Strategy, Operations, and Partnerships in the Food Industry: A Case Study of Leon's Restaurant

STRATEGY
OPERATIONS AND
PARTNERSHIPS

Table of Contents
INTRODUCTION...........................................................................................................................3
External environmental analysis of Food industry in which Leon's restaurant operates.............3
Evaluate strategy of Leon's restaurant.........................................................................................6
Evaluate operations of Leon's restaurant.....................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Appendix........................................................................................................................................11

INTRODUCTION
Leon' restaurant is founded by John vincent, Allegra McEvedy and Henry
dimbleby in 2004. It has become the fastest growing restaurants brand in country, the
progress of their business is fuelled by funding from spice and active private equity with
SPE (Ruiz-Montañez and et.al., 2014). They open its first restaurant in London and after
some time company expand at global level. The current study is based on Leon
restaurant, and its purpose is to evaluate environment of food industry in which
company operates. It explains, strategy of firm, resources and capabilities of business
that impact on success of firm. Furthermore, this report justifies the influence of mega
trends on organization, operation, and vision statement of company which is achieved
by suitable operation.
External environmental analysis of Food industry in which Leon's restaurant operates
PEST-
Political factors-
Political elements greatly impact on food sector anywhere in the world, taxation is
one of the factor that affects directly on business profitability and operational success
within market. Due to high tax on import and export services, food sector facing many
issues in which they have to pay extra charges on their each activity. Organizations
working under this industry such as Leone's restaurant, they suffer a lot and pay high
amount of charges to run their fast food restaurant chain effectively in UK and all around
the world. Furthermore, wider regulation of governments in nation where company
operate their business is highly affected food industry (Rubert and et.al., 2014).
Government of UK have expansive regulatory frameworks for each and every aspect of
sector, include cleanliness of commercial kitchens and transporting produce.
Economic factors-
In this dimension of environment evaluation of food industry, the impacts of
economic conditions is determined. Inflation is one of the economic factor that affects
profit margin of food industry as well as Leon's restaurant operations. After Brexit
inflation rate in UK increased in economy which affect prices of cooking ingredients. As
outcomes menu prices go higher and most of the period consumer avoid to order dishes
from restaurant, they also do not prefer to go outsider for eating food that decrease the

productivity and profitability of restaurant business rather than before. People low
income rate is another factor that will be impact food industry and companies operating
under this sector such as Leon restaurant.
Social factors-
In current era, people are more health conscious that affects food industry the
most, in simple words people demand for organic food instead of junk food which
negatively impact on Leon's restaurant business because they are operating under this
sector since for so long. This social component impact restaurant menu, production
activity and other operations.
Technological factors-
Like many other sectors, fast food industry in UK is also affected by changing
technological innovation and trends. It highly influenced the methods and ways
company using for engaging and attracting consumer towards them. Social media sites
and online order placement have played crucial role in changing procedure of clients
service provision.
Emerging mega trends-
In food industry, advancement of technology is major issue that bring many
challenges for Leon's restaurant business. People are taking health guidance through
new technology (van der Meulen and et.al., 2014). Apps and devices giving individual
personalized statistics on eating habits, exercise and disease markers which is
considered as emerging mega trend. With this opportunity at their fingertips, clients
feels stronger to live, prevent illness and more healthily. With the new technology
people place order only from only those restaurants where they measure the high
ranking on their services. It can be considered as key factor of success, when it applies
in restaurant trends where company will create their own website in which they
consider all the points according to people preferences in regard to health. Leon's
restaurant place all the information about their special menu which they create for
health-conscious consumers, it helps to attract local people more towards its business.
Porter's five forces-
Bargaining power of consumers-