...Panera Bread Company Financial Analysis In 2017 the Panera Stock were going for $315 per share in cash, in transactions valued at approximately $7.5 billion, including assumption of $340 million of net debt. For this Panera Bread Company, they came out with themes on digital, clean food, loyalty, delivery, and new formats for growth. Panera is the leading industry in digital with 26% of sales digital. They are the first and only menu with a clean menu. They have a loyalty program which is the largest in the industry with 25 million members and half of transactions through the program. There omni channel approach leads the industry, with delivery now available in 24% and their catering sales growing 11%. Their Company owned bakery café...
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...Running head: PANERA BREAD CASE ANALYSIS Panera Bread Case Analysis LaToya Melvin Davenport University BUSN 520 Table of Contents INTRODUCTION 3 LITERATURE REVIEW Synopsis of the Situation 4 Key Issues 4 Define the Problem & the Opportunity 6 Alternative Solutions 6 Selected Solution 7 Implementation/Recommendations 7 CONCLUSIONS 7 WORKS CITED 8 Abstract This case study focuses on the market analysis for the Panera Bread Company. The case will examine five components; the synopsis, key issues, problem and opportunity, alternative solutions, selected solution, and implementation/recommendations. Throughout the case, questions will arise as Panera faces challenges in the growth and the operation of the business that will include such issues as marketing, pricing and factors within its consumer base. Literature Review Synopsis Panera Bread is a company founded in 1982, named Au Bon Pain at that time by Louis Kane and Ron Shaich. Panera Bread goal was to offer the best quality product and to be nationally recognized by its bakery-café specialty. Panera Bread’s strategy is to make great bread and to make it broadly available, being the bread experts in the industry. They service consumers-on-the-go, who...
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...Panera Bread Company’s Vision and Mission Statement During 1999, Panera Bread sold the Au Bon restaurants and began focusing solely on the growth of the Panera Bread restaurants. As the company attempted to expand their operations across North America, their vision and mission statement became an even larger part of the operations. However, the statement is vague and offers little guidance to the employees of the company. “A loaf of bread in every arm” is not only next to impossible to achieve, but it also lacks specifics as to how the employees are to accomplish the company’s goals. In an attempt to clarify the statement, the company issued its “bread leadership goal,” which states “With a single goal of making great bread broadly available to consumers across America, Panera Bread freshly bakes more bread each day than any bakery-café concept in the country.” Although this statement is more specific, it still lacks the details on how the company is going to achieve the stated goals. What is the company doing to fulfill the statement and ensure there is a loaf of bread in every arm? The mission of Panera Bread states that the “Panera Cares community cafes exist to feed each and every person who walks through our doors with dignity regardless of their means.” The services that are offered in these cafes are attempting to fulfill the goal of getting a loaf of bread into every arm. Not only is the company tackling the issues of hunger, but they are also trying to maintain the...
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...PANERA BREAD COMPANY Introduction Panera Bread Company is the national bakery-café concept which operates in the casual restaurant industry. Founded in 1981 by Louis Kane and Ron Schaich, entirely it was registered as Au Bon Pain Co. with several chains. In 1999, the founders sold Au Bon Pain divisions and Panera bread1993. Currently, the company owns 1652 franchise stores in 44 states in United States and in Ontario, Canada The purpose of this essay is to identify and justify the important issues that transform Panera Bread into market-driven company. The market-driven approach is a business perspective that puts the customers as a starting point in all its strategies and operations in order to deliver the superior customer value and gain a competitive advantage (Day, 1994). This approach totally contradicts with the one of the previous years of the Industrial age, which the prominent scholar Drucker (1954) defined that the main purpose of the organization is to generate profit. But nowadays, it appears clear that for the future prosperity of the company, the building of the loyal customer base is necessary condition to be profitable. The support of the latest argument comes from Webster, et al. (1994) where it is concluded that the profit becomes as remuneration for a satisfied and retained customer. There are few capabilities that the company should be aware of in order to be oriented on the market (Cravens and Shipp, 1991). There is the marketing strategic process...
