Panera Bread Case Study
MSA 603
Week 2 Assignment
Panera Bread
1. SWOT Analysis
Strengths a. Minimal Long-Term Debt. Most expansion is financed by cash flow from operations. b. Quality control is maintained by making fresh dough daily at one of several fresh dough facilities. The dough is then transported daily from the facility to stores and baked fresh in the store. The average length of each trip is 300 miles. c. Strong brand recognition. d. Free Wi-Fi at most locations. However, to encourage frequent customer turnover, many locations limit Wi-Fi to 30-60 minutes or turn it off completely during peak business hours. e. Growth through successful franchise operations. f. Growth through acquisition; Paradise Bakery & Café acquired 2009.
Weaknesses a. Lack of a dinner menu with "substantial" entrees. b. Still lack a presence in Manhattan (but do have locations in Brooklyn, Bronx, & Jersey). Competitor Au Bon Pain has several Manhattan locations.
Opportunities a. Improving economy equates to more people eating out. b. Panera Cares Community Café. A new concept in corporate giving. Ensures that everyone who needs a meal gets one. People are encouraged to take what they need and donate their fair share. There are no prices or cash registers, only suggested donation levels and donation bins. The cafes also offer the option of volunteering an hour of time for a meal. Third location just opened in January 2011. Leads to positive brand image (panerabread.com, 2011). c. The company has very devoted customers and huge brand recognition. Might consider marketing their bread and bread products at retail grocery chains. They already have the regional dough centers established. They could expand these to baking facilities and still deliver their fresh bread daily using their existing transportation network. d. Consider test marketing a full service casual dining restaurant to capture their same customer
Week 2 Assignment
Panera Bread
1. SWOT Analysis
Strengths a. Minimal Long-Term Debt. Most expansion is financed by cash flow from operations. b. Quality control is maintained by making fresh dough daily at one of several fresh dough facilities. The dough is then transported daily from the facility to stores and baked fresh in the store. The average length of each trip is 300 miles. c. Strong brand recognition. d. Free Wi-Fi at most locations. However, to encourage frequent customer turnover, many locations limit Wi-Fi to 30-60 minutes or turn it off completely during peak business hours. e. Growth through successful franchise operations. f. Growth through acquisition; Paradise Bakery & Café acquired 2009.
Weaknesses a. Lack of a dinner menu with "substantial" entrees. b. Still lack a presence in Manhattan (but do have locations in Brooklyn, Bronx, & Jersey). Competitor Au Bon Pain has several Manhattan locations.
Opportunities a. Improving economy equates to more people eating out. b. Panera Cares Community Café. A new concept in corporate giving. Ensures that everyone who needs a meal gets one. People are encouraged to take what they need and donate their fair share. There are no prices or cash registers, only suggested donation levels and donation bins. The cafes also offer the option of volunteering an hour of time for a meal. Third location just opened in January 2011. Leads to positive brand image (panerabread.com, 2011). c. The company has very devoted customers and huge brand recognition. Might consider marketing their bread and bread products at retail grocery chains. They already have the regional dough centers established. They could expand these to baking facilities and still deliver their fresh bread daily using their existing transportation network. d. Consider test marketing a full service casual dining restaurant to capture their same customer
References: Anonymous. (2011). Fast casual restaurant franchise industry report. Retrieved from http://www.franchisedirect.com/foodfranchises/fastfoodfranchises/ Davis, L. (2010). Confounded by fast-casual. QSR Magazine. Retrieved from http://www2.qsrmagazine.com/articles/features/115/fast-casual-1.phtml Killifer, V. (2011). Fast casual segment outperforms industry. Retrieved from http://www.fastcasual.com/article/179973/Fast-casual-segment-outperforms-industry