...Panera Bread Company Financial Analysis In 2017 the Panera Stock were going for $315 per share in cash, in transactions valued at approximately $7.5 billion, including assumption of $340 million of net debt. For this Panera Bread Company, they came out with themes on digital, clean food, loyalty, delivery, and new formats for growth. Panera is the leading industry in digital with 26% of sales digital. They are the first and only menu with a clean menu. They have a loyalty program which is the largest in the industry with 25 million members and half of transactions through the program. There omni channel approach leads the industry, with delivery now available in 24% and their catering sales growing 11%. Their Company owned bakery café...
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...Question 1 Panera Bread Company is a fast service, casual bakery-café that offers fresh-baked, quality breads and baked products as well as breakfast items, pastries, smoothies, made-to-order sandwiches, pasta, soups, salads, and café beverages. They pursue a broad differentiation strategy which seeks to differentiate the company’s product offering from rivals with superior attributes that will appeal to a broad spectrum of buyers. We believe Panera Bread Company approaches differentiation from the angels of unique taste and quality ingredients along with an aesthetically pleasing and inviting dinning environment. It was believed that the success of Panera Bread Company meant “being better than the guys across the street.” By developing a menu with diverse offerings, it enables Panera Bread Company to draw in customers from breakfast through the dinner hours each day. Because Panera Bread Company uses higher quality, fresh ingredients in their uniquely crafted menu items, they are able to command a higher price for its products than some of their rival competitors. Question 2 Internal strengths for Panera Bread Company: • Store design and ambiance. • Working with franchisees to open new locations; Superior product quality- artisan signature breads, made from four ingredients, as well as bagels, muffins, cookies, and other pastries, were baked fresh throughout the day at each café location. • Panera’s many honors and rewards. • My Panera Rewards that builds relationships...
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...Case 8: Panera Bread Company in 2011—pursuing growth in a difficult economy This case study provides information regarding the past performance, current analysis, stock valuation, market evaluation, and industry comparison. In this analysis and case study, The following key elements comprise the Panera Bread strategy: 1. Capitalize on market potential by opening both company-owned and franchised Panera Bread locations as quickly as possible. Management planned to expand the number of Panera Bread locations by 17% annually through 2010 and to achieve EPS growth of 25% annually. The addition of the franchising option to the strategy has proven to be key in acquiring desired market penetration. 2. Offer a more nutritious fast food dining option. Panera Bread’s signature product is fresh-baked artisan bread made with limited ingredients and no preservatives or chemicals. The rest of the Panera menu offerings are built upon this bakery expertise. The menu groups were fresh baked goods, made-to-order sandwiches and salads, soups, light entrees, and café beverages. 3. Compete successfully in five submarkets of the food-away-from-home industry. Panera Bread utilizes its distinctive menu, signature café design, inviting ambience, operating systems, and unit location strategy to compete successfully. The submarkets that Panera competes in are: breakfast, lunch, day-time “chill out”, light evening fare for take-out or dine-in, and take-home bread. Panera’s goal was to increase...
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...Leadership (HRM 501) Panera Bread Company Team - 04 Submitted to: Shahriar Akbar Chowdhury Course instructor Organizational Behavior & Leadership Submitted by: Humaira Nazia – 12164096 Urfa Zewar – 11364027 Rounak Morsalin – 12164021 Sheikh Tania Akhter – 12164081 Md. Mamunur Rashid Mamun – 12164084 Date of Submission: 28th January, 2013 BRAC University, Mohakhali Question 1: what do you describe as Panera’s purpose, mission and strategy? Use the firm’s website for the further information and assistance. Panera bread started their journey from 1997. Ron Shaich, the owner of this company is operating this company very well to move the business forward. * Panera’s purpose: Panera bread wants to operate its business with the purpose of satisfying customers with fresh baked breads, gourmet soups and efficient service. * Panera’s Mission: “A loaf of bread in every arm.” * Panera’s Strategy: For a new franchise like Panera is not easy to be successful within a very short time. But their strategy was to understand the long term trends at play and getting the organization ready to respond to it. They were very careful in terms of responding according to the need of the customers. That’s why before customers starts complaining about trans fat, Panera bread voluntarily eliminate it from the menu. So their strategy is hitting the bulls’ eye. Question 2: How well has Ron Shaich utilized the open system model of organizations in moving Panera Bread Company forward in its...
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...1. What is Panera Bread’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve? Strategy was to aggressively expand its market presence across North America and improve the quality of the dining experience it provided to customers. From the five competitive strategies discussed in chapter 5 I would Best-Cost Provider strategy. Panera Bread provides common café beverages around the country. They do however manage to offer products at lower cost to it rivals and still give their customers more value for their money by incorporating good to excellent product qualities. Panera is striving for to achieve a type of competitive advantage that is a lower cost then its rivals with a market that targets a broad cross-section of buyers. 2. What does a SWOT analysis of Panera Bread reveal about the overall attractiveness of its situation? Does the company have any core competencies or distinctive competencies? Strengths: • Attractive & appealing menu • Bread-baking expertise • Artisan breads are Panera’s signature product. • Nationwide leader in the bakery-café segment • High ratings in customer satisfaction • Solid brand name • Initial success in catering • Good franchisees higher sales in franchised stores compared to company-owned • Financial strength of the company able to grow without taking on...
