Report: Vegan Restaurant Startup - Environmental & Market Analysis

This report provides a comprehensive analysis of a vegan restaurant startup, focusing on both internal and external environmental factors. It emphasizes the growing demand for healthy diets and ethical consumption, which makes a vegan restaurant a potentially profitable venture. The report suggests starting as a sole trader business for ease of management and decision-making. It employs PESTLE analysis to assess political, economic, social, technological, legal, and environmental factors affecting the business. The report also utilizes Porter's Five Forces to evaluate competitive intensity, the threat of new entrants, supplier power, buyer power, and the threat of substitutes. The analysis aims to identify strengths, weaknesses, opportunities, and threats to inform strategic decisions and ensure the startup's sustainability and profitability. The report concludes that a thorough environmental and market analysis is crucial for minimizing risks and maximizing the potential for success in the competitive restaurant industry.

Written Report

CONTENTS
INTRODUCTION .....................................................................................................................3
MAIN BODY.............................................................................................................................3
Determining internal and external environment.....................................................................3
Presenting the Porter five forces analysis...............................................................................6
CONCLUSION .........................................................................................................................7
REFERENCES...........................................................................................................................8

INTRODUCTION
Start-up are most common in today's era where one or more people join hands to
develop any kind of product or services in the market based on the demand of customers.
Also, the present report is based on idea of opening new restaurant as sole trader named
Vegan restaurant as growing concern among the people to have healthy diets. Moreover, the
study will analyse and gather types of internal and external information through PESTLE and
porter five forces model so that better strategic decisions and organization structure could be
developed in the future operations of the business. Lastly, the study will highlight the
significance of these factors in estimating the overall cost and budget of the project so that
proper demand could be created in target market.
MAIN BODY.
Determining internal and external environment.
There are various types of internal and external factors that affects the operations of
business. Also, for opening restaurant like Vegan restaurant it is very essential that proper
environmental analysis is conducted so that certain strength and weakness could be identified
so that challenges could be overcome easily by developing proper plan and strategies in the
future (Bennett and Satterfield, 2018). Furthermore, this concept has been chosen for the new
business plan as people nowadays are more concern about the health benefits. Moreover, on
various online platforms there are various vegan movements that are been created that
influence people to raise voice against the animal cruelty and consume more green products.
Thus, opting for opening the vegan restaurant would be profitable as people would be ready
to pay even higher prices for most of their favourite vegan dishes.
Moreover, there are various ways through which business would be start up such as
sole trading business, partnership, private limited company and more. However, the one that
would be chosen for this concept is sole trader business as it is easy to form and simple to
manage (Sunarsi, 2020). Also, quick decisions could be taken so that everything could be
well-organized before only. Furthermore, changes in the company could be adopted any time
that would give enough flexibility in business operations. Although, sole trader company
have the limited life and unlimited liability because of which the business needs to be grown
faster so that it could sustain in the market for longer time. Also, external environment of the
firm could be identified through conducting PESTLE analysis so that various factors such as
political, economical, social, technological and legal factors which affects the business

operations could be eliminated on large level. Further through gathering such type of
information from external environment the firm would be able to eliminate huge losses and
save resources for the future operations. Moreover, all these factors could be explained in
detail as follows:
Political: Based on the political situation of the country, start up develop the work
culture and rules so that employees are able to work in most efficient manner. Also, for
vegan retro it is important that it is started in that region where there is less political
instability so that outlets and consumers could visit easily on regular basis.
Economical : Information regarding factors such as unemployment rate, inflation rate
would also be helpful for this start up business as it would help to analyse estimated overall
budget for the firm (Pham and et.al., 2020). Moreover, if the start up business is opening in
the area that has high level of unemployment rate than more labour force could be gathered at
lower wage rate that would be extra beneficial for earning greater revenues for the firm in the
future.
Social factors: It is very essential that information regarding the society beliefs,
values, traditions etc. is collected fully so that work could be conducted in that area in most
efficient manner (PESTLE analysis, 2022). Moreover, for better decision-making all the
societal factors needs to be fully understood so that better business processes could be
established. Furthermore, If people in any region are concern in consuming only those
products that are environmental friendly and are made in sustainable manner than it would be
good opportunity for start up business to serve the food in reusable plates, cutleries and keep
all vegetarian items so that more people are attracted towards the new business concept.
Technological factors: Collecting such types of information would allow the firm to
analyse what all technologies could be used to make the start up vegan business a success.
Also, according to the current technologies such as system generated customer emails,
various softwares, food processing technologies and much more would also help the firm in
gathering the required amount of finances (Ruiz and et.al., 2018). Also, through extensive
market research the quoted firm would be able to identify technologies that are used by the
competitors.
Legal factors: For starting a completely new business as sole proprietorship it is very
much essential that information regarding the various consumers laws, employees working
laws, food and safety laws etc. are read and understood fully so that business could run

