Opening A Fast Food Restaurant: PESTEL, Customer Analysis, Marketing Strategies And Ethics

Advantages and Disadvantages of Owning a Fast Food Restaurant

The Business that I would like to have in future is that of a Fast Food Restaurant. The restaurant would serve a variety of food that is easy to consume and could be taken away. The restaurant will also have meal boxes to satisfy the preferred demands and needs of a certain group of customers. The restaurant would cater a variety of burgers, hot dogs, chicken wings, buckets of chicken, fries, shakes and crushers (Sebastian et al. 2014). There will be options for dessert too. In future, I would like to run a sole proprietorship business.

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The advantages of having a business of my own are:

  • The chief merit of owning a business is that the control power and freedom will lie with me. I can incorporate my ideas and choices in my business. I will not have to work under anybody and I can be my own boss.
  • Having a business of my own will help me lead a flexible lifestyle. Being an entrepreneur, no one can fire me from my company. I will have full ownership rights on recruiting staff and setting the menu of my fast food restaurant.

There are disadvantages of owning a business. They are as follows:

Owning a business will result in financial risks. Financial resources are needed to develop any business and grow it further. If the business is running low then I will be facing financial crisis. The income or the revenue is uncertain and will not be static. It will be fluctuating from time to time in the fast food industry.

Being a business owner, I have to go through a lot of stress, as I have to manage all the sections of the business. The work pressure of all the activities will be on me. Hence, the work will not be divided.

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PESTEL – PESTEL Analysis is a method used by marketers to supervise the marketing atmosphere. This analysis is useful in case of a start up business of a restaurant. PESTEL stands for Politics, Economic, Social, Technological, Environmental and Legal.

Political – To start a business, the political scenario of the location or the place needs to be checked. This will allow me to check on the government taxes and policies.

Economic – Economic factors such as inflation, economic growth, interest of rates affects the impact of the business.

Social – Cultural effects and customer preferences are regarded as the social factors of a business.

Technological – Technology helps when the business needs to be updated with time. A fast food restaurant should be upgraded with the latest trends in the food sector.

Environmental – Environmental factors include the climatic changes and conditions in the area where the business is set up.

Legal – To start a business, I have to go through some legal formalities and procedures.

Globalisation is the main factor that leads to increased competition. The choices and preferences of the customers affect the business. Therefore, my customer’s likes and dislikes is my first priority. Adapting business according to customers who belong to different cultures will help me enhance and grow my business. Developing the business according to the cultures of the customers will lead me to many options. Hence, globalisation will have an impact on my business. Two examples are as follows:

PESTEL Analysis: Politics, Economic, Social, Technological, Environmental, and Legal factors

Cultural Globalisation – Blending of cultures in terms of food will help in attracting more customers. The price and quality of the products must also meet the needs of the customers (Pieterse 2015). Satisfying customers globally will help in the growth of the business.

Marketing strategy – Globalisation gives an opportunity of marketing policies to businesses. Globalisation helps in selling products to customers all over the world. The business will be widened all over the world and hence it will increase the sales. It will be beneficial for my business if larger number of customers consumes the food. It will also help me in expanding business in other parts of the world resulting in higher revenue.

Over the years, technology has advanced and improved the industry sectors including the food industry. Every business takes advantage of technology to increase their sales. Technology helps in promoting and increasing the sales of the business. Social media is the biggest platform for promotion. This platform affects the business growth, increase in number of customers, expansion and improvement. The various levels of social media are as follows:

Online ordering – In my restaurant, I will keep the concept of ordering food online through an application. My restaurant will be registered in this particular application with the help of technology. Through this application, the customer can have an access to the menu of the restaurant.

Mobile ordering – Ordering through mobile phones will not give the customers the facility to view the food menu (Doub et al. 2015) Hence, the customers will have to reach out to my restaurant. This will be convenient for the customers as well.

Ordering through social media- Another facility, which a restaurant must provide, is that customers can order through social media. This will help me promote and expand my business worldwide. Customers will have a wide range of options on the food menu.

