The Pestle Analysis Of Chipotle

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In the framework of PESTEL analysis, Chipotle do not have any political factors that are affecting them. They do have to comply with the U.S. Food & Drug Administration (FDA) codes and regulations for food safety. For the economic factors, numerous of elements could affect the profitability of Chipotle. An example would be the price of ingredients, which is the 2nd largest expense in the restaurant after wages for employees. Rather there is an inflation or surplus of the ingredients, it can hugely affect their profitability. Another element would be level of employment which is if people can afford spending money to dine in a restaurant. The social factors for Chipotle would be the age group and lifestyle. Society are looking for more healthy food which Chipotle have the advantage when compares to other fast-casual restaurant. The technological element that affect for Chipotle is not as high in other area, the online reviews and comments consist of positive and negative feedbacks. Although marketing and advertisement helps Chipotle to promote their products, but for restaurant they are …show more content…

The smaller the ratio mean the company is not as efficient when utilizing their resources or not so great in sales. According to the restaurant industry efficiency rate, asset turnover ratio have an average of 0.9 (CSI Market, 2017). Therefore, Chipotle is not doing well compares to the national average, the loss of sales had set them back in profitability. A recommendation would be try to increase sales volume, increase promotion on TV, online and mobile apps for advertisement. Push for more catering option for potential business to increase the sales because by spreading the offers to numerous of businesses, they might able to catch those who are interested for

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