Factors affecting the growth of foreign food Restaurants in Nairobi, Kenya
Abstract
The foreign food industry in Kenya has experienced a significant growth. This
industry has become particularly notable in this decade. Foreign food restaurants
of Indian, Italian, Chinese and Japanese categories have risen to become
important player(s) in the genera hospitality industry especially within Nairobi and
other big towns
This study on foreign food restaurant aimed at identifying the role of the political legal
social economic, international, technological and other environmental forces
in shaping the trend of growth in the foreign food restaurant industry. The study
involved a stratified sample that was done on the basis of the size of each
stratum categorized as per the nature of foreign foods. This sample involved
Chinese, Italian, Ethiopians, Indian, Japanese and other categories of the foreign
food restaurant within Nairobi.
From the result of the study, it was establish that the various factors as listed
move on a varying rules in their contribution to this sub-sector. Though all of the
forces were found to be important influencers, the economic and political element
stood out as the two most dominant forces. The general economic growth and
the rising consumer income were rated as the two dominant variables among the
economic factors. This could be attributed to the growth in the upper class niche
market that is the target of foreign food restaurants.
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While the political environment was found to be favourable there was a general
perception that high taxes and bureaucracy are significant inorder or challenges
affecting the players in this industry The socio cultural element was also found to
be an indispensable factor influencing the success of this industry. The presence
of targeted age group and the diet and nutrition consciousness were established
to be among the dominant variables in this subsector.
From the above findings the researcher recommended a response to the above
challenges notability the high taxes and bureaucracy in the system. In addressing
the two issues, the government would most likely realize increased tax
compliance and employment opportunities as a result of the growth in this sector.
While the government tackling of the above Challenges would enhance the
success of this sector, the socio- cultural factor is one of the factors beyond the
control of the government. An aggressive marketing by specific countries can
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help over come or take advantage of the socio cultural dynamics. These among
other recommendations made can help realized the growth and sustainability of
the foreign food subsector of the hospitability industry in Kenya .
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Citation
MBASponsorhip
University of NairobiPublisher
University of Nairobi School of Business, College of Humanities and Social Sciences