Mega Sport Events Impact on London’s Restaurant Market

Subject: Marketing
Pages: 22
Words: 6041
Reading time:
22 min
Study level: Master

Literature Review


The aim of literature review in this section is to discuss about influence of mega sports events on London’s restaurant market. The mega sports events which are going to be held in London are 2012 Olympic games (27 July-12 Aug 2012) and 2012 Paralympics Games (29 Aug-9 Sept 2012). This section mainly covers review related to sports event management which is like Olympic Games and Paralympics games. This also covers review on processing of sports event in London, London’s restaurant market and about impact made by these events in London’s restaurant market.

In general, bringing of mega sport events in London will surely make an impact in many ways. Not only for certain people, it’s for all. “The ever-changing skyline of Stratford is proof that at least physically; London is changing as a result of hosting the Games.” (1). There is no meaning in thinking whether influence will be there or not in London while conducting a mega event. This section will cover different reviews regarding the topic.

Restaurant market

Sports have a significant influence in restaurant field of marketing. London is the country who is organizing Olympics and Paralympics in 2012.Olympics is the biggest sport event in the world. Restaurant market plays a vital role in the event. They provide various facilities and services for the people who are the visitors coming to see the mega sport event. Most financial sources can be acquired through restaurant market as food and accommodation are the basic elements in human life. Various committees in London are organizing restaurant marketing services for the forthcoming Olympics and Paralympics 2012.The venues of Olympics and Paralympics are an aquatic centre and a velopark. Many benefits are provided to the visitors who are participating in the event. They are event venues, excellent transport facilities, and various types of accommodation and food which are affordable to their budgets. “If last weekend’s Observer is to be believed, the golden arches of McDonald’s will loom large over participating venues in the 2012 London Olympic Games in food monopoly.” (2). In order to promote the restaurant market, planning must be done effectively. They must provide apt information to their clients about their restaurant. Distributing flyers is a best promotional strategy adopted by the restaurants. Good business plan is the stepping stone of the restaurant. When a restaurant wants to run orderly it has to possess some formal marketing plan.

Street restaurant does not have a formal procedure in running a restaurant. It works on adopting informal plan in marketing. Needs and wants of customers are recognized by the restaurant market and on this basis they make arrangements in their restaurants. This helps them to attract the customers at the time of Olympics and Paralympics. They work on the principle of service and wish of their clients. Competition, strength, weakness, threats and opportunities are mostly faced by the restaurant market. (3).

A good restaurant works by the cooperation of potential customers, expert chefs, kitchen staffs etc. Menu creation, selection of staff etc are also essential factors for a restaurant. Good marketing strategy in restaurant may help develop business. Many restaurants provide special packages. Many fresh and rich food products will be available at the time of the event. Chain restaurant and independent restaurant play a significant role in Olympics and Paralympics. Independent restaurants enjoy their own competitive advantage. The way of behaviour towards the customer always attracts them towards the restaurant whenever they reach in that place. Desire towards a thing helps a person to buy that thing. Culture also is a significant strategy to attract towards the restaurant, as some restaurants prepare their dishes for the people of a particular culture. So, people of that particular culture will crowd in those restaurants. When people travel with their family, they want to stay somewhere overnight. Some people may book rooms in restaurants. So the market for the restaurant increases as travelling tendency of people is seen more nowadays.

The main limitation of this is that the people find satisfaction towards their needs by the amount they pay for their comfort.

High personal income is another factor that determines a person to stay back in the international restaurants. This paves way for the development of the restaurant market. Customers enter into a restaurant by looking at its size and recognition. International restaurant marketers very energetically respond to the wants of the customers to be satisfied. The multi restaurant chains as confine an important place among the total restaurant market.

The restaurant owners may assess their total customers in Olympics and Paralympics by looking at how many customers were there in the last Olympic event. The level of price may be based on this criterion. They find advantage by considering their switching supplier. (4).

London restaurant market

There will be a shortage of accommodation for the participants of Olympics and Paralympics. There will be a good scope for the business in the time of this mega sport event. Some restaurants in London may provide good services at a low cost. There are families who run restaurants in London only at the time of Olympics and Paralympics. It is at that time they can earn a good amount as more customers visit London at this period. Olympics provide a good experience for the London people as well as for the visitors. Restaurants may provide all sorts of extra facilities for the coming Olympics and Paralympics.

