PESTEL Analysis - Burger King

Extract

[...] In 2018, four main brands shared the majority of the fast-food market in France, McDonald's, KFC, Burger King and Quick. It is estimated that McDonald's and Burger King, in 2020, together, share 80% of the French market. Around 35,000 companies are affiliated (directly or indirectly) to the French fast-food market. The global market is estimated at 57 billion Euros annually in France. C. Presentation of PESTEL analysis The PESTEL analysis is one of the central components of a strategic analysis of a company or a group. [...]

[...] At the end of 2020, there are 320 restaurants under the Burger King brand, generating more than one billion Euros in annual sales. In the 2010s, Burger King's shareholding changed significantly, with the entry of 3G Capital, a world-renowned international investor. From its arrival, the group displayed its desire for growth and its ambition for development. It is in this perspective that Burger King France attacked the takeover of the Quick network in 2015, spending 500 million euros. B. Market date As of 2020, Burger King has more than 17,000 outlets in more than 100 countries. [...]

[...] Taxation can also have an impact on Burger King. In countries where taxation is unattractive could see the American juggernaut move away, while more accommodating policies could attract it and encourage it to strengthen its presence. B. Economic The economic factors that can impact Burger King are diverse but mainly concern the unemployment rate and household income. Fast-food expenses are in fact considered to be non-essential expenses linked to pleasure and relaxation. When household income contracts, especially with temporary unemployment or reduced activity, households tend to reduce or eliminate these entertainment expenses to prioritise absolutely essential expenses such as basic food expenses. [...]

[...] The importance given to leisure time in comparison with that dedicated to working is also a major factor for some companies. In the UK, for example, it is common to leave the office at 5:00 p.m., even for senior company executives, while this is a fairly rare practice in France. A company offering leisure-related services will, therefore, not have the same growth levers in France as in the United Kingdom, for example. Technological factors that influence businesses can relate to public or private domains. [...]

[...] Indeed, all these elements can push a company to locate its brands in one country rather than in another, to avoid certain areas of the world, to prefer certain States for their favourable and facilitating tax policy, for example. The economic elements that have an influence on society are, for example, the growth observed in different countries of the world, possible recessions, observed unemployment rates, central bank interest rates, potential inflation. All these elements play a big role in the disposable income of households and, therefore, in the share of consumers allocated to their spending, their savings, etc. The economic context also strongly influences the morale of consumers and, therefore, their desire to consume rather than save. [...]