The Cheesecake Factory Inc. is in the restaurant industry. A political factor in the restaurant business includes government regulation, such as tax rates. Positive factors include health inspections and employment laws, which are very important for this industry. Economical factors include fiscal policies. For example, an increase in the price of ingredients due to taxes may cause restaurants to increase the price of their products as well, which would unfortunately minimize marginal profit. Socially, today, people are more aware of their food, so they tend to look for healthy, high-quality foods. Technology wise, advertisements and website developments are used to publicize companies in this industry. Environmental factors include the protection …show more content…
In the restaurant industry, the treat of new entrants includes other restaurant chains, if they sell similar products with possibly higher quality and lower price. A threat to substituting restaurants is, not going out to eat during difficult times and instead, purchasing food from grocery stores. In this industry, customers usually can’t bargain for their food prices. Restaurants must offer rare ingredients and food products in order to set themselves apart from their competitors. However, having bargaining power from suppliers is hard because suppliers sell to multiple restaurants in this market. There is a lot of competition in the restaurant industry at every level. Advertising usually helps restaurants. They also need customer loyalty through positive experiences in order to have and advantage compared to others. Some customers base their visits on reviews, such as apps like Yelp. The five forces model shows how customers attract to the ambiance and the food quality of restaurants and come back because of their unique