Plenty of rooms along with delicious food and drinks will be provided at this period. People who visit London restaurants can share a wonderful dining experience.

Revolving restaurant, spinning dinning rooms etc are also seen during the Olympics and Paralympics. This leads to the success of London restaurant market as it can be seen in any part of London in order to provide service to the people.

The restaurant makes arrangements better than before in order to attract more people.

A restaurant in London made arrangement wonderfully by situating restaurant at the bottom in the left side and when turning to the right beer hall can be noticed where dinner share table can be seen.

Dazzling hospitality will be provided by these restaurants. Many technological activities also support the restaurant market to attract the customers. Many comfort Inn and quality hotels appear at the time of the Olympics and Paralympics. There will be many varieties of food products in London restaurants at the time of this sports event. The market will be very competitive. Price hike will differ in each restaurant in London.

Mega events

There are many big events conducted in London on the basis of the Olympics and Paralympics. They include exhibitions, trade fairs, boat show, art show, Carnivals, rise festivals etc. African Caribbean exhibitions, Carter‘s stream festivals, Notting hill celebration are other mega events conducted during the time when Olympics and Paralympics are conducted. African Caribbean exhibitions consist of music soul and Caribbean food products. Carter’s stream festivals include rock and roll dodgem which are the traditional art form of them. Notting hill celebration consists of Caribbean rhythms. Summer and winter festivals are conducted in London by composers so as to provide enjoyment to the people as well as to educate the people. They also conduct many community programmes.

Mega events by their size are those that provide variety of high level tourism packages, media explosion, status or economic impact for the people in London or the organization. More than five hundred events by more than 160 associations in UK are conducting mega events.

Many cities have conducted mega events. Culture is being rehabilitated in their mega events. Cultural events are mostly treated as the mega events by the people of London. Many museums open their stalls in the country based on the events. Many other cultural programmes are also conducted at the time of Olympics and Paralympics. Mega events along with the Olympics lead the city of London to rise at the highest position in the world. Mega events conducted along with the Olympics and Paralympics have maintained an extraordinary status to the land of London.

Mega events have a long and significant history to the city of London.

This article addresses the relation between mega-events’ and time in modern society.

Mega Sport event

The sports like Olympics, world cup and Paralympics have great influence in the development of the economy. Many countries have got large financial benefit from these games. The financial success from these sports led to hosting of the mega sport event. So the counties are competing for conducting these types of sports in their nation.

Even though the amount intended for the infrastructure for accomplishing the mega sports is costly it can earn double or more than the expenditure. Mega sports also facilitate in improving the image of a nation all over the world. When the mega sports are taking place in a particular country, there will be huge public audience and performers from different parts of the world. So there will be high demands for all commodities and there will be a great progress for every business at this time. “Promoters envision hoards of wealthy sports fans descending on a city’s hotels, restaurants, and businesses, and showering them with fistfuls of dollars.” It is a great involvement of the supporters in developing their nation during the mega sports. The mega sport is a national sport for which there is competition among every county. There will be huge rush in every area of a city which helps in raising the financial status of a country. Another benefit is that many people get job associated with this sports, like volunteers who are responsible for canalizing the overall activities of the event. The countries and athletes will become popular when they win in sports and when receive awards in mega sports. The discrimination among the people based on their race, gender, status, culture, education and so on is eradicated through this sport. “The interaction of the participant with the activity and place will then be analyzed as a significant factor in conceptualizing the sports tourist.”

Mega Sport event tourism (as a visitor)

Mega sport events have become a significant part of the leisure and tourism product in the economy. People from different parts of the world visit to watch the mega sports, including the audience, coaches, parents, fans, family members of the athletes and so on. They spend vast money on travel for watching the mega sports. “Tourism stands to benefit directly and indirectly from The Olympics through economic and employment spin-offs.” (10). The tourism associated with mega sports has become important to a great extent mainly because of two overlapping reason. One is that the mega sport has a major role in the development and determination of the national tourism product and long term city product. The next is that the mega sport is considered as a part of tourism in the renewal of the cities.

As the mega sports tourism comprises both the athletes and audience, the audience will motivate the performers. The involvement and interest of the audience in such sports has led to increase in the numbers of sports event set. So the dramatic increase in the number of sports led to increase the tourists in this spot.

