Elowcarbfoodsglutenfree changeinfoodtastesanddesires

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Unformatted text preview: terest rates will cause an increase of cost of capital External Assessment: PESTLE Social Changing demographics ◦ ◦ Rapid growth in Hispanic and Asian populations Millennials overtaking Baby Boomers Varied needs and wants Shift in consumer’s preferences ◦ ◦ Focusing more on health conscious foods because of diet trends (I.e. low carb foods, gluten free) Change in food tastes and desires (Kelso, 2012) External Assessment: PESTLE Technology Few technological shifts influence this industry Technology can improve efficiency, production, distribution, monitor commodity markets E­commerce opening new opportunities ◦ ◦ ◦ Advertising Social media New ordering and payment methods External Assessment: PESTLE Legal Compliance with ◦ ◦ FDA requirements (“Overview of FDA”) ◦ United States Department of Agriculture Federal Food and Drug Administration (FDA) Label food items with calorie and nutrition information Wage Requirements for Restaurants (Wage and Hour Division, 2009) ◦ ◦ Minimum wage: $7.25 per hour Youth minimum wage: $4.25 per hour External Assessment: PESTLE Environmental Increased Competition ◦ ◦ ◦ Major competitors: Dunkin’ Brands Group Inc., Einstein Noah Restaurant Group Inc., Starbucks Corporation Product pricing competition 47,000 new restaurants opening in the first half of 2013 (“The 2013 Restaurant Growth Index,” 2013) Changes in commodity pricing (i.e. Wheat, soybean oil) ◦ Climate changes such as flood or droughts c...
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