Italy
[Institution Title]
Introduction
Chipotle needs a fast food environment that is dynamic and receptive to new ideas. Italy is the right pace for such a venture. For the Chipotle to work, it needs an environment that is suitable for its prosperity. Such an environment was influenced by the population of the place and its perception on food, the business environment, which affects issues such as market and the consumption of fast foods in the country. The business environment is influenced by a lot of factors, inclusive of the GDP of a country. Overall, Italy has all the essentials needed for adoption of Chipotle as will be discussed below.
Italy is a country that is adequately populated. As of last year, the country had a 58 million people. According to rankings, the country is number in Europe in its population. It is in Southern Europe and was surrounded by the waters of the Mediterranean Sea. The closest neighbors to Italy include France, Switzerland and Austria. It was speculated that every 200 people live in a kilometer's square in Italy (Ligt & Northwood, 2013). It is, therefore, a country in which people are likely to be densely dispersed in all places. The population is good for the Chipotle venture because it provides the variety needed for foreign food. Such a big population provides people with different tastes and increases the percentage of people that will be receptive to a new type of food. In addition, the market concentration in a big population is diversified and big in number. Even though the residents of the country are likely to have their specialties, the vast population leaves room for people who are ready to exploit other ventures.
Therefore, the high population would be good for Chipotle fast food restaurant. In addition, the population is filled with immigrants from other countries, inclusive of Mexicans. Such people will wholly embrace the business idea and infect the locals in the long run. Additionally, the high population in Italy is accommodative of other ethnic groups and cultures. It is not as concentrated and rigid as other lowly populated places. Given so, the population of Italy makes it an ideal place for Chipotle to flourish.
The business conditions in Italy
The Italian restaurant business is big. There are mainly hotels, fast food joints and cafes that serve all types of foods. The leading fast food business, however, emanates from pizza as a fast food. Hotels mainly serve cuisines and other Italian delicacies. Even so, the Italian restaurant industry contributes approximately $15 million every fiscal year in revenues to the economy (Adams, 2008). The figure forms 1.6% of the overall amount of growth contributed by the industry every year. The figure shifts by small margins depending on the economic climate at the time. Even though the USA is currently registers the largest income from its fast food industry, it greatly benefits from Italian pizzas and cuisines. The neighboring countries such as Austria and Switzerland contribute 1% and 0.9% to their annual growth rate.
Therefore, it is an indicator that the business environment in Italy is good for a fast food restaurant. In addition, the restaurant business incorporates fast foods, beverages and wines into one. All of the three come together to contribute to the total revenue collected in the end (Locke, 2012). Chipotle appreciates the consumption of different beverages with its foods. Therefore, the Italian environment offers a chance for the incorporation of fast food and beverages into Italian restaurant industry. In addition, the market size of fast foods has been noted to stand at over 60% of the overall food market. It could only mean that the market is expansive enough for acceptance of something new. The 60% is too high, and can, therefore, be shared without the rigorous competition that usually follows a new entry into the market. However, the biggest challenge with the Italian restaurant industry is that the supply chain is rigid. There are no frameworks for the smooth flow of supply in fast foods. The issue of supply is what makes the USA market to thrive even amidst market challenges. In addition, there is competition from foreign entities that offer the type of foods that exists in Chipotle.
Gross Domestic Product
The per capita GDP in Italy stood at $34, 619 as of 2013 (World Bank & International Monetary Fund, 2013). Even though the figure is better than what was represented in most countries, it signifies the expenses that people undergo in their daily lives. Such a figure was associated with low earnings of most people. Countries such as the USA have citizens that can afford to purchase expensive food because the per capita GDP is high. It is an indication of affluence and capabilities. For Chipotle to work in Italy, it will need to sell its food at relatively low prices that might eventually hurt the business.
Agriculture production
Italy has mostly invested in cultivating of land. The reason can be accrued to its long land reform issues. Most people recently owned land and therefore participate in farming more. The farming contributes to 5% of the economy. The agricultural sector in Italy is perhaps one of the most challenging areas of its economy. It reports a very slow growth and imports most of its meat and crops (Sakellariou, 2012). The agricultural sector only benefits from products such as wheat, rice, tomatoes and vegetables that contributed to over 7% of the economy. Meat and poultry were mostly imported since meat farmers do not rear animals there. Fish fully emanates from Italian soil. Meat imports have increased to reach $30 billion in expenditure over the last three year. With that in mind, Italy may not favor Chipotle because the imported meat is very expensive. However, the presence of other farming products could provide good substitutes.
Meat consumption
Italy is ranked 9th in the consumption of meat in the world. For a country that imports most of its meat, the position is a solidly good one. It means that people in Italy consume high amounts of meat, which is a good indicator for Chipotle. Most of the fast foods in Italy were made from meat and vegetables, which makes meat an essential part of their diet (Klopčič, Kuipers, Hocquette & Wageningen Academic Publishers, 2013). With that in mind, the Mexican grills of Chipotle will be welcomed in Italy.
Evaluation paragraph
Italy will be a good venture for Chipotle fast foods. First, Italians are receptive to the different cultures brought about by mixed ethnicities. That leaves them open to the different types of foods that come with the cultures. The Mexican food idea that is brought about by Chipotle will, therefore, be received. Secondly, the country is well populated and gives the business a good chance of penetrating into the wide market and establishing a network of consumers. Variety in market is imperative for a business. Third, the country has a good and reputable restaurant business that will give new establishments a foundation for their businesses. Lastly, the country lives meat. Meat is one of the main delicacies that will be served by this new venture. Therefore, given all the above, Italy is the right place for Chipotle.
Conclusion
Every business has a challenge in terms of the economy, expenses, markets and the environment. Italy is not short of such challenges, but that does not make it inadequate for a business of Chipotle's caliber. The place offers some promising positives that are ideal for a new fast food business endeavor.
Reference
Adams, A. C. (2008). The restaurant manager's success chronicles: Insider secrets and techniques food service managers use every day to make millions. Ocala, Fla: Atlantic Pub. Group.
Klopčič, M., Kuipers, A., Hocquette, J.-F., & Wageningen Academic Publishers. (2013). Consumer attitudes to food quality products: Emphasis on Southern Europe. Wageningen: Wageningen Academic Publishers.
Ligt, L. ., & Northwood, S. (2013). People, land, and politics: Demographic developments and the transformation of Roman Italy 300 BC-AD 14. Leiden: Brill.
Locke, R. M. (2012). Remaking the Italian Economy. London: Cornell University Press
Sakellariou, E. (2012). Southern Italy in the late middle Ages: Demographic, institutional and economic change in the Kingdom of Naples, c.1440-c.1530. Leiden [etc.: Brill.
World Bank & International Monetary Fund. (2013). Global Monitoring Report 2013: Rural-Urban Dynamics and the Millennium Development Goals. Washington: World Bank Publications.
