...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 Case Study Paper August 16, 2013 Introduction Panera Bread Company got its start in 1981 known as Au Bon Pain Co. Inc. Since that time it has gone through several changes until it eventually became the Panera Bread Company in 1999. They have forged forward through the recession and a weak economy to become a well-respected restaurant known for its quality food. This review will take you through the beginnings of Panera Bread to where they are now. It will also cover their main competition and how they compare to each other, and the different charitable organizations that Panera sponsors. Founded by Louis Kane and Ron Shaich, Au Bon Pain Co was established in 1981. Their stores were mainly along the east coast of the United States and internationally where they prospered throughout the 1980’s and 1990’s. “In 1993, Au Bon Pain Co., Inc. purchased Saint Louis Bread Company, a chain of 20 bakery-cafes located in the St. Louis area” (Panera Bread, 2013). During that time the St. Louis Bread Company was in the process of renovating its bakery-cafes in the St. Louis area. Between 1993 and 1997 average unit volumes increased by 75% after completing a comprehensive re-staging of Saint Louis Bread Company. Eventually the name was changed to Panera Bread. Panera is a word that has roots in “breadbasket” in Latin. Panera Bread knew that they had the potential of becoming one of the leading brands in the nation. In order for Panera Bread to reach its potential...
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...Panera Bread Case 1. What is Panera’s Strategy? Which of the five generic competitive strategies most closely fits the competitive approach that Panera is taking? What type of competitive advantage is Panera trying to achieve? Panera Bread’s strategy is to provide a premium specialty bakery and café experience to urban workers and suburban dwellers. As well as to create a specialty café anchored by an authentic, fresh-dough artisan bakery and upscale quick-service menu selections. Broad Differentiation is the competitive approach Panera Bread has taken. They compete on the basis of providing an entire dining experience they call “Panera Warmth” .Their environments are distinctive and engaging, have an alluring and hospitable atmosphere, free Wi-Fi , real china & stainless silverware. Also regular changes in menu offerings to adapt to consumer wants and needs are points of emphasis to differentiate themselves from the competition. The type of competitive advantage they’re striving to build is based on the triple combination of Product, Environment, and Great Service (PEGS). Prior to Panera Bread going nationwide, the management performed cross-country market research and concluded that consumers could get excited about a fast and high quality dining experience, called fast casual. Panera Bread is attempting to achieve competitive advantage with offerings that rivals don’t have and can’t afford to match. In this case, delicious handcrafted bread arriving fresh daily, served...
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...division were additionally attracted to a higher-quality dining experience, top management acquired Saint Louis Bread locations, altering the menus and atmosphere to their vision. Ultimately, in 1997, all bakery-cafes were titled Panera Bread outside of their St. Louis markets. Fast-forwarding to recent years, Panera Bread has received numerous awards, such as the Harris Poll EquiTrend, which ranked Panera as the Casual Dining Restaurant...
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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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...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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...Finding of Fact #2: The Panera Bread Organization does not have a forceful promoting system and expects to give clients a chance to find Panera all alone. Panera's administration is not as quick as other fast-food organizations and charges higher costs. Panera has higher costs than opponents, which could be because of their working expenses. Panera has extended in the previous years; however, the areas are thought topographically. Recommendation #2: Panera had chances to proceed with their achievement in the quick easygoing industry. They can attempt to control working costs that may be crazy or pointless. The organization ought to consider venturing into new markets and growing topographically, even globally. Items can ceaselessly be made...
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...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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...Panera Bread Co. Have you ever wondered how to start a bakery chain? Well, Ron Shaich, co-founder of Panera Bread Co., started the business while in college. Based on an interview conducted by Colleen Debaise, Shaich was thrown out of a convenience store in the 1970s. He opened a rival shop on the campus of Clark University, where he attended college. After college, Shaich opened a cookie shop in downtown Boston, Massachusetts. (Debaise, 2011) Shaich has thousands of bakers who help make Panera what it is today. “The strategic management process is a sequential set of analyses and choices that increase the likelihood that a firm will choose a strategy that enable it to perform well” (Barney, 2007). According to Chapter 1 of Pearce and Robinson’s Strategic Management, the strategic management process is made up of many critical tasks. These tasks include formulating the company’s mission to include broad statements, conduct analysis that reflects the company’s internal conditions and capabilities, and finally to perform an assessment of the company’s external environment. The mission is fairly short and sweet; “a loaf of bread in every arm’ (Panera, 2011). The goal leadership goal of Panera is very similar to a vision statement, “With the 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.” (Panera, 2011). Panera has been become a “chill out” spot...
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...1. What is Panera Bread’s strategy? In 1993, Au Bon Pain Co. purchased the Saint Louis Bread Company also called Panera bread, which was founded by Ken Rosenthal which was renovating its 20 bakery-cafés in the St. Louis area. By the end of 2006 the company operates or franchises 1027 Panera Bread bakery-cafés in 36 states and 17 manufacturing plants to support the bakery-cafés. Now Panera bread is one of the most popular chains of bakery –café restaurants in the United States and Canada selling hand-crafted breads, sandwiches, salads, soups, bakery items, and organic foods also some locations offer dinner pizzas. Panera Bread bakery-cafes are often associated with the concept of “fast casual”, a mixture between fast food and more up sale casual dining. Its freshly baked artisan breads are famous among the neighborhoods and cities all around the country. The main strategy behind Panera Bread was to create “a premium specialty bakery and café experience to urban workers and suburban dwellers”. Panera Bread’s strategy was and still is to make great bread and to make it broadly available. Part of that strategy is to make their cafés a home away from home, where people are comfortable and relaxed. Besides all that it has huge distinctive offering of menu where people can have whatever they can feel like having like breakfast, lunch and dinner any time of the day. Because of all these varieties its market is growing fastly so the Panera bread management is planning...