smoothly. Moreover, such type of legal factors allow firm to introduce changes in the exiting
plan so that maximum benefit could be got. Moreover, legal factors would help firm in facing
future challenges in more positive manner.
Environmental factors: For starting start up business in any new region it is
important that the current situation of economy and environmental situations are identified so
that the company is able to work out in the best manner. Also, use of environmental friendly
technique such as planting trees around the restaurants, growing the own produce,
purchasing top quality appliances, taking advantage of the seasonal products and much more
would also be useful for taking up better opportunities in the future and earn maximum
revenues.
Thus based on the above analysis the firm would be able to control the activities in
right manner so that will also help to analyse the performance of various employees on
regular basis. Also, the pestle analysis is effective tool for any start up business because it is
having limited funds and resources (Feng and Chen, 2018). Moreover, the start up business
could also collect the information through any third party or external agent so that faster and
effective decisions could be taken on time. However, collecting the information through any
local agent might result in wastage and there are high chances of baisness. Also, risk factor is
also very high as local agent might not be able to collect the whole market information in the
limited time period. Furthermore, for any start up business this analysis is very helpful as it
facilitates in wider understanding of the environment and its functioning so that decisions
regarding the sensitive business matter could be taken wisely and in right manner.
Also, it will allow the business to identify new opportunities that is completely
unknown earlier. Moreover, all upcoming future threats for the company could be avoided or
minimized thus saving the time of the company in the future. However, all the external data
that is collected from the PESTLE might not be effective as it keeps on changing from time
to time (Maslesa, Jensen and Birkved, 2018.). Also, data collected could be based on certain
assumptions that might reduce the efficiency of the business. Although Pestle analysis is
having certain limitations but for the vegan restaurant it would be best option that would
allow firm to collect secondary information in most the easiest manner.

Presenting the Porter five forces analysis.
This is also type of analysis through which the company would be able to find out the
relative strength and weakness so that better organization structure could be formulated.
Moreover, this analysis is based on the five elements that includes the following:
Competition in industry: While starting up the idea that is newly developed it is
important that target market competitors are fully identified so that changes in the decisions
could be made in right manner (Clough, 2018). Also, if in target market there are large
number of competitors that vegan restaurant need to come up with idea or attribute that is
different from rest of the competitors' so that business could run successfully for long run in
target market.
Potential of new entrants: Though the concept of vegan is not very new as people
are already aware and concern of the current healthy lifestyle, it is very crucial that start up
business come up with any unique concept that is different from its competitors. Moreover,
making such differentiation would make fewer chances for new rivalries to enter into the
market easily as when chances of competition is very high that earning revenues become
more difficult tasks.
Power of suppliers : It is necessary that supply chain of the firm is very much
stronger as if there are few suppliers in the industry than chances of earning high profits is
very much less (Porters 5 Forces Definition, 2022). Thus, through complete analysis the
firm need to identify whether there is large amount of suppliers or not so that food items
could be reasonably charged and more profits could be earned. However, the firm need to
make systemic policies so that work could be carried out efficiently.
Power of customers: It is very much important number of customers are identified
before starting up the business in any new market so that minimum output level and also
budget could be estimated (Schaefer, Williams and Blundel, 2020). Moreover, if the current
business have less number of customer than it would be easier to charge higher prices for all
the products. Furthermore, vegan restaurant would have more chances of earning higher
profits in limited time period. Also, if the restaurant becomes very popular in less time than
there are chances that demand would rise higher which might force the company to lower the
prices of various food items.
Threat of substitute: This factor would also influence the business decisions on large
level as organization needs to devise all the policies according to the available market

