a brand are these:

It must be easy to remember.

Guests need to associate the brand with value.

It must have a positive connotation.

Name selection and logo

Wade (2006) agreed with Ridgeway and Ridgway (1994) in that the

restaurant name and any subtitle it may use give people an immediate

impression as to the type of restaurant it is. A name must be memorable

and should be easy to pronounce, original, attractive, and easy to

remember and say. A logo is the restaurant's identifying mark that the

public will recognize. In restaurant industry, Mc Donald's has developed

its brand and logo-the golden arches - to be automatically identifiable

worldwide.

36

2.3.8 Product Value

Product value concept

Mattila (2001) mentioned that committed customers place a high

value on a restaurant's social benefits, such as friendship and familiarity,

in addition to good food and a fun atmosphere. Etzel (2004) defined that

value is the ratio of perceived benefits to price and any other incurred

costs. When we say a product has sample value, we do not necessarily

mean it is inexpensive nor has a very low price. Rather, good value

indicates that a particular product has the kinds and amounts of potential

benefits such as quality, image, and purchase convenience consumers

expect at a particular price level.

Foster (1993) believed that value is a customer's satisfaction with a

product in relation to the price. The value of a restaurant meal is a matter

of perception how the customer views the quality of the dining

experience. Johnson and Clark (2005) indicated that value is the

customer's assessment of the benefits of the service weighed against all

the costs involved. It is important to emphasis that the ultimate judge of

value is the customer.

Price value perception

Etzel (2004) reported that a product's price has been affected by

whether it is a new item or an established one. Over the course of a life

cycle, price changes are necessary to keep the product competitive. Wade

(2006) agreed with Negl (2002) in that price / value perception means

consumers believe that they are receiving value for the price that they are

paying, whether the customers are eating in a fast food restaurant or

dining in the finest restaurant in the area. The dcor, ambience, and

service standards must all contribute to the customer's perception of the

dining experience.

37

2.3.9 Marketing Marketing concept

Van Hoof et al. (1996) illustrated that marketing is all of activates

designed to move goods and services from the producer to the consumer.

Walker (2006) said that marketing is attracting guests and establishing a

relationship with the guests that ensure their continuous loyalty. Everyone

from the corporate executive to the line employee should be involved

with marketing.

Reid and Bojanic (2006) stated that:

Marketing is the process of determining consumer needs, creating a product service mix that satisfies these needs, and promoting the

product service mix in order to attain the goals and objectives of the

firm.

Marketing concept is a framework for the marketing philosophy that consists of three interrelated elements: an organization's basic

purpose is to satisfy customer needs; satisfying customer needs

requires integrated and coordinated efforts throughout the

organization; and organizations should focus on long-term success.

The marketing mix

Powers and Barrows (2006) agreed with Reid and Bojanic (2006) also

in that the marketing mix is conventionally though of as encompassing

the four Ps: product, price, place, and promotion. The researcher agree

with this opinion.

Ronald and Nykiel (2005) added that there are many different

perspectives on marketing and marketing strategy especially in ever-

changing environment. In the 1990s as we transitioned to a predominantly

service-oriented economy and marketing environment, marketing

strategies shifted to focus on the four Cs, as delineated by waterborne:

Consumer wants and needs

Cost to satisfy (want and needs)

Convenience to buy

Communication (creating a dialogue)

38

In the current decade, while marketing must still focus on the four Ps and

four Cs, marketing strategies appear to have shifted and are now more and

more based on the new five Ps:

Preparation

Positioning

Perception

Proclamation

Power thrusts

Market segment

Walker (2006) defined that market segment is a smaller, identifiable

group that can be defined using any set of, such as moose found in

geographic, demographic, or psychographic.

Van Hoof, et al. (1996) indicated that marketers go through a process

called market segmentation and separate people into distinct group based

on their individual characteristics and buying habits.

