External Macroenvironmental Factors
The well-being of restaurants and the food service industry highly depends on their ability to withstand external factors and pressure (Băltescu and Zamfirache, 2022). The UK’s food industry is among the key areas that have been greatly affected by the Brexit implications and COVID-19 outbreak. The external macroenvironmental factors include demographic forces, natural forces, and new competition. Demographic forces are vital to marketers as they involve the study of people who make up that market, and they include changing the age structure of the population, changing family structure, and growing ethnic diversities. The changing age structure has seen an increase in the young population in Manchester, meaning the restaurants are required to advertise their products at different target markets, especially since most are students who depend on their families, meaning affordability is key for them. The changing family structure has seen new family units like single parents and those living with extended family members. This means that the need for ready-made food is becoming high, especially with these family members’ busy lifestyles. The growing ethnic diversity is another factor.
PESTLE Analysis
Political Factors
Political decisions in the UK have greatly changed the activities taking place in restaurants. Lockdowns and curfews led to a decline in restaurants’ productivity. This has made people still shy away from restaurants and prefer takeaways. Brexit immigration laws have also led to unmatched food shortages because of the high restricted tariffs on imported goods. Many restaurants have closed down as a result, thus reducing per capita income and employment.
Economic Factors
COVID-19 has contributed to the harsh UK economic situation, thus leading to low purchasing. Sales have dropped by 22%, and the restaurants have experienced massive profit drops, thus unemployment and low consumption rate. The UK, however, gives an economically sound environment for a restaurant with its high living standards, increasing economic growth rate, low interest and inflation rates, and best infrastructure.
Social Factors
The social factors include a view of oneself and the view of organizations. People are now concerned with their health and hence could switch to healthier and greener food products, meaning they opt for restaurants with such options. People also tend to associate with organizations with a good brand image that is environmentally conscious. Productivity in Manchester has, however, been significantly affected by various social factors. Consumers have had negative feelings towards different restaurant products. The coronavirus outbreak has also made people avoid social places and order takeouts (De Vos, 2020). Social events are also no longer held or frequently done.
Technological Factors
Technology has played a vital role in the restaurant industry (Alt, 2021). These platforms have enhanced communication between employees and customers. Food ordering has also been easier, especially with the click-and-collect technology.
Legal Factors
Restaurant industries are also subjected to rules and regulations. Laws on goods importation and taxation from other countries have also to be adhered to. The UK passed a motion to withdraw its European Union membership, which has led to new trade laws that have discouraged business operations with other countries.
Environmental Factors
Environmental factors like pollution, natural disasters, and climate change have contributed to increased raw material costs and disrupted supply chain (Yun and Ülkü, 2023). These factors have led to more environmentally friendly mechanisms by these restaurants.
Analysis
Manchester has great restaurant competitors, including Adam Reid at the French, Mana, Tattu, The River Restaurants, Tast Cuina Catalana, and Asha’s Manchester. La Bandera and Edinburgh, among others. These restaurants have already created a strong foundation in the restaurant industry, with the majority of them being highly rated and considered the best. They are all located in the town center where access is easy, making it a good marketing location. They offer a variety of food products, from steak, kidney pudding, buried black pudding, and Manchester tart, among others, at moderately affordable prices.
Segmentation
Segmentation will involve geographic, demographic, behavioral, and psychographic factors. The geographic location is Manchester, whose population density is 12,320 square meters. Demographics will include young adults between 18 and 35 years of age, including all genders. They are mostly fitness and sports enthusiasts, professionals, and students of the middle class and socially motivated by friends. They are affluent spenders who love takeouts and ready-made food products.
Targeting
The restaurant targets urban areas of Manchester, consisting of fast-food eaters. The food will mainly cater to Indian/Pakistani food lovers and other parties who love exploring new cultures, thus creating a significant cultural connection. All these will ensure a great user experience and enhance brand identity.
Positioning
The restaurant will have a cozy ambiance and alluring decorations to ensure walk-in customers enjoy their food products. It will be known as a cultural heritage food spot offering Indian/Pakistani delicacies.
References
Alt, R., 2021. Digital transformation in the restaurant industry: Current developments and implications. Journal of smart tourism, 1(1), pp.69-74.http://dx.doi.org/10.52255/smarttourism.2021.1.1.9
Băltescu, C.A., Neacșu, N.A., Madar, A., Boșcor, D. and Zamfirache, A., 2022. Sustainable development practices of restaurants in Romania and changes during the COVID-19 pandemic. Sustainability, 14(7), p.3798.https://doi.org/10.3390/su14073798
De Vos, J., 2020. The effect of COVID-19 and subsequent social distancing on travel behavior. Transportation research interdisciplinary perspectives, 5, p.100121.https://doi.org/10.1016/j.trip.2020.100121
Yun, N.Y. and Ülkü, M.A., 2023. Sustainable Supply Chain Risk Management in a Climate-Changed World: Review of Extant Literature, Trend Analysis, and Guiding Framework for Future Research. Sustainability, 15(17), p.13199.https://doi.org/10.3390/su151713199
write