Zumme Pizza in Canada: Evaluating Market Viability via PESTLE

This report presents a PESTLE analysis of Zumme Pizza, an automated pizza delivery restaurant, as it considers entering the Canadian market. The analysis examines political and legal factors, noting Canada's stable democratic environment and food safety regulations. Economically, the online food delivery market in Canada shows significant growth potential. Socially, the company's tech-driven approach aligns with Canadian consumer preferences. Technological advancements, like robot-assisted food preparation and GPS-equipped delivery vans, provide a competitive edge. Environmentally, the company appears to comply with Canadian regulations. The report identifies opportunities such as leveraging the growing online food consumption trend and potential threats from established competitors and raw material costs. The analysis concludes that Zumme Pizza has a viable plan for entering the Canadian market with significant revenue potential.

Running head: PESTLE ANALYSIS
Pestle Analysis
Name of the Student
Name of the University
Author Note

1PESTLE ANALYSIS
Executive Summary:
The main objective of the paper is to assess the different aspects of the Pestle analysis for the
chosen organization in Canada and along with that the paper will also evaluate opportunities
and threats for the organization out of the assessment of the Pestle analysis. The chosen
organization for the paper will be Zumme Pizza.

2PESTLE ANALYSIS
Table of Contents
Introduction:...............................................................................................................................3
Organizational Overview:..........................................................................................................3
Pestle Analysis:..........................................................................................................................3
Political and Legal:................................................................................................................3
Economic:..............................................................................................................................4
Social:.....................................................................................................................................4
Technological:........................................................................................................................5
Environment:..........................................................................................................................5
External Analysis:......................................................................................................................5
Opportunities:.........................................................................................................................5
Threats:...................................................................................................................................6
Conclusion:................................................................................................................................6
References:.................................................................................................................................7

3PESTLE ANALYSIS
Introduction:
Pestle analysis is a widely used business tools for the management of the
organizations in order to evaluate the target business market opportunities and threats
(Zalengera et al. 2014). It helps the organizations to assess the social, economic and
technological factors of the target market as the analysis will be much needed in making a
concrete plan of business opening or in strengthening the existing business operations (Ho,
2014). The organization will also conduct an external analysis in order to remodel their
operations along with the positive findings of the pestle analysis. The chosen organization for
the case will be Zumme Pizza. The purpose of the paper is to evaluate the different aspects of
the pestle analysis for the chosen organization in Canada and along with that the
opportunities and threats for the organization will be evaluated from the assessment of the
pestle analysis.
Organizational Overview:
Zumme Pizza is an organization which is known to be an automated pizza delivery
restaurant. The organization was founded by Alex Garden and Julia Collins in the year 2016
(zumepizza.com, 2018). The organization operates in the Food delivery and the food tech
industry and is currently having it’s headquarter in California, United States. The
organization was serving pizza as their main product but apart from that they had salad and
cookies in their product chain as well.
Pestle Analysis:
Political and Legal:
Canada being a state of parliamentary democracy along with a federal structure of the
parliamentary government which significantly follow strong democratic traditions, is ignorant

4PESTLE ANALYSIS
in imposing any sort of strong rule which will be barring the smooth conduction of the
business operations of concerned organization (Smith, 2013). But the government has created
some of the rules with the precise advice of the food quality regulatory advisers and they
have formed an agency named Canadian Food Inspection Agency. The agency has restricted
the previous rules and implemented some new rules like the dairy products regulations,
consumer packaging and labelling regulations, Egg and Processed Egg Regulations, Process
Products Regulations, Meat Inspection Regulations 1990, safe food for Canadians regulations
(inspection.gc.ca, 2018). Zumme pizza needs to make sure that they do not violate any of
these legislations as the Canadian government is significantly focused in making sure that the
quality and standards of the food is of the optimum level.
Economic:
Some of the statistics will be significant to prove that the concerned organization will
have a significant business in the target market which are mentioned as below:
The concerned industry has generated 936.5 million US dollars in Restaurant to
customer delivery and 220.9 million US dollar in the platform to consumer delivery in the
nation in the financial year 2017 (statista.com, 2018). With a significant rise in the revenue in
the first two quarters of the current financial year the concerned industry is hopeful of
creating a revenue of 1196.7 million US dollar in Restaurant to customer delivery and 281.4
million US dollar in the platform to consumer delivery (statista.com, 2018). Hence the plan
of entering the Canada market is significantly viable for the organization.
Social:
The organization is significantly focused in preparing their food products with limited
amount of time and in order to do so the organization has appointed 8 robots till date for the
slicing purpose. This enables the organization to serve the customers within 4 minutes from