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...Company Background Louis Kane and Ron Shaich started a bakery-café enterprise in 1981, which they termed Au Bon Pain Co. Store units bloomed throughout the eastern regions in airports and shopping centers, making a name of themselves within the bakery-café division. Upon realizing the consumers in the fast food division were additionally attracted to a higher-quality dining experience, top management acquired Saint Louis Bread locations, altering the menus and atmosphere to their vision. Ultimately, in 1997, all bakery-cafes were titled Panera Bread outside of their St. Louis markets. Fast-forwarding to recent years, Panera Bread has received numerous awards, such as the Harris Poll EquiTrend, which ranked Panera as the Casual Dining Restaurant...
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...Running head: PANERA BREAD CASE ANALYSIS Panera Bread Case Analysis LaToya Melvin Davenport University BUSN 520 Table of Contents INTRODUCTION 3 LITERATURE REVIEW Synopsis of the Situation 4 Key Issues 4 Define the Problem & the Opportunity 6 Alternative Solutions 6 Selected Solution 7 Implementation/Recommendations 7 CONCLUSIONS 7 WORKS CITED 8 Abstract This case study focuses on the market analysis for the Panera Bread Company. The case will examine five components; the synopsis, key issues, problem and opportunity, alternative solutions, selected solution, and implementation/recommendations. Throughout the case, questions will arise as Panera faces challenges in the growth and the operation of the business that will include such issues as marketing, pricing and factors within its consumer base. Literature Review Synopsis Panera Bread is a company founded in 1982, named Au Bon Pain at that time by Louis Kane and Ron Shaich. Panera Bread goal was to offer the best quality product and to be nationally recognized by its bakery-café specialty. Panera Bread’s strategy is to make great bread and to make it broadly available, being the bread experts in the industry. They service consumers-on-the-go, who...
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...Course Management Principles Student: Scott Buble Instructor: Professor Dewan Date: October 28, 2012 SWOT Analysis |Organization: Amy’s Bread | |Operational Objectives: Has had steady growth throughout the past few years and becoming more and more competitive in the| |New York City Market. Amy is weighing her options to see if she should focus on retail or wholesale and also whether or | |not to move to a larger location. | INTERNAL |Strengths |Weaknesses | |Amy’s Bakery is Zagat rated which helps to distinguish her bakery as being |The bakery industry is extremely competitive and many times there are low wholesale | |extremely successful. |profit margins. | |Amy’s Bakery, unlike many others, donates to charities, which helps consumers |Locations in New York City are very expensive and there are always bakeries opening | |see they also care about the community. |which makes the bakery environment more competitive. | |Amy has a high...
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...Panera Bread Company (2010): Still Rising Fortunes? Synopsis At the time when Panera was built, the fast-food industry was characterized as highlighting low-grade burgers, greasy fries, and sugared colas. Shaich chose to create an informal but comfortable place where consumers could eat fresh-baked artisan breads, sandwiches, and salads without bothering about either it was healthy or not. Panera Bread Company assists as a retail bakery/café restaurant. In 1993, Au Bon Pain Company acquired St. Louis Bread Company. Earlier this, the St. Louis Company was contained of 20 bakery/cafes in the St. Louis area. From 1993 to 1997, Au Bon Pain altered all their bakery café names to Panera Bread. By 1999, Au Bon Pain sold all sales except for Panera Bread Company. Panera Bread Company has maintained growth everywhere their quarters. Panera currently has 429 franchise operations and 173 company-owned bakery/cafes. By growing their sales of franchises, Panera is progressing in other areas as well. The CEO and chairperson of Panera Bread Company is Ronald Shaich. Then Shaich has been the CEO, Panera’s revenue has rose from S350.8 million in 2000 to S1353.5 million in 2009. The key actions of Panera’s growth strategy concentrated on raising store profit, gross profit per transaction and increasing transactions using its capital smartly. The company contributed precise assistances to the expansion of new markets and further penetration of existing markets by controlled franchised bakery-cafés...