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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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...5. 42) What barriers to entry has Panera Bread created for potential competitors? 5-43. what are Panera Bread’s primary sources of competitive advantage? Panera bread has created high entry barriers in fast casual food market. Panera bread’s revenues reached more than billion, which provides them a huge power to surpass other restaurants with a better pricing models. Considering the porters five forces, reputation along with high investments and low profit margins are the entries of barriers for new entrants of fast casual food business. In addition to the above even though, threat of rivalries and threat of substitutes are high, the primary advantages of Panera bread are its brand reputation and the expertise in baking foods. Since Panera bread has a first mover advantage with huge customer base which are loyal to the eatery. As an established industry incumbent, it has set processes to provide fast service and by the time the competitors try to imitate the Panera’s casual foods, they can come up with new items based on the customer preferences and continuously innovating their food product creation. 5.44) What are the ways that Panera Bread can conduct ethical and proper forms of competitive analysis to learn about potential competitors entering the fast casual category? A: Panera bread has been able to establish itself as a leader in a highly competitive food industry by marketing themselves as fast-casual eatery which combines the features of fast food which can be...
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...Panera Bread Company (2010): Still Rising Fortunes? Synopsis At the time when Panera was built, the fast-food industry was characterized as highlighting low-grade burgers, greasy fries, and sugared colas. Shaich chose to create an informal but comfortable place where consumers could eat fresh-baked artisan breads, sandwiches, and salads without bothering about either it was healthy or not. Panera Bread Company assists as a retail bakery/café restaurant. In 1993, Au Bon Pain Company acquired St. Louis Bread Company. Earlier this, the St. Louis Company was contained of 20 bakery/cafes in the St. Louis area. From 1993 to 1997, Au Bon Pain altered all their bakery café names to Panera Bread. By 1999, Au Bon Pain sold all sales except for Panera Bread Company. Panera Bread Company has maintained growth everywhere their quarters. Panera currently has 429 franchise operations and 173 company-owned bakery/cafes. By growing their sales of franchises, Panera is progressing in other areas as well. The CEO and chairperson of Panera Bread Company is Ronald Shaich. Then Shaich has been the CEO, Panera’s revenue has rose from S350.8 million in 2000 to S1353.5 million in 2009. The key actions of Panera’s growth strategy concentrated on raising store profit, gross profit per transaction and increasing transactions using its capital smartly. The company contributed precise assistances to the expansion of new markets and further penetration of existing markets by controlled franchised bakery-cafés...
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...Panera Bread Case Study MGMT 1/30/16 Synopsis Panera Bread is a company well known for their healthy, sophisticated, all natural breads and sandwiches. The restaurant focused on the consumer that was tired of the everyday burger and fries that other fast food restaurants relied upon for majority of their sales. Customers gladly paid well over five dollars a sandwich for that homemade taste that Panera was known for and built their reputation upon. Panera Bread strives for excellence in their operations as well as their menu. Ronald Shaich’s vision was to have a profitable company without cutting corners on quality. He focused the company’s strategy on consumers that could afford to pay more for a healthy meal instead of unemployed customers that wanted discounted unhealthy food that Panera’s competitors focused on such as Burger King. This strategy paid off because even during the recession of 2008, Panera continued to grow while there competitors sales declined. Throughout the 2000s, Panera continued to grow through new franchise agreements as well as acquisitions of other bakery cafes. This led Panera to become a national bakery-café that owned/operated over 1,400 stores in over forty different states, as well as in Canada. Panera in its early years grew from a small sixty customers a day, to an astonishing six million customers a week in present day. The company is now one of the largest food service companies in the United States, while continuing...
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...convenient enough to where it can compete with the fast-food concept. The “star of the show” and the foundation of the value proposition was Panera’s renowned authentic, baked fresh daily in the store artisan bread, as a main staple on the menu. The menu initially consisted of breakfast breads and pastries, sandwiches, salads and soups and was served on-site. Through the years the restaurant expanded their menu to include a variety of seasonal items, fruit smoothies, Espresso bars, etc. By offering a unique high quality menu options paired with its ambience Panera has been successfully gaining ground on some of its main rivals such as McDonalds, Chili’s, Applebee’s and California Pizza Kitchen, to name a few. Furthermore, management expanded the concept to incorporate catering, which has become a significant addition to the revenue stream. Yet even with the rapid growth, product line-up and service options expansions, the company never lost sight of its roots or waivered from the original concept of offering high-quality food, great customer service and “feels like home” atmosphere. “Panera was founded on the belief that quick food could be quality food,” said Ron Shaich, founder, Chairman and CEO . Being able to establish and gain market share in the fast casual” industry Panera Bread Co competes in didn’t come overnight was a result of carefully crafted and executed strategy, which was a product of many years of experience and great...
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