“Coronavirus Lockdowns Prompt Smaller Restaurants to Rethink Delivery”

“Coronavirus Lockdowns Prompt Smaller Restaurants to Rethink Delivery”

Please read the article below and answer the associated questions.

“Coronavirus Lockdowns Prompt Smaller Restaurants to Rethink Delivery” by Rana & Haddon in the Wall Street Journal on April 1, 2020.

  1. Consider the restaurant industry.  Discuss which 3 PESTEL segments have gotten better and/or worse for the restaurant industry since the pandemic.  Explain your answer.
  2. Looking at the PESTEL analysis, why is the profitability of restaurants generally pretty low?
  3. What are the most important forces in the Five Forces model of Porter for restaurants?  Identify and discuss 3 forces.
  4. Which of the Five Forces has worsened for restaurants during the coronavirus crisis? Why?
  5. Aside from the examples in the article, what can small restaurants do to increase their bargaining power with the delivery apps?
  6. Watch the video embedded in the article and then answer the following questions.  (a) what shifts in our society or business environment has cause the emergence of delivery services, like UberEats, GrubHub, etc.? (b) given the market conditions discussed in the video, how can delivery providers (i.e., UberEats, GrubHub, etc)  compete effectively against each other?  Discuss 2 examples.

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