Hospitality: Best, Worst and Probable Case Scenario for Fab Restaurant in Sri Lanka in 2035

The report discusses the best, worst, and probable case scenario for Fab Restaurant in Sri Lanka in the year 2035 based on Pestle analysis, market structure, consumer behavior, and trends. It suggests that Fab Restaurant can sustain and grow their business by implementing advanced technologies, targeting the potential market, and differentiating their products with better quality.

Hospitality

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Discuss the best case, worst case and probable case on the basis of chosen hospitality
organisation as per the 2035 year basis............................................................................................1
Best case of Fab restaurant in Sri Lanka in year of 2035. .....................................................1
Worst Case for Fab restaurant in year of 2035.......................................................................5
Most probable case scenario for Fab Restaurant in Sri Lanka. .............................................7
CONCLUSION..............................................................................................................................11
References:.....................................................................................................................................12

INTRODUCTION
Hospitality business is itself a broad category of field within the service industry on
which it includes lodging, food and drinks service, event planning, theme park, travel and
tourism. The main objective of hospitality is generally provide better service quality to customer
for make satisfy their needs and wants (Abeywickrama, Degamboda and Manchanayake, 2020).
As the customer satisfaction rely on service quality which prevails by the specific hospitality
business. In this following report, the company is consider Fab Restaurant which was build 1979
with years of experience and commitment with customer where goal which has been remained a
constant to better strive for synergy between tradition of improvising better quality of taste. Fab
Restaurant is having global presence like United Kingdom, Sri Lanka etc. As per the topics are
reflect Pestle on Sri Lanka of 2035 years ti mapped future oriented hospitality services.
MAIN BODY
Discuss the best case, worst case and probable case on the basis of chosen
hospitality organisation as per the 2035 year basis.
Best case of Fab restaurant in Sri Lanka in year of 2035.
In hospitality industry is one of most innovative service base business where the
objective is main target to attracts customer while provide them better and quality type of
services. In perspective of Fab restaurant wants to establish their hospitality service in Sri Lanka
port in upcoming year if 2035. In recent generation many changes as per positive and negatives
happen like upgrading of technology like Artificial intelligence, digital marketing practises
through online business mobilising and much more..
According to Mercedes Diaz, 2020. The restaurant has been changes their quality of food
items weather bakery, Chinese, Italian and other specific region foods offers to customer. The
possibility of upgrade in foods because of changing trend in food and beverages industry create
positive influence in hotels and restraunts business.
Pestle Analysis:
Pestle Factor Analysation
Political For Fab restaurant service business can easily handle through online
and offline as the corporate governance rules and regulation are
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systematically operate in hospitality market. It is because Sri Lanka
republic with semi presidential system and they have good relation
with their neighbour.
Economical Sri Lanka economy is going to shift with massive transition through
largely rural based areas with urban areas that main focus on
development in manufacturing and services. This changes can make
huge impact for Fab Restaurant in upcoming year of 2035
(Madumali,, 2021). As government of Sri Lanka allows foreign
investment from different international countries which Fab restaurant
could attain more business and employment opportunities.
Social The current population of Sri Lanka is around 15-20 million the major
language which local people speak Sinhala, Tamil, English, Hindi and
other respective religion exist in it. With that different religion would
have significant taste and preferences on which Fab restaurant can
offer their services both demographic and geographic factors.
Technological Sri Lanka has been successfully get progress in Science and
technology over the decades. As the government of Sri Lanka
contribute their initiative to upgrade advanced level of technologies
which Fab restaurant can assort to channelise their food and
beverages business. Even online platform can also enhance better
business opportunities.
Environmental The environment condition of Sri Lanka is fascinating as well as it
attracts many tourism such as beautiful beaches. Fab restaurant can
open their franchise food and beverages service in beaches as they
can attract tourist people more frequently.
Legal The legal practice of Sri Lanka not distinguish between foreign and
local employees as the National Minimum wages is around 10,000
which is equal around $50.
Evaluation:
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As per the best case for Fab restaurant to utilise online resources, digital platform through
promote food and beverages service to connect with national and international client. Advanced
technologies like Artificial intelligence and robotics services can be upcoming trends in
restaurant business to upgrade better competitive advantages. In Sri Lanka there is around 20
millions population there would be easy to pitch food and beverages product and services.
Market behaviour
Market behaviour is defined as an economic term which means the behaviour of
businesses, consumers and stock market. It is mainly used to upgrade different strategies of
marketing and enhancing sales while examining entire purchase behaviour. There are four types
of market behaviour which are awareness, preference, engagement and advocacy.
