Edward’s Restaurant and Sir George’s Catering Case Analysis Essay
Edward’s Restaurant and Sir George’s Catering Case Analysis
Industry: Demographic factors are favorable to the restaurant industry.
Approximately 52% of the 1993 population in the area was 60 years of age or over. This was considered the restaurant’s main target market. During the late 1980s and early 1990s, the number of people taking up permanent residence in the valley increased dramatically for various reasons. The climate was attractive for growing population of seniors. Land prices, housing, taxes, and utilities were affordable. With the average cost of an acre of industrial land in the Penticton area at $45000 in 1991, businesses were attracted to the area. Between 1984 and …show more content…
The restaurant industry had an unusually high number of failures. The average lifetime of new restaurants in the Penticton region was about two years. The number of restaurants in the area remained high. The industry standard suggested that, on the average, about 1 restaurant for each population unit of 1,000 would leave well-managed restaurants viable. The 1993 Penticton population of about 27,000 seemed to