Panera Bread’s primary competition is comprised of many other fast casual and/or café-style restaurant chains, including Chipotle, Starbucks Coffee, Five Guys Burgers and Fries and P.F. Chang’s China Bistro.…
In 2008, the company operated in 1,252 bakery-cafes in 38 American States and Canada. Panera Bread Company’s success relies on the strategy of quick service and high quality food. According to Wall Street Journal, Panera scored the highest with customer loyalty in their market niche. In 2007, Sandleman & Associates Quick-Track “Awards of Excellence,” put Panera Bread Company as one of the top chain restaurants for the sixth consecutive year. They have a very strong brand image, which also contributes to their success.…
In the quick casual restaurant segment, Panera competes with all restaurants that offer quick ordering and preparation of other types of food (such as Chinese, Mexican, Italian, etc.) Panera offers consumers a bakery-café experience with a European touch. The Bakery part of Panera caters to customers of sweet (but somewhat gourmet) goods and artisan-type bread. In this sense, the most direct competitor of Panera is perhaps Artisano Bakery Café and Aroma espresso bar, which offer a similar type of menu.…
Internally we find some key information concerning the company. At the moment the Panera bread company offers a lot of good products, has a strong position on the niche market and has a lot of loyal costumers. When looking at the TOWS matrix, three favorable strategies emerge. The first option is to focus on a loyalty program. This would increase guest and staff satisfaction and therefore increase popularity on the market. The second option is to stay ahead of competition by developing new and adapting old products. With this option the future expectations of costumers will be met. The third and last option is to expand the company by entering the Asian market. This is expected to increase brand awareness and a creation of a strong competitive position.…
Healthy financial position: company experiencing growth without debts, increased revenue, increased earnings per share. Higher operating cost, small revenue compared to competitors…
Panera Bread Company is one of the largest food service companies in the United States which owns, operates, and franchises retail bakery-cafes with 1,453 locations in 40 states, the District of Columbia, and Ontario, Canada. Having approximately 60 customers a day at the first bakery-café, the company has grown to currently serve nearly six million customers a week. As of December 28, 2010, it operated 662 Company-owned bakery-cafes located throughout the United States and in Ontario, Canada and 791 franchise-operated bakery-cafes located in the United States under the Panera Bread®, Saint Louis Bread Co.® and Paradise Bakery & Café® names. The company also operates 26 fresh dough facilities to supply fresh dough and other products daily to most company-owned and franchise-operated bakery-cafes. In the fiscal year ended December 28, 2010, the company revenues were $1,542.5 million, consisting of $1,321.2 million of Company-owned net bakery-cafe sales, $86.2 million of franchise royalties and fees, and $135.1 million of fresh dough and other product sales to franchisees.…
From reading the case I found that Panera Bread uses the broad differentiation strategy. Panera bread has been able to create value to their food that is not easily matched or cheaply copied by rivals. Panera Bread’s breads, bagels, and muffins are made fresh daily. The professionally trained bakers spend about 48 hours making the dough, which is then distributed on a 220 degree temperature controlled truck operated by Panera personnel to ensure optimal freshness (C-136). Also, the trucks only travel 300 miles to insure the dough is fresh when arriving at their location. The only time they can travel longer than 300 miles is if no other distributor who could get to the location. Panera Bread switched to whole grain breads and natural, antibiotic…
Chris and Erica have to consider whether existing businesses will compact their new startup in a positive or negative way. Lena recommended that Chris and Erica perform a formal SWOT analysis, this will help them better understand the competitors in surrounding area. Completing the SWOT analysis will help them make sound decisions on ways to boost profits, and bring in a steady stream of revenue. The analysis will help them in determining their strengths and weaknesses as well as those of their competitors. By identifying the strengths and weaknesses of their competitors, this will give Chris and Erica an advantage when their Corner Café is actually open, and allow them to craft a customer experience that will exceed customer expectations. Considering their menu, the quality and quantity of their product, and price will determine if their café will be able to attract customers. Erica made a great decision to use local produce for fresh produce, this is not only a way to support the community but it can also attract customers. Because we live in a more health conscious society, using the fresh produce will give Corner Café a competitive edge. Offering a menu that offers fresh, organic, unprocessed food contributes to this social factor and gives Chris and Erica an additional advantage.…