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...Organizational Analysis History Over the years Panera Bread has become a dominating force in the restaurant industry, from originating with the intention to be simply a bread company steered by the mission “A Loaf of bread in every arm” to emerging as a leader in the quick-casual business with 1,708 bakery cafes in 44 states and in Ontario, Canada. Today Panera Bread’s mission has evolved into “provide high quality products and exceptional service to our customers. We will conduct our business by reaffirming daily our commitment to: NEIGHBORHOOD … maintaining our position as THE neighborhood bakery in our markets. SERVICE … always exceed our customers' expectations ADDED VALUE … offer our customers healthy, natural, premium quality breads and specialty foods at a fair price. COMMUNITY … engages in a working partnership with civic and charitable activities. OPPORTUNITIES … associates will be given equal employment and advancement opportunities with our Company. ENTREPRENEURISM … empower our associates with a challenging and rewarding work environment that allows them to do their best work.” (Panera Bread, 2013). The company was founded in 1981, under the name Au Bon Pain, and has been led for 25 years by the CEO and President Ron Shaich. Its first locations opened up along the East Coast in malls and shopping centers and spreading out internationally in the 1990s. In 1993, Au Bon Pain Co., Inc. extended its portfolio by purchasing Saint Louis Bread Company, a chain of 20 bakery...
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...CASE TEACHING NOTE 8 Panera Bread Company OVERVIEW AS PANERA BREAD COMPANY HEADED INTO 2007, IT WAS CONTINUING TO SWIFTLY EXPAND ITS MARKET PRESENCE. THE COMPANY’S STRATEGIC INTENT WAS TO MAKE GREAT BREAD BROADLY AVAILABLE TO CONSUMERS ACROSS THE UNITED STATES. IT HAD OPENED 155 NEW COMPANY-OWNED AND FRANCHISED BAKERY-CAFES IN 2006, BRINGING ITS TOTAL TO 1,027 UNITS IN 36 STATES. PLANS WERE IN PLACE TO OPEN ANOTHER 170 TO180 CAFÉ LOCATIONS IN 2007 AND TO HAVE NEARLY 2,000 PANERA BREAD BAKERY-CAFÉS OPEN BY THE END OF 2010. MANAGEMENT WAS CONFIDENT THAT PANERA BREAD’S ATTRACTIVE MENU AND THE DINING AMBIANCE OF ITS BAKERY-CAFÉS PROVIDED SIGNIFICANT GROWTH OPPORTUNITY, DESPITE THE FIERCELY COMPETITIVE NATURE OF THE RESTAURANT INDUSTRY. Panera Bread competed with specialty food, casual dining and quick service restaurant retailers including national, regional and locally owned restaurants. Its closest competitors were restaurants in the so-called “fast casual” restaurant category. Fast casual restaurants filled the gap betweeen fast-food and casual, full table service dining. A fast casual restaurant provided quick-service dining (much like fast-food enterprises) but were distinguished by enticing menus, higher food quality, and more inviting dining environments; typical meal costs per guest were in the $7-$12 range. Some fast casual restaurants had limited table service and some were self-service (like fast-food establishments). Between January 1999 and December 2006...
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...Panera Bread Case Study What does a SWOT Analysis reveal about the overall attractiveness of its situation? Panera Bread is all about the idea of having good unique food that will keep the customers coming back. They also give a good ambience in the restaurants that strengthen the customer intuition to go back. To start the SWOT Analysis Panera Breads Strengths are: * Attractive and Appealing Menu Items * Trained Bakers * Homemade Items (Breads, Cookies, Bagels) * Nationwide Leader in the baker-café segment * Good Franchisees- higher sales in franchised stores compared to company owned * Financial strength of the company, able to expand * Local customer base * “Panera Warmth” * Catering The strengths of Panera Bread far out way the weakness. Even though that Panera is not as well known as some of these other chain restaurants they still bring in the same amount and Panera is slowly working their way to where they belong. The weaknesses of Panera Bread are: * A less well known name then other rival restaurants * Sales at franchised stores higher the company-owned stores * Some hard times from the 08-09 recession * Weak dinner menu, more lunch or small meals * Marketing * Quality in food could vary Even though there is some weakness to the company, they must realize this and overcome these shortcomings. Every chain restaurant will have its weakness but to improve is to move forward. Which...
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...Panera Bread Company Panera Bread began way back in 1981 as Au Bon Pain co. Inc. It was founded by Louis Kane and Ron Shaich. It operated along the east coast and internationally throughout the 1980s and 1990s. It quickly became the dominant leader within the bakery-café category. By 1997, it was clear the Panera Bread had the potential to become one of the best brands in the nation. Because the brand took off so quickly and is well known around the world. We as investors and consultants we need to look at what can make the company even better and continue to grow even more. In order to do so we will need to look at a SWOT analysis of the company, determine if the company possess core or distinctive competencies, and recommendations regarding actions the company needs to take to strengthen its competitive position. SWOT analysis is a planning method used to evaluate the strengthens, weaknesses, opportunities and threats involved in running a successful business. First we will discuss Panera Bread's strengthens. One of the very best thing about Panera Bread is that there is always fresh baked bread daily. Most restaurants offer free wifi for their guest. Another strong point is that Panera offers a menu for every time of the day and the menu also lets you decided what is healthy for you to eat. The menu lets the customer know exactly how many calories they are taking in with ordering that particular meal. The main strengthen in...
