Restaurant Business in London - Essay Example

Restaurant Business in London Introduction The purpose of this essay is to thoroughly investigate the economic development of restaurants in London. It also aims at the impact of the assessment of the impacts of the social environment on the restaurants sector of London. Further the paper talks about the evaluation of the investment potential and fluctuations and the cultural factors and impact of ethnic cuisine on the restaurant business in London. The paper also concentrates on the impacts of the restaurant industry on London’s environment and tourism industry. The latter part of the essay analyzes the sustainability of the market for the restaurants. 1 Restaurants in London London is one of the few places on Earth where various kinds of restaurants are found. Since the population of London consists of various ethnicities, there are eclectic sources of food in the city. All kinds of cuisine are present that may range from Greek to Italian, African to Chinese and from German to Belgian. (Eating out in London) The restaurants present vary in the designs that they are created in too. While some may specialize in outdoor dining, others prefer indoors. The designs and the food both are designed in a way after studying the demands of the customers. In the past few years there has been an increase in the number of restaurants in London. Many people relate the increase to postmodernism. 2 Postmodernism According to Venkatesh (1999), postmodernism is the term that is often used to capture the present effects of the world order. The transformation of the modernism that has occurred throughout the ages in all parts of the world has had many effects on the dressing, tastes, working habits and lifestyles of the people. Postmodernism has affected the restaurant industry in London too. Over the last few decades there has been an increase in the demand for restaurants. Dining out is somewhat a ‘modern’ concept and therefore post modernism has resulted in the success of the restaurant industry. There is a lesser trend of people eating at homes. According to Irving (2008), one third of the money spent on food and drink in UK (and London) is spent on dining out. The total money that the restaurants make over a year is around 30 billion pounds. The current restaurant trends are also a result of the marketing and customer influences. 3 Marketing, media and consumer influences Consumer choices influence the success of the restaurant businesses because the demand for certain products is higher than others. In London, according to Christine & Co (2008) the restaurants that specialize in fast food are more likely to prosper. This is because the busy life in London forces people to eat fast food. Although the consumer influences can have an impact on the success of any business, the market strategy, if properly devised, can help attain profits. However, the marketing strategy of most of the restaurants in London is very disappointing. Most of the restaurants, as Lutario (2009) discusses, spend very little on advertising. Hence, most of the people are usually not aware of the deals provided by the different restaurants. 4 Economic impacts on London The restaurant sector has many economic impacts on London. The most important one is that it provides employment to hundreds of people. There are various professions in the restaurant sector, like those of cooks, the waiters, the managers etc. The presence of the restaurant sector means that these people can be paid and do not have to be unemployed. According to National Statistics (2009) one fifth of the self employed people in London work in the restaurant sector. Most of the teenagers, ages ranging from 16-19, also work part time in restaurants according to Pratten (2004) The most important thing about the restaurant sector in London is that over the past few years the market has not declined even though there has been a recession forecast in UK since 2006. According to Christie & Co (2008) the restaurant market in UK, and particularly London, has shown growth where other industries and markets have shown a downward trend. The demand for dining out has increased over since 2007, and as a result many restaurants like ‘Grand Union’ have opened up many different outlets in the capital city. Along with being important for the economic sector, the restaurant industry also has social impacts on London. 5 Social impacts on London There have been experienced many problems in the restaurant sector of London as far as the social impacts are concerned. According to Irving (2008), majority of the restaurants that are found in London are not national brands but are simple independent venues. Some of these restaurants have very strong stances towards ethical sourcing. Examples include the ‘Duke of Cambridge’. However, mostly the restaurants are not very transparent in the way they source. For example, there are some restaurants that claim they provide organic and ‘green’ food. This, regrettably, is not the scenario. Often, the customers are coerced into dining in particular restaurants through the use of misleading information. Since, there are a large number independent restaurants, it is very difficult to monitor them. Hence, the people may be fooled by the restaurant owners and chefs who are inclined towards making more profit. Despite the negative social impacts on London, there has been observed an increase in the investment in London due to its restaurant sector. 6 Investment impact on London Since London has a large variety of restaurants and as the restaurant sector in London has increased rapidly despite the recession in the United Kingdom (as will be discussed later), investors from abroad are attracted to invest in the industry. There are many foreign restaurants like McDonalds that are found in London. Other famous foreign restaurants include restaurants from Italy, France, and Germany. The successes of the restaurant sector and the increase in the population of the non-local people are two reasons why the investment in London has grown. Till now, the paper has discussed the impacts of the restaurant businesses on the London Industry. The rest of the essay deals with the general trends and the food items found in the restaurants of London. 7 Trends in the Restaurant Industry Although the trends that are found in the restaurant industry are not generally followed, it is very important to be aware of them particularly if individuals want to open up some restaurant. The trends, like music and fashion, vary at different times and locations. Restaurant trends also vary in accordance with the economic conditions of any particular region. For example, a financial slow down might not be a very good time for the opening of the restaurants in any particular area. It is observed that for the United Kingdom, the trends start in London and then move onto other cities like Manchester. (Bars & Restaurants in Entertainment Avenue) The restaurant trends generally include many things like signature meals, the restaurant designs and the menu designs. These are briefly explained as below. 