Pestle Analysis For Pet Industry

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The Pet Cafe Industry in the UK

Pestle analysis is a business management tool that is used to scan the macro environment that a business is operating in (Yüksel, 2012). Pestle is an acronym for political, economic, social, technological, environmental and legal. Pestle analysis focuses on what is happening, make analysis and evaluate the external environment factors that can have an impact on the business’s operations in a particular industry. Pestle analysis aims at enabling businesses make informed decisions (Stevens, 2012).

The following report will use pestle framework to analyze pet café industry in UK with main focus to dogs’ cafes. The report will also outline recommendations about the pet café industry in UK.

Dog café is a theme café of dog. The café will provide food for both dogs and people. The café will provide dogs for consumer to play with and have a relaxing moments in the premises. Customers can also bring their own dogs to the café and have meals together. Dog café is a perfect solution for people who love dogs but can’t own one due to different problems. There is no recorded history about the first dog café. In the recent decade, dog cafés have increased in popularity especially in Malaysia and the market is expected grow by 5% within the next five years (Polling, 2016). The most famous dog café are located in South Korea and Thailand and have a history that backs to 1980s. Although there are some dog café running in the UK, but it seems that it’s not a well-established industry in the UK. According to Polling in 2016, only 46% of 1500 people in the UK are dog lovers and 23% of them like both dogs and cats. The Pestle analysis will be carried out on how to establish dog café business in the UK by understanding the macro environment of operations and critical decisions to be made.

This section analysis the political, economy, social, legal and environmental factors in the dog cafes industry in UK.

Political factor involves analysis of the government intervention to the dog’s cafes industry in UK. They are regulations and legislations enacted to control the industry (Oxlearn.com, 2017). Opening a dog café falls under consumer protection laws. It is the law that protects consumer’s rights when they buy goods or services. The government also sets laws for organizations to comply with which is Health and Safety law. For instance, hazard appraisal and hazard control have to be carried out when opening and periodically to ensure laws are adhered to. Failure of organizations not submitting to these laws are fined or even compelled to close (GOV.UK, 2017).

Pestle Analysis of Dog Cafes Industry in UK

This economical factor involves analyzing performance of the micro economy factors that affect businesses (Carruthers, 2009). Following the Briexit in June 2016, the economy of UK is experiencing instability and hence unpredictable. This factor is likely to affect consumption and investments in the UK economy. The economy is undergoing restructuring and therefore not favorable for opening new business. Citizens are cautious on their spending behavior thereby not spending extra money a new things that aren’t essential and not familiar with. According to BBC report in 2016, despite the fact that UK unemployment fell marginally to 1.62 million in the three months to October, economists cautioned there were signs the labour market to have begun "cool off" since the Briexit vote in June 2016. This means that people will not be earning money and therefore have lost their confident on spending. Watson 2016, claims that falling gross domestic product implies that small business may battle to keep above the water, especially in the event that they import from abroad as a result of sterling pound fluctuating before the vote. This profits exporters but it yet to appear in the Gross domestic product information.

The social factor involves cultural and demographic factors that influence demand in a certain market.

For a long time, British have been assumed to be a nation of pet lovers and this acclaim has been held on through with debates. Undoubtedly, observation has shown that significantly British have a culture of keeping pets. There are various reasons that support this culture that is deep in the Britons’ society. Initially, Britain was the principal nation in the world to begin a welfare charity for animals. This vivacious concern to save and protect the prominence of animals prompted in the development of the Society that is Preventive to Cruelty of Animals. This charity was satisfied to achieve an illustrious status on account of her majesty Queen Victoria in 1840. The general public salvages harmed and sick animals in order to reintegrate them on a good will (Bret.org, 2015).

Bret.org records indicate that a greater part of British society keeps at least one pet that demonstrates their love for pet. In particularly, British families alone host 6.6 million dogs and 7.7 million cats in the whole continent. These insights show that British cherish pets. Another aspect that shows the deep rooted love for pet is the Briton mind-boggling reaction that happens when animal stories are highlighted in the media. Most animal triumph stories get huge amounts of criticism and consideration.

Recommendations from the Pestle Analysis

The UK government requires several conditions that need to be met and critical areas to pay attention. First, the convenience should be appropriate for the animals. Secondly there is a need to provide enough food and drink as well as to attend to the animals consistently. It also a legal requirement to be cautious in maintaining and containing spread of irresistible sicknesses. Another requirement is that there is need to have a proper plan in the design of the premises to enable rescue or escape in occurrence of fire or any other calamity. Lastly, handling and transportation of animals require permits from the authorities (Oxley, 2012).  

Running a pet shop in Northern Ireland requires a license. The law requires payment of £20 and the premises have to be reviewed by DARD. In addition, the license must be renewed each year.

The environmental factor involves factors that are associated to environmental sustainability. These factors include legislation in place to govern environmental pollution.

According to gov.uk database, the impact of environmental factors on dog café is fall under the environmental law. This is because, opening a dog café lead to having dog mess problems and dogs making noise which included in the environmental law. Therefore, opening a dog café will require adherence to the environmental law.

Conclusion

From the Pestle analysis in this report, is clear that dog café in the UK has a great potentiality. The socio cultural factor in UK is favorable. Britons have a good relationship and attitude towards pets. The analysis shows that British typically love dogs and they are proud to be. This indicates that there is wide market for dog if demand is created. The legislation in UK is also standard and well established making it easy to start dog cafes. This shows that the legal system is favorable. In sequence to adhere to the developed legal and political issues, the business should settle all the legal and political issues before starting operations. It of good interest to the business to get some insurance covers to help cover against unexpected costs identified with the dogs such as public liability insurance, employers’ liability insurance and so on. In summary, dog café is a feasible venture in the UK market for it will have a wide market.

From the Pestle analysis on this report, I recommend the following;

i. Due to unpredictable economy, starting dog café should insure against losses to avoid business failure.

ii. The dog café premises should be located near residential areas for easy accessibility by the target customers.

iii. It also recommendable that dog café businesses adapts aggressive promotional activities. This will inform customers thereby creating demand for the products offered in the dog café.

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GOV.UK. (2017). GOV.UK. Retrieved 02 05, 2017, from GOV.UK: https://www.gov.uk/browse/housing-local-services/noise-neighbours

GOV.UK. (2017). GOV.UK. Retrieved 05 02, 2017, from GOV.UK: https://www.gov.uk/pet-shop-licence

Polling. (2016). BMG Research. Retrieved 02 05, 2017, from BMG Research: https://www.bmgresearch.co.uk/briton-nation-of-dog-lovers/

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