The target market

Wade (2006) agreed with Negl (2002) in that the target market is the

type of customer who the restaurant is attempting to reach and entice to

frequent the establishment. Writing a menu requires understanding the

customer's wants, needs, and expectations. A customer will judge a

restaurant on several critical areas: food quality and presentation, service,

ambiance, cleanliness, and value. The menu informs customers of the

choices available to them. This is known as menu engineering. The goal

of menu engineering is not to force the customer to purchase an unwanted

item, but rather to place certain items in high visibility locations.

Marketing and selling

Reid and Bojanic (2006) agreed with Medik (1999) in that the

difference between selling and marketing is very simple. Selling focuses

mainly on the firm's desire to sell products for revenue. Marketing is

different from selling because marketing focuses on the needs of

consumers, whereas selling focuses on the needs of the seller. In addition,

39

the marketing concept advances the finical goals that the firm may have.

The concept holds that if the consumer's needs and wants are very

satisfied, then financial success will follow. The researcher agrees with

this opinion.

2.3.10 Promotional Element

Promotion concept From Etzel (2004) point of view the extent to which the product is

promoted by the producer or intermediaries and the methods used are

added considerations in pricing if major promotional responsibility is

placed on retailers. Walker (2006) said that having an excellent

product at a good price and in the right place is not enough. Sales

goals will not be obtained unless the consumer is aware of the

product's existence. There are several ways of doing this with

promotion. Stutts and Wortman (2006) illustrated that have one

single overriding common purpose: to fulfill a marking need. This

need may be to build trial (new) business, develop a greater share of

existing business, keep businesses, or get repeat business regardless

of the type of promotion the objective is to help the overall

marketing effort.

Promotional mix

Reid and Bojanic (2006) agreed with Reid (1989) in that the

promotional mix elements include advertising, personal selling, sales

promotion, and public relations.

Sales promotion

Schultz et al. (1993) stated that sales promotion: usually short-term

tactical incentives offering something over and above the normal

product offering to encourage customers to act in particular ways.

Product-based sales promotions: sales promotions that centre on some

kind incentive connected with the product: extra product free, or

samples. In addition Reid (1989) agreed with Gottleb (1982) in that

sales promotion is a direct inducement offering an extra incentive to

41

take action. Sales promotions seek to accomplish several broad

objectives and can be used for several reasons:

To increase consumer awareness

To introduce new products and services

To increase guest occupancy and customer counts.

To combat competition

To encourage present guests to purchase more.

To stimulate demand in no peak periods.

2.3.11 Services for Children

Fast food restaurants and children

Spurlock (2005) said that fast food chains make no secret of the fact

that kids are their primary targets. Fast food restaurants are significantly

more likely to be visited by respondents with children than those without.

There is Happy Meal, launched nationally in 1979. It cost a buck in those

days. Inside a cardboard box with a circus theme, kids found a McDonald

stencil, a puzzle book, and a Mc Wrist wallet. The meal-plus-toys

packaging proved to be an instant hit with the first star trek Happy Meals

that very year.

Hahm and Khan (2001) considered that parents with young children

enjoy the conveniences of eating out, and they often take their young

families to quick serve restaurants. They especially like to take their

young families to those restaurants that are equipped with playgrounds or

play areas, and those that offer give always to their children. From

Spurlock (2005) point of view, parents are their children's primary role

models kids learn their life habits, good and bad, from their parents.

Hahm and Khan (2001) stated that in the future healthy option for to

go kids meals could include carrot sticks instead of French fires, hand

held yogurt stick such as Yoplait's Go-Curt, and flavored milks in

aseptically packaged containers, these options meet the demand for hand

held to go food, but also provide a healthy alternative to traditional

quick service restaurant menu items.

