The overall goal of this research is to look at the microenvironmental elements that influence the performance of quick service restaurants in Port Harcourt. The study used a survey descriptive research design, and the researcher used convenience sampling to pick 36 participants who are managers and staff members of a quick service restaurant in Port Harcourt as respondents. The responder was given a self-structure questionnaire, of which thirty (30) were extracted and validated for the study. Simple percentages were used to analyze the data, which was then presented in the form of frequencies and tables. Microenvironmental factors such as low customer influx, presence of foreign competitor fast foods, poor customer service, shallowly dressed staffs, and non-strategic location, according to the study’s findings, will have a significant impact on the performance of quick service restaurants in Port Harcourt. As a result, the study suggests that environmental variables that put unnecessary restraints on enterprises in Nigeria be reconsidered. Multiple taxation should be abandoned; exchange rate stability should be pursued; passage of the Freedom of Information Bill into law should be accelerated; and infrastructure, particularly electricity, should be enhanced. Businesses could reduce their shortcomings by shifting their focus away from internal variables that wreak havoc on managerial efficiency.
Background of the study
Business organizations do not operate in a vacuum; rather, they operate in a business environment where commodities and services are produced and distributed. The sum of all external and internal variables and influences that influence the presence, development, and advancement of business is referred to as the business environment. The business environment in which organizations operate exerts pressure on them, and these forces elicit a variety of responses as organizations seek legitimacy in order to survive and grow in this context. Because the factors that operate in any organization’s environment are dynamic in nature, managerial actions cannot be carried out freely. Any organization’s environment is the sum of all conditions, events, and influences that surround and affect it ( Davis, 1975). The environment is a major source of uncertainty for a business manager, and it influences the design of any organization as well as the configuration of any organizational structure. As a result, without a thorough analysis of the environment, a manager will find it nearly impossible to make important operational decisions in his organization that are critical to the achievement of various business objectives. Every organization, both formal and informal, functions in a recognizable setting. Business environment can be classified into internal and external environmental elements, according to Oginni and Adesanya (2013). Internal business environment refers to the factors that affect how operations are carried out and how successful they are. The company’ internal environment includes the owners, board of directors, employees, the organization’s culture, physical workspace, and other departments that make up the organization (the organizational structure). Organizational Culture, Organizational Direction, Mission and Objectives, Management Structure and Nature, Human Resources, and Other were the categories Hans (2018) used to categorize the internal environment. Miscellaneous aspects, such as the firm’s business intelligence, brand image and brand equity, physical assets and facilities, research and technical talents, and marketing resources, to name a few.
Statement of the Problem
Food is a necessity, which has made the restaurant industry profitable while also being competitive (Hughes,2016). Due to developing competitive trends and the industry’s significance to clients, the restaurant industry is of particular importance in the business climate (Mojekwu, Rahim, & Ighomereho, 2016). The entrance of foreign eateries such as KFC, Double Four, Chinese eateries, and others into Portharcourt and Nigeria at large has prompted quick service restaurants to address micro environmental issues in order to survive, obtain a competitive advantage, and improve business performance (Ogunde,2012). This is because, according to Olalekan (2019), the micro-environment is the environment that has a direct impact on the business.
It has to do with the industry in which your company operates and has the potential to have a direct impact on all of your business activities, including customers, suppliers, resellers, competitors, and the general public.
As a result of preliminary studies on restaurant mobile marketing initiatives, most restaurants are operating below customer expectations, as evidenced by roadside food sellers, quick fix restaurants, and other Nigerian fast food outlets such as Mr. Biggs, leading to their closure. While Osuagwu (2006) suggested that the restaurant’s poor performance could be attributed to their focus on mobile marketing strategies, Olalekan (2019) argued that microeconomic business factors such as low customer influx, poor customer service, poorly dressed staffs, and location, as well as foreign competitors, play a role in quick-fix restaurant performance.
Objective of the study
The overall goal of this research is to look at the microenvironmental elements that influence the performance of quick service restaurants in Port Harcourt. In particular, the research will:
Determine whether the performance of a quick service restaurant in Port Harcourt is affected by a low influx of customers.
Determine whether the presence of foreign competitor fast food restaurants in Port Harcourt has an impact on the performance of quick service restaurants.
Examine whether poor customer service has an impact on the performance of a fast-food restaurant in Port Harcourt.
Examine whether the presence of poorly dressed employees and the location of a quick service restaurant in Port Harcourt have a substantial impact on its performance.
Is there any effect on the performance of a quick service restaurant in Port Harcourt if there is a low influx of customers?
Does the presence of foreign competitor fast food restaurants in Port Harcourt have an impact on the performance of quick service restaurants?
Does the performance of a quick service restaurant in Port Harcourt suffer as a result of poor customer service?
Is it true that poorly dressed employees and a non-strategic location have a significant impact on the performance of a quick service restaurant in Port Harcourt?
Significance of the study
The study’s findings will be useful to managers of SME quick service restaurants and will presumably add to the existing research. It will expose to managers of SME quick service restaurants the necessity of SMEs mitigating the consequences of the business climate on their enterprises. The study’s findings will be added to the overall body of knowledge. This study will serve as a beneficial guide and resource for other students who wish to conduct research on the same issue.
Scope of the Study
The purpose of this research is to look at the microenvironmental elements that influence the performance of quick service restaurants in Port Harcourt.
Limitation of the study
The researchers ran into some minor roadblocks while conducting the study, as with any human endeavor. The scarcity of literature on formal education and community development was a major stumbling block. So much work and planning went into locating the resources and literature that would be pertinent to the study, as well as the data collection procedure. The study is also constrained in terms of sample size and geography, as it only looks at restaurants in Port Harcourt. As a result, the conclusions of this study cannot be applied to other cafes or restaurants outside of Portharcour, leaving a gap for future research.