The paper will provide a PEST analysis of the restaurant industry of London in the following sections: Political, Economic, Social and Technical analysis. PEST analysis helps any start up business to identify the environment in which the business has to operate…
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Political Environment and Regulations Political Stability Political environment of the place in which the business has to be established plays a very important role for any business; restaurant business is not exception to this rule (Teresa Williams, 1997). United Kingdom in general and London in particular is considered to have a very stable political system in place. UK’s regulatory system is one of the best in the world and very business friendly. A recent assessment of 183 countries by World Bank ranked United Kingdom 4th for ‘ease of doing business’ (Investment, 2011). The UK offers a competitive tax environment with one of the lowest corporate tax rates and one of the lowest personal income tax rates in Europe (UK Tax system and Environment , 2006). Most of the authorities responsible for checking the fitness of restaurant will visit the premises themselves and inform the owners of the things that need to be done in order to bring the restaurant in line with regulations. It takes only about 13 days for a business to start in UK against an average of 32 days in the rest of Europe (Colin Barrow, 2011). Regulations Regarding Restaurant Business The first thing to be considered while opening any business are the various laws and regulations of the agencies that have to be followed. The main laws dealing with restaurant business in UK are Food Safety Act 1990 , Food Premises(Registration)Regulations 1991 , Food Safety (General Food Hygiene) 1995 and the Food Safety(Temperature Control) Regulations 1995(Bridget M.Hutter & Tola Amodu , 2008). Food Premises (Registration) Regulations 1991 require any new food catering...
This study looks into a vegetarian Restaurant in Edgware, London. The restaurant will be started near the Broad Walk which is a prominent shopping centre of Edgware. Political environment of the place in which the business has to be established plays a very important role for any business; restaurant business is not exception to this rule. The first thing to be considered while opening any business are the various laws and regulations of the agencies that have to be followed. It is a legal requirement to have the restaurant insured. Three different kinds of insurance which can be done for a restaurant are liability insurance , contents insurance and business interruption insurance. The UK hospitality and restaurant industry is one of the leading industries in UK. We will analyse the contribution of the industry towards the UK economy and also the current economic trends in London which are likely to affect the business to be set up. In the social environment factors we will analyse the demographics of Edgware as well other macro factors which are likely to affect the opening of a new restaurant. Social environment in which the business operates is an important factor for deciding the business strategy. The hospitality industry in general and the restaurant industry in specific are highly competitive in nature. In the Edgware area there are many restaurants which serve vegetarian food. Some of the prominent restaurants are The Regency Club, Satyam and Handi.
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The physical risks include but not limited to
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