U.S. Restaurant Industry: Pest Analysis Term Paper

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External Environment of the U.S. Restaurant Industry

restaurant industry is one of the most vibrant in the world. New players come to America due to some factors as the strength of U.S. economy, a population with high purchasing power, and the diversity of cultures resulting in popularizing various profitable cuisines. The country is the world's center stage of trade and has been growing to accommodate more ideas and creativity in investments. With the increase in the number of new entrants to the country, better forms of trade are witnessed. The better part of all these is the fact that the political environment is conducive for the inception of better trade options for the people interested in doing business. The Demographics also support the whole course in a big way. These factors are discussed below in light of how the industry has grown to the current robust state.

The External Factors

The Demographics

The population in America has been growing at an increasing rate both in numbers and in composition. America poses as the land of opportunity for most people around the world. For this reason, there is an increased travel to this land from all over the world. The numbers and the diversity have influenced the way the restaurant industry has grown. The growing population of the modern world in America has had an extensive effect on the kind of foods that are eaten in the world. Many more foreigners have pitched a tent in America and as such have created a new demand for foods. For instance, the Chinese and the Africans are now increasing in the country. This has brought the new demand for foods needed by the different people coming from the different people (Joseph, 2011). This has given the business people a chance to execute their mandate in the business. Restaurants are now growing at a fast rate and in different types. This has also managed to bring many interested parties such as the government to bring in the best practices for the traders. Legislation has been done to allow an open business platform for all the people who intend to do so.

The structure of the U.S. population is largely a mature one. The middle-aged people are in a higher number than any other. This has affected the restaurant industry in some way. People in this age are largely in need of leisure and the need to have hotels has made it possible for the business people to run hotels successfully. The more the need to have this middle class entertained, the need for hotels comes in. It has also been noted that people appreciate the fact that there can be no other better way to conduct trade without factoring in the young population. Despite the fact that they are not as economically endowed as the middle age people are, they consume most of the exotic foods available in hotels. This has been the concern among the restaurant owner (Janga, Ha, & Par, 2012).

Economic Factors

The economic welfare of the people in the country has a direct impact on the growth of the restaurant industry or any other industry. The modern day businesses have shown that most people who are in the middle bracket of the economic space can afford the luxury. Restaurants mostly thrive on luxury and thus the growing concern and emphasis in America. The American people are relatively rich, and this has supported a good number of restaurants. The employment level in the country has grown to be more important in the supporting of most businesses (Pan, 2012). Since most are now involved in major economic activities and can earn, their salary comfortably has made it possible for a good number of people to act as a good market for the restaurants. Economic experts have recorded a high consumer price index on the Americans, and this indicates their ability to demand substantial amounts of foods from the restaurants. This good indicator is secured. The restaurants business is important in meeting the demand for food that is currently standing high.

The Political / Legal Segment

The political environment in any country is important in bringing out the needed support needed to grow a business or to bring an otherwise worse effect on the trade. The American government has made it possible for traders from various parts of the world to pitch their businesses within the country. This has also made it possible for the people to engage the market constructively.

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The best part of this was in the registration of companies. It is made possible for any businessperson who has a desire to open a business to do so without any challenge. The government has also been keen on implementing affirmative action meant to support all the citizens to participate in trade. This has resulted in the formulation of the law that caters for the rights of the disabled regarding business investments (Liu, & Jang, 2009). The enactment of the Americans with Disabilities Act of 1990 came along way in initiating this desire. The persons with disabilities are now able to engage in a business like any other people. They are given better terms for trade such as the availability of loans to them and other specific boosters of trade.

The Socio-Cultural Factors

There are aspects that are needed to secure the welfare of the people. The essence of the trade relates to the making of profits and creating social equity and sustainability in the industry. In every case, the government always has the mandate to secure a level playing ground for every party in the market. The social perspective of this trade is that the people in America exist in diversity. Virtually all religions and cultural practices are practiced in America. Therefore, people interested in doing business in the restaurants industries have to factor in the various cultures in the business field (Seoki, & Singal, & Kang, 2013). For instance, the kind of food that sold in restaurants has to be taken seriously since some religions do not partake in some food. The Muslims do not eat pork, and all operating restaurants must know this. In this case, it is seen that people are always in the need of the necessary food that can satisfy their needs and hence will be able to make profits. It is also seen that people have been sensitive to the kind of food that they take as well as the magnitude of the damage that a mishap might cause (Liu, & Jang, 2009).

Gender composition cultural lifestyles influence the way people demand the foods in the market. In this case, it is seen that people often have all the specific needs of the kind of food and services that they want. It will take the manager of the restaurant to undertake research about all these to trade successfully. This has been at the forefront of the marketing campaign in the industry. The nature of the American culture is supportive of the restaurant industry as the people are less likely to segregate from each other based on any of the above-mentioned cultural divisions (Hua, Xiao, & Yost, 2013).

The Technological Segment

Technological advancements have a way of influencing every sector of the economy and bring to focus all the factors that affect trade. Besides improving the efficiency of services, it also cuts the cost of services. The restaurant industry in American has benefited from the technological advancements in the country. These are in areas such as the provision of services as well as at the points of sale where electronic means are used to serve clients. Technology is also used in the cooking process, as the food needs sufficient stages to be prepared (Janga, Ha, & Par, 2012). The leading restaurants also use other technologically advanced equipment to make it possible for the clients to live stay comfortably in the restaurants. Equipment such as air conditioners and cooking advanced cooking equipment are all products of technology. Technology has also been essential in security surveillance within the environs of the restaurants. Being places where many people gather at the same time, there is a security concern that is automatically raised. Therefore, it is important to have all the advanced measures that will lead to the safety of all people (Liu, & Jang, 2009).

One other benefit of technology is the in the communication aspect of business. The latest technology has now enabled people to be in a position to communicate with the clients cheaply and in a swift manner. The presence of social media platforms is a testimony of the present technology being felt in all fields. This has made it easy to communicate and consequently improved business practices. It is now better to reach out to the clients wherever they are and with ease. This has as well been seen to be the reason behind the growth of the business worldwide. The managers are able to meet the avenue through.....

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