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...Panera Bread Case 1. What is Panera’s Strategy? Which of the five generic competitive strategies most closely fits the competitive approach that Panera is taking? What type of competitive advantage is Panera trying to achieve? Panera Bread’s strategy is to provide a premium specialty bakery and café experience to urban workers and suburban dwellers. As well as to create a specialty café anchored by an authentic, fresh-dough artisan bakery and upscale quick-service menu selections. Broad Differentiation is the competitive approach Panera Bread has taken. They compete on the basis of providing an entire dining experience they call “Panera Warmth” .Their environments are distinctive and engaging, have an alluring and hospitable atmosphere, free Wi-Fi , real china & stainless silverware. Also regular changes in menu offerings to adapt to consumer wants and needs are points of emphasis to differentiate themselves from the competition. The type of competitive advantage they’re striving to build is based on the triple combination of Product, Environment, and Great Service (PEGS). Prior to Panera Bread going nationwide, the management performed cross-country market research and concluded that consumers could get excited about a fast and high quality dining experience, called fast casual. Panera Bread is attempting to achieve competitive advantage with offerings that rivals don’t have and can’t afford to match. In this case, delicious handcrafted bread arriving fresh daily, served...
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...Panera Bread Case Study MGMT 1/30/16 Synopsis Panera Bread is a company well known for their healthy, sophisticated, all natural breads and sandwiches. The restaurant focused on the consumer that was tired of the everyday burger and fries that other fast food restaurants relied upon for majority of their sales. Customers gladly paid well over five dollars a sandwich for that homemade taste that Panera was known for and built their reputation upon. Panera Bread strives for excellence in their operations as well as their menu. Ronald Shaich’s vision was to have a profitable company without cutting corners on quality. He focused the company’s strategy on consumers that could afford to pay more for a healthy meal instead of unemployed customers that wanted discounted unhealthy food that Panera’s competitors focused on such as Burger King. This strategy paid off because even during the recession of 2008, Panera continued to grow while there competitors sales declined. Throughout the 2000s, Panera continued to grow through new franchise agreements as well as acquisitions of other bakery cafes. This led Panera to become a national bakery-café that owned/operated over 1,400 stores in over forty different states, as well as in Canada. Panera in its early years grew from a small sixty customers a day, to an astonishing six million customers a week in present day. The company is now one of the largest food service companies in the United States, while continuing...
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...Panera Bread, Customer’s Decide Kevin Moore Embry Riddle Aeronautical University MGMT 201 Principles of Management Instructor; Alan Labeouf 11/15/2012 Abstract In addition to Panera Breads restaurant business, Panera Bread has created community sustained restaurants called Panera Cares, where the customers decide what to pay for their food. Panera Cares is currently operating with positive margins based on this goodwill concept. Research shows that while some people cannot pay much or nothing at all, others that can afford to pay typically pay more (Ron Shaich, 2012). Panera Cares illustrates that business models do not always need to follow conventional management concepts. This concept is gaining recognition in the business world, local communities and also challenges other corporations to review their business models and strategies with consideration to the community and people that make them successful. Introduction Panera Bread has decided to take action regarding the slumping economy that has caused many Americans to go hungry. According to the US Department of Agriculture, last year, 17.2 million households faced food insecurity (Martin, 2012). The result of this growing epidemic is Panera Cares, a restaurant cafe where people can eat nutritious food in the same uplifting environment Panera is known for and pay whatever they can afford (Ron Shaich, 2012). Food insecurity in our country is the...
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...convenient enough to where it can compete with the fast-food concept. The “star of the show” and the foundation of the value proposition was Panera’s renowned authentic, baked fresh daily in the store artisan bread, as a main staple on the menu. The menu initially consisted of breakfast breads and pastries, sandwiches, salads and soups and was served on-site. Through the years the restaurant expanded their menu to include a variety of seasonal items, fruit smoothies, Espresso bars, etc. By offering a unique high quality menu options paired with its ambience Panera has been successfully gaining ground on some of its main rivals such as McDonalds, Chili’s, Applebee’s and California Pizza Kitchen, to name a few. Furthermore, management expanded the concept to incorporate catering, which has become a significant addition to the revenue stream. Yet even with the rapid growth, product line-up and service options expansions, the company never lost sight of its roots or waivered from the original concept of offering high-quality food, great customer service and “feels like home” atmosphere. “Panera was founded on the belief that quick food could be quality food,” said Ron Shaich, founder, Chairman and CEO . Being able to establish and gain market share in the fast casual” industry Panera Bread Co competes in didn’t come overnight was a result of carefully crafted and executed strategy, which was a product of many years of experience and great...
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...this will tell you why customers will definitely pay for the quality. 1. Identify at least three challenges when setting up a business. Explain why they are challenges. 2. Define what a “niche” product is. Give at least three examples of niche products. 3. Explain why a niche company might have an advantage in a market. Would price necessarily be an advantage? Explain why or why not. 4. Identify and explain three reasons why customers would pay more for exclusivity. 5. Explain how a niche player “chips away” at a larger competitor’s base. Give three examples of retailers who have done this. Identify at least three challenges when setting up a business. Explain why they are challenges. Financing: Does the owner have sufficient cash flow to fund the opening of the business as well as continuing operations? Many times an owner does have enough financial background to open their doors, but they fail to consider that the company has ongoing issues, extreme growth can be a factor, but financing liquidation of the