Panera Bread Company-Case Analysis
CASE STUDY:
Panera Bread Company
GM 691 Strategic Management Seminar for Leaders
[pic][pic][pic]
Prepared by
Iryna Zaytseva
Introduction
Panera Bread Company is one of the businesses in the US Food Indusrty / bakery-cafe chain. Since its start , it has grown significantly and has acquired a name for producing quality natural foods though in the initial periods. It has been more than 10 years , since this company was formed. PB started with a modest 50 million USD investment in 1999 and the year 2006 saw a growth of 17 in business with earnings reaching up to $5 million. Since then, slowly but steadily , it has gained a substantial amount of market share in the natural food segment and has been the market leader in this category. Panera Bread Company (PB) began as Au Bon Pain Company in 1981 operating on the east coast of the USA. In 1993 Au Bon Pain Company purchased St. Louis Bread Company, which was comprised of 20 bakery-cafes in the St. Louis area. From the years 1993 to 1997, the bakery-cafe names changed to Panera Bread. In 1999, Au Bon Pain Company sold all business units except for Panera and the company was renamed Panera Bread Company. Since the companies restructuring Panera Bread Company has become one of Business Week’s “100 Hot Growth Companies.” Panera’s ability to increase sales of franchises has enabled Panera to grow rapidly. This company does not sell single-unit franchises but rather sells franchise agreements of generally 15 stores in 6 years. Panera has strict criteria that must be met to buy a franchise including a certain amount of capital that is required. PB depends on increased sales of franchises and increased revenues in same store sales to continue at its large growth rate. So, Panera Bread Company has recognized large scale growth in recent years and is now on pace for large growth rates in the future. In 2006 PB owned 1,027 franchise operated and company-owned bakery-cafes in 36 states, which clearly
Panera Bread Company
GM 691 Strategic Management Seminar for Leaders
[pic][pic][pic]
Prepared by
Iryna Zaytseva
Introduction
Panera Bread Company is one of the businesses in the US Food Indusrty / bakery-cafe chain. Since its start , it has grown significantly and has acquired a name for producing quality natural foods though in the initial periods. It has been more than 10 years , since this company was formed. PB started with a modest 50 million USD investment in 1999 and the year 2006 saw a growth of 17 in business with earnings reaching up to $5 million. Since then, slowly but steadily , it has gained a substantial amount of market share in the natural food segment and has been the market leader in this category. Panera Bread Company (PB) began as Au Bon Pain Company in 1981 operating on the east coast of the USA. In 1993 Au Bon Pain Company purchased St. Louis Bread Company, which was comprised of 20 bakery-cafes in the St. Louis area. From the years 1993 to 1997, the bakery-cafe names changed to Panera Bread. In 1999, Au Bon Pain Company sold all business units except for Panera and the company was renamed Panera Bread Company. Since the companies restructuring Panera Bread Company has become one of Business Week’s “100 Hot Growth Companies.” Panera’s ability to increase sales of franchises has enabled Panera to grow rapidly. This company does not sell single-unit franchises but rather sells franchise agreements of generally 15 stores in 6 years. Panera has strict criteria that must be met to buy a franchise including a certain amount of capital that is required. PB depends on increased sales of franchises and increased revenues in same store sales to continue at its large growth rate. So, Panera Bread Company has recognized large scale growth in recent years and is now on pace for large growth rates in the future. In 2006 PB owned 1,027 franchise operated and company-owned bakery-cafes in 36 states, which clearly
References: 1. “textbook” – “Crafting and Executive Strategy” by Arthur Thompson, A. J. Strickland and John Gamble. 2. “Form 10-K”, Panera Bread Company Annual Report. Form 10-K. Retrieved on 25 October 2010 from http://www.panerabread.com/pdf/10k-2006.pdf 3. Panera Bread Company Home Page at http://www.paneracatering.com 4. http://bigcharts.marketwatch.com/ 5. http://finance.yahoo.com/