41

2.3.12 Atmosphere (Surroundings)

Atmosphere

Briggs (2000) agreed with Pepper et al. (1984) in that atmosphere is

the overall effect created by a restaurant's lighting, color scheme,

furniture, and service. Wade (2006) highlighted that restaurant decor

should support the overall concept and not be a haphazard collection of

props, as the decor helps set the tone for the atmosphere.Wiley and Sons (2006) declared that a restaurateur who is largely dependent upon

neighborhood business would do well to establish a friendly atmosphere,

maintain consistent standards, and offer good value. A friendly greeting is

the best possible start to a dining experience. People do not require heart,

soul, and internal devotion, just a smile and a cheerful greeting.

Cleanliness

Pepper et al. (1984) stated that customers would stop coming if they

feel a restaurant is not clean. Customers like to eat in clean surroundings.

Constant attention to cleanliness keeps luncheonettes and chain restaurant

dining areas attractive. Wade (2006) agreed with Negl (2002) in that the

incidence of food-borne illness has increased as the food service system

has become more complex and the number of operations has expanded.

One case of food poisoning can seriously injure a restaurant's reputation.

More than one can endanger an operation's survival.

2.3.13 Customer Satisfaction

Customer satisfaction

Johnson and Clark (2005) agreed with Cooper and Lawson (2004)

in that satisfaction is the outcome of the consumer's evaluation of a

service, which sometimes refer to as perceived service quality, and can be

represented on a continue from delight to extreme dissatisfaction.

Lillicrap et al. (2002) pinpointed the factors contributing to the meal

experience were summarized. Factors, which might affect the customer's

42

enjoyment of a specific meal experience in a particular operation, could

be:

The welcome, the dcor, and the ambience.

Efficiency, has the booking been taken properly, using the customer's name.

Location of the table.

Menu and drinks list (presentation and cleanliness).

The order is been taken recognition of the host.

Availability of dishes / items.

Speed and efficiency of service.

Quality of food and drink.

Courteousness of staff.

Obtrusive / attentiveness of staff.

Ability to attract the attention of staff.

Other customer's behaviour.

Methods in which complaints are handled.

Methods of presenting bill / recovery payment.

Departure attentiveness.

Schroeder (2004) told that customer satisfaction is a relative

concept that varies from one customer to another. Also, a customer may

be satisfied with today's products but not satisfied in the future. For

example, while one customer may consider a Ford automobile perfectly

satisfactory, another may not. Seidman and Johnson (2002) argued that

customer satisfaction is regards as the highest mission by the chains. Johnson and Clark (2005) described that customer satisfaction is

something that can be managed to some extent by influencing customers'

perceptions and expectations of service delivery. This demands in-depth

understanding of this subject. Pepper, et al. (1984) stated that satisfied

customers are return customers, which means good business.

Improving customer service and customer satisfaction

Bateson (1995) mentioned that customer satisfaction is depends on the

production of services as well as their consumption. Field (1999) pointed

out that a common five step process for developing a customer

satisfaction program is:

43

Identify the attributes of your product or service that are most important to customers.

Measure customer satisfaction levels on these important attributes.

Link satisfactions levels to key customer behavior (use levels, member retention).

Identify and implement concrete actions that will improve customer satisfaction and correspondingly, customer behavior.

Track results. Reid and Bojanic (2006) illustrated that improving customer service

should be a top priority of all managers working in the hospitality and

tourism industry. Walker (2006) said that we not only need to keep

guests happy during their stay, but also to keep them returning-with their

friends. It costs several times more to attract new guests than to retain

existing ones.

Employee satisfaction

Easerbrook (2006) agreed with Dube and Renaghan (1999) in

that the best way to drive growth and profit is by looking after the

company's staff. Healthy profit has to start with people, if you get the

people part right, the rest will follow. Gregory and Brieiter (2001) found

that satisfied employees are more likely to exhibit customer-oriented

behavior, which in turn will lead to guest satisfaction. Seidman and

Johnson (2002) agreed with Ghislli et al. (2001) in that job satisfaction as one key to turnover seems to be a job's characteristics.