The countries have also started developing the new cultural, leisure and tourism policies and urban development programs in order to attract the tourist to their country.

Impact of mega event on economy

When a mega event like festival, sports etc is going to be held in a nation that country will start preparing for the event or festival from the early stage itself. The country which takes charge of the mega event has to provide well and efficient facilities to the visitors. Mega tourism has contributed huge revenues to the economy through hosting the cities and nations for the visitors. By providing accommodation and security to the visitors, the countries are benefiting millions of dollars. Mega sports like Olympics, take longer time to finish the games. As it is a competition among many countries there will be participants from every country. So by time the event ends, the visitors spend huge money for their needs. The country which is hosting the mega events gets a lot of benefits like economic benefit, social and cultural benefits, sorting heritage benefit, tourism benefit, and so on. At the time of mega events, the entire nation will be in a celebrative mood and every one will spend money for celebration. So, there will be great demand for every commodity in the market and usually the price of the commodities will increase. The business people earn a vast amount during the mega events. The country hosting the mega events has to provide accommodation, security, transportation and other facilities to the visitors and athletes which regenerate the nation. The country hosting the mega events will display more amenities to the visitors. “Many countries take advantages of the international spotlight by showcasing trade and business opportunities.” (11). During the mega events not only the host country but other countries also earn. In order to provide the requirements of the visitors many products are imported to the host country which leads to a great benefit in the field of export and trade. To participate and to view the mega sports there will be people from different nations; so such events will promote tourism. And the country benefits millions of dollars from the tourists. Mega events develop the financial status and prestige of the economy.

Impact of mega (big) sport events on economy

Mega sport event is actually a short term event of fixed duration.

Sport events today have a considerable influence on service markets, both regionally and locally. “Organizing major events, for example the Olympic Games, can bring benefits to the host nation such as prestige and improved national morale.” (Ritchie 1988 p. 2-11 & cited in Standeven & De Knop 1999 p. 213).“

The host nations spend a lot of money for the smooth running of the programs. To become part of the Olympic game is a great privilege for a country. By conducting mega events like Olympic will give great benefit to the host country and the major benefits include increase in the status of the country, increase in employment, and economic growth and also in the form of tourist revenue. A properly arranged mega event like Olympic game attracts foreigners and they are ready to invest their money in the field of tourism. The foreigners are ready to visit several places in the country thereby increasing tourist revenue. “The flow-on effects of event tourism are numerous: they act as image maker, travel motivator, stimulator of infrastructure and communications development, employment generator, adds to gross domestic product and generally boost the economy of the host nation.” Mega sport events have resulted in a great progress in a nation. A number of people acquired job with high salary, increased the prestige of the performers, raised the status of a nation, improved alertness of county into tourism etc. For the mega sports, latest, superior and fantastic facilities are arranged which change the overall nature of a nation. Once the people watch such sports their interest in sports will develop which results in permanent interest in sports. As a mega sport is the sports competition of all nations it enhances the unity of nations and people.

Impact of mega (big) sport events on restaurant market (restaurants/catering industry)

Conducting mega sport events in a country will affect the restaurant market, and it will show great impact on restaurant marketing field, that yields a lot of economic benefit to the country. The audience from different parts of the world have their own eating habits. The restaurant of the particular country is ready to fulfil the eating habit of the foreigners, thus they get satisfaction and then they are ready to spend money in the restaurants. The facilities of the restaurant attract the tourists and they usually visit there leading to increase in revenue of the restaurant and thereby improving the economic condition of the host country.

The host country

The visitors of mega sports will be from different parts of the world and their choice and taste of food will be dissimilar. So, at this time there will be great competition among the restaurants to provide the best service to the people. Therefore, most of the restaurants will prepare variety of food. The visitors will spend good amount for their favourite food and this will increase the revenue of restaurant market. The restaurants with accommodation and security facility can earn more than the restaurants with food facility only. During the mega events, there will be rush in the restaurants and demand for food items will increase; so the price of food items will also increase and thereby the restaurants will earn more.

The restaurant market got indirect benefit from the tourists. They are involving passively in the field of country’s economic growth. So restaurant market is considered as one of the secondary beneficiaries of the country’s economy.

