PESTLE ANALYSIS OF FAST FOOD INDUSTRY
POLITICAL FACTORS
The stable political climate of South Africa allows for its food industry to grow at a steady rate allowing it also to evolve to face different political challenges. The government’s inability to keep up with the energy demand can be seen as one of those challenges. Therefore it is imperative for Famous Brands to creatively solve the problem of unstable electricity supply before it reduces earnings by affecting vital day to day procedures necessary within the fast food industry. This is a factor that definitely hurts business sentiment and possibly is going to make firms wary of expanding capacity significantly.
ECONOMIC FACTORS
In the midst of weak economic growth it seems that the food industry is likely to shrink as a result of lessened activity of consumers. Within the fast food industry Famous Brands has already seen a decline in its operating margin from 60.4% to 59.4% as …show more content…
The first strategy is to focus on marketing the brand by sponsoring events that appeal to their target market this will ensure that the brand Mugg and Bean becomes recognisable and trusted. Mugg and Bean could offer coupons in newspapers to encourage more people coming to tier café. To gain credibility as a viable café Mugg and Bean should diversify their menu to include more than 50 different types of hot beverages and offer a wide choice of muffins and cake. There should be specials to ensure that different socio economic groups are catered for. Another way differentiate themselves would be to begin offering live music in their stores. This would increase sales by attracting a younger demographic, successfully penetrating an untouched market and increasing sales. Operating hours should be made 24/7 in order to offer a convenience to consumers looking to enjoy some coffee a
POLITICAL FACTORS
The stable political climate of South Africa allows for its food industry to grow at a steady rate allowing it also to evolve to face different political challenges. The government’s inability to keep up with the energy demand can be seen as one of those challenges. Therefore it is imperative for Famous Brands to creatively solve the problem of unstable electricity supply before it reduces earnings by affecting vital day to day procedures necessary within the fast food industry. This is a factor that definitely hurts business sentiment and possibly is going to make firms wary of expanding capacity significantly.
ECONOMIC FACTORS
In the midst of weak economic growth it seems that the food industry is likely to shrink as a result of lessened activity of consumers. Within the fast food industry Famous Brands has already seen a decline in its operating margin from 60.4% to 59.4% as …show more content…
The first strategy is to focus on marketing the brand by sponsoring events that appeal to their target market this will ensure that the brand Mugg and Bean becomes recognisable and trusted. Mugg and Bean could offer coupons in newspapers to encourage more people coming to tier café. To gain credibility as a viable café Mugg and Bean should diversify their menu to include more than 50 different types of hot beverages and offer a wide choice of muffins and cake. There should be specials to ensure that different socio economic groups are catered for. Another way differentiate themselves would be to begin offering live music in their stores. This would increase sales by attracting a younger demographic, successfully penetrating an untouched market and increasing sales. Operating hours should be made 24/7 in order to offer a convenience to consumers looking to enjoy some coffee a