44

CHAPTER THREE

MATERIALS AND METHODS

45

Materials and Methods

Research methodology is the treatment that will be applied to the

data collected. This includes the population, instrument, and analysis of

the data.

The aim of this chapter is to assign and define the limits of the

sampling of the study, and to clarify the methods that will be used in

this research in order to collect the desired information and data.

3.1. Materials

3.1.1. Population survey:

The aim of this study is evaluating the experiment of the local

restaurant chains compared to the international ones in Egypt. To

obtain results representing enough the actual conditions. The research

conducted three groups four samples from each group. Four samples

from independent fast food restaurants in Sharm El Sheikh, four of the

famous local fast food restaurants chains as well as four international

chains in Sharm El Sheikh.

3.1.2. The Samples:

3.1.2.1. Samples from independent establishments

(Quick Meals, Sharmawy Sharm, El Sheikh, Naama)

3.1.2.2. Samples from local establishments (Cook Door, Makani, Felfela, Gado)

3.1.2.3. Samples from international establishments (McDonald's,

46

Burger King, Hardee's, KFC)

Table 3: Samples from the establishments

Old Sharm Hadaba Marina

Samples from independent establishments

Quick Meals 1 - -

Sharmawy Sharm 1 1 -

El Sheikh 2 - -

Naama 1 - -

Samples from local establishments

Cook Door - 1 *

Makani - 1 1

Felfela 1 - -

Gado - 1 1

Samples from international establishments

McDonald's - 1 2

Burger King - 1 -

Hardee's - 1 1

KFC - 1 1

* Mean under preparation

47

According Menu Specialty of the selected QSR:

Table 4: Menu specialty of the selected QSR.

Restaurant

Bu

rger

Pizza

Ch

icken

Sn

acks

San

dw

ich

Fo

ul &

Falafel

Sea fo

od

Independent restaurants

Quick Meals * - * * ** * *

Sharmawy

Sharm

* - * * ** - -

El Sheikh - - * * ** ** -

Naama * - * * ** ** -

Local restaurant chains

Cook Door * - * * ** - -

Makani - * * * ** - -

Felfela * - * * ** * *

Gado * - * * ** * *

International restaurant chains

McDonald's ** - * * ** - -

Burger King ** - * * ** - -

Hardee's ** - * * ** - -

KFC * - ** * * - -

- Not serving * Serving ** The core product

Walker (2006) agreed with Brymer (1995) in that classifying.

48

3.2. Methods

The collected data has been divided into primary sources and secondary sources. Every type of this data will be illustrated and

discussed in some details.

3.2.1. Primary Data

Primary sources have been collected through the following

methods:

3.2.1.1. Guest Questionnaire

The guest questionnaire was designed and distributed at a sample of

fast food guests. This questionnaire form has been developed based

upon the relevant review of literature. The main purpose of this

questionnaire is to know

How much does the guest like the fast food and at which meal he prefers.

The most important factor in a fast food restaurant which attracts the guest to select fast food chains.

Evaluation the local fast food restaurant chains experiment compared to the international chains.

The advantages and disadvantages in local fast food chains in Egypt.

Any problem has the guest ever met through his experiment with the local fast food restaurant chains?

Questionnaire form distribution took nearly one year, starting at

15/9/2006 up till 1/8/2007. The questionnaire form was written and

distributed in Arabic and English languages. The questionnaire form

been shown in Appendix (A1).

49

3.2.1.2. In-depth Personal Interviews

In- depth interviews were been carried out with the restaurants

and chains managers under the investigation. The purposes of these

interviews were:-

Identifying the guest evaluation for the fast food chains.

Egyptian market expectations, needs, and preferences of the Egyptian customer. And how do the chains deal with these needs

and preferences?

Common attributes of local and international restaurant chains.

Training strategy in fast food ones.

Evaluating marketing strategies in fast food chains.

Evaluating quality levels in fast food chains, and what is quality assurance strategy in fast food chains.

