Consumer Psychology and Research in Hospitality Sector: Restaurants and Bars

MODULE Consumer Psychology and
Research TOPIC Hospitality Sector
RESTAURANTS AND BARS

Table of Contents
Executive Summary ........................................................................................................................1
Introduction and overview...............................................................................................................2
External analysis of the environment in which leisure sector operates..................................2
Challenges faced by leisure industry......................................................................................2
Background of restaurant and bars businesses.......................................................................3
MAIN BODY...................................................................................................................................3
Part 1.......................................................................................................................................3
Part 2.......................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................8

Executive Summary
Customer research is an important perspective making an organization deal with needs of
customer and create structure for satisfying it. The competence make organization develop
products more effectively. Through this services within an organization become strong in terms
of marketing opportunities related to growth. PESTLE analysis made organization face external
factors making organization attain impact upon functions related to organization. In this various
kinds of factors like politics, economic, social, technological, legal and environmental are
covered. Aloes AIO analysis has been done in relation to various situations of market making
organization develop with long terms approach. In this file issues faced by an organization at the
time of CIOVID is explained.
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Introduction and overview
External analysis of the environment in which leisure sector operates
Political: The leisure sector is influenced by the government taxation policies on such businesses
as well as trade and tariff barriers regarding the raw material. In current scenario, the leisure
sector was greatly affected by government restrictions which were imposed upon businesses due
to pandemic.
Economical: The employment rate and inflation rates are some important economical factors
which affect the leisure sector. Demand and supply models as well as prices offered by
competitors is another major factor influencing the sector (George, 2021).
Social: The demographic trends and preferences of consumers keeps changing in restaurant and
bar industry which comprises of one of the major leisure sector. The growing pubs and bars are
providing wide alternatives to customers due to which their preferences are shifting.
Technological: These factors are affecting the restaurant and bar sector of leisure industry as the
businesses have to remain aware of any technical changes so that their performances are
improved in maintaining management of the operations.
Legal: The legal factors are influencing the leisure industry as businesses have to comply with
standards of food and beverage industry as well as ethical standards related to provision of
liquor. Bars have to maintain strict compliance while serving alcohol to underage individuals.
Environmental factors: the production processes involved in production of food and liquor is
consuming high levels of energy resulting in carbon emissions (BURKE, ROBINSON and Choi,
2020). In addition to this, leisure industries are promoting huge waste and is causing depletion of
water resources as well.
Challenges faced by leisure industry
After analysing the pestle factors, there are majorly three challenges which are identified
in context to the leisure sector as explained below:
Heavy competition: The level of competition is rising beyond the measure in leisure sector and it
is significantly growing in restaurant and bars. Restaurants along with bars have became a
primary go to place for individuals to catch up and also they are emerging as great place for
various informal business meetings. Thus businesses operating restaurants and bars are facing
tough rivalry in the market.
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