Leon's Restaurant: Food Industry Analysis, Strategy and Operations

This report provides a comprehensive analysis of Leon's Restaurant, a fast-growing restaurant brand, examining its strategy, operations, and the external environment in the food industry. The report begins with an introduction to Leon's Restaurant, its founding, and its rapid expansion. It then delves into the external environmental analysis, utilizing PEST and Porter's Five Forces frameworks to assess political, economic, social, and technological factors, as well as the competitive dynamics within the industry. The report evaluates the restaurant's strategy, including its resources, capabilities, and the VRIN model to assess its competitive advantages. Furthermore, it explores the operations of Leon's Restaurant, including food production, customer service, and cleaning, to understand how these elements contribute to the company's vision. The report highlights the impact of mega-trends on the organization and its operations, and concludes with a summary of the key findings and their implications for the restaurant's future success.

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-

The degree of this force is high because consumers have the another option
within food industry where they can get fast food on same price with better quality which
affects Leon's restaurant business. In UK there are several fast food joints available for
people who offer the tasty food to all of them.
Bargaining power of suppliers-
The bargaining power of raw material suppliers is low because there would be
number of providers of cooking items is assessable within market that decrease the
power of Leon's restaurant suppliers for bargaining and increasing costs of supply.
Threat of new entrants-
Threat of new entrants is high because in food industry the tough barriers to
entry is less, companies only focus on hygiene factor that help to run their business
effectively (Leon, Bougas and Ravet, 2016). New entrance put pressure on restaurant
where they will make some changes in current organizational and food production
procedure.
Threat of substitute service or products-
The degree of this force is high, people can easily transfer from Leon's
restaurant to substitutes. In market number of substitutes is higher because consumers
get many options of eating food rather than fast food items.
Competition among existing competitors-
Degree of this force is high, in food industry big brands and local restaurants
increasing their productivity of food rather than before, they are using different types of
food production methods and ways to react at target markets for increasing revenue. To
grow businesses more and more the competition become higher which affects Leon's
restaurant operations.
Summarize environment of industry-
In order to run business effectively and operate large fast food chain by following
regulations Leon's restaurant will drive towards success, they provide hygienic and
clean environment around dining areas and cooking space as well it takes to succeed in
food industry for long period of time. Company set affordable cost due to inflation which
drive people towards placing order for food. Furthermore, business also produce
healthy food for health-conscious consumers in order to retain all of them. In addition to

this, management of organization will use different types of social media sites for
spreading information about their special menu within market, all above things taken to
succeed into food sector.
By following the mega trends in business food industry is likely to change in
future which is quite beneficial for them. According to above statement, they will build
their online presence along with offline for consumers. They would use new technology
for retaining people and driving new clients that helps to increase productivity and
profitability of Leon's restaurant rather than past few years.
Evaluate strategy of Leon's restaurant
Resources of company-
Leon is the most popular fast food restaurant chain in UK, taking benefits of
health and vegan eating zeitgeist. Skilled labour, appropriate cooking equipment,
storage shelves, along with chairs and tables out of restaurants and new device in food
production are the available resources of company that define its strength to operate
business within industry effectively (Busch and et.al., 2014). In addition to this firm had
freezer, range of cookware, hygienic standards' checklist, good financial budget and
other essential assets that helps to operate each function of company efficiently. They
have a good business plan consist with knowledgable applicants. Structure of different
types of menu according to the season. Leon's restaurant provide several types of
payment methods to its consumers. Cooking equipments is the main resource of firm
that helps to produce or cooked fresh and tasty food. With the help of good business
plan they can take loan for increasing growth of current organization structure at global
level or across the boundary of nation. Plastic packaging is available resources of firm.
Capabilities of firm-
Leon's restaurant is able to provide better consumers services and deliver quality
food items to people with the helps of skilled and talented staff members. With the help
of required cooking equipments, company prepared health and tasty food for their
people as well as new consumers that helps to increase their profit margin more than
before. They operate 57 restaurants in the world for example in Gran, Dublin, Oslo,
Utrecht etc. effectively which define their capabilities. In its 63 restaurant, company is
capable to employed 1000 members of staff for operating overall business in several

nations as well as USA. Due to globalization and high competitive environment within
food industry, Leon's restaurant is able to make some changes in their current
organizational structure at some point which helps to expand business into new market.
Company is able to create strategic marketing plan or strategies that helps to gain
competitive benefits.
VRIN-
This model covers identification of potential resources, and helps to determine
whether these assets fulfil VRIN criteria.
Value:
In order to sustain for longer within food industry Leon's is able to create different
types of menu along with professional people in their staff which helps to retain existing
and new consumer and also contribute to gain competitive advantages.
Rareness-
It includes all assets which is not been accessible to business competitors, in
case of Leon' restaurant, they can use different types of device for preparing food and
serve it to consumers. They are able to present in unique way along with using different
kinds of organic colour.
Imitability-
The presentation of Restaurant food is different which cannot be copied by any
other restaurant because Leon is use organic food colour and design plate so clean and
attractive.
Non substitutable-
It means that available resources cannot be substituted by any other resources
available in market (Kwon and et.al., 2014). In context of Leon' restaurant, they are
offering consumers food and services according to their needs which is quite impossible
for anyone to do this because it required a good financial background that every one
does not have.
Comparison between sustainable resources and capabilities-
Sustainable resources Capabilities
Leon' restaurant pack their food for
consumers within paper bags rather than
On the other hand, leon's restaurant is
able to sustain for longer by implementing