Being a fast food restaurant, there will be a set of a particular age group who would visit my restaurant more often. My fast food restaurant will be located in United Kingdom and hence it will mainly attract young customers. People belonging to the older group will not be interested to visit my restaurant. This is because I believe that older people will not likely consume burgers and other finger food.

Understanding my customers is of prime importance, as they will decide the sales and growth of my business. Fast food restaurant will keep food items according to the tastes and preferences of the customers (Boo 2017). This will affect the revenue and profit of my restaurant. Fast food is also pocket friendly and therefore it attracts younger crowd. Demand of fast food has increased in the recent times. However, I am opening a fast food restaurant having the knowledge of the customer structure in the market. Understanding the customers will help me build the brand name of my company. It will also help me meet all the customer’s needs.

Customer Analysis: Understanding your Target Market

Customers run the business of food industry. Therefore, the two ways of how customers can be attracted are as follows:

Concept of Happy Hours – Happy hours is a marketing term that is used in restaurants to attract customers and increase their sales profit. Happy Hours mean happy profits for the restaurant (Davis et al. 2013). In my fast food restaurant, I shall create deals and combos during the happy hours. This will attract a large number of customers and boost up my restaurant’s sales structure. Customers will be coming back if I keep the concept of happy hours on during daytime.

Social Media Page – Another way to attract customers is to make my restaurant prominent through social media. Creating a facebook and twitter page of my restaurant will make people aware of the existence of my fast food joint. The page consists of pictures and videos of the food served, prices, offers and reviews of the customers who have visited already (Kim, Li and Brymer 2016). Convincing reviews of the few customers will attract other people to visit my restaurant. The popularity of my restaurant will raise the profit margin and attract more customers with the help of social media.

Ethics plays a significant role in the business sector. Ethics can increase the sale and reputation in business. Corporate social responsibility and ethical behaviour will be beneficial for my restaurant. In case of a restaurant, ethics would relate to customer connection, team value, raw materials used in the food prepared and fair-trading (Crane and Matten 2016). A restaurant has a few work ethics. They are as follows:

Customer connection is one of the most basic ethics, which should be maintained in a restaurant. Serving all the customers on time and according to their demands will be my ethical responsibility.

Fair-trading is another form of business ethics that should exist in a restaurant. There should be a transparent fair-trading between the employer and its customers. Customers should be served what they asked for since they will be paying a price for it. Therefore, the restaurant’s reputation will be high as well.

However, in my restaurant ethics will play a major role as it will attract more customers, improve the morale of the employees and the organisation will work jointly as a team.

Having ethics is compulsory in any company. Company culture and ethics are aligned. Treating staff ethically is important for the business because without the involvement of employees no form of business can run. For a restaurant business, employees motivation should be boosted with proper salary, incentives, flexible working hours and recognition. Efforts of the employees must be appreciated, as it is a gesture of fine treatment. For my restaurant business, I would ensure fair treatment among my employees by paying them equally on time. Mentally satisfied employees would undoubtedly work with lot more zeal and enthusiasm. Ethical work environment means satisfied and happy employees. However, this is how I will treat my staff ethically in my restaurant.


Boo, H.V., 2017. Service Environment of Restaurants: Findings from the youth customers. Journal of ASIAN behavioural studies, 2(2), pp.67-77.

Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.

Davis, B., Lockwood, A., Pantelidis, I. and Alcott, P., 2013. Food and beverage management. Routledge.

Doub, A.E., Levin, A., Heath, C.E. and LeVangie, K., 2015. Mobile app-etite: Consumer attitudes towards and use of mobile technology in the context of eating behaviour. Journal of Direct, Data and Digital Marketing Practice, 17(2), pp.114-129.

Kim, W.G., Li, J.J. and Brymer, R.A., 2016. The impact of social media reviews on restaurant performance: The moderating role of excellence certificate. International Journal of Hospitality Management, 55, pp.41-51.

Pieterse, J.N., 2015. Globalization and culture: Global mélange. Rowman & Littlefield.

Sebastian, A., Ghazani, S.M. and Marangoni, A.G., 2014. Quality and safety of frying oils used in restaurants. Food research international, 64, pp.420-423.