Panera Bread Case

Our overall recommendation towards Panera’s best option for obtaining competitive advantage is to remodel all of its existing corporate location, including all of its franchised locations. Although there have been talks (amongst Panera Bread) for their corporate and franchise locations (Taylor) of remodeling (Appendix 1), within this report we’ve proposed a plan that will allow their existing stores, both corporate and franchise locations, to be more attractive and welcoming for reward members and their new customers. As a disclosure, all proposed plans will have final approval from appropriate parties from Panera Bread (including Panera’s stakeholders). Although the implementation of a remodel will take several years, the strategy does not include any new locations that Panera may decide to open in the future. The interim strategy proposed of Phase 1 will begin with remodeling a little over a 1,000 of their locations by
mid to late 2020, and with anticipated completion no later than early to mid-2022. When Phase 1 is complete, Panera Bread will continue to remodel the remaining locations – following an observation period from upper management, its board of directors and stockholders for intervals of a few months, half a year, to a year.
All of Panera’s new locations will be constructed with the new layout. The proposed plans for the new layout will include, but not certain to incorporate the following: a uniform layout of kiosk for order placement; a coffee station versus ordering at the front counter; a fireplace that will continue with Panera’s cozy and welcoming atmosphere; along with accommodations for extra space for at least one meeting room. In order for this proposal to be successful, Panera Bread will consider financing the initiative by incurring debt. By Panera Bread updating its corporate and franchised locations, it will establish a fresh and more modern, cleaner appearance for its target market. Although such as project will incur an enormous debt, the revenue from the project will generate with great anticipation a sizable
return.
The overall goal from this remodel is to update Panera Bread’s layout, as well as exceed the experience and needs of their loyal and new customers. The new layout will create the type of atmosphere that Panera Bread wants to continue for its customers – an up to date – warm and welcoming atmosphere for customers to enjoy. As an added gesture, Panera Bread employees will be included in the updates. We believe that it is essential to involve those who are directly involved with the customers experience to understand why the layout is being updated and to promote the update - the new version of Panera Bread - to its customers. To ensure that its employee stay knowledgeable with the customer experience, each employee will be (re)trained on customer service – resulting in customers being happier with the service being provided. The proposed initiative to remodel all of Panera Bread’s locations, along with the updated employee training, will surpass the need of the customer(s). After the first set of remodels are complete, Panera Bread will have individuals, such as District Managers, to monitor (as frequently as possibly) the sales trends and annotate activities that are either positive or negative; these results will be reported to Panera’s headquarters to analyze and evaluation (by location) how well (or not so well) the updated layout is working.