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Economic Conditions.
According to Wilson (2010) the recent recession, which the economy underwent caused many restaurants in the New Zealand industry to have a heavy, cut on costs. Wilson (2010) states that certain restaurants had scuffed boards, faded and fraying upholstery and the menus were grubby. This is a definite threat to the industry, as it made restaurants harder to attract customers as their standards fell with cutting costs. .
The recession heavily impacted the restaurant industry in particular as restaurants are considered an economical luxury, which during a recession is what people mostly cut back on. Wilson (2010) states that the recession caused restaurants within New Zealand to become less innovative and less attractive therefore limiting the capability of innovation within the industry. According to Johns (2012) there are many restaurants, which are biting at the same hands others seek to feed' meaning many restaurants are targeting the same customer base. Johns (2012) also says that the customer is not increasing at the same rate as restaurants, so the slice of pie gets even thinner. However this increased competition within the New Zealand restaurant industry can be presented as an opportunity to capitalize through innovation and entrepreneurship. .
As all these restaurants are ultimately similar this allows room for restaurants to use their imagination and create a point of difference. Drucker (2002) states imagination is a key to being innovative. They can create a new satisfaction and new customer demand within the restaurant industry, which Drucker (1985) being an entrepreneur would consider. However this could be risky making their restaurant different and trying new things, and could fail; however Drucker (1985) views entrepreneurship to be a risky endeavor but the returns should be greater than the risk in his point of view. Leslie (2009) states that there is always demand for something new.