5PESTLE ANALYSIS
the timing of their order. As the target country is a significantly tech-savvy and busy, this
reduction in the time for the food processing significantly helps the customers. Hence the
organization is able to form a customer loyalty with their unique service.
Technological:
The organization has the capability to catch the tech savvy people of Canada with the
availability of the website and mobile application. Apart from this the organization uses the
robots for slicing operation. The organization uses predictive algorithm to have an idea of the
customer choices and preferences. Along with this, the organization uses a van equipped with
56 GPS equipped automated ovens. The uses of the technology is dedicated in following the
customer trends and this also enables the organization to deliver the food products as soon as
possible to their customers. The country is able observe a sharp rise in the mobile phone,
laptops and desktops volume per capita in units in the last three financial years which
provides a significant rust to the organization that the technological aspect of the organization
will be well appreciated by the customers in the target market.
Environment:
The organization’s business proceedings has no scope of violating the Canadian
Environmental Assessment Act and Canadian Environmental Protection Act, 1999
(inspection.gc.ca, 2018). Though the organization implements the expertise of the robots for
their business conduction but the ratio of human to robots in the employee base is
significantly in favour of the humans which takes the organization away from violating the
rules of Canadian Human Rights Act (Jensen, 2014).

6PESTLE ANALYSIS
External Analysis:
Opportunities:
 The organization will be able to use the immense interest of the Canadian people
towards the online food consumption.
 The organization will be able capture a market which is assumed to acquire a revenue
of 2445.1 million US dollar in the Restaurant to customer delivery and 647.4 million
US dollars in the platform to consumer delivery according to the CAGR report
(statista.com, 2018).
 The organization will be able to recruit sufficient number of efficient employees from
the nation and that will enable them to increase the employment in the nation.
Threats:
 The market competitors like Domino’s pizza Canada and the Pizza hut Canada has
larger share of the market.
 The cost of the raw material in the nation will be bit high in the target market and that
may increase the price of the food products.
 Though the organization sells the other food products like salad, cookies but in the
new market, the organization will be subjected to the need of increasing the product
chain in order to survive in the tough competition of the market.
Conclusion:
On a concluding note it can be said that the organization has a viable plan of entering
the new market and the entrance has the possibility of creating significant amount of revenue
from the target market.

7PESTLE ANALYSIS

8PESTLE ANALYSIS
References:
Ho, J. K. K. (2014). Formulation of a systemic PEST analysis for strategic analysis.
European academic research, 2(5), 6478-6492.
inspection.gc.ca (2018). Welcome to the Canadian Food Inspection Agency - Canadian Food
Inspection Agency. (2018). Retrieved from
http://www.inspection.gc.ca/eng/1297964599443/1297965645317
Jensen, C. (2014). The right and the welfare state. OUP Oxford.
Smith, D. E. (2013). The invisible crown: The first principle of Canadian government.
University of Toronto Press.
statista.com (2018). Online Food Delivery - Canada | Statista Market Forecast. (2018).
Retrieved from
https://www.statista.com/outlook/374/108/online-food-delivery/canada
Zalengera, C., Blanchard, R. E., Eames, P. C., Juma, A. M., Chitawo, M. L., & Gondwe, K.
T. (2014). Overview of the Malawi energy situation and A PESTLE analysis for
sustainable development of renewable energy. Renewable and Sustainable Energy
Reviews, 38, 335-347.
zumepizza.com (2018). Order Delicious Pizza and Have it Delivered Zume Fast. (2018).
Retrieved from https://zumepizza.com/