The restaurant industry and the 5 forces
Table of content
Introduction………………………………………………………………..….pg2 Explanation of Porter’s five forces……………………………………….. ..pg3
Applying Porter’s Five Forces in the Restaurant industry in Ireland…….pg4 Pest analyze in the restaurant industry…………………………………….pg5
Recommendations……………………………………………………………pg6
Conclusion………………………………………………………………….....pg7
Reference list………………………………………………………………….pg8
Introduction
In this assignment we are going to analyses the restaurant industry in Ireland and we are going to apply the Porter’s Five Forces and Pest on this industry for to be able to write a report to give some advice to a new restaurant that is trying to enter in the market.
The restaurant industry
To have a restaurant in the past before recession, was easier than nowadays .An equipped kitchen, one room and a kitchen chef and owner with a supply list were enough for to work Monday to Friday lunch time and pay the staffs, and Monday to Saturday dinner for a profit.
When Ireland was hit by recession in 2008 the restaurant industry suffers as much of any other industry in the world.
The disposable income money wasn’t there anymore so customers started to cook at home as they could not afford to pay 36 euros for a Steak.
Restaurateurs have to adapt the whole organization for to survive in the market. With over 2,500 restaurants in Ireland, the Restaurant sector employs 64,000 people and contributes €2 billion to the Irish economy each year.
Restaurateurs had to start to pay attention on customer’s needs and wants, trying to meet and satisfy then with an affordable price. Restore consumer confidence in the country is another important factor to be considered.
2. Explanation of Porter’s five forces
Porter’s five forces is a powerful tool that helps analyses the level of power of five important factors in a specific industry.
Understanding where power lies, is easy to take advantage of a situation of
Introduction………………………………………………………………..….pg2 Explanation of Porter’s five forces……………………………………….. ..pg3
Applying Porter’s Five Forces in the Restaurant industry in Ireland…….pg4 Pest analyze in the restaurant industry…………………………………….pg5
Recommendations……………………………………………………………pg6
Conclusion………………………………………………………………….....pg7
Reference list………………………………………………………………….pg8
Introduction
In this assignment we are going to analyses the restaurant industry in Ireland and we are going to apply the Porter’s Five Forces and Pest on this industry for to be able to write a report to give some advice to a new restaurant that is trying to enter in the market.
The restaurant industry
To have a restaurant in the past before recession, was easier than nowadays .An equipped kitchen, one room and a kitchen chef and owner with a supply list were enough for to work Monday to Friday lunch time and pay the staffs, and Monday to Saturday dinner for a profit.
When Ireland was hit by recession in 2008 the restaurant industry suffers as much of any other industry in the world.
The disposable income money wasn’t there anymore so customers started to cook at home as they could not afford to pay 36 euros for a Steak.
Restaurateurs have to adapt the whole organization for to survive in the market. With over 2,500 restaurants in Ireland, the Restaurant sector employs 64,000 people and contributes €2 billion to the Irish economy each year.
Restaurateurs had to start to pay attention on customer’s needs and wants, trying to meet and satisfy then with an affordable price. Restore consumer confidence in the country is another important factor to be considered.
2. Explanation of Porter’s five forces
Porter’s five forces is a powerful tool that helps analyses the level of power of five important factors in a specific industry.
Understanding where power lies, is easy to take advantage of a situation of