Topics: Lahore, Pakistan, Fast food restaurant Pages: 9 (1619 words) Published: June 18, 2013




1. Topic

2. Objective

3. Few lines about PEST

4. A brief over view of Lahore

a. Political

b. Economical

c. Socio Cultural

d. Technological

5. Conclusion

1-Topic: PEST Analysis for AH Hot & spicy Fast Food

2-Objective: To prove that Lahore is the ideal place for opening of new fast food business based on facts and figures.

3-A brief over view of Lahore:

Lahore is the capital of Punjab and the second largest city in the country. It is an important historical centre of the country. With a rich history, Lahore is a main cultural centre of Punjab and Pakistan.

Being one of the most densely populated cities in the world, Lahore remains an economic, political, transportation, entertainment, and educational hub.

It is also referred to as the "Mughal City of Gardens" due to the historic presence of Mughal gardens (Shalamar Garden).

4-Few lines about PEST:

PEST is external macro-environmental analysis of a market. Followed by it, SWOT is the micro analysis of an idea or a brand, service or a business.

a) P= Political

b) E= Economical

c) S= Socio- Cultural

d) T= Technological

The analysis of a market is done keeping in view the above parameters.

a-Political analysis:

Generally political factors include government regulations, legal issues and define both formal and informal issues under which firms operate.

1-Taxation on restaurants:

In 1997-1998 Punjab Provincial Budgets, an additional 10% tax has been imposed on hotels and restaurants of the province. This was in addition to 12.5% central exercise duty and 5% provincial tax levied on July 1996.

REF: Pakistan tax web


Like other metropolitan cities of Pakistan, Lahore also faced crime. But as compared to Karachi, situation in Lahore is relatively stable.

Government has also taken measures by prohibiting late night dinners (not late till 11 pm) and gatherings.

REF: Express news April 2012

3-Load Shedding:

Pakistan at present is facing terrible power shortage which has affected nearly every person of every class and business. To manage it, Punjab Government has ordered all restaurants to be closed by 11 pm strictly. These orders were issued earlier in April.

REF: Express news April 2012

4-Election 2013:

Neither election campaign nor any other party expected to rule will affect restaurant business. Even in the past no such examples are available. Restaurant industry has always flourished in Lahore.

5-Food Inspection laws:

After approval of act by Punjab Assembly, the provincial government had finally appointed Punjab Food Safety and Standards Authority (PESSA). The job of this authority is to check adulteration and quality of entire food.

The Punjab Government has signed a memorandum of understanding (MOU) with Europe based trade related technical assistance (TRTA) program to promote specialized training to officials.

Ref: News Thursday, Jan 12, 2012.


As Pakistan is an underdeveloped country so it is still in a struggle to overcome the power shortages and economical barriers, for this reason taxes are imposed on every industry for the collection of revenue. But this revenue is spent for the betterment of society e.g. Metro bus service in Lahore (2013). Like any other metropolitan city of the world, Lahore also faces high crime rates. But this has never been a barrier in the way of growing restaurant industry in Lahore. Even New Orleans (USA) is ranked among the top 50 most dangerous cities of the world, irrespective of having well-organized police department. No city of Pakistan is in this list.


b-Economical Analysis:

These include financial stability, buying capacity of consumer and development.

1-Lahore economy:...
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