Hotline: 1800 102 2007
Search Business Opportunities
operations 31 May 2013

Are Supply Chain Management Techniques Driving QSR Profits?

Managing tasks in a QSR through supply chain helps maintain the food and beverage supply network and ensures smooth operations as well as product-level consistency.

By Nusra Deputy Features Editor

The growth of the food services market has led to a centralised procurement system by national well as international brands, backed by a strong supply chain network. Here’s how the techniques are applied in a QSR in your city.

 Mc Donald’s: Mc Donald’s has a strong and multi-layered supply chain, which is divided into Tier-I and Tier-II suppliers.

  • Tier-I consists of core suppliers providing processed foods, e.g. Vista Foods (Vegetable & Chicken patties) and McCain (suppliers of potato fries, wedges, etc.).
  • Tier-II suppliers are growers and processors who provide lettuce, poultry items, etc.
  • Further, its 311 QSRs are supplied by four distribution centres across the country using temperature controlled vehicles. The entire logistics operation is outsourced and managed by its partner, viz. Radhakrishna Foodland Pvt. Ltd, which is responsible for the timely delivery and quality of the product.

Pizza Hut: Pizza Hut runs its operation through 150 corporate and franchise stores across 36 cities in India. The supply chain is multi-layered and wholly outsourced.

  • It has a direct tie-up with suppliers like Pepsi for beverages and Cremica Group (a food processing company) for buns and Cremica Bakes.
  • Indirect tie-ups include the import of food materials like chicken (from Brazil) and potatoes (from Australia).
  • The cold chain logistics are managed by Snowman Frozen Foods Ltd through 16 warehouses and over 100 trucks across India. While these tie-ups help Pizza Hut manage its logistics smoothly and effectively, Snowman has capitalised on the optimum utilisation of its facilities.

Domino’s Pizza: It has been ranked as the top pizza manufacturer in India because of its product quality, freshness, taste and efficient supply chain network. This efficient outsourcing model helps Domino’s ensure quality and keep the food costs down.

  • Domino’s Pizza follows an operational model similar to Pizza Hut and has outsourced most of its operations – from procurement to logistics and distribution – to its local India partners.
  • It has a vertically integrated supply system with automatic delivery of raw materials. The centralised procurement system, which procures raw materials from Punjab and distributes to its four commissaries, helps Domino’s maintain increased focus on customers.
  • This entire distribution is managed through refrigerated trucks.
Related opportunities
  • About: Founded under the guidance of Sri Sri Ravishankar Ji, a..
    Locations looking for expansion New Delhi
    Establishment year 2003
    Franchising Launch Date 2017
    Investment size Rs. 10lac - 20lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater South Delhi New Delhi
  • Bakery & Confectionary
    Please share company background and franchising details.....
    Locations looking for expansion Haryana
    Establishment year 2010
    Franchising Launch Date 2015
    Investment size Rs. 20lac - 30lac
    Space required 400
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Gurgaon Haryana
  • Build your own Successful business!!! Welcome to the Waays &..
    Locations looking for expansion Maharashtra
    Establishment year 2010
    Franchising Launch Date 2014
    Investment size Rs. 50 K - 2lac
    Space required 200 sq.ft and above
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
  • Laziz opens 100+ Stores across India in 2017 LAZIZ  PIZZA ™..
    Locations looking for expansion Maharashtra
    Establishment year 2010
    Franchising Launch Date 2012
    Investment size Rs. 5lac - 10lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Kolhapur Maharashtra
Insta-Subscribe to
The Franchising World
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories