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Macro and micro environmental factors of a fast food chain

Economic Factors

Kiesha Frue Feb 8, 2017 Ad Blocker Detected Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker. Refresh PEST analysis identifies external factors which influence a business. PEST analysis helps to plan with these factors. If any of the four are ignored, a solid foundation is lacking in your strategic planning.

This is true for our PEST analysis example for the food industry. Political Factors Trends affect the food industry. Current policies push for the public to be more conscious when buying foods. For example, as part of the Health Menu Choices Act, food services with over 20 locations in Ontario, Canada, must now post the number of calories for food and drinks openly. Fast food chains also show calories, but not as openly.

PEST Analysis Example for the Food Industry

But they, and other fast food chains, face criticism for their lack of healthy options on their menus. They have the funding necessary to use strategic planning in order to lower taxation impact without violating political laws.

  1. They also use their website to provide allergy notices, calorie information, and promotions.
  2. PEST analysis helps to plan with these factors.
  3. They have the funding necessary to use strategic planning in order to lower taxation impact without violating political laws. Healthier alternatives to foods are pricier compared to fast food or easy-to-make meals.
  4. Although there is a slowdown in sales, fast food is a convenience and a necessity to many still. As mentioned throughout this analysis, healthiness is the focus in many countries.
  5. As mentioned throughout this analysis, healthiness is the focus in many countries. We even have online groceries which deliver fresh produce to customers quickly.

Economic Factors The state of the country and unemployment rates can affect the food industry. Healthier alternatives to foods are pricier compared to fast food or easy-to-make meals.

Not only that, but the convenience of readily made food — despite the unhealthiness — can outweigh the trial and error of cooking food from scratch.

This has allowed greater expansion of fast food restaurants over the last decade. Food interest rates, taxation, and consumer spending affect the options and opportunities presented in the food industry. Although there is a slowdown in sales, fast food is a convenience and a necessity to many still.

Social Factors Fast food trends shift based on what consumers want.

  1. Although there is a slowdown in sales, fast food is a convenience and a necessity to many still.
  2. Food interest rates, taxation, and consumer spending affect the options and opportunities presented in the food industry. Fast food chains also show calories, but not as openly.
  3. Technological Factors Technology can give a competitive edge.
  4. Current policies push for the public to be more conscious when buying foods.
  5. Not only that, but the convenience of readily made food — despite the unhealthiness — can outweigh the trial and error of cooking food from scratch.

As mentioned throughout this analysis, healthiness is the focus in many countries. This is not only pushed by governmental authorities, but by consumers, as well.

Vegetarian, vegan and pescetarian eating are becoming less of a fad and more of a lifestyle choice — particularly with the younger generation. How these foods appeal to people is based on their branding look.

As a result, fast food chains are implementing their own branding makeovers. Now they have a much cleaner and modern look with wood, softer lighting, menu screens, and wifi.

Political Factors

To market to the younger generation, they had to change their branding and look. Technological Factors Technology can give a competitive edge. Technology is necessary to create packaging, food labels, and the production of food. Newer corporations may be lacking in technology power compared to veteran food-based companies. Additionally, they show footage of new promotional drinks and foods, as a method of marketing.

They also use their website to provide allergy notices, calorie information, and promotions. With technology advancing, it helps food corporations reach consumers in new and easier methods. We even have online groceries which deliver fresh produce to customers quickly.

The food industry is seeing a large shift due to consumer consciousness.