Question

Exterior threats of a restaurant

Answer 1

The exterior threats of a restaurant business are:

• The restaurant will face a threat when hiring the right and affordable employees. The employees are demanding a better salary and there is a scarcity of employees who have the required qualification in the hospitality industry.
• The food price is on the rise and the restaurants cannot negotiate on the price with the retailers. So they need to plan a pricing strategy that can meet their business demands as well as keep their customers happy.
• The customer needs and choices keep changing. The restaurant business should be able to change their food and also the cooks working for them based on the market needs.
• The competition in the market is very huge. There are different food options available in the market for the customers and they are also offering the same food at a lower price. the business should always keep studying the market in order to know when they need to change their strategy to stay at the top of the table.