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. XI 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 -.,. 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 . ..