IndexPolitical FactorsEconomic FactorsSocial FactorsTechnological FactorsEnvironmental FactorsLegal FactorsFast food is a type of food prepared quickly and served as a takeaway or quick meal that usually involves reheating cooked meals. It was first mentioned in Britain in the 1860s with the first fish and chip shops. In the 1950s drive-through restaurants were first popularized in the United States. Additionally, the National Institute of Health defines fast food as highly saturated with salt, sugar and calories and seen as alternatives to home-cooked meals. PESTEL analysis is a framework used to investigate macro-environmental factors that impact the performance of organizations (Cadle, Paul & Turner, 2010). The term PESTEL is an acronym meaning Political, Economic, Social, Technological, Environmental and legal. In 1967, a Harvard professor Francis Aguilar founded the term PEST which could be used independently or in combination with Porter's Five Forces and SWOT analysis (Arline, 2014). A good understanding of external factors allows companies to identify areas of opportunities and threats. This article aims to evaluate the PESTEL factors that have had a significant impact on the fast food industry in the United States and highlight likely future opportunities that the industry could exploit. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original EssayThe United States is a well-known giant in the fast food industry, as it recorded in 2015, a whopping revenue of $200 billion from the industry. There are over 200,000 fast food restaurants where it is estimated that over 50 million Americans eat a meal every day at one of the restaurants (Fast Food Industry Analysis 2016 - Cost & Trends, 2016). Fast food brands in America are classified into burger joints, sandwich shops, pizzerias, and coffee shops. Some of these brands include Jack in the Box, Arby's, Domino's Pizza, KFC, Pizza Hut, Burger King, Taco Bell, Subway, and McDonald's (McConnell & Bhasin, 2012). The industry plays an invaluable role by employing over 4 billion and thus helping to reduce the unemployment rate in the country. In particular, franchised restaurants added a total of 200,000 jobs to the sector in 2015 (Fast Food Industry Analysis 2016 - Cost & Trends, 2016). A PESTEL assessment of the fast food industry in the United States implies the following; Political Factors Political factors refer to the extent to which a country's government intervenes in the economy. Other aspects such as political instability or instability of foreign markets, government policy, tax policy, labor laws, foreign trade policy, trade restrictions and environmental laws are also taken into consideration and must be respected by companies. Globally, fast food brands should ensure they have complied with packaging regulations and food hygiene and quality specifications so as to protect public health. However, in the United States of America, despite numerous published reports on fast food as a cause of childhood obesity, there is little or no government intervention (PESTEL Analysis of the Fast Food Industry 2016 – Cheshnotes, 2016). However, their European counterparts, who have come up with several initiatives to reduce the level of salt in food products, followed a report demonstrating a link between salt intake and heart disease in the UK. Furthermore, in Germany fast food restaurants are required to specify certain nutritional factors for each meal served such as levels of calories, sugars, saturated or unsaturated fats and salt levels in response toa food labeling initiative. The reason for the self-regulated nature of the food industry is attributed to two factors. The US political system takes advantage of Laissez-Faire economics and the aggressive, concentrated nature of the food industry in the capital. McDonald's plays a vital role and along with other fast food restaurants have been prevented from trans fat content becoming a regulation. Economic Factors Economic factors influence the way an organization does business and contributes to the amount of profit it can enjoy. Interest rates, disposable income of businesses and consumers, inflation, exchange rates and economic growth are key concepts that are carefully reviewed. The economic recession that occurred was quite disruptive in most industries, as it resulted in a drastic reduction in profits and consumer demand for goods and services (Kliman, 2012). Many people prefer to eat at a fast food restaurant rather than have a meal at traditional restaurants. However, at the height of the recession in 2008, demand for McDonald's products neither increased nor decreased compared to other markets for the same product in Japan and France, where demand increased. However, the fast food industry has recognized that this does not make it recession-proof, so in an effort to increase sales, a variety of products have been introduced to menus at low prices. Additionally, customer service has been significantly redefined to attract and retain existing and new customers. Social factors Socio-cultural factors reflect the shared attitudes and beliefs of the population. Some of the areas of greatest concern include health awareness, age distribution, professional attitudes, and population growth. In particular, the perception of health and lifestyle has increased thanks to the intervention of the media. Additionally, the fast food industry has been condemned for high rates of childhood obesity. McDonald's has experienced negative public opinion from its consumers as it significantly contributes to health problems. In response to this, the super size option in McDonald's was eliminated and milk, water, fruit smoothies, salads and fruit were added to the menus (Pompper and Higgins, 2007). Furthermore, most fast food companies, in an effort to retain their users and reduce negative public image, display the nutritional content of meals and also serve low-calorie foods. Technological Factors The use of the Internet has opened up vast opportunities in high-impact, low-calorie marketing. -low-cost products and services for businesses and industries. In the fast food industry, social media and online marketing have overwhelmingly supported businesses and resulted in increased revenue and lower expenses. Technology has become indispensable in the fast food industry as innovative ways are developed to gather customer feedback on products. Furthermore, some of the technological factors that influence Burger King include access to automation technologies that will help improve operational efficiency (Kissinger, 2015). Environmental Factors Fast food brands have been pushed by the US Food and Drug Administration to adopt a greener approach in order to ensure continued customer loyalty. Currently, McDonald's is taking the initiative to encourage other businesses to recycle and manage waste (PESTEL analysis of McDonald's and the food industry, 2016). Legal Factors Legal factors consist of issues relating to product safety, advertising standards, health and safety.