The extent of product development according to customer needs in their chains.

Customer satisfaction measuring methods in fast food chains.

Strengths and weakness points in fast food chains.

The in-depth personal interview are been shown in appendix (A2).

3.2.1.3. Observation Checklist

The observation checklist has been designed to evaluate food service quality, cleanliness, atmosphere, staff and management

performance. The checklist composed of six functional areas, which

are:

1- Exterior

2- Interior

3- Food Quality

4- Guest Service

5- Employee Appearance

6-Managament Functions

51

The observation checklist has been shown in Appendix (A3).

3.2.2. Secondary sources All sources of secondary data been illustrated in the previous

chapter "Review of Literature".

The sources of secondary data include:

3.2.2.1. Government Publications This source includes the data mentioned by the Egyptian

Ministry of Tourism and the Chamber of Tourism Establishments

(CTE). 3.2.2.2. Periodicals and Books

Books, theses, as well as periodicals such as, journal of food service business research, Cornell quarterly, restaurant hospitality,

and caterer and hotelkeeper and different articles from many sources.

1.2.2.3. Electronic Sources

Internet websites related to the subject of research have been

mentioned, illustrated and discussed.

3.2.3. Pilot study

The thesis shows a research questionnaire and an interview

which entailed three separate interviews with lecturer's and assistant

lecturers from Helwan University, Faculty of Tourism and Hotel

Management, Also entailed by McDonald's training consultancy team

and their training managers, Americana Company, Gulf Aria human

resource corporate manager, Cilantro, quality assurance managers and

Cinnabon training manager. This helped towards shaping the final

questionnaire and interviews.

The pilot study of questionnaire has been conducted on a limited

51

segment of guests from independent restaurants, local and international

fast food restaurant chains. The questionnaire form has been revised

and adopted according to the guests comments.

1.2.3. Data Analysis

Most data were then analyzed utilizing procedures of the SPSS

(Statistical Package for Social Science) version 10.0 for windows.

Frequencies standard deviation, percentages and cross-tabulation were

calculated to determine which group differs significantly from each

other and correlation between variables.

52

CHAPTER FOUR

RESULTS AND DISCUSSION

53

4.1 Introduction

The business of food service deals with the preparation and

service of food for consumption by others, whether the food is made

from scratch or is convenience food products that are finished in

microwave or deep fryer, whether the service is over the counter or at

the table.

Food service is "the service of food and beverages to internal

and external guests in an efficient, safe and hygienic manner, and in a

way that will create guest satisfaction"

Food service may be defined as "that phase the food flow (that

is, from the purchasing of the foods to service to the guest) mainly

concerned with the delivery and presentation of the food to the guest,

after the completion of the food production". In some situations food

service may include an element of transportation due to the separation

of the service facilities from the food production, for example of a

centralized cook-freeze operation serving peripheral units.

Food service establishments are those engaged in providing food

service. These establishments include not only the obvious examples of

restaurants and college dining halls but also the salad bars and

sandwich counters in food markets and such" distant relations" as food

vending machines. Food service enterprises range from full-service

restaurants to self-service buffets, from fine restaurants to takeout

operations, and from company cafeterias to hamburger stands.

Quick service or fast food restaurant offer limited menus

featuring food such as hamburgers, fries, hot dogs, various finger foods

and other items for the convenience of people on to the go. Customers

order their food at a counter under a brightly lit menu featuring color

photographs of food items. Quick-service restaurants have increased in

popularity because of their locations. They can usually be found in

very convenient places in every possible area. Their menus are limited,

which makes it easier for customers to make quick decisions on what

54

to eat.

4.2 Questionnaire Response Rate

The research targeted 1500 customers randomly in fast food

operations. A total of 1248 usable replies were obtained, representing

an effective response rate of 83.2 percent.

