PESTLE Analysis for Fast Food Restaurants in Australia

Published: 2021-06-23 14:17:05
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Fast food restaurants are a popular destination amongst Australians according to various surveys. The PESTEL analysis for the industry in the country is done below.

Political Factors.

The government policies that have been instituted over the years have a great impact on the growth of fast food industry in Australia. The institution of the Australian Competition and Consumer Commission, for example, helped the industry grow over the past decade. This has been possible through its enforcement of policies advocating for competitive pricing and restraining of unnecessary price increases. The political stability that exists in the country has also allowed the fast food industry to grow and prosper over the last two decades (Fraser et al., 2010).

Legal Factors

A lot of legal matters are involved in the food industry of any country. Australia, however, has minimum regulations subjected to foreign investments. This along with minimal market entry barriers make it easy for fast food restaurants to be established d in the country, which has promoted growth in the industry. Government reforms like the ACCC of 2004, which aims to protect fair business practices and protect open rivalry in businesses also play a crucial role in the growth of the fast food industry in the country (Powell & Chaloupka, 2009).

Technological Factors

Australia is one of the most technologically advanced nations in the world. As such, the fast food industry in the country has not been left behind. The availability and adoption new technologies in the fast food restaurants have allowed the industry to grow tremendously. These technologies adopted in the restaurants include packaging, food preparation, and advertising and even customer reception. These have increased the efficiency in service delivery and output in these restaurants, leading to growth (Horgan, 2014).

Economic Factors

Australia has enjoyed a continuous growth of GDP in the past decade. This translates into an increase in disposable income among the population and thus an increase in expenditure. This factor when combined with the Australians love for eating out translates to the creation of a favorable environment for fast food restaurants to grow in the country. The infeasibility of exports due to the inflationary force in the economic recovery also contribute to this phenomenon (Powell & Chaloupka, 2009).

Social Factors.

Population increase has led to an increase in consumer demand for fast food restaurants in Australia in the past decade. This is especially more evident in black neighborhoods, which are estimated to have at least three fast food restaurants per square mile as compared to about half the number in white neighborhoods. Obesity problems in the country, however, have led to stunted growth in the industry, especially in the black and low-income groups of the population (Dunn et al., 2008).

Environmental Factors

The countrys strategic location as a leading tourist destination has seen the fast food industry receiving continuous growth. This is partly because hotelier businesses go hand in hand with the tourism industry. Continuous tourism ensures that the businesses continue to receive regular and diverse consumer traffic (Fraser et al., 2010).

Conclusion

The underlying factors make it favorable for the fast food industry to grow in Australia. Factors such as the government policies and regulations enable easy entry into the market. Business is also promoted by the Australian eating culture, which favors eating out. Other factors such as technological advancement, economic growth and political stability in the country favor growth of the fast food industry in the country.

References

Dunn, K. I., Mohr, P. B., Wilson, C. J., & Wittert, G. A. (2008). Beliefs about fast food in Australia: A qualitative analysis. Appetite, 51(2), 331-334.

Fraser, L. K., Edwards, K. L., Cade, J., & Clarke, G. P. (2010). The geography of fast food outlets: a review. International journal of environmental research and public health, 7(5), 2290-2308.

Horgan, P. (2014, March 11). Analysis of the Fast Food in Australia: A Study of BackFlip Cafe - the STUDENT CENTER. the STUDENT CENTER. Retrieved 15 April 2017, from http://studentcenter.xyz/analysis-of-the-fast-food-in-australia-a-study-of-backflip-cafe/Powell, L. M., & Chaloupka, F. J. (2009). Food prices and obesity: evidence and policy implications for taxes and subsidies. Milbank Quarterly, 87(1), 229-257.

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