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With a rich history, Lahore is a main ultra centre of Punjab and Pakistan. Being one of the most densely populated cities in the world, Lahore remains an economic, political, transportation, entertainment, and educational hub. It is also referred to as the “McHugh City of Gardens” due to the historic presence of McHugh gardens (Slammer Garden). 4-Few lines about PEST: PEST is external macro-environmental analysis of a market. Followed by it, SOOT is the micro analysis of an idea or a brand, service or a business. ) P= Political b) E= Economical c) S= Socio- Cultural d) T= Technological The analysis of a market is done keeping in view the above parameters. -political analysis: Generally political factors include government regulations, legal issues and define both formal and informal issues under which firms operate. I-Taxation on restaurants: In 1997-1998 Punjab Provincial Budgets, an additional 10% tax has been imposed on hotels and restaurants of the province. This was in addition to 12. 5% central exercise duty and 5% provincial tax levied on July 1996.
REF: Pakistan tax web 2-Crime: Like other metropolitan cities of Pakistan, Lahore also faced crime. But as compared to Karachi, situation in Lahore is relatively stable. Government has also taken measures by prohibiting late night dinners (not late till 1 1 pm) and gatherings. REF: Express news April 2012 3-Load Shedding: Pakistan at present is facing terrible power shortage which has affected nearly every person of every class and business. To manage it, Punjab Government has ordered all restaurants to be closed by 11 pm strictly. These orders were issued earlier in April. -Election 2013: Neither election campaign nor any other party expected to rule will affect restaurant business. Even in the past no such examples are available. Restaurant industry has always flourished in Lahore. 5-Food Inspection laws: After approval of act by Punjab Assembly, the provincial government had finally appointed Punjab Food Safety and Standards Authority (EPEES). The Job of this authority is to check adulteration and quality of entire food. The Punjab Government has signed a memorandum of understanding (MOM) with Europe based trade related technical assistance (TART) program to promote specialized training to officials.
Ref: News Thursday, Jan 12, 2012. Conclusion: As Pakistan is an underdeveloped country so it is still in a struggle to overcome the rower shortages and economical barriers, for this reason taxes are imposed on every industry for the collection of revenue. But this revenue is spent for the betterment of society e. G. Metro bus service in Lahore (2013). Like any other metropolitan city of the world, Lahore also faces high crime rates. But this has never been a barrier in the way of growing restaurant industry in Lahore.
Even New Orleans (USA) is ranked among the top 50 most dangerous cities of the world, irrespective of having well- organized police department. No city of Pakistan is in this list. Ref: www. Questionnaires. Com/most-dangerous-cities-in-the-world-2012 b-Economical Analysis: These include financial stability, buying capacity of consumer and development. 1 -Lahore economy: As of 2008, the city gross domestic product (GAP) by purchasing power parity (APP) was estimated at 40 million dollars with a projected growth of 5. 6%. This is at par with Karachi.
The contribution of Lahore to the national economy is supposed to be around 13. 2%. Lahore GAP is projected to be 102 billion dollars by year 2005 with a growth rate of 5. 6% per annum as compared to Karachi (5. 5%). Lahore Stock Exchange (ELSE) is the second largest stock exchange in the country. Lahore is the second largest financial hub of Pakistan after Karachi. 2-Development in Lahore: Due to growing economy and population, Lahore has faced rapid development in the past few years. To ease out road transport and avoid traffic Jams, 8 underpasses were constructed on Lahore canal in the last 10 years.
Lahore Metro bus service project was completed in the record period of almost two years. Other majorettes are ; Ring Road ; IT -rower ; Expo center ; Mall 99 ; MM Lam road renovation ; Kalmia Chow under pass and over head bridge Muslim town over head bridge Ref:local. Lahore. PCwick? Id=economy The economy of Lahore is growing and stable. Restaurant industry has been a major contributor to it e. G. MM Lam road (also called Modern food street). Development in Lahore has been on the higher side as compared to any other city of Pakistan.
This will promote more industries to it. Lahore Metro bus service is unique and first of its type in Pakistan. MM Lam road has also been renovated to ease out the people. The access of people in different parts of city has become better due to completion of many road transport projects. This will also help to minimize fuel consumption and time loss. Over all it has encouraged people to come out of their homes and enjoy the lights of city. C-Socio-Cultural analysis: I-population: The population of Lahore was 7 million in 1998 and it is now 12. 5 million (78% growth).
Lahore is projected to Join Karachi in the lists of mega cities of world by 2025 according to I-JNI. Ref: Daily times Thursday February 28, 2008. Temporal population of growth of Lahore, Journal of scientific research June 2009 2-Migration: Due to growing economy and rapid development, Lahore has faced significant migration. The population of Lahore has increased to 3 folds in short span of life. Ref: Pakistan research Repository, Sprints. Heck. Gob. PC 3-Love for food: “Never doubt Lorries love for food” For Lorries, food is enough a reason to go to a place.
One thing Lorries have always been proud of is their food and eating habits. “The city and people of Lahore are famous of their eating habits. The Lorries love for culinary delights is in intrinsic part of culture. There are restaurants for all tastes and road side Dhabi across the length of city. ” Ref: Express Tribune, March sit 2012. 4-From Des to Fast Food: The doors of Lahore have always welcomed all kinds of tastes due to the love of people for food. The city is major business point for all types of restaurants like: ; Test ; Chinese ; Fast food ; Arabian (swarms) ; French and Italian.
With introduction of KEF and McDonald in 1998, they have wide spread not even in the city of Lahore but also to all over Pakistan. There are 14 branches of KEF in Lahore, second highest (after Karachi, 18 branches). Many new fast food chains have also entered the competition and running successfully. Most well-known are ; AFC ; Domino’s ; Pizza Hut Hardens 5-Future of fast food industry in Lahore: Pakistan currently ranked 6th in terms of population. It is characterized by highest population growth rate of 1. 9% (Pakistan economic survey 2005).
The growth rate is also augmented by a rapid increase in employment rates for males and females population aged between 20 to 29 years (fast food goers). Ref: 2005 world population data sheet Pakistan economy is becoming increasingly service oriented over the past several decades. Due to hectic work schedules for both males and females, a strong demand for fast food has increased. Ref: SEEMED 2006 This data is taken at national level, but definitely the major contributor in above data would be Lahore and Karachi cities, as they are the largest.
These cities are facing increased migration, population and increase in economy out of all cities of Pakistan. D-Technological Analysis: 1 -Availability of modern cooking utensils: Already multinational hotels (like PC hotels) and famous fast food chains (KEF, Pizza Hut and McDonald) are running their business successfully. They utilize modern and up to date cooking technologies. So availability of utensils of all types is not an issue. Through lox. Com. K and many other websites all utensils can be imported. -Availability of technical staff: Primarily COTTA Gail road) and TCP (Garden Town) institutes in Lahore, provide administrative and cooking related courses to candidates. 3-Availability of Space: Though prices have increased, especially in center of Lahore, but availability of space in not a botheration. 4-Good technical infrastructure: Already many fast food chains have attractive and technically well equipped infrastructure. This not only attracts the customers but also satisfies them relating to quality of food and service. New business planners can visit and take idea from hem.