Porter's five forces model: -
 Threat of new entrants: - In context with Fab restaurant, Sri Lanka, they implemented
several strategies which are enforced by the business organisation in order to compete
with other businesses. Besides this, fab restaurant could also made an investment strategy
on the basis of they could easily deal with all other competitors which are operating in Sri
Lanka (Bopage and Ranasinghe., 2020). In context with chosen restaurant, the threat will
be at high level and the reason behind this would be that till the year 2035, there would
be many efficient and well-developed business. .
 Threat of substitute products: - The threat could be at moderate level because it could
be both best and worst situation for the company. In future, demand will definitely get
increased but at the same point of time, there are many other competitors also so they
create an impact in the form of threat for them.
 Bargaining power of buyers: - It would get expanded more in terms of all hotels, retails
and many more. There would be moderate power because people living in Sri Lanka rely
on same companies only as they are not much aware about other brands but as there are
there are different substitutes, so those companies take an advantage for promoting the
brand and attracting consumers.
 Bargaining power of suppliers: - In food retail industry, suppliers are single service
providers within all the facilities which they provide and in Sri Lanka, there are several
suppliers available in the marketplace due to which there bargaining power gets low as
companies get an option to choose other suppliers if they raise prices (Deen,
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Jayawardana and Liyanage, 2021). With respect to the year 2035, it could be an
opportunity for the company because they would have an option to focus on other
suppliers also.
 Competitive rivalry: - In food and beverage sector, there is high level of competitive
rivalry in present times and by analysing the situation of Sri Lanka, in the year 2035, fab
restaurant could face high competitors which would create a negative impact on their
business organisation.
Evaluation:
On the basis of above porter five forces of Fab restaurant in that competitive rivalry and
threat of new entrant could be high influence in the year of 2035. This would happen because of
new small restaurant quality of their food can make attract customer and existing large and small
range of hospitality business in Sri Lanka such as Captain bar and grill, Graze Kitchen etc. from
make that overcome Fab restaurant need to work on their bakery foods and beverages hygienic
that make people healthy.
Market Structure:
This refers about how different industries are classified and compare on the basis of
degree and nature of better competition of goods and services. There are four types of market
structure that addresses are perfect competition, oligopoly market, monopoly market and
monopolistic competition.
On the basis of above market structure for Fab Restaurant to compete in the year of 2035,
the suitable market would be Monopolistic Competition, because on this basis they can
differentiate their hygienic bakery food and beverages product with better compare with other
competitive companies on the basis of quality.
Consumer behaviour and trends
Consumer behaviour is defined as an action and process of decision making by people
who buy products and services for their personal use.
How do company sell their products?
In context with fab restaurant, Sri Lanka, they could sell their products by focusing on
online as there will be more websites available and maximum number of people wants that the
process of buying products should not be consumed much so on the basis of this, it would be a
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best option for their food and beverage sector to provide them products through showcasing it
online (Kaluthanthri and Osmadi, 2020).
How do customers purchase them?
In year 2035, all consumers wants home delivery or door to door services, so they would
buy their products on online basis as it could become easy for them to buy company good and
acquire their services. In case of fab restaurant also, they will face different types of demands of
consumer so they could build up their websites in a more efficient way and offering products
through door to door services which could be beneficial for both consumers as well as for the
company.
Worst Case for Fab restaurant in year of 2035.
There might be some uncertain factor which make Fab Restaurant more implication to
sustain in competitive hospitality business. For make that more understand in following there is
analysation of Pestle in worst case perspective of Fab restaurant in Sri Lanka in year of 2035
year. Probably, there might be chances of unwanted natural climatic changes that can directly
impact on business for decreasing low in market effectively. To understand the worst case
scenario for Fab restaurant Pestle analysis can explain detailed information.
Pestle Factor Analysation
Political Due to changes in corporate governance policy in terms of lack of
foreign direct investment and decrease of foreign exchange in Sri Lanka
can create more implication for Fab Restaurant in 2035 year.
Economical There is uncertain factor which can create drastic impact in economic
like Inflation, Recession and Covid situation make more challenges to
sustain in competitive hospitality business for Fab restaurant in 2035.
Social This can make one issue due to pandemic raises it can reduce population
or sudden changes of demographic and geographic factor makes
challenges for Fab restaurant for upcoming decades.