Table 5: Questionnaire response rate

Category Customers

Number targeted 1500

Number shared 1248

Response rate 83.2 %

4.3 Questionnaire Analysis Results and Discussion The next evaluation of the questions is ranking according to the

objectives of the questionnaire as follows.

55

Question NO. (1):- Customers preferences to deal with fast food

restaurants

The aim of this question is to illustrate customers preferences to

deal with fast food restaurants. Figure (1) shows this issue and

illustrated that out of 1248 respondents who dealing with fast food

restaurants; 16.3% of respondents deal with fast food restaurants

always, 24.1% are usually preferred to deal with fast food restaurants

usually. 45.2% of customers deal with fast food restaurants sometimes.

While 14.4% of respondents indicated that they deal with fast food

restaurants rarely.

16.3%24.1%

45.2%

14.4%

0.0

10.0

20.0

30.0

40.0

50.0

AlwaysUsuallySometimesFew

Figure 1: Customers preferences to eat fast foods.

Cross tabulation analysis showed that 52.4% of category "from 15 to

less than 25 years old" customers and 45.3% of category "from 25 to

40 years old " deal sometimes with fast food restaurants, while 33.3%

of category "over 40 years old" respondents rarely deal with fast food

restaurants. Also 44.4% of married with children customers and 47.4%

of single respondents deal with fast food restaurants sometimes,

besides 50% of female respondents and 43.1% of male respondents

deal with fast food restaurants.

56

Question NO. (2):- Customers' preferable meal

The aim of this question is to illustrate customers' preferable

meal. Data in table 6 show that most respondents prefer to have the

lunch meal in fast food restaurants by mean 1.77. Statistically,

X2sig=0,000 showed a significant variances among respondent as (P

57

Question NO. (3):- Customers' restaurants preferences

The aim of this question is to illustrate customers' restaurants

preferences. From the tabulated data in table (7), it could be noticed

that local chain restaurants were the first category, which attracted

most of customers by a mean of 1.87, and a std. deviation of .72.

International chain restaurants came in the second position by a mean

of 1.95 and a std. deviation of .92. The mean 2.32 highlighted that

independent restaurants took the third place in the customers'

restaurants preferences.

Table 7: Statistics of customers' restaurants preferences

Restaurant Mean Std.

Error Std.

Deviation

Local chain restaurants 1.87 0.02 .72

International chain restaurants 1.95 0.03 .92

Independent restaurants 2.32 0.02 .84

Cross tabulation analysis indicated that 31.3% of female respondents,

25.9% of married with children respondents and 27.2% of Egyptian

customers indicated that independent restaurants was the most

preferable restaurants. In the other hand, 37.5% of male customers,

37% of married with children respondents and 35.8% of Egyptian

customers ensured that local chain restaurants were the most preferable

QSRs. Finally, 46.9 of female customers, 50% of married without

children respondents and 65.2% of foreigner respondents enjoyed

eating in international chain restaurants.

Question NO. (4):- Customers reasons for restaurant type

preference

The aim of this question is to illustrate customers' reasons for

restaurant type preference. From Figure (3), it could be noticed that

37% of respondents prefer international chain restaurants for the

following reasons:

58

Safe

Trust

Cleanliness

Good promotions

Brand name

New product

Food quality

Consistence standard

Good location in every where

Good quality

Fast service

Atmosphere

Good price

Besides, 38% of customers highlighted that they prefer local chain

restaurants for the following reasons:

Egyptian investment

Know the source

Egyptian traditional taste

Trust

Halal

Quality

Good service

Good value

Good price

Safe

Atmosphere

Brand name

Menu variety

Only 25% of customers were satisfied with the independent

restaurants' food for the following reasons:

Good price

Fair value

Egyptian taste

Delicious

Halal

59

Fresh food

Friendly service

Good quality

Atmosphere

25%

38%37%

0

10

20

30

40

Independent

resturants

Local chains

resturants

International

chain resturants

Figure 2: Cust