PESTLE Analysis of Restaurant 

PESTLE Analysis of Restaurant Business or Industry. Hotels and restaurants are prominent areas in the hospitality and tourism industry. In fact, the restaurant industry plays significant in the growth and development of any country. World’s richest countries have the highest tourism rate and it amplifies the growth of the restaurant business.

Some of the main products and services of the restaurant business are as follows;

  • Accommodation
  • Food and Drinks
  • Services
  • Privacy of Staying
  • No disturbance

The top brands in the restaurant industry are as follows;

  • Marriott International
  • Hilton Hotel
  • Osteria
  • El Celler de Can Roca
  • Noma
  • The Fat Duck
  • The French Laundry
  • Eleven Madison Park

Today, we’ll discuss the pestle analysis of restaurant business and industry. It is going to analyze the external political, economical, social, technological, legal, and environmental factors impacting the hotels and restaurants industry.

Political Factors Impacting Restaurant 

Some of the key political factors in the pestle analysis of restaurant are as follows;

Government Policies

Rules and regulations of different governments are different, and they play a significant role in the growth of the restaurants business. For instance, if the government introduces laws of accommodation that only married couples could stay in the hotels; non-married partners can’t stay in the hotels. Such types of laws and regulations would badly impact the growth of the restaurants business.

Stable Political Environment

Political stability is equally significant for the tourism and restaurants industry. Political riots, boycotts, protests, strikes, and rallies would push tourists far away from your country. In such circumstances of an unstable political environment, the focus of tourists would be to get out of the country rather than staying it.

Economical Factors Affecting Restaurant 

Some of the main economical factors in the pestle analysis of restaurant are as follows;

Taxation Policy

Income tax directly impacts the growth and profitability of the restaurants business. Various countries have got different tax rates; some have got higher taxes and others have got lower. While launching and expanding your hotels and restaurants business in any country, you should make sure to confirm the tax rate and know whether it is suitable for you or not.


Economical indicators like inflation and unemployment rate impact the sales of the restaurants business. When prices of raw supplies are higher, hotels have got no other choice but to increase their prices and it would impact the consumption and sale of the hotel services.

Disposable Income

If the country’s interest rate is higher, people would deposit their money in the banks. When saving increases, then people would have limited disposable income for spending on luxury items like tourism and staying in hotels. As a restaurants business owner, you should keep in mind the saving and spending rate of the country’s people.

Social Factors Affecting Restaurant 

Some of the key social factors in the pestle analysis of restaurant are as follows;

Population Growth

If we look at the world’s population, then it has been increasing consistently for the past few decades. Population growth is a great sign for the growth of hotels and restaurants businesses and organizations. More people would consume more products and services, and it increases the sale of the restaurants business.

Busy Lifestyle

Professionalism and economic pressure have made people highly busy and occupied in their lives. They don’t have time to cook food for themselves, and that’s why they visit hotels and restaurant to eat their meal there or order it online.

Healthy Diet Trends

The consumer market has become highly cautious about the food they are eating, and they now demand a healthy and organic diet. Keep in mind this dietary trend; they look for such hotels and restaurants that offer organic food with a homemade touch.

Technological Factors Affecting Restaurant 

Some of the main technological factors in the pestle analysis of restaurant are as follows;

Tech Tools

Technology has revolutionized almost every area of business and industry. The hotels and restaurants industry is no exception, and employing self-service kiosks, self-checkouts, and various tech tools has amplified the customer experience.


Online and digitalization is the other addition to the restaurants industry. It allows people to place their orders online, book a room, and other services whatever they want in hotels and restaurants. You won’t have to carry cash with you all the time, the online payment system has made the transaction much simple and smooth.

Legal Factors Impacting Restaurant 

Some of the key legal factors in the pestle analysis of restaurant are as follows;

Food & Hygiene Standards

Health, safety, food, and hygiene standards and regulations are no joke for hotels and restaurants. Violation of any of those regulations and standards would cost the business millions of dollars in a lawsuit. Therefore, restaurants businesses should carefully follow those rules and regulations. It is because many hotel brands are running their business across the world, and they should keep in mind the food and hygiene standards of different countries.

Environmental Factors Affecting Restaurant 

Some of the main environmental factors in the pestle analysis of restaurant are as follows;

Vegetarian Trends

Animal protection organizations are promoting vegan trends and they are encouraging people to stop promoting the meat industry by not consuming meat. As a restaurant business owner, you should offer both types of meals to target both types of customers.

Sustainable Practices

Hotels and restaurants businesses should engage in sustainable practices like utilizing renewable energy, recyclable material, and other activities that are complementary to the environment. Rather than engaging in such practices are jeopardizing the environment.

Conclusion: Restaurant PESTLE Analysis

After an in-depth study of pestle analysis of restaurant business or industry; we have realized that hotels are restaurants are very lucrative business ventures. If you are studying and learning the impact of the external environment on the restaurants industry, then you should keep in mind the abovementioned factors.