Case Study:

Mexican Restaurant Group, Wahaca, to Expand Operations in London

The restaurant group, Wahaca, announced plans earlier in 2022 to expand its number of restaurants across London, UK, targeting environmentally conscious sites in areas such as King's Cross, Victoria, and the suburbs.

There are currently 13 Wahaca restaurants in operation and the company’s expansion plans will mark a return to growth following the closure in 2020 of 10 of its restaurants in cities such as Manchester, Liverpool and Bristol as a result of difficult trading conditions resulting from the UK COVID-19 lockdowns and other related measures which impacted significantly on the whole of the UK hospitality industry.

The founders of Wahaca, Thomasina Miers and Mark Selby, wanted to create a restaurant business which was different from that of competitors and firmly built on a foundation of sustainability which recognises the impact of their business on the environment, society, supply chain and carbon footprint.

The focus on sustainability continues to be a driving force for the company in its expansion plans. Co-founder Mark Selby is on record as saying, "We want to work with landlords to open restaurants in places that share not only our ethos but are as committed as we are to taking positive, affirmative action on the environment."

Thomas  Rose, co-founder of Wahaca's exclusive  property  provider,  P-THREE, added  his support to Mark Selby’s position saying "Landlords are rightly prioritising environmental social governance (ESG) corporately, but there is a growing move to do so at an asset-level too as they respond to changing consumer behaviours. While Wahaca's new strategy lays down a challenge, it is being welcomed by landlords and leading to some exciting conversations."

The chain's sustainable site selection strategy coincides with its introduction of carbon ratings to its menus from this week, which it claims is an industry first for a British restaurant group.

Towards the end of 2021, the Wahaca restaurant chain released its avocado-free Wahacamole, a sustainable alternative to guacamole, which is known to contribute to deforestation and water shortages.

In January  2022, the company  received three stars out of three from the Sustainable Restaurant Association and its site in London's Southbank has been named as the capital's most sustainable restaurant build.

Task 1

With other members of your group use the case material provided, and appropriate research, to produce a detailed PESTEL analysis that can inform Wahaca’s strategic planning for its expansion of restaurant outlets across London. [10]

Notes:

Your presentation should include an explanation of the nature and purpose of PESTEL analysis and a detailed PESTEL analysis that can inform. All members of the group should be able to justify the inclusion of each factor in the PESTEL analysis in a question and answer session at the end your presentation.

Before the start of your presentation you must give a copy of your PESTEL analysis to your tutor.

The presentation can take any format you choose but should be no longer than 15 minutes in length – including time for questions and answers. Your presentation will be recorded for the purposes of assessment.

The mark you receive for this part of the coursework assessment is based on the group performance i.e. everyone in the group, regardless of their individual contribution to the task, will receive the same mark.