PEST ANALYSIS RESTAURANT

PEST ANALYSIS
RESTAURANT MARKET

Aims of the Presentation
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To explain the meaning of a PEST analysis. To identify and analyse external factors that affect the restaurant industry. To conduct original research into
PEST factors.

Task 4
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Assignment: Develop a marketing mix for a new/existing chocolate or soft drinks product.
Task 4: Conduct a PEST analysis, which analyses the external factors, which affect the market for your product/service.
Grading Criteria: AO4
Explain what is meant by a PEST analysis.
Describe the political factors which could affect your product
Describe the economic factors which could affect your product
Describe the social factors which could affect your product
Describe the technological factors which could affect your product
Use textbooks and the internet to help with the theory. Summary market research reports and news sites are especially good for PEST factors. You must give very precise points and try wherever possible to support your points with examples and statistics.
Make each point, in each section, separate. You can bullet point each factor, but you need some explanation of the point. It should not be simply be a list.

PEST ANALYSIS
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A PEST Analysis looks at what is happening in the external environment of the restaurant industry. These factors are usually beyond the control of a business. A
PEST looks at the following factors which could affect your restaurant:
Political
Economic
Social
Technological

A Quick Quiz
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In which category would you put each of the following:

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Inflation
Changing eating habits
Introduction of new touch screen ordering systems
Unemployment
Food Hygiene Laws
Increase in the number of older people in the population
Advertising on mobile phones
Ban on smoking in public places

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PEST ANALYSIS
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A PEST analysis helps businesses:understand whether a market is likely to grow or decline keep up with and take advantage of change
Avoid taking decisions which are doomed to fail
Explain briefly what is a PEST Analysis. You can use the following links to help:http://marketingteacher.com/Lessons/lesson_PEST.htm
In some places you will also see this referred to as
PESTEL;SLEPT or STEEPLE. They are the same thing!
Use the following slides to help you conduct a PEST analysis for the restaurant industry. You can copy and paste graphs and articles but must make an effort to explain them.

Economic Factors – The Credit
Crunch
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What is economic growth?
Describe the trend in economic. How will this change affect the restaurant industry?

http://news.bbc.co.uk/1/hi/ business/7789844.stm http:// www.statistics.gov.uk/cci/n ugget.asp?id
=192
http://www.allegra.co.u k/pdf-files/Allegra%20%20UK%20Independent%20R estaurant%20Operator%20
Survey%202008%20-%20Sam
ple%20Slides.pdf

Economic Factors –The Credit
Crunch
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Unemployment Rate for the UK per cent, seasonally adjusted, source: Labour Force Survey and Claimant Count
Labour force survey

6.0

6.0

5.5

5.5

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5.0

P e r c e n t

Labour Force Survey
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3.5

3.5

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Claimant count

2.5

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01

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http://news.bbc.co. uk/1/hi/business/77 89784.stm

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http://www.tutor2u.ne t/blog/files/Employme nt_Surveys_for_the_UK
_Economy.ppt

2.5

2.0
02

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06

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08

Source: Reuters EcoWin

Describe the trend in unemployment How will this trend affect the restaurant market? Economic Factors - Inflation
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What is inflation?
Describe the trend in inflation How will this trend affect the restaurant market? http://news.bbc.co.uk/
1/hi/business/7844962
.stm http://www.tutor2u.net /economics/presentatio ns/ukinflation2007b/de fault.html

Social factors
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Describe the trends in the
U.K population, both for overall size and male/female ratio. How could these trends affect the restaurant market? http://www.statistics.gov.u k/cci/nugget.asp?ID=6 http://news.bbc.co.uk/1/hi /8318010.stm http://www.statistics.gov .uk/downloads/theme_popul ation/KPVS32_2005/KPVS200 5.pdf

Social factors
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What evidence is there that the U.K. population is becoming more obese? How will this affect the restaurant industry? http://www.dh.gov.uk/prod_co nsum_dh/groups/dh_digitalass ets/documents/digitalasset/dh
_073033.pdf pages 4 & 6 http://www.ukinvest.gov.uk/F eature/4034197/en-GB.html http://www.allegra.co.uk/p df-files/Allegra%20-%20UK%
20Independent%20Restaurant
%20Operator%20Survey%20200
8%20-%20Sample%20Slides.pd
f

Technological factors
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How could the restaurant industry be affected by each of the following technological innovations: The Internet
Touch Screen ordering
Vending machine advances
Mobile phone technology http://www.caterersearch.com /Articles/2008/01/31/318570/t echnology-trends-of2008.html http://www.caterersearch.c om/Articles/2007/01/31/311 198/technology-trends-in-2
007.html

Other factors
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Are there any other PEST factors that might affect your specific type of restaurant?
Do a random Google search and see if you can add original research of your own. Describe the trend and explain how it would affect your restaurant.
Try some of these: http:// www.marketresearchworld.net/index.php?option = com_content&task =view&id=1134&Itemid=48 http://www.mbplc.com/index.asp?pageid=412 http://www.mbplc.com/index.asp?pageid =416