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...Panera Bread Company is a national bakery-cafe with 1,504 locations across the US and Canada. This case study provides information regarding the past performance, current analysis, stock valuation, market evaluation, and industry comparison. In this analysis and case study, we hope you, the reader, will gain usable insight on Panera Bread and its value. We will give a recommendation to our readers according to our given information. Panera Bread is a chain of bakery-cafe quick service restaurants in the United States and Canada that sells breads, sandwiches, soups, salads, and other bakery items. Its headquarters are in Sunset Hills, Missouri, a suburb of St. Louis. Panera bread was once originally known as the St. Louis Bread Company. In 1993, Au Bon Pain Co. purchased the Saint Louis Bread Company, which was founded by Ken Rosenthal. At the same time, the St. Louis Bread Company was renovating its 20 bakery-cafés in the St. Louis area. In May 1999, to expand Panera Bread into a national restaurant, Au Bon Pain Co. sold its other chains, including Au Bon Pain, which is now owned by Compass Group North America. Au Bon Pain Co. then renamed itself Panera Bread. The company operates and franchises 1,504 Panera Bread bakery-cafés in 40 states and 17 facilities that deliver fresh dough to the bakery-cafés every day. In its headquarters city of St. Louis, Panera Bread still operates under the name St. Louis Bread Company. The St. Louis Metropolitan area has over 100 locations. In 2005...
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...Panera Bread Company Josiah Maroko Metropolitan State University Abstract Panera Bread Company is a leader in the easy casual restaurant industry with multiple cafe-bakeries located in 36 states, of the United States. Panera operates under the banner of Panera and Saint Louis Bread Company. Almost 400 of its 1,027 bakeries are company-operated and the remainders are franchisees. Panera Bread’s core competencies are in their market niche, offering a premium specialty bakery and café experience to urban workers and suburban dwellers. Penera’s focus is offering their customers a quick service meal and a more aesthetically pleasing dining experience than offered by traditional fast food restaurants. By providing top-notch service, they knew customers would pass up their competitors in outlets of other easy casual restaurants to dine at the nearest Panera Bread. SWOT, and financial analysis conducted indicate that the company is doing well even though profitability is slowing down and has the potential to rapidly expand. Looking at house the company markets itself and how it function among its competitors there is a discrepancy there fore a clear definition of their strategy in necessary. What is Panera Bread's strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve ...
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...Heather Abramovic @02380550 Case Analysis of Panera Bread Company What does a SWOT Analysis reveal about the overall attractiveness of its situation? A SWOT analysis sizes up a company’s strengths and weaknesses; it’s market opportunities, and any external threats to the company’s well being. It identifies its strengths and weaknesses and provides the basis for crafting the best strategy for the company. Panera Bread’s most competitively valuable strengths have to be their attractive menu and aesthetically pleasing environment in each bakery-café. Panera also has a compliment see customer service they have won many awards and honors such as the prestigious Business Week’s 2010 list of the 25 “Customer Service Champs”. They have achieved these along with market success by providing courteous, capable, and efficient customer service. I believe a distinctive competence that Panera has is their fresh in-house baked pastries and bread that encompass top quality and detail that in return differentiate Panera from it’s competitors. With a strong strategic vision, proven competitively superior competencies, superior attention to customer needs, and a strong brand, Panera Bread appears to have a very attractive future and continued success in their industry. As long as they continue with their strategic vision they have in place, I believe Panera Bread will have no problem continuing their success in the market. Which rival chains appear to be Panera’s closest rivals? The threat...
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...1. What is Panera Bread’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve? Panera Bread is a company with unique and effective concept and strategy which has given them a competitive advantage over its competitors in the submarket industry. Panera Bread’s strategy includes providing specialty bakery and café experience to urban workers and suburban dwellers. They specialize in fresh baked bread that made with quality and detail, made to order sandwiches, custom roasted coffees and other café beverage. Panera Bread has distinctive style to its menu, café design, inviting ambience with the decoration of its café locations. Panera offers their customers the chance to come in the café to order breakfast, lunch, daytime and the “chill out”- time between the breakfast and lunch and between lunch and dinner. Panera Bread’s growth strategy was by opening both company-owned and franchised Panera Bread locations, the franchising has been a key competent of the company’s efforts to broaden it markets penetration. In class, we discussed different generic competitive strategies that company employ. Panera Bread’s strategies can be categories under the Best-Cost Provider strategy. Panera Bread provide a fairly common café beverages around the country, but the have manage to offer their products at lower cost to it...
