Edward’s Restaurant and Sir George’s Catering Case Analysis
General Environment
Demographic:
Industry: Demographic factors are favorable to the restaurant industry. Approximately 52% of the 1993 population in the area was 60 years of age or over. This was considered the restaurant’s main target market. During the late 1980s and early 1990s, the number of people taking up permanent residence in the valley increased dramatically for various reasons. The climate was attractive for growing population of seniors. Land prices, housing, taxes, and utilities were affordable. With the average cost of an acre of industrial land in the Penticton area at $45000 in 1991, businesses were attracted to the area. Between 1984 and 1991, manufacturing …show more content…

With the average cost of an acre of industrial land in the Penticton area at $45,000 in 1991, businesses were attracted to the area. Manufacturing jobs in the region had nearly doubled, house prices were relatively low, with the aid of irrigation, and the area had an extensive fruit and wine industry. However, population growth was leading to a loss of agricultural land. The area was experiencing a shift “away from the primary sector and moving more into value-added manufacturing” ranging from software and electronics to jams and jellies. Level of tourism was declining after 1991, campgrounds in the area were planning to close due to tax increases, and one waterslide had already shut down. Demand for accommodation and related services in Penticton had declined (1994). Fast food was particularly popular with younger customers. Many of fast food restaurants were parts of large chains that provided the financial strength of giant corporations and relatively standard menus and layouts familiar to traveling customers. The restaurant industry had an unusually high number of failures. According to Ed Gowe (1993), the average lifetime of new restaurants in the Penticton region was about two years. The number of restaurants in the area remained high. The industry standard suggested that, on the average, about 1 restaurant for each population unit of 1,000 would leave well-managed restaurants viable. The 1993 Penticton population of about 27,000