Olympic Games as a mega sport event

In the course of time, more service institutions are being involved in multi-stage event process, rendering each other in bidirectional way. Olympics Games has got grater impact on economy too. The authorities of the London Organizing Committee of Olympic and Paralympics Games started their survey, about how selected London’s restaurant market is affected by forthcoming international mega sport event – Summer Olympics and Paralympics 2012 and also how they affect the London economy. It also shows greater impact in the field of country’s tourism development. Olympic Games give grater impact to local community also. In order to conduct Olympic Games in a country they have to struggle a lot. For the smooth running of the games host nation forms a committee, and the members of that committee are responsible and they are always ready to do the responsible work without considering any profit. The Olympic Games attracts the media and it will be a valuable opportunity for them to develop. Winning in the Olympics game the status and prestige of the nation and performer will rise and they become famous every where. Not only that the award of such games will be very precious. The political and cultural events have involved in the motivation of the intercontinental sports which has led to the irresistible international and transnational cooperative world.

The host nations put in a lot of money to conduct the program without any problems and they also have the right to earn money for conducting the program by investing a large amount of money. The Interrelationship between Sports Mega-Events and Tourism is shown in the figure:

Segment of tourism industry

Being an Olympic host nation is usually a great privilege. The mega-sporting events are one of the attractive events, which have got an important place in the field of history. By doing the voluntary service, gives everyone to experience the events very clearly and in a fervent way.

Impact of Olympic Games on economy

“Hosting the Olympic Games seems certain to boost the economy of any place in the world.” Nations spend a large amount of money to receive the right to conduct the games in their nation. It is a privilege for the nations to host the Olympics. Nations compete to get the right to host at least one Olympics. Being an Olympic nation increases their status among other countries. The main advantage of conducting Olympics in a nation is that these games help in increasing the growth of the economy. Olympics attract a number of tourists to a nation. Sports lovers from different parts of the world come to see the Olympics. This increases the revenue of the economy. Olympics thus add revenue to an economy.

There is no doubt that conducting big events surely makes impact in the economy. This is what every one see from the past. There are many methods proposed by many eminent people to calculate the impact made by such big events like Olympics. The two basic methods proposed by Collins and Jackson to measure the impacts are ‘cost benefit analyses and ‘planning and balance sheet’. Another model called complex input-output model which is implemented by Preuss is also used for measuring the economic impacts. Another person called Dubi developed a simple model to calculate the impact which is “based on size of direct and created demand.” Meaning of this is when demand is greater, and then impact made will be very high. Both these are related. The economic impacts are also mainly depending upon the approaches made by organization towards the games.

Another main impact of economy on Olympics is that it creates a lot of employments for the people. Olympics provide a number of employment opportunities. Many people are required for conducting the Olympics. People are employed in the preparation of the different track and field sports events, for monitoring these events etc. Many are also given employment to manage food, accommodation etc.

The television channels compete for getting the right to telecast the live Olympic actions in their channels. For this, they are ready to give any amount because they can earn a lot of profit from telecasting of these games. This is also a source of income to the economy. It is also seen that the hosting of Olympic Games also increases trade.

Many of the past studies about Olympics and its effect show that impact is great. Organizing games once in a country will show the difference in the economy of the country. It will be very clear if one plots the graph of the economy before and after the games. One can see the peak impact in the country’s economic situation.

To prove the above, studies about Barcelona and Athens is enough to see how much economic impact these mega events had made. This is a case which happened many years ego. Then one can imagine what will be the outcome from mega events which are conducting presently.

Another study reveals that 2002 commonwealth games had made a great impact in tourism sector. The region has brought 300,000 additional visitors to the place. These studies give the idea behind conducting such premier events. The impact got from this is not less; it is very high. These world premier events boost the host country’s economy.

Contrast to these, there can also be some negative impacts in the economy. For example, there can be a rise in prices of the products in the market due to the increasing demand. This will affect the local and poor people.

Impact of mega events on London economy

London is planning to host the Olympics in 2012. By conducting an Olympics, the authorities aim to give a boost to the country’s economy. A mega event has significant impact on the economy of the host nation. London has become the venue for many mega events. “The hosting of large international events is not only beneficial for the tourism industry but it is linked to all aspects of economic and social development.” The mega events have helped in the development of London economy. Mega events have increased the financial status of London. A lot of money has to be spent in conducting such mega events. But it is not a problem because they earn more than the money spent by conducting these events. Mega events increase the revenue from tourism. A mega event will have good media coverage. They not only show the events but also show the places of the city in between the events. So some tourists are also attracted to London on seeing these places through television channels.

