PEST analysis of a restaurant

PEST analysis of a restaurant. The development of a business is a complex process, since there are many elements that can influence it, and, consequently, define its course. Capital, capital management, staff, marketing strategies, location, etc. We could make an almost endless list of all the items to consider.

PEST analysis of a restaurant
PEST analysis of a restaurant

On this occasion, we will talk about the PEST analysis of a restaurant, for which, in the first instance, we will dedicate ourselves to understanding what this application consists of.

What is a PEST analysis?

The ending ‘PEST’ is the acronym for Political, Economic, Social and Technological, defined as the multifactorial analysis of a business, emphasizing those factors that can have a decisive impact on its development in the short and long term.

The PEST works, thus, as a tool that allows to diagnose and / or evaluate a business, allowing certain inferences to be made about political, economic, social and technological factors. During its application, both threats and potential opportunities that the business enjoys will be evaluated.

Once the PEST analysis has been applied, a company will be able to take the most convenient direction for its development in the market. In more specific words, you will know how to consider the best decisions in your business, create sales strategies and, in short, promote your growth.

PEST factors

The PEST analysis is proposed with the purpose of addressing all the elements that may emerge from natures:


Every company must think about how its decisions can affect its outlook in the market. In this category, political factors are focused on the plans designed by its managers.

For example A company must consider whether the products it sells have certain regulations, such as alcoholic beverages.. Should the company start selling these products?, Would it be more convenient to change the category?, What legal aspects can negatively affect the sale of this type of products?


The study of these factors is an approximation to understand, mostly, what is the socioeconomic state to which the company is inserting. Know how consumers behave, what their needs are and how they track the products they are willing to pay for.

How large is the population in which the business is projected?, How is the consumption pattern of these inhabitants?, What trends are handled in this environment? Social factors raise these and other questions in the company.


Economic factors emphasize aspects such as the capital required for the production and marketing of the company’s product, the degree of production necessary to solve the requirements of the target, etc.

The idea of these factors is to handle a correct study of the market in which the company will perform, so that it is able to control all the elements of the economic type that may affect the company both negatively and positively.


These factors are considered as part of the technological capacity of the company, that is, the resources available to carry out its projects. In this sense, multiple elements are studied such as the tools that the company has , the capacity that exists in it for the correct management of them, the level of training of its personnel, etc.

The renewal or introduction of new technologies gives companies the ability to adapt to new trends, we could define it in other words as their possibility of remaining in the market, given the constant transformation of it.

The PEST for a restaurant

Now it is up to us to contrast everything investigated in the previous sections with our product, a restaurant. We will observe that it is not exactly a difficult process, and although we can not cover everything in this article, we can do a PEST analysis that allows us to have a concrete notion of this tool.

Political factors

When talking about restaurants, we can refer, when talking about their political factors, to the different permits that this type of business must approve to operate legitimately in a certain space. Does the restaurant have the approval of the health regulator?, Does your staff know how to handle food?

What percentage of taxes must the restaurant assume for the sale of its services? All the elements of the political type that the restaurant must consider for the correct exercise of its activities are studied here.

Social factors

In a restaurant, it is necessary to know the behavior of diners, so that it is possible to understand what their favorite dishes are, how they prefer to consume their food, what payment methods they prefer to use. How do diners relate to the restaurant itself?

Does the restaurant have an atmosphere that represents its target? It consists of understanding how your consumers relate to the brand and knowing how they respond.

Economic factors

The analysis of the economic factors of a restaurant will be anchored to the price of its products, both for sale and production respectively. Are the prices offered by the restaurant competitive?, Do the amount represent a reflection of the quality of the food? Services must harmonize with prices, to become a good product.

In a restaurant, what investments should be made in the long and short term, what plans need to be executed based on the profits obtained?

Technological factors

How does the restaurant promote its products, how quickly do you prepare your dishes thanks to your kitchen utensils? The technological factors of the restaurant will be referred to the tools it uses for its tasks, such as its entertainment systems for its diners, the conditioning of its spaces, etc.

Enter here other aspects such as the maintenance of their spaces. Does the restaurant offer comfort? Can you really offer a pleasant moment to your guests?, How are the products that have been used for food consumption washed? Technological factors are those that the restaurant will use to achieve optimal service.

Conclusion: PEST analysis of a restaurant

This has been the PEST analysis of a restaurant. It is important to note that this analysis must be carried out constantly, so that the restaurant can constantly renew its company.


Read also: OSHA Regulations for Restaurants; Restaurant Policies; Political Factors Affecting a Restaurant

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