SWOT Restaurants

by John P. Gross; Updated September 26, 2017
Pencil and Chart's

A SWOT analysis is used as an informational tool and typically incorporated into corporate business plans. For example, if I was proposing to build a mall in rural Ohio, in my business plan I would cite a SWOT analysis, highlighting the plan's Strengths (S), Weaknesses (W), Opportunities (O) and Threats (T).

Strengths

In a SWOT analysis chart, the strengths are written in the top-left part of the chart. This area is where you would highlight the internal positive attributes about the restaurant industry. Internal attributes are characteristics of restaurants that are within the restaurant industry's control. For example, some attributes a SWOT analysis may include modern kitchen equipment, a dedicated head chef, low overhead, prime retail location, increased liquor sales, known franchise branding and one-of-a-kind recipes.

Weaknesses

In a SWOT analysis chart, the weaknesses are written in the top-right part of the chart. This area is where you would highlight the internal negative attributes about the restaurant industry. Negative internal attributes are still characteristics of restaurants that are within the restaurant industry's control. For example, some attributes a SWOT analysis may include are high staff turnover, small menu portions, limited wine selections, low staff morale, poor atmosphere and ambiance, poor customer service and outdated cooking equipment.

Opportunities

In a SWOT analysis chart, the opportunities are written in the bottom-left part of the chart. This area is where you would highlight the external positive attributes about the restaurant industry. These attributes are outside the restaurant industry's control, but attributes management could capitalize on to grow their restaurant. For example, some attributes a SWOT analysis may include are a quality Zagat rating, a growing economy, decreased food preparation regulations, few competitors in the marketplace, a decrease in the price of fresh produce and a growing population.

Threats

In a SWOT analysis chart, the threats are written in the bottom-right part of the chart. This area is where you would highlight the external negative attributes about the restaurant industry. These attributes are outside the restaurant industry's control, but attributes management should better understand to prevent damaging the growth of their restaurant. For example, some attributes a SWOT analysis may include are increasing kitchen infestations, a small local population, an increase in the price of oil and gas, new USDA regulations, an increase in the minimum wage and poor tippers.

About the Author

John P. Gross has been writing professionally since 2005. He has created internal and external communications materials for investment firms, accounting firms, nonprofit organizations, universities, production companies and global brands. Gross holds a Bachelor of Science in business administration from the Tepper School of Business at Carnegie Mellon University.

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