Edward’s Restaurant and Sir George’s Catering Case Analysis
General Environment
Demographic:
Industry: Demographic factors are favorable to the restaurant industry. Approximately 52% of the 1993 population in the area was 60 years of age or over. This was considered the restaurant’s main target market. During the late 1980s and early 1990s, the number of people taking up permanent residence in the valley increased dramatically for various reasons. The climate was attractive for growing population of seniors. Land prices, housing, taxes, and utilities were affordable. With the average cost of an acre of industrial land in the Penticton area at $45000 in 1991, businesses were attracted to the area. Between 1984 and 1991, manufacturing jobs in the region had nearly doubled plus house price were low. Population increased during that period of time. Climate is the biggest factor of population increase. Penticton has the best climate in Canada. With population of 27,000 people seemed to indicate 27-30 would be an appropriate number of restaurants for the city. At that time, however, there were about 100 eating establishments. (Not enough people for that number of restaurants). During the late 1980s and early 1990s, the number of people taking up permanent residence in the valley increased dramatically for various reasons. The climate was attractive for a growing population of seniors. Land prices, housing, taxes, and utilities were affordable. Within an hour driving time there was a population of about 170,000, and with two hours that number increased to 250,000 people. Penticton has the best climate in Canada. Unfortunately level of tourism was declining after 1991, campgrounds in the area were planning to close due to tax increases, and one waterslide had already shut down. Soon demand for accommodation and related services in Penticton had declined in 1994.

Firm