Panera Bread Essay
5 Sep 2014
MGMT 479
Panera Case Study 16
Synopsis: “The Panera Bread legacy began in 1981 as Au Bon Pain Co., Inc. Founded by Louis Kane and Ron Shaich a master baker. Corporate headquarters located in Saint Louis, Missouri, the company prospered throughout the 1980s and 1990s and became the dominant operator within the bakery-cafe category” (Panera Bread, 2014). The bakery-café concept capitalized on a confluence of current trends: the welcoming atmosphere of coffee shops, the food of sandwich shops, and the quick service of fast food. In 1991, Kane and Shaich took the company public after selling off the heavily in debt Au Bon Pain Co. segment in 1993, in favor of the more café style atmosphere of Saint Louis Bread, known as Panera. …show more content…
Franchise owned bakery-cafés purchase all of their dough products from sources approved by the company, which requires a major commitment of capital. This vertical integration has made Panera capable of controlling the quality of its signature product, their bread. The Bakery supply chain does provide a competitive advantage and helps to ensure quality however PBC needs to review the current supply and demand. In 2009 there were 1380 baker-cafes with only 23 fresh dough facilities to provide daily deliveries, with distribution routes could be anywhere between 300 to 500 miles in range. Distribution ranges from fresh dough facilities need to be reevaluated. Plus in 2009, the company began baking loaves later in the morning to ensure freshness, which would increase the demand for fresh dough. Investing to build more fresh dough facilities vise franchise or company owned bakery cafes will ease an already burdened supply chain. PBC should take a note from the San Francisco Bakery and put a few fresh dough facilities next to company owned bakery cafes, this will draw customers to see and experience the Panera artisan bread making process and increase bread sales which are the back bone of the company. Plus PBC could bake and complete their own sweet goods instead of contracting externally and reducing prep time in bakery-cafés nationwide still ensuring quality control, as these items will be made in dough
MGMT 479
Panera Case Study 16
Synopsis: “The Panera Bread legacy began in 1981 as Au Bon Pain Co., Inc. Founded by Louis Kane and Ron Shaich a master baker. Corporate headquarters located in Saint Louis, Missouri, the company prospered throughout the 1980s and 1990s and became the dominant operator within the bakery-cafe category” (Panera Bread, 2014). The bakery-café concept capitalized on a confluence of current trends: the welcoming atmosphere of coffee shops, the food of sandwich shops, and the quick service of fast food. In 1991, Kane and Shaich took the company public after selling off the heavily in debt Au Bon Pain Co. segment in 1993, in favor of the more café style atmosphere of Saint Louis Bread, known as Panera. …show more content…
Franchise owned bakery-cafés purchase all of their dough products from sources approved by the company, which requires a major commitment of capital. This vertical integration has made Panera capable of controlling the quality of its signature product, their bread. The Bakery supply chain does provide a competitive advantage and helps to ensure quality however PBC needs to review the current supply and demand. In 2009 there were 1380 baker-cafes with only 23 fresh dough facilities to provide daily deliveries, with distribution routes could be anywhere between 300 to 500 miles in range. Distribution ranges from fresh dough facilities need to be reevaluated. Plus in 2009, the company began baking loaves later in the morning to ensure freshness, which would increase the demand for fresh dough. Investing to build more fresh dough facilities vise franchise or company owned bakery cafes will ease an already burdened supply chain. PBC should take a note from the San Francisco Bakery and put a few fresh dough facilities next to company owned bakery cafes, this will draw customers to see and experience the Panera artisan bread making process and increase bread sales which are the back bone of the company. Plus PBC could bake and complete their own sweet goods instead of contracting externally and reducing prep time in bakery-cafés nationwide still ensuring quality control, as these items will be made in dough