There are two types of impacts by conducting mega events in London. They are positive and negative impacts. The authorities conducting various events are mainly looking for positive impacts. Impacts from those events can be long term and short term. The short term impacts are those happening at the time of event and just after the event. But long term impacts are different from short term impacts. The long term impacts are impacts which will enhance awareness of the international people. It will increase economic related activity. Also while conducting such events much better infrastructures are made so this will be useful after the event. Also these types of mega events will be very useful for host country’s economic growth.

Impact of mega sport events on London economy

“At a time when public and private agencies recognize the importance of sustainable development, the environmental impacts of mega sporting events are commanding increasing attention.” The hosting of mega sports events has many consequences on the London economy. It has caused for the economic growth of London. London is hosting the Olympics, one of the major sports events in 2012. This may be because of the economic growth seen in the London economy after the mega sport events already conducted. The global audiences for mega sports events are more than any other mega events. Due to this reason the nations are more interested in hosting mega sports events. There are also more sponsors for the sports events. The sports events attract more tourists than other events. In London the tourists have increased largely due to the mega sports events which are beneficial to the economic development.

Hosting of these types of events is making great impact in attracting visitors in London. This is because such events will give high popularity for the country. By attracting visitors, country can make a huge growth in economy. Economy and tourists are always interrelated. Through tourists majority of countries are strengthening their economy. So, there is no doubt that hosting of such events in London surely attracts tourists to visit London. Tourists will always use the plenty of available resources in the country. Surely, they will use the facilities provided in the country. By this there will be an impact in the economic growth.

Also once tourists entered into a country it is sure they will take a trip around the country. They will also engage in activities based tourism to get new experiences. This include sailing, sight seeing etc. Money spent on all these activities by tourists will go into country’s economy. Thus, growth of economy will be high and all these happen because of conducting mega events.

Thus the mega sports events will lead to the growth of economy of London.

London 2012 Olympics and Paralympics

Winning the right to host Olympics and Paralympics Games 2012 is a great honour. It’s a result for long time hard work done by authorities to bring Olympics in London. The main am of bringing Olympics in London is to utilize the impact made by these events. Impact means to maximize the economic benefits getting from conducting the Olympics. It’s a great challenge taken by the authorities to bring the Olympics into their country.

“The London 2012 Olympic and Paralympics Games will mark the third time London has hosted the modern Olympics.” This will be one of the exiting events in London. This event will provide tremendous frame of mind for all people in London and also for every tourists who pays visit to London to watch the games. This event will be spread all over London as the event will be conducted in different venues of London. So, one important obsession is people and tourists will spread all over London. Some of the venues for Olympics fixed by authorities are Lords cricket ground, Excel, the regents park, Wembley stadium, Hyde park, Earls Court and many more. Each of these venues will organize different games. Each of the spectators who are interested in different games can go to each of theses venues to watch their favourites. The important point to highlight here is there is no doubt that London 2012 Olympics and Paralympics are going to make a great influence in London. The tourists coming to watch the Olympics will travel to see many other places. So impact made by the tourists will spread all over. All these are happening just because of the London 2012 Olympics and Paralympics. So, there is no doubt that Olympics will make great impact in London.

LOCOG is responsible for conducting all these activities. LOCOG means London Organizing Committee of the Olympic Games. They are responsible for holding the budget for Olympics.

Impact of Olympic Games 2012 on London economy

The main aim of London games is to generate economic stability for coming decades. The idea behind London 2012 management is to provide economic legacy to all the communities who are living around the Olympic site. This will be achieved by following attributes such as creating jobs for the people living nearby areas, providing house facilities, providing community cohesion, selecting appropriate venues which will give benefits for local communities, regenerating the parts of UK which is underdeveloped. The legacy can be developed by linking with sports events. Delivering such large events and mega events can ensure support of local people in creating economic sustainability. Once the event was over, one can ensure economic sustainability in that area. It is because local area can enjoy the new facilities which are provided for mega events, so that local people will get maximum benefit. So this might be in the minds of organizers while conducting large mega events. Facilities provided for mega events should need long term economic benefit. So, conducting such events has got two aims. In short, one is overall benefit and the other is development of underdeveloped parts.