plastic because it helps to reduce air,
water and land pollution in nation and
prevent from occurring harmful disease
that impact on well-being of people. As
compare to sustainable capabilities of
restaurant within industry, professional
labour is one of the resources that help to
implement mega trends in business and
generate more revenue.
new technologies in its business which
help to drive them towards success in food
industry.
Evaluate operations of Leon's restaurant
Operation of company-
Restaurant operations in the simplest form are different types of activities that is
carried out in Leon' restaurant to run their business in UK or another nation effectively. It
includes all functions included in customer services, preparation of food, cleaning,
accounting, purchasing of raw materials etc. skilled workers in their restaurant chain
operate food production operation perfectly as they cooked items according to
consumers requirement and demand by conducting market research which helps to
understand perspectives of people in market accordant to trends (Ramanathan, Di and
Ramanathan, 2016). Presentation of food items or dishes attract clients more, company
along with professionals people in their staff will fill the plate with colour and present it in
attractive way.
Vision of Leon restaurant-
The vision of Leon restaurant is to serve tasty and good food to its consumers in
the possible way, they efforts to fulfil their vision with the helps of available resources.
Production operation supports delivery of vision-
The food production operation of business helps to fulfil its vision, in which
knowledgable and talented applicants prepared healthy and tasty dishes for local as
well as other people in nation where they operate.

Cleaning operation is sustainable for business because it helps to assure
proper hygienic environment and standard follow by Leon in their work that retain
people with them for longer.
CONCLUSION
The purpose of this report is to define external factors and impact of mega trends
on Leon's restaurant within food industry. From above, it has been concluded that
emerging mega trend, external factors, threat of substitutes, bargaining power of
consumers and suppliers, competition among companies in same sector and other
forces impact on firm business. Furthermore, it has been summarized that restaurant is
capable to serve its best with the helps of available resources and increase the financial
performance rather the before. Production and cleaning operations support business to
fulfil their vision easily.

REFERENCES
Book and Journals
Busch, J and et.al., 2014. Managing critical materials with a technology-specific stocks
and flows model. Environmental science & technology. 48(2). pp.1298-1305.
Chapman, C.J. and Nettles, M.R., PANERA LLC, 2017. Systems and methods for
analyzing restaurant operations. U.S. Patent 9. 798. 987.
Kwon, J and et.al., 2014. Food safety risks in restaurants and school foodservice
establishments: health inspection reports. Food Protection Trends. 34(1).
pp.25-35.
Leon, L.R., Bougas, K. and Ravet, J., 2016. An assessment of the cumulative cost
impact of specified EU legislation and policies on the EU forest-based
industries.
Ramanathan, R., Di, Y. and Ramanathan, U., 2016. Moderating roles of customer
characteristics on the link between service factors and satisfaction in a buffet
restaurant. Benchmarking: An International Journal. 23(2). pp.469-486.
Rubert, J and et.al., 2014. Evaluation of mycotoxins and their metabolites in human
breast milk using liquid chromatography coupled to high resolution mass
spectrometry. Analytica chimica acta. 820. pp.39-46.
Ruiz-Montañez, G and et.al., 2014. Evaluation of extraction methods for preparative
scale obtention of mangiferin and lupeol from mango peels (Mangifera indica
L.). Food chemistry. 159. pp.267-272.
van der Meulen, B and et.al., 2014. Governing nano foods: principles-based responsive
regulation: EFFoST critical reviews# 3 (Vol. 3). Academic Press.
Online
Five top trends impacting the food and beverage industries. 2019. [Online]. Available
through:<https://www.consultancy.uk/news/22506/five-top-trends-impacting-the-
food-and-beverage-industries>

