PESTLE Analysis
Political: Bangladesh’s political situation is quite stable at the moment to start a new
business. Moreover, the government always welcomes new businesses to start their
operations. Moreover, due to the pandemic, the government has redesigned investment
rules and regulations, making it easier for new businesses to start their operations. Even the
government is providing loans with lesser interest rates to help the local businessmen. This
initiative has been taken to keep the economy alive during the pandemic, which is facing a
tough phase. As a result, Café Splendor will have a sigh of relief in terms of the political
facet.
Economical: With the increasing disposable income and a better standard of living, people
of Dhaka tend to try new restaurants to enjoy delicious and healthy meals in restaurants
located in posh areas. Unfortunately, with the arrival of Covid-19, the standard of living and
disposable income of a significant number of people are being adversely affected. People
are losing jobs; businesses are collapsing, so unemployment rates are going up. The current
GDP of Bangladesh has fallen from 8.13% to 7.5% due to the pandemic. In this situation,
Café Splendor, our posh café may face problems with attracting a good number of
customers in this situation.
Social: As days are passing by, people are getting more and more health-conscious.
Previously, people used to devour items and drinks which pleased their taste buds but were
unhealthy. Now, people look for new and delicious items, which are healthy and do not put
their health at risk of diabetes, obesity, cardiovascular diseases, etc. As a result, it will be an
opportunity for Café Splendor to win the hearts of health-conscious customers by availing
their tasty yet very healthy food items.
Technological: Technological advancement of the ‘Digital’ Bangladesh has unleashed
numerous opportunities for the business people of the country. People can instantly gain
any information, whether it is about the weather or a new restaurant with a single tap of
their fingers on their gadgets. Moreover, people get to communicate widely with each other
at an unprecedented faster and cheaper rate because of technological advancements.
Hundreds of new applications are being launched each day, making things easier for the
business people If this facet is considered, Café Splendor can easily gain access to thousands
of its target customers through social media advertisements. Moreover, several successful
food delivery applications like Foodpanda, Pathao, Shohoz, etc. would play a significant role
in delivering orders from Café Splendor to customers all around the city. Their reviews can
bring in thousands of more orders with the help of positive word of mouth on social media.
On the other hand, negative reviews on social media about Café Splendor can tarnish its
reputation badly and affect sales adversely.
Environmental: The environment of the location around restaurants can play a significant
role. If there are too many competitors nearby that can give the restaurant a slow start.
Moreover, if customers have a hard time finding the restaurant or gets affected by too
much traffic congestion, the demand for the restaurants’ items would get adversely
affected. On the contrary, if restaurants can be constructed in an environment-friendly
manner without cutting down too many trees or without polluting the air or water, that
would satisfy both the government and customers. Café Splendor would have to keep in
mind the environmental factors and make sure the environment is not being harmed by any
chance through its services.
Legal: Restaurants and food companies must adhere to the rules and regulations set by the
government to operate seamlessly in the country. If the Ministry of Health and Family
Welfare (MOHFW) is considered, according to the Bangladesh Pure Food Ordinance, 1959
and the Bangladesh Pure Food Rules, 1967, the MOHFW is responsible for ensuring food
safety (Rahman, 2015, pp. 1-7). Moreover, restaurants cannot be constructed in areas
where the government does not allow. Also, the restaurants must renew their license every
year. Café Splendor would be considering these regulations.
SWOT Analysis
Being a completely new restaurant in town, Café Splendor will have multiple strengths,
weaknesses, opportunities, and threats.
Strengths:
 It will be the first restaurant in Dhaka that would gladly customize each of its food
and drink items as per the health conditions of the customers.
 It will be situated in one of the prime locations of Dhaka city: Gulshan-1.
 The underprivileged transgender community’s talent would be used to prepare the
dishes. That would contribute towards the reputation of the restaurant.
 Instant and customized food delivery service would be availed all over the city with
no delivery charge.
Weaknesses:
 There will be only one branch of the restaurant at the moment.
 The training and development of transgender workers would be time-consuming and
costly.
 As the restaurant’s location is a prime one, the setting up costs of the restaurant
would get passed on to the customers in the form of higher prices charged for the
dishes.
 Limited budget for advertising and marketing.
Opportunities:
 The standard of living and disposable income of customers has increased.

People of Dhaka city love to explore new restaurants that have beautiful interior
designs and delicious food.
 Customized food items would attract the growing ‘health-conscious’ foodies in town.
 Food Panda, Pathao, Shohoz, and other active and fast home delivery service
providers would enable Café Splendor to reach its target customers at a faster rate
with its food and drinks.
 Customers’ tastes and preferences are changing constantly, so new types of dishes
like apple pudding, signature orange chocolates, and coconut cakes by Café Splendor
can please the customers’ tastebuds.
 Social Media Marketing can be vastly used to run advertising campaigns at a low cost
yet have a successful reach to the target customers.
Threats
 The pandemic Covid-19 is gradually reducing the standard of living and disposable
income of a significant number of people, which may affect demand for posh
restaurants.
 Several renowned restaurants are competitors of Café Splendor.
 Online pages have started preparing healthy dishes at a cheaper price.
 Conducting the different stages of training sessions for the chefs is dangerous for
their health because of Covid-19.
 A significant part of the society is judgmental towards people belonging to the third
gender. As a result, the chefs may face difficulties while being accepted by the
customers.
References
Rahman, M. A., Sultan, M. Z., Rahman, M. S., & Rashid, M. A. (2015). Food adulteration: A
serious public health concern in Bangladesh. Bangladesh Pharmaceutical Journal, 18(1), 1-7.
https://thefinancialexpress.com.bd/views/on-bangladesh-gdp-in-the-time-of-coronavirus1599314452