Restaurant Industry: Unemployment and Economic Uncertainties

The general environment is made up of six factors that are external to an industry that they are applied to. Demographic, political/legal, sociocultural, economic, technological, and global factors all have an influence on the company's opportunities and threats, but rarely can be controlled by the entity itself.

As a multinational company, Bloomin' Brands in turn strategizes according to global demographic trends. The emergence of the middle class has played a big impact in the growth of the restaurant industry as a whole. This influx of more capable buyers has allowed these various brands to thrive. The rapid growth of developing countries has also allowed these brands to expand to locations that might not have seemed feasible or profitable as little as 10 years ago.

Bloomin' Brands, just like any other company or industry for that matter have to abide by political and legal restrictions. There are many different laws imposed by the government that have an effect on the industry. Many of these laws address food safety standards as well as alcohol consumption and licensing. These various laws can be quite costly and possibly brand ruining for the company if broken. A restaurants reputation can be tarnished forever due to one food safety standard lapse.

The restaurant industry is also greatly affected by sociocultural trends. The trend seems to be shifting more towards eating out than staying in within the past 40 years. As America has sped up and expanded so has the consumers interest in eating out instead of at home. Since 1970, the restaurant industry's sales has grown by $617.7 billion dollars ("Facts at a Glance" 1). Subsequently, the restaurant-industry share of the food dollar is 47% as opposed to 25% in 1955("Fa...

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