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...Panera Bread Company – History In 1978, Louis Kane purchased Au Bon Pain, a fast casual restaurant that focused on artisan breads. Kane merged Au Bon Pain with Ronald Shaich’s company The Cookie Jar in 1981. Au Bon Pain, looking to move away from their urban niche market, acquired the St. Louis Bread Company in 1993, a 19 store company with a more suburban marketplace. In 1999, after performing market research and studying their newly acquired bakery-concept, the company decided to sell Au Bon Pain and form a new concept, Panera Bread. (Panera Bread Company Overview, 2013) Panera Bread Company - Business Description Panera Bread Company (Panera Bread) is a national bakery-cafe concept involved in providing bakery products through a network of bakery-cafes. It is one of the largest food service companies in the US, serving over seven million customers per week system-wide. Its products are freshly baked goods which include a diverse selection of bagels, breads, muffins, scones, rolls, and sweet goods, made-to-order sandwiches, unique soups and side items, hand-tossed salads, and custom roasted coffees and cafe beverages, including hot or cold espresso, cappuccino drinks and smoothies. The company operates under the trademarked names Panera Bread, Saint Louis Bread Co. and Paradise Bakery & Cafe. Panera Bread operates through three business segments, namely, Company Bakery-Cafe Operations, Franchise Operations, and Fresh Dough and Other Product Operations. The Company...
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...success is based upon those competitive advantages, such as providing high quality products at reasonable prices to its customers, consistent products, dependability, brand loyalty and offering a great casual dining experience. In addition, the culture plays a critical factor in the Panera family, meaning that employees share common values and beliefs. They are empowered by management which contributes to the team atmosphere. Such culture provides a competitive advantage for the company in terms of transferring satisfaction from the employee to the loyal customer. Panera Bread was established in 1981 by Ron Shaich and as of September 2011 was operating 1,504 company-owned and franchised-operated bakery-cafes in 40 states and Ontario Canada. Originally known as Au bon Pain Company, a competitor was purchased in 1993, Saint Louis Bread, and the name was ultimately renamed Panera Bread in 1999. Their Mission was “A loaf of bread in every arm. Panera Bread’s success spread from East to West with another acquisition. In 2007, Paradise Bakery & Café, a Phoenix based bakery-café concept that added an additional 70 stores and 10 states (1). The core competency of Panera Bread is the quality of its bread offerings. This is at the root of many of their strengths including the customer satisfaction and repeat customer loyalty. This combined with the conservatively operated...
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...March 20, 2014 GBA 490-005 Written Case #2: Panera Bread Company Table of Contents Executive Summary……………………………………………………….Page 3 Recommendations and Justification……………………………………..Page 4-5 Appendix…………………………………………………………………..Page 5 External Analysis of Industry Exhibit 1: Economic Characteristics & Driving Forces…………….Page 5 Exhibit 2: PESTEL Analysis……………………………………… .Page 7 Exhibit 3: Five Forces Analysis…………………………………….Page 8 Exhibit 4: Key Success Factors……………………………………..Page 9 Exhibit 5: Driving Forces…….……………………………………..Page 10 Internal Analysis of Yammer Exhibit 6: VRIN(E)……………………………………………… …Page 11 Exhibit 7: Weighted Competitive Strength Analysis.…. …………...Page 12 Exhibit 8: SWOT(TOWS)…………………………………………...Page 13 Exhibit 9: Strategic Group Map……………………………………..Page 14 Exhibit 10: Financial Analysis………………………………………Page 15 Executive Summary In 1981, Louis Kane and Ron Saich founded a bakery-café named Au Bon Pain that were opened up in airports, shopping centers, and malls throughout the east coast. Au Bon Pain found stiff competition from fast-food competitors, so they initiated a company overhaul and opened re-concepted restaurants which would soon become nation-wide. In August of 1998 they announced the sale of Au Bon Pain for $73 million in cash and the company changed its name to Panera Bread Company. Panera Bread Company was founded during a time of growth in the economy when customers were more willing to spend the few extra...
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