7.1-The importance of Restaurant Design The importance of the restaurant designs is particularly important for the marketing strategy of a restaurant. In London, as mentioned before, hundreds of restaurants are present, where the cuisines vary from European to Asian and African. Where there is an abundance of restaurants, the design of the restaurant distinguishes the restaurant from the others and so attracts customers. Many restaurants like Terrace Conran’s ‘Boundary’ are built in such a manner that they draw people towards them. (Top 10 Al Fresco Dining Recommendations) Large roof top terraces, riversides locations, and designer gardens are some of the features of the most famous restaurants found in London. While some restaurants specialize in scenic beauty, others concentrate on pavement dining. Some like ‘Inn the park’ are made particularly for special romantic evening meals. Along with the restaurant design, the menu design also is a determinant of the success of particular restaurants in London. 7.2-Menu Design The menu designs are considered essential for a restaurant because they provide an introduction of the restaurant to the customers. The diner can get an idea about the style, professionalism, food quality and the prices by just one glance at the menu. Hence it is pertinent that a lot of attention is given to the design of the menus. Menu designs in London vary from in-house made menus to properly printed ones. (Designing Your Restaurant Menu For Profit) Some of the restaurants make in-house menus so that they can be changed easily. An example of such a menu design is that of the famous ‘Blue Print Cafe’ where the menu changes daily and evolves throughout the year. (Blueprint Cafe) Other restaurants however chose professionalism over the ease of change and design menus that portray the competence and the style of the restaurants. Certain restaurants like those that specialize in pavement dining use blackboards as menu because in their opinion ‘fresh is best’. (Designing Your Restaurant Menu For Profit) 7.3-Design Psychology Design psychology is also found in many restaurants in London. Design Psychology according to Israel (2009) is the practice of interior designing in which the basic tool used is psychology. As Israel (2009) relates, the restaurants should not just be ‘cookie cutter’ places. Rather they should have an atmosphere that has some king of soul to it. Restaurants in London have realized the importance of design psychology that is why most of the restaurants are designed in ways that create a specific atmosphere for the customers. For those who want to dine out doors, the usual choices are the restaurants that are located on the riversides or established on roof top terraces like ‘Boundary’. The designs are created in such a manner that they make the restaurants look good and real both. For people who are more comfortable dining indoors, there are usually candles, and large fire places. Restaurants like ‘The Goring’ are designed for simple, and yet elegant cuisines that take people back into the glamour of the years that have passed. (Exclusive London Restaurants) For certain customers, the organic food restaurants are also an attraction. 8 Environment and Green – Organic food Restaurants in London recently have been concentrating increasingly on the use of organic food. Most of the restaurants like ‘Inn the Park’ use food that is locally grown in farms. For people who are on the move towards being more environment friendly, these restaurants are the perfect choice. These ‘green’ restaurants enjoy the luxury of superior taste and quality. (Organic London Restaurants) The food that is used in these restaurants is not chemically treated and depends entirely on unprocessed food. Famous organic food restaurants in London include ‘Acorn House’,’Water House’, ’Duke of Cambridge’ and the ’River Café.’ Acorn House, for instance, use bio diesel and eco-sensitive water containers. (Organic London Restaurants) 10 Food Trends Many of the restaurant owners and chefs in London concentrate on the food trends that are simple, locally grown and affordable, as Vines (2008) relates. Since many restaurants are present in London, the food variety is diverse. Therefore there are various food trends. 10.1-Foodism Foodism refers to the use of raw or uncooked/unprocessed food. Foodism is increasing generally in the United Kingdom and mostly in London. There are many restaurants opening that provide uncooked products like juices and organic foods that are not heated above a certain temperature. Since studies show that foodism has great impacts on the life expectancy of people, there is an increase in the demand for restaurants that provide these kinds of products. An example of such a restaurant is ‘Vita organic’ that provides juices and raw food on the menu. 10.2-Healthy foods Many customers in London are beginning to prefer healthy foods too. This change in preferences may have been due to the increased risk of heart failure that is prevalent among the people of the United Kingdom. Restaurants that provide healthy foods are also very successful because of the high demand for them. One example of a healthy food restaurant is the Acorn House which provides healthy organic food that is generally low in fat. Although over the last few years people have realized the importance of healthier foods, there is still a greater trend of fast food in London 10.3-Fast Food & Obesity More than half of the restaurants in London, as Irving (2008) relates, provide fast food products. The generally held notion is that the people in London have busy lives and so they do not have time to spend on healthier foods. Fast foods like ‘fish and chips’ are generally cheaper and easier to get. The increased trend of fast food has led to increased obesity among the people of London. It is shocking to note that in UK 43% of men and 33% of women are obese. The figures are similar for London as well. Conclusion To conclude, the restaurant business in London has developed through the ages and now is one of the most important sectors of the economy of UK. The restaurant sector has had many social and economic impacts on London. While economic well being is ensured to people who work in the sector, the customers are often fooled into spending on products that are not healthy. Investment has also increased due to the success of the restaurant industry in London. Apart from the general impacts of the restaurants, the sustainability of the market is ensured by the trends in the restaurant industry. The changing food trends are also a factor of the success of certain restaurants. 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