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SPEC Analysis<br />

Social:<br />

Americans prefer dinning out, in fact 90 percent enjoy going to restaurants, compared<br />

to 66 percent who enjoy going to grocery stores (Tetreault, 2016). Restaurants provide<br />

customers with a social experience and 56 percent of adults say they would rather<br />

spend money on that, compared to purchasing an item from a store (Tetreault, 2016).<br />

Selecting the perfect restaurant has gone almost completely digital. When looking for<br />

places to eat, 83 percent of adults use smartphones or tablets to look up restaurant<br />

locations, directions, and hours. Seventy-five percent look up menus, 55 percent read<br />

reviews, 51 percent order takeout or delivery directly from the restaurant website, and<br />

50 percent use rewards or special deals (National Restaurant Association, 2017). This<br />

highlights the need for an informative and user friendly website.<br />

Most restaurant consumers today are also more likely to choose a particular<br />

establishment if it was recommended by their friend, 78 percent of guests find<br />

restaurants to try based on recommendations from their friends. However, the second<br />

most popular way guests find new restaurants was through social media (Tetreault,<br />

2016). This demonstrates the need for engaging and consistent social media usage.<br />

Restaurants provide customers with food, drinks and a social environment to enjoy<br />

themselves while socializing with others.<br />

Political:<br />

Today, the U.S. Restaurant Industry is concerned with a number of state and national<br />

laws that affect how businesses operate. These topics include, wage laws, smoking laws,<br />

the legalization of recreational marijuana and gambling, for business in Nevada.<br />

According to a 2016 National Restaurant Association Study, government and labor costs,<br />

and minimum wage, are the top challenges facing restaurant operators in 2016<br />

(National Restaurant Association, 2017). The survey concluded 22 percent of<br />

respondents ranked government as a top challenge, 19 percent ranked food costs, 18%<br />

ranked economy, 16 percent ranked recruiting employees, and 10 percent ranked sales<br />

volume (National Restaurant Association, 2017).<br />

Wage Laws in California:<br />

Although there are some exceptions, almost all employees in California must be paid the<br />

minimum wage as required by state law. Effective January 1, 2017, the minimum wage<br />

for all industries will be increased yearly. From January 1, 2017, to January 1, 2022, the<br />

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