Technological The worst case in technology shortage of advanced resources or business
can misuse along with large cost incurred and risk of job cuts (Otache,
Edopkolor and Okolie, 2021). This implication make the Fab restaurant
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more issues to sustain in restaurant competitive market.
Environmental If the Fab restaurant would not follows ethical regulation of Sri Lanka
then it would create negative image in society.
Legal Some of strict employment laws can raise issues for Fab restaurant in Sri
Lanka. As the minimum wages is less then 20000 which is equal to $50.
Evaluation:
In the basis of above worst case of Fab restaurant in Sri Lanka that Economical and
Environmental case can raise implication for Fab restaurant in further 2035 year. Pandemic,
inflation and recession are uncertain factor in which Covid situation can decrease the growth of
restaurant and other hospitality business due to less interaction with customer (Perera,
Samarakoon and Wanninayake, 2021). As per the assumption of pandemic or might increase of
other small or large restaurant chain in Sri Lanka region can overtake Fab Restaurant in
upcoming years.
Market level behaviour:
On the basis of worst case for Fab restaurant in year 2035 there would be a vulnerable
situation because in this situation consumer of Fab restaurant would change their product and
services preferences frequently.
Five forces:
According to the five forces in worst case for Fab restaurant:
 Threat of new entrant: In this factor, there would be high level of entrant for Fab
restaurant where small new hospitality or restaurant can create influence in market
which can decrease the fab restaurant growth.
 Competitive rivalry: In this particular situation there would be high level of
competition in Sri Lanka hospitality business. For Fab restaurant it can difficult to target
customer and pitch the services.
 Threat of substitute: On the basis of Fab restaurant market performance, in
competitive market for restaurant can face moderate level of situation in worst case
there would be increase in demand or vice versa.
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 Bargaining power of supplier: The power of supplier could be high because Fab
restaurant can face shortage of supplier in hospitalitymarket for manufacturing bakery
food and beverage product and services.
 Bargaining power of buyers: In worst case buyers would have high bargaining power
for Fab restaurant as because there would be high competition in hospitality competitive
market.
Market structure:
As per the market structure of Fab restaurant in Sri Lanka in worst case of 2035 might be
Oligopoly because in this marker situation there would be only three or two hospitality firms in
market like five star as well as existing small restaurants or hotel. These restaurant business can
dominant in market by providing more excellence quality of services to people.
Explain consumer trends and behaviour.
How company sell their products?
The Fab Restaurant can sell their products in worst case if their marketing team can
approach Digital and promote their restaurant bakery and beverages product on online platform.
Apart from that, Fab restaurant can provide reduce in services prices to attract consumer. There
can be case of Covid or other pandemic situation which would creates uncertainty as well as it
makes more vulnerable situation for Fab restaurant to deal with the customers.
How do customers purchase them?
On the basis of Fab restaurant in worst case the customer can approach products and
services by booking online or getting suggested by others. This practise might increase the
customer interaction with Fab restaurant. Due to heavy pandemic(Covid-19) situation have been
create drastic situation that makes collapsed due to facing uncertain factor in market like lack of
revenue or business. In hospitality, restaurant business are mainly expected to do away of single
use of packaging where it becomes common place for better restaurant operators to better
promote better sustainability practises efforts of marketing to consumers
Most probable case scenario for Fab Restaurant in Sri Lanka.
The most general case scenario which is makes more implication on the basis of rules and
regulation changes along with shortage of manpower. These are the factors which can raise more
vulnerable situation which is difficult to sustain in competitive marketplace (Shulga, Busser and
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Bai., 2021). In initial case, Fab restaurant might face more difficult with compete small and
large restaurant business.
Pestle Analysis: -
Pestle Factor Analysation
Political In case of Sri Lanka, it has created a high importance in the form of
social political affairs and is considered as one of the most powerful
country around the world. With respect to fab restaurant, it would be the
most probable case for them as it would help in building up good
foreign relations but at the same point of time in future, they might face
large level of civil wars as well as political struggle too.
Economic Due to the challenges in the economy of Sri Lanka, fab restaurant might
face difficulty to remain stable and protect the rights of all the workers.
On the other hand, by looking at the year of 2035, the most probable
case for the fab restaurant will be that by making investments in exports,
high growth could be achieved.
Social With respect to fab restaurant and the situation in the year 2035, they
might achieve growth because in future, the population could get
increase and people would start living in urban areas also. Besides this,
due to caste discrimination, it might get increased more because till the
year 2035, population would get increase and all the people could
belong from different cultures.
