Pest analysis

PEST ANALYSIS

Political, Economic, Social, and Technological (PEST) analysis is a management method that evaluates the key external elements that have a significant impact on the operation of the business. To determine how these outside variables may affect the company's performance over the long term, a PEST analysis is required.

PEST analysis can help to understand how certain external elements play a crucial role in the efficient operation of a sizable company like KFC and it can improve its business consistently.
Political:

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  Health and Hygiene Rules
  

Depending on the country, political laws and governmental regulations have an impact on KFC policy. The business must follow to the sanitation and hygiene regulations extremely carefully; otherwise, the health and safety division will close down KFC franchises. In Latvia, KFC restaurants must be check by Food and Health Safety organizations otherwise government has to shut down the restaurants.

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  Government Influence
  

There is frequently some country pressing the franchise buttons and demanding fast-food motels and restaurants to adopt healthy diet guidelines. This is due to the negative effects of consuming too much fast food, which include hypertension, diabetes, high blood pressure, and heart disease, among other things. In Latvia, due to governmental healthy diet guidelines, KFC faced to change its menu to the healthier one by adding salads or snacks, introducing vegan options, however at the same time, KFC removed some high calorie items from the menu, moreover, decreased the amount of chicken from legendary buckets per person due to high calorie affects customers health.
Economical:

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  Tariff
  

KFC, as a huge worldwide chain, has a substantial quantity of import and export. It is required to transport raw commodities from one country to another. This has an effect on the company's fundamental costs. It should consider purchasing locally. KFC Latvian restaurants used to accept weekly delivery from Lithuania, it includes chicken, vegetables, sauces, drinks and even KFC brand bags however due to the cost increase KFC started to get vegetables and drinks from Latvia itself.

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  Economic Downturn
  

Because of its worldwide reach, if there is an economic crisis anywhere in the globe, it will almost certainly harm the operations of this fast-food company. For example, the recent COVID-19 epidemic was extremely damaging to the brand. Its revenue has decreased. In Latvia, during pandemic, KFC restaurants forced to be closed and it dropped KFC sales by a large margin. The company had to endure severe financial loss as a result of the lockdown, social awareness of social distance.
Socio-cultural:

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  Customers who are concerned about their health
  

Diet awareness has risen dramatically around the world. People nowadays are far too concerned with what they put into their bodies. This is bad news for the brand because it does not adhere to the norms of a healthy diet. Due to the fact that, in Latvia, KFC has launched diet cola last year according to the staff, and in addition restaurants add new salad and snacks like carrot, apple sticks to the menu just because for the people who has health problems.
Technological:

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  E-commerce
  

The current shift in everyday living has caused the entire globe to go online. This impacted KFC's sales, but the company quickly cooperated with delivery services to make its cuisine available to customers even throughout the epidemic. In Latvia, KFC restaurants use latest technologies, here is the examples, it cooperates with BOLT delivery to make it easy for customer to order online than standing in line, inside the restaurant, KFC restaurants use modern and latest technology to cook chicken, fries and make an ice cream, besides it provides to customer to track their order through the screen.

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  Employ of technology
  

Despite the fact that the firm was among the first to use technology in the food and hotel industries, it may now use more automation in the kitchen to make the work faster and easier. The brand quickly adapted to the digital payment, ordering, and delivery concepts. Besides that, in Latvia, KFC provides modern technology KIOSK for customers to order without waiting in a line, and it operates in 3 languages for whom to doesn’t know Latvian so they can easily see the menu in another languages, moreover, another benefit is contactless payment, plus KIOSK also accept cash. It is really easy to use. Furthermore, there is extra drink machine for KFC clients, it gives the drink for just to press the button and choose the options like Mobile phone.