Wyatt Earp Steakhouse into Jordan

Introduction

Jordan is a small country located in the Middle East. We have researched all aspects of opening a Wyatt Earp Steakhouse in Jordan and have found that the disadvantages outweigh the benefits. Annual income in Jordan is substantially lower than that of the United States and a high percentage of the population lives in poverty. Religion plays a significant role in the culture of Jordanians. The majority is Muslim and abides by strict customs concerning eating habits. The competition is fierce since similar casual American restaurants are already established in the major cities of Jordan. We recommend not expanding Wyatt Earp Steakhouse into the country of Jordan due to challenges that override advantages.

Demographics

In Jordan, 1.36 out of 5.4 million people are part of the workforce. The average life expectancy for the people of Jordan is 71 years and fifty percent of the population is under twenty years of age, therefore the unemployment rate is high. The average yearly income is $1,800 per person. Compared to the U.S., this income level is low. If Wyatt Earp Steakhouse were to expand to Jordan the prices on the menu would have to be lowered a considerable amount for the people there to be able to afford it. 98% of the population is Muslim. They have special eating habits that are not in accordance with the menus at Wyatt Earp Steakhouse. The official language of the country is Arabic, yet the middle and upper class are able to speak fluently in English. Since these are the people that would have the income to afford eating out at a restaurant, it is good that they are open and accepting of the American culture (“EBSCOhost” 1).

Politics

Jordan’s government system is a constitutional monarchy, but the people living there have basic rights (“EBSCOhost” 1). Private businesses are encouraged in order to improve economic growth. The economy in Jordan is also improving with the help of the United States Agency for International Development (USAID) which contributes to “the implementation of specific policy reforms aimed at speeding privatization, developing capital markets and improving the investment climate” (“U.S. Commercial Service Jordan: Market Overview” 1). The Jordanian government is focusing on local ownership of small private businesses in order to create job opportunities and increase the country’s GDP (2). Therefore, unless Wyatt Earp Steakhouse were interested in franchising, it would not be sensible to expand into Jordan. The U.S. and Jordan have a Free Trade Agreement set up between them, which makes it easier for businesses to open because they are able to import their goods (“EBSCOhost” 2). However, Jordan has a lack of natural resources (3). This makes it very difficult to run a business there since practically everything must be imported. In the past Jordan has been a major tourist attraction which has helped businesses increase their profits. Since the war has begun in Iraq, tourism to Jordan has had a significant downfall. This would hurt a restaurant such as Wyatt Earp Steakhouse because tourists would be responsible for a considerable amount of the incoming profit for the restaurant.

Culture

The business hours in Jordan differ greatly from those in the U.S. The typical business day is from 9a.m. to 7p.m., with the exception of government businesses (“Jordan Business Etiquette” 1). The Wyatt Earp Steakhouse would have to adjust their normal business hours to accommodate the people of Jordan. Muslims also observe religious holidays, such as Ramadan and Eid Al Adha, throughout which they fast and business hours are shortened (1). These holidays would result in slow business for extended periods of time. Jordananians take pride in eating with their whole family in the privacy of their own homes (1). They are not likely to frequently go out to restaurants to eat. Muslims like their food to be either cooked or roasted, which is not typical of restaurants like a steakhouse. Many Muslims do not eat pork and will not eat any meat unless they know that it was properly slaughtered and bled out completely (1). Since the meat would have to be imported to Jordan, it would be impossible to guarantee specific butchery. For that reason the menu would have to be changed. The informal atmosphere of the western style restaurant would be offensive to the Jordanians because they consider loud voices to be a sign of disrespect or rudeness (1). Jordanians are very reserved and conservative and may not react well to the loud singing and the informal greeting of “howdy