Technological By looking at the present scenario, people are moving towards
digitalisation so for fab restaurant, the probable case for them in the year
2035 will be that advanced digital technologies would take place due to
which they could achieve growth.
Environmental In case of Sri Lanka, they face many environmental challenges which
could get increase in future also, so for fab restaurant, they might face
difficulties in managing everything and proper development would not
be done.
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Legal The probable case for fab restaurant in context with all the legal factors
will be that till the year 2035 might be good for them because in Sri
Lanka government continuously initiates high policies and legal
securities which would be good for them also.
From the above pestle analysis, it has been evaluated that the probable case for fab
restaurant could be both positive and negative situations. In the year 2035, by doing investment
in foreign exports, good relations would be maintained and by using digitalised technologies but
at the same point of time, caste discrimination and environmental challenges might create
difficulty.
Probable case for market level behaviour
The market level behaviour in the year 2035 might increase liquidity in the market and
the probable case for them would be that government could support them in such emerging
markets. Due to the social market economy, it might happen that the behaviour may get indulged
into a highly competitive place and might become a social market economy.
Probable case of porter's five forces
 Threat of new entrants: - In case of fab restaurant, Sri Lanka, till the year 2035, the
threat of new entrants might be moderate because as per the COVID0-19 pandemic, it
might not be possible that increase the level of competitors would take place in the
market but at the same point of time, there may be some small businesses which could
create a threat for them.
 Threat of substitute products: - In context with the probable case for fab restaurant in
the year 2035, the threat of substitute products could be low because company might
implement many unique products and services which would not interact existing
consumers but also the new ones.
 Bargaining power of suppliers: - In accordance with this, the bargaining power would
be low in this because till the year 2035, there will be many suppliers in the market and
due to price fluctuations, the power of suppliers might get low at any point of time.
 Bargaining power of buyers: - In case of fab restaurant, Sri Lanka, the buyers
bargaining would be moderate because new competitors could arise in the market which
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would might increase the purchasing power but at the same point of time, it might happen
that due to offering of unique products and discounts, the buyer power gets low.
 Competitive rivalry: - In the year 2035, competition may get increase or decrease also
which could create a moderate situation for them because in Sri Lanka, high investments
are needed so it might not be possible for every company to do such investments.
Probable case in Market structure
In context with fab restaurant, their market structure in the year 2035, might be perfect
competition and the reason behind this is that in future, if large organisations does not make high
investments as there is a risk but there would be many small companies which might get
established in the marketplace. In context with this, the company could face perfect competition
which might be both positive and negative to them. In market, there are many price fluctuations
which takes place so by looking at the future of Sri Lanka and its fab restaurant, it has been
analysed that the market structure might have perfect competition.
Explain consumer trends and behaviour.
How company sell their products?
In probable case of Fab restaurant might be moderate situation as business can face
positive as well as negative outcomes to gain positive and negative enhancement. Fab restaurant
can pitch or offer their product in probable case of 2035 in Sri Lanka offline or online way
strategy. But the most flexible way is to promote restaurant product in social media and advertise
in local streets to create awareness for Sri Lanka people. Similarly for Fab restaurant there would
best case to establish their restaurant in Sri Lanka in year of 2035. Many advantages that Fab
restaurant can attain for better food and beverages services perspective like:
Different trend change in food menu: In the upcoming year of around 2030-2035 many
restaurants can easily approach customer to provide self order through QR scan code. In this
customer can easily scan the restaurant's menu QR for explore menu and they order as per
convenience. This initiate can reduce paper work which is positive side for hospitality services.
Strengthen online presence: This is one of most trending concept which makes business
flexible operate in terms of contacting customer and channelise product and service promotion in
effective manner. Online business can creates positive impact on Fab restaurant in Sri Lanka
region where company can easily mobilise their quality of food and beverages services promote
in digital platforms.
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How do customers purchase them?
The people of Sri Lanka can buy Fab Restaurant product and services while getting aware
from local street market. Apart from it, customer can approach restaurant product and services
from online and offline platform as per their convenience.
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CONCLUSION
From above report of Hospitality is summarise about opening a restaurant in other
international region in which to face challenges and opportunities to define within three
situations. The situation are discussed Best, Worst and probable case for specific hospitality
venture on which business can easily mapped their sustainability to the year up to 2035. As the
restaurant business approach Sri Lanka region to make sustain towards longer period of time.
Different scenario has its own challenges and opportunities that driven to the specific hospitality
business.
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Perera, A.A.D.C., Samarakoon, S.M.A.K. and Wanninayake, W.M.C.B., 2021. The Moderating
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