CHIPOTLE

Appendix A- External Analysis
Relevant factors in Macro Environment-PESTEL
PESTEL:
Social Drivers:
Consumers want a place to eat that can be healthy with quick service. (C-13)
• Chipotle offers a social value to customers through:
• Friendly servers and quick service
 Chipotle biggest innovation was to complete the customer order quickly (C-6)
 Was able to provide friendly service while serving over 300 customers per hour (C-6)
• Brand values (Chipotle Experience)
 Founder wanted to create a fast food service with great quality products (C-3)
• Urban atmosphere and attractive design
 Chipotle wanted to create a fast food environment that is more upscale and appealing. (C-3)
• Nutritional foods and ecological ethics
 Consumers want and are willing to go places that serve healthier choices (C-13)
Ecological Drivers:
Consumers are attracted to healthier choices and are willing to return given the choice (C-13)
• Chipotle focuses ecological factors such as:
• Hormone/anti biotic/organic products
 Chipotle started to shift in the direction of growing local produce and using organic products. (C-6)
• Follows US department of agriculture standards
 To show that chipotle is using organics products, they are following animal welfare standards. (C-6)
• Efforts in sourcing local products
 Chipotle increased its use of local organic grown products and started a program called “food with integrity”
 Supporting farms that support humane farming environments.
Chipotle strategy adapts the social and ecological drivers of PESTEL, as in today’s time, consumer want to know what they eat. With this information, Chipotle are now aware of what the consumer need is and are implementing strategies that offer the satisfaction.

Competitive Forces
Overall Industry Rating Favourable Moderate Unfavourable
Threat of New Entrants Threat of new entrants are favourable because the general industry requires high capital and experience. New