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Pestel Analysis for Uk Fast Food Restaurants

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PESTEL Analysis of the UK fast food industry:

•The labelling of GM (Genetically Modified) food became important since April 2004 as new rules relating to GM labelling came into force. The motive behind GM labelling is to inform the customers if any ingredients in the food are genetically modified as it is the customers right to take a decision whether or not to buy such a product. The UK government is bringing strict regulations for the food sellers to inform the customers if the food items contain genetically modified ingredients.
•The political surrounding can be strongly affected marketers decisions. There has been increased regulation of business in recent times. The fast-food market was highly affected by the introduction of (GST) Goods & Service Tax which resulted in the changes of prices in fast food outlets while the prices of other food items remained unchanged. Therefore, the fast food industry gives more emphasis on service rather than product stating that the customer will not get such type of service in their homes to differentiate them.

•The cost for setting-up a fast food joint or an outlet is very low. Therefore it becomes comparatively easy to enter the market.
•Franchising is an added beneficial factor and helps in setting up a good brand image.
•The market is growing as ever and a growing market is very important for the fast food industry.
•At the time of recession, the fast food restaurants do better business than other expensive restaurants as the price factor becomes important at such times. People tend to cut-down their expenses as their disposable income is less.

•The fast food industry in the UK pays a close attention to the requirements of the UK society.
•The people in UK have busy lifestyles and the fact that fast food restaurants are known for a quick and convenient service, they have become a part of the fast paced UK lifestyle.
•The people are a becoming more health conscious and have...

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