Another consideration is the impact made by the visitors on the London economy cannot be put behind. Success of country’s economy lies mainly on the hands of visitors. Most of the visitors pay attention to eat, drink and stay in places which offer good quality and value for money spent. When conducting such big mega events authorities will give more concentration on providing high quality to attract more visitors. Not only these visitors are well aware that at the time of mega events authorities or organizers will provide more quality to every body because authorities do not want to spoil their names. Once the tourists get high level or world class experience they will try to come back again. As a result, every one hopes for a big boost in the London economy. Thus, one can conclude that Olympic Games 2012 will provide huge impact on London economy.

Impact of Olympic Games 2012 on London restaurant market

The advent of Olympic Games 2012 in London will bring a great change in Hotel development despite of recession. New research from Visit London and TRI Hospitality Consulting suggests that London is due to experience a 12% increase in new hotel rooms by 2012.” By the time of Olympic and Paralympics London can provide over 123,000 total room supplies which are much higher than expected forecast of 13,300. This figure clearly shows the impact of Olympic Games in London. Also another study reveals that future developments of hotel in London will be very robust as they are aiming much benefit at the time of Olympics. Researches suggest that many investors are coming to London to invest more and more in hotel market keeping an eye to attract more visitors at the time of Olympics. Many of them are looking to open before 2012 Olympics.

Restaurant authorities are mainly aiming visitors coming from other countries. These authorities are providing all kinds of best facilities to attract visitors towards them. These authorities are well aware that effects made by these tourists in their business are very big. The reason behind these is money from visitors helps them make more development in business. Olympics or any mega world premier events are becoming catalyst for many restaurant people. Besides financial gain, these people are getting a very good chance to promote their business. Tourists coming from many parts of the world will be aware about these restaurants once they visit these restaurants at the time of big events. So, once the tourists get the chance to know about the restaurant and feel something good then it will be a good marketing for restaurant authorities, because when these tourists visit London again they will come to the same restaurant. So, when a country is hosting such big mega events like Olympics or Paralympics their influence or impact will be found in every corner of the country. Most of the business people are looking for such events to promote their business in to very large scale.

From the above mentioned notes it is very clear that Olympics 2012 is going to make a huge impact in the restaurant market of London. As a result of these, there will be big improvement in London’s economy.

Summary and conclusion

The above literature review suggests that there is huge impact for mega events in a country. Impact of mega events will affect every one from upper level to lower level. This is the reason for every country trying to host mega events like Olympics or any other world premier shows. The aim as mentioned in the literature review is to attract more people towards the event. By attracting people and tourists the host country is aiming economic benefits. Even though a country needs to spend huge money for hosting such mega events, majority of the countries are ready for this as they are very much confident that they will get the entire amount spent for hosting the mega events and also big profit from the show. So, the authorities who are coming forward to host the mega event need not worry about any thing. By hosting such grand events, the aim of the authorities is to attract more tourists towards their country. There are many benefits in this by attracting tourists. Main thing while hosting this event is that authorities can provide very good facilities in their own country. This will help the locals very much. The reason is by selecting the venues in underdeveloped places, country can aim for making good development in such places. Many people in that area will get employment. Facilities or infrastructure provided will be of high quality. In short, it is understood that under developed places can get developed with the help of conducting mega events or world premier show. Also, once the event is over, all the facilities available can be used by locals. In short, one can understand that even though huge amount of money is pent for building infrastructure and many other facilities, host country need not worry about money spent, because they will get returns once the mega event is over. Another important thing is attracting tourists. There are advantages for this. There is no doubt that by conducting such mega events or world premier show tourists will get attracted. Many tourists from different parts of the world will come to the host country to watch the show. Every one knows that every country’s economy grows with the help of tourists. Once the tourists land in host country, it is sure that they will go around the country for watching sceneries and many places. Also tourists will be engaged in different adventurous activities. So, money spent by tourists will be huge. All these will make an impact in the country’s economy. So, there is no doubt that London 2012 Olympics is going to make a huge impact in London in all perspective.


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