If you analyzed the restaurant industry using Porter's five forces model, you wouldn't be favorably impressed. Three of the threats to profitabilitythe threat of substitutes, the threat of new entrants, and rivalry among existing firmsare high. Despite these threats to industry profitability, one restaurant chain is moving forward in a very positive direction. St. Louisbased Panera Bread Company, a chain of specialty bakery-cafés, has grown from 602 company owned and franchised units in 2003 to over 877 today. In 2005 alone, its sales increased by 33.6% and its net income increased by 35.2%. So what's Panera's secret? How is it that this company flourishes while its industry as a whole is experiencing difficulty? As we'll see, Panera Bread's success can be explained in two words: positioning and execution.…
Chipotle is a Mexican restaurant that was opened in 1993 with the one goal to serve high quality and tasty food quickly with an experience that exceeded but refined the fast food experience. Chipotle also focus on using the best ingredients, and upholding their mission statement “Food with Integrity”. It is important to have all of the above qualities in owning a business, but every company has strength and weaknesses, which I will be discussing in this paper. I will discuss the strengths of Chipotle and also their weaknesses, and explain how their strengths can improve their weaknesses.…
Question 1: Discuss the distinguishing features (Market size, Market growth rate, Industry strength, etc.) of the industry. “Market size and growth rate indicates how big the industry is and how fast it is growing. Market size industry’s position includes the product life cycle which includes early development, rapid growth and takes off, early maturity and slowing growth, saturation and stagnation and decline.” Thompson The Panera Bread Company began in 1993 under the name Au Bon Pain’s café style bakeries in the Saint Louis area and the market size grew very rapidly. Panera Bread Company market size was very substantial. Between the years of 1993 and 1997, Panera Bread Company average unit volumes increased by 75 percent. In 1998 management of the Panera Bread Company realized that the company should be rolled out nationwide. The management decided to divest the Au Bon Pain cafes and completely go with the Panera Bread concept. By 1999 the Panera Bread Company had 180 cafes in the Saint Louis area. Between January 1999 and December 2006 an additional 850 cafes were opened. In the year 2000, 172 franchised bakery- cafes were opened by year end and 90 company- owned bakery- cafes were opened. Totally 262 bakery- cafes combined were open in 2000. By the year 2006, 636 franchised bakery-cafes were opened by year end and 391 company- owned bakery- cafes were opened. Totaling 1,027 cafes were open in 2006. The management of Panera Bread wanted to continue to expand the cafes nationally. Panera Bread cafes continued grow by 17 percent annually throughout the year 2010.…
During the 1980s, Shaich and his colleagues began developing a strategy for changing the way America eats. How did they decide on the bakery café strategy? Did Panera's leaders seem to follow the six steps of strategic planning?…
First of all, this company is doing great. To big changes in strategy should not be done. The question is how to grow. I have put my efforts in finding problems that may occur while growing rapidly, and which strategies Panera Bread must concentrate on to manage a sustaining rapid growth without falling in to those potholes.…
What is Panera Bread’s strategy? Which of the five generic competitive strategies discussed in Chapter 5…
They focused on a fast paced café and desired a healthy America. The items that were on the menu were all very healthy. Targeting healthy foods increased business. As Shaich and his business partners planned, analyzed and listened to their customer’s opinion that’s when they decided on the strategy for the café. They then decided they wanted a fast paced café along with the customers having the advantage to sit down and enjoy themselves while eating and or drinking their fresh products. They began adding new items to their menu which increased their sales. Shaich and his partners noticed the increase in business with all the new changes and they decided to increase the amount of Panera Bread café’s. Panera began to grow and grow because of all of the successful decisions they…