External Environment of the U.S. Restaurant Industry
restaurant industry is one of the most vibrant in the world. New players come to America due to some factors as the strength of U.S. economy, a population with high purchasing power, and the diversity of cultures resulting in popularizing various profitable cuisines. The country is the world's center stage of trade and has been growing to accommodate more ideas and creativity in investments. With the increase in the number of new entrants to the country, better forms of trade are witnessed. The better part of all these is the fact that the political environment is conducive for the inception of better trade options for the people interested in doing business. The Demographics also support the whole course in a big way. These factors are discussed below in light of how the industry has grown to the current robust state.
The External Factors
The Demographics
The population in America has been growing at an increasing rate both in numbers and in composition. America poses as the land of opportunity for most people around the world. For this reason, there is an increased travel to this land from all over the world. The numbers and the diversity have influenced the way the restaurant industry has grown. The growing population of the modern world in America has had an extensive effect on the kind of foods that are eaten in the world. Many more foreigners have pitched a tent in America and as such have created a new demand for foods. For instance, the Chinese and the Africans are now increasing in the country. This has brought the new demand for foods needed by the different people coming from the different people (Joseph, 2011). This has given the business people a chance to execute their mandate in the business. Restaurants are now growing at a fast rate and in different types. This has also managed to bring many interested parties such as the government to bring in the best practices for the traders. Legislation has been done to allow an open business platform for all the people who intend to do so.
The structure of the U.S. population is largely a mature one. The middle-aged people are in a higher number than any other. This has affected the restaurant industry in some way. People in this age are largely in need of leisure and the need to have hotels has made it possible for the business people to run hotels successfully. The more the need to have this middle class entertained, the need for hotels comes in. It has also been noted that people appreciate the fact that there can be no other better way to conduct trade without factoring in the young population. Despite the fact that they are not as economically endowed as the middle age people are, they consume most of the exotic foods available in hotels. This has been the concern among the restaurant owner (Janga, Ha, & Par, 2012).
Economic Factors
The economic welfare of the people in the country has a direct impact on the growth of the restaurant industry or any other industry. The modern day businesses have shown that most people who are in the middle bracket of the economic space can afford the luxury. Restaurants mostly thrive on luxury and thus the growing concern and emphasis in America. The American people are relatively rich, and this has supported a good number of restaurants. The employment level in the country has grown to be more important in the supporting of most businesses (Pan, 2012). Since most are now involved in major economic activities and can earn, their salary comfortably has made it possible for a good number of people to act as a good market for the restaurants. Economic experts have recorded a high consumer price index on the Americans, and this indicates their ability to demand substantial amounts of foods from the restaurants. This good indicator is secured. The restaurants business is important in meeting the demand for food that is currently standing high.
The Political / Legal Segment
The political environment in any country is important in bringing out the needed support needed to grow a business or to bring an otherwise worse effect on the trade. The American government has made it possible for traders from various parts of the world to pitch their businesses within the country. This has also made it possible for the people to engage the market constructively. The best part of this was in the registration of companies. It is made possible...
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