Panera Bread Case Study
BUS 480
Strategic Audit
Michelle Herndon (2012)
Case Number and Title
Case 32: Panera Bread Company (2010): Still Rising Fortunes?
CURRENT SITUATION
Panera Bread’s intention is “to make Panera Bread a nationally recognized brand name and to be the dominant restaurant operator in the specialty bakery-café segment.” Panera experienced competition from many numerous sources in its trade areas. Their competition was with specialty food, casual dining and quick service cafes, bakeries, and restaurant retailers, including national, regional, and locally owned. The competitive factors included location, environment, customer service, price, and quality of products. Panera learned from its competitors, none of its competitors had yet figured out the formula to Panera’s success.
Performance
Panera’s total systemwide (both company and franchisee) revenues rose from $350.8 million n 2000 to $1,353.5 million in 2009. The share price has risen over 1,600% from $3.88 a share on December 31, 1999 to $67.95 a share on December 28, 2009. As of December 29, 2009, the company-owned bakery-café segment consisted of 585 company-owned bakery-cafes, all located in the United States. There were 795 franchise-operated bakery-cafes open throughout the United States and in Ontario, Canada. 57.6% of the company’s bakery-cafes were owned by franchises comprised of 48 franchise groups. Panera had 23 fresh dough facilities, 21 of which were company-owned, including a limited production facility that was co-located with one of the company’s franchised bakery-cafes in Ontario, Canada. In 2009, there was an average of 62.5 bakery-cafes per fresh dough facility compared to an average of 62.0 in fiscal 2008. In fiscal 2009, franchise-operated bakery-café contributed 0.7% of their sales to a company-run national advertising fund, and fiscal 2010, the company increased the contribution rate to the national advertising fund to 1.1% of sales.
Strategic Posture
Panera’s mission
Strategic Audit
Michelle Herndon (2012)
Case Number and Title
Case 32: Panera Bread Company (2010): Still Rising Fortunes?
CURRENT SITUATION
Panera Bread’s intention is “to make Panera Bread a nationally recognized brand name and to be the dominant restaurant operator in the specialty bakery-café segment.” Panera experienced competition from many numerous sources in its trade areas. Their competition was with specialty food, casual dining and quick service cafes, bakeries, and restaurant retailers, including national, regional, and locally owned. The competitive factors included location, environment, customer service, price, and quality of products. Panera learned from its competitors, none of its competitors had yet figured out the formula to Panera’s success.
Performance
Panera’s total systemwide (both company and franchisee) revenues rose from $350.8 million n 2000 to $1,353.5 million in 2009. The share price has risen over 1,600% from $3.88 a share on December 31, 1999 to $67.95 a share on December 28, 2009. As of December 29, 2009, the company-owned bakery-café segment consisted of 585 company-owned bakery-cafes, all located in the United States. There were 795 franchise-operated bakery-cafes open throughout the United States and in Ontario, Canada. 57.6% of the company’s bakery-cafes were owned by franchises comprised of 48 franchise groups. Panera had 23 fresh dough facilities, 21 of which were company-owned, including a limited production facility that was co-located with one of the company’s franchised bakery-cafes in Ontario, Canada. In 2009, there was an average of 62.5 bakery-cafes per fresh dough facility compared to an average of 62.0 in fiscal 2008. In fiscal 2009, franchise-operated bakery-café contributed 0.7% of their sales to a company-run national advertising fund, and fiscal 2010, the company increased the contribution rate to the national advertising fund to 1.1% of sales.
Strategic Posture
Panera’s mission