Trends and Issues

Question 1

How can businesses respond to trends and issues?

Answer 1

• Changes in methods of operation
• Developing new products
• Changes in marketing and promotions
• Changes in prices
• Increase or decrease the number of staff
• Changes in policy

Question 2

Explain political impacts?

Answer 2

-Political impacts stem from pressures and opportunities caused by the government, and to what degree their policies affect businesses.

These can include things like:

• Government policies
• Funding, grants and initiatives
• Wars and terrorism
• Corruption
• Relationships with other countries
• Major sporting events in the UK

Question 3

Explain economical impacts.

Answer 3

• Economics are all about how much money people have and how they choose to spend it.
• In recent years, the UK has been in recession, meaning that people have not had a lot of disposable income to spend.
• This means that money is tight and people have not been able to afford luxuries like posh meals or takeaways.
• During this time of low disposable income, prices in some businesses have gone up, making them even more unaffordable, while others have had to discount heavily to attract customers.

Question 4

What is a disposable income?

Answer 4

The money people have left after paying bills and buying essentials like food.

Question 5

Explain social impacts.

Answer 5

-Also known as ‘socio-cultural factors’, these impacts are as a result of the current beliefs and attitudes of the UK population.

These can include things like:

• Lifestyle trends (e.g. obesity - healthy eating )
• Ethical issues (e.g. animal welfare, fair trade)
• Brand identity and advertising
• Media views
• Aging population
• Demographics
• Immigration and migrant workers
• Strikes and industrial action

Question 6

What are demographics?

Answer 6

Statistical information about the population based on factors such as age, race, sex, economic status, level of education, income level and employment.

Question 7

How is healthy eating a social impact?

Answer 7

• As the government struggles to combat rising obesity levels, customers are becoming more aware of the importance of a healthy and balanced diet.
• Being able to prepare low-fat, healthy menus is becoming an important skill for chefs and those in other catering jobs.
• Hospitality businesses are beginning to see the opportunity for increased profits by selling gluten-free items and catering for other special dietary needs.
• Customers now also expect full information of what is in each dish, this means the waiting staff need to have good product knowledge.
• Some restaurants indicate calories per serving on their menus and offer smaller portions to guests who are watching their weight.

Question 8

What can a chef do to promote healthy eating?

Answer 8

• Reduce portion sizes, particularly if customers are leaving food on their plates.
• Offer smaller or half portions and make them available to everyone.
• Reduce the amount of salt in dishes and consider removing salt from tables, only giving it to customers if it is requested.
• Use leaner cuts of meat and trim any excess fat off being cooking and serving.
• Use low-fat dairy products or substitute. yogurt or crème fraiche for double cream.
• Offer more steamed, baked or grilled dishes rather than fried ones.
• Serve salad dressings on the side, so customers can add less if they want to.
• Add extra vegetables, beans and pulses to as many dishes as possible.
• Add more fruit to the menu where possible.
• Use wholegrain versions of foods, such as rice, bread and pasta.
• Include oily fish, such as mackerel, sardines or salmon on menus if possible.
• Offer free water on tables.
• Offer a range of sugar-free drinks.

Question 9

Explain technological impacts.

Answer 9

• Technology is changing rapidly and it is important for hospitality businesses to keep up with these latest trends.
• Customers expect fast and reliable Wi-Fi connections wherever they go.
• Many people are now used to paying ‘contactless’ or with their mobile phones.
• Business without these latest developments in technology risk losing customers to other companies.

Question 10

Explain environmental impacts.

Answer 10

• All hospitality businesses have a responsibility to act ethically to help minimise their impact on the environment.
• Ethical businesses attract customers, so managers need to keep up with the latest trends.
• All businesses should be trying to reduce their energy usage, to protect the environment and to save money. Renewable energy like solar panels can be expensive, but will pay for themselves after a few years.
• Recycling is important, not only because it cuts down on the need for landfill sites, but it is also a sensible use of resources and saves more money.

Question 11

Explain legal impacts.

Answer 11

• Legal factors include: health and safety, equal opportunities, advertising standards, consumer rights, product labelling and safety.
• Business managers need to know what is and what is not legal in order to trade successfully.
• If an organisation trades globally this becomes a very tricky area to get right, as each country has its own set of rules and regulations.
• If a business fails to meet its legal obligations, it could face court action, leading to fines and possible closure of the business. Companies in this position are not attractive to customers.

Question 12

How may the living wage impact hospitality businesses?

Answer 12

Since it will be a raise in the pay given to staff, smaller businesses may not be able to afford it. It could result in redundancies.