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Pestel of Fast Food Industry

Certain aspects in their way of doing business had to change this can be seen on Spur Cooperation Annual Financial Report on some of the measures take to comply with amendments in the following franchise agreements, disclosure document; Voucher and coupon terms, Competition rules; Insurance cover in light of the increased risk of litigation; Nutritional analysis menu items and continuous reviews on menus to ensure that there are no misrepresentations and customers are aware of the contents of their meals.

The legislation places a much greater responsibility on restaurant owners, particularly in respect of taking care in assessing the reputation and compliance with the legislation of their suppliers. In particular, restaurant owners need to take cognizance of health and safety requirements in making the facility of the restaurant available to consumers since these are now expressly provided for in terms of the strict liability provisions of the CPA.

Restaurateurs will eave to review quality control procedures, take out extra insurance, have good quality controls and quality assessments, and traceability systems, both administrative and in the laboratory, the diligent testing of products and keeping accurate records. (Simons Monty, a partner at Overfeeds January 201 limberness’s. Co. A) Following on Identification and concern by

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WHO on the increase on burden of Non communicable diseases such as Until recently, over nutrition, obesity, and the associated increased risk of non-communicable diseases such as scheming heart asses, diabetes, stroke, and hypertension that are mainly related diet the Ministry of health has adopted a shift towards promoting lifestyle changes through implementing stricter measure on fast food industry, the ministry has submitted drafted regulation recommendation to parliament that could see withdrawal of Junk food and alcohol advertisement in the next couple of years if approved.

This could have a negative impact on the industry as can be seen with Tobacco industry. (A global response to a global problem: the epidemic of over nutrition (Mackey Copra,l Sarah Calibrating,2 ; Ian Tornado-Habitualness of the World Health Organization 2002, 80 (12)) Famous Brand does seem to not have a policy that addresses Black Economic Empowerment and Economic Equity issues within the company.

On the other hand Spur group has indicated its previous commit to reach the Status 7 of BEE status has failed and its reason for failing in achieving this goal and its alternative to focus more on economic equity by training and up killing previously disadvantaged population group.

Future Industrial strike as a result of wage negotiation may continue as in the revises years, this will hinder trade and increase in the minimum wage will increase Pestle of Fast Food Industry By corroborate costs tort the employer an Economic: d thus turf near price increase Despite the Global Economic Recession and unemployment, which has resulted limited disposable income, economic uncertainty and reduced spending by consumer Famous Brand in South Africa in contrast did very well, the success can contributed to the Hosting of the World in 2010 and higher real wage increases which have been granted during the past.

However WIMPY I-J performance continued to reform poorly as a result of global economic situation which is worsen by European Union Financial instability threat. If the situation does not improve in the next year, we will see continue to see further decline in I-J performance and this could also hamper the success of the steers restaurant launch in the I-J market. The continued increase in tax, fuel prices, electricity and gas prices, and introduction of e toll may see increase in prices and more pressure on the consumer.

Despite the recession and retrenchment in the past 4 to 5 years Famous Brand has managed to grow Job creation by 57% growth in Job creation Socio Cultural Fast food intake is mainly common in this group of young South African adults who lived in Urban areas where the fast foods where easily accessible. (Van Sly MS, Original Research: Characteristics and factors influencing fast food intake of young adult consumers) Fast food consumption patterns in South Africa (AS) indicate that the tradition of eating home cooked meals is decreasing.

As both household incomes and standards of living rise, more people are eating fast foods. (The Quick Service Restaurant Industry in South Africa: Market Structure, Competitive Strategies, and Research Directions Blessing Macbeth Maybe) Spur Cooperation has done better in getting involved in a number of Cooperate Social Investment programmed that ranges from sport, education and feeding schemes, compared to Famous Brands which is only involved in 15 primary school scholar fee assistance.

Unemployment is still a challenge in South Africa, however despite the recession and retrenchment in the past 4 to 5 years Famous Brand has managed to grow Job creation by 57%. Technology: Famous Brands plans to invest R 5 million rand in upgrading its technology and immunization infrastructure, where Spur Cooperation has already seen the benefits of Information Technology in their family card and competitive advantage in its group.

Spur Cooperation will also be introducing new version of point-of-sale system which will include greater business intelligence, improved security and greater efficiency in-store Legal: Sec 61 of Consumer Protection Act places a much greater responsibility on restaurant owners, particularly in respect of taking care in assessing the reputation and compliance with the legislation of their suppliers.

In particular, restaurant owners need to take cognizance of health and safety requirements in making the facility of the restaurant available to consumers since these are now expressly provided for in terms of the strict liability provisions of the CPA. Restaurateurs have to review quality control procedures, take out extra insurance, have good quality controls and quality assessments, and traceability systems, both administrative and in the laboratory, the diligent testing of products and keeping accurate records. (Simons Monty, a partner at Overfeeds January 2011) Environment

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