Appendix
Political factor
High taxes- due to change in taxation
policy Leon' restaurant face many issues
as it affects on their current business
environment and operational efficiencies.
Key problems related to trade duties,
intrastat and traffic is evaluate with the
help of external analysis within food
industry which affects business growth and
expansion procedure. After Brexit common
customs traffic is implement across all EU
nations on product imported from outside
European union. Rates of import and
export is increased in which business has
to pay extra charges over each activity that
directly influence profit margin of business.
Additional charges, decrease the efficiency
of business expansion and limited
company resources. To operate wider fast
food restaurants chain effectively Leon
follows the rule and implement in its
overall business for future growth or
success.
Import and export food and drink products.
2018. [Online]. Available
through:<https://www.nibusinessinfo.co.uk/
content/tariffs-and-duties-food-and-drink-
sector>
Wider regulations- according to this
economic factor, government of nation
where Leon operate their several
restaurants required to follow some
regulations in business that impact on food
industry. Regulation sets on basis of
PESTLE Analysis of the Food Industry.
2019. [Online]. Available
through:<https://pestleanalysis.com/pestle-
analysis-of-the-food-industry/>

standards for transporting and storing
produce food. Government announces
different types of regulations from time to
time taking care of health of individual.
These regulations required to maintain
cleanliness and hygienic environment
restaurants and following rules like tax
rates & labour laws that negatively
influence business operations.
Government needed to check the quality
of producing and delivering food as well as
ingredients that will use in cooking of
dishes, because unhealthy ingredients
affects on health of consumers, and they
become suffer from many harmful disease.
Economic factor
Inflation- it influences overall economy inn
which it directly impacts on Food industry
and its organizations in long term period or
might be short term. Brexit increases the
rate of inflation, people are not been able
to survive in their lives they cannot be able
to pay high prices for ordering food which
affects on Leon's restaurant in UK and
decrease their profitability and production
as well. It will affect buying power of
consumers which lead in reduction of
business sales potential. In order to
Impact of economic factor. 2016. [Online].
Available
through:<https://medium.com/@the_food_r
oom/the-pestel-analysis-a-complete-cheat-
sheet-4fccae0bff58>

sustain for longer period of time, Leon
restaurant has to low down the cost of
each food items and drop down the prices
of delivering charges, they set affordable
cost in inflation era still when the level of
economy is not developed or improved just
like before Brexit. It is considered as one
of the major economic factors that
decrease the profitability of business and
give more power of people to drop down
the pricing structure of restaurant within
food industry.
Low income rate- it impacts on Leon
restaurant business, in nations where
company operate there are many people
belong to middle class family background
and have not enough money to spend
order food. Middle class consumers will
not be able to hand out with friends and
family members and order food from Leon
restaurant.
Lester, T.W. and Hartley, D.A., 2014. The
long term employment impacts of
gentrification in the 1990s. Regional
Science and Urban Economics. 45. pp.80-
89.
Social factor
Health conscious group of people- In
simple words, social factor is all about
people, the preference of consumer play
vital role in changing business operations
structure according to consumers needs.
In present economic environment, people
Lee, K and et.al., 2014. The role of
perceived corporate social responsibility
on providing healthful foods and nutrition
information with health-consciousness as
a moderator. International Journal of
Hospitality Management. 37. pp.29-37.

are most focusing on health-
consciousness, they want to look fit and
healthy and start avoid eating fast food
habits. Cultural trends of health-
consciousness definitely impact Leon fast
food restaurant chain which create issues
for business to manage it effectively.
People are Driving towards health-
consciousness in which they are eating
health food and take nutrition supplements
for improving their health, it will affect
restaurant menu. To retain potential
consumers with them Leon can server
both type of clients spicy or junk food &
organic food lover that helps to increase
their consumer base rather than before.
Most of the people like to take coffee and
carbonated drink in their routine, when
leon offer consumers all the things which
they need company can increase
productivity and profitability, it also
produces food for vegetarians consumers
which is quite beneficial for overall
business growth within marketplace. Along
with this, people are educated, and they
know which things are good for their
health and what they have to eat to look
fit. These individual looking for quality
food and prefer to eat nutrition and avoid
junk food in their daily routine. It impacts
on Leon restaurant operation such as food

production in which cooking staff will cook
food accordant requirement and demands
of people that has been changed
according to current trends in market.
Technological factor
Use of new technology- it is the most
dynamic element of technological factors,
rapid technology growth and change
impact on Leon restaurant business
directly. In current time, people do not
have time to cook food due to busy time
schedule, mostly women cannot be able to
spend a lot of time after working hours in
the kitchen, they prefer to place order on
online through device and apps in which
they get full menu display different types of
food items. It impacts on leon restaurant
business when they do not have its online
preference in social media sites where
consumer spends a lot of time. Company
create their online websites along with
offline which helps to spread information
about business in marketplace and drive
new consumers towards them. Through
delivering online, they can save time of
people and move and build strong
connection with them while delivering
quality services. Number of orders firm will
Technology affects on food industry. 2017.
[Online]. Available through:
<https://freepestelanalysis.com/pestel-
pestle-analysis-of-fast-food-industry/
>

take with the help of placing order online
by people. Technology advancement not
only provide benefits to consumers it also
helps to generate revenue for business as
well. Changing technology bring many
benefits to leon restaurant that they will
use to reach at their target market easily.