situations and products that are available locally in the target market. Thus, the company need
to come up with better food ideas that could not be easily substituted with other products that
are available in various areas where the restaurant is planning to establish.
Thus, from all available factors of Porter it can be said that proposed start up firm
would be able to analyse whether the new project is going to be profitable or not. Also, the
competency of the company depends on working on certain weakness so that mistakes could
be avoided for the future (Clark and et.al., 2019). Moreover, it can be said that through
identifying such factors closely all the company major decisions could be taken smoothly as
firm would be able to find out about those entities that holds most of the power in targeted
market and are working with the same concept that is company is thinking of . Moreover,
better corporate strategy and vision could be made by the firm that would allow all
employees to work harder to achieve the organisation basic objectives. However, the
company could not completely depend upon this analysis for decision making as there are
various types of external risks involved that are not considered through this.
CONCLUSION
Thus, from above report it can be concluded that to start up a new business it is very
important that all resources and finances are collected on timely manner so that work could
be carried out smoothly. Also, the study had analysed that for new concept like vegan
restaurant it is important that proper environmental analysis is undertaken so that certain risk
measures could be taken on time and various costs could be saved for future undertaking of
any activities. Moreover, the report had also identified various external factors through
PESTLE analysis that had been taken into consideration so that better business decisions
could be taken. Lastly, the report had also applied proper porter five forces model so that
systematic actions could be taken to eliminate various challenges over the due course of time
in the target market.

REFERENCES
Books and journals.
Bennett, N. J. and Satterfield, T., 2018. Environmental governance: A practical framework to
guide design, evaluation, and analysis. Conservation Letters. 11(6). p.e12600.
Clark, M. A. and et.al., 2019. Multiple health and environmental impacts of
foods. Proceedings of the National Academy of Sciences. 116(46). pp.23357-23362.
Clough, E., 2018. Environmental justice and fracking: A review. Current Opinion in
Environmental Science & Health. 3. pp.14-18.
Feng, Z. and Chen, W., 2018. Environmental regulation, green innovation, and industrial
green development: An empirical analysis based on the Spatial Durbin
model. Sustainability. 10(1). p.223.
Maslesa, E., Jensen, P. A. and Birkved, M., 2018. Indicators for quantifying environmental
building performance: A systematic literature review. Journal of building engineering.
19. pp.552-560.
Pham, N. T. and et.al., 2020. The role of green human resource management in driving
hotel’s environmental performance: Interaction and mediation analysis. International
Journal of Hospitality Management. 88. p.102392.
Ruiz, D. and et.al., 2018. Environmental and economic analysis of power generation in a
thermophilic biogas plant. Science of the Total Environment. 633. pp.1418-1428.
Schaefer, A., Williams, S. and Blundel, R., 2020. Individual values and SME environmental
engagement. Business & Society. 59(4). pp.642-675.
Sunarsi, D., 2020. The Analysis of The Work Environmental and Organizational Cultural
Impact on The Performance and Implication of The Work Satisfaction. Jurnal Ilmiah
Ilmu Administrasi Publik. 9(2). pp.237-246.
Online references
PESTLE analysis. 2022. [Online]. Available
through:<https://www.cipd.co.uk/knowledge/strategy/organisational-development/pestle-
analysis-factsheet#gref>.
Porters 5 Forces Definition. 2022. [Online]. Available
through:<https://boycewire.com/porters-5-forces-definition/#:~:text=Porters
%205%20forces%20is%20a,of%20suppliers%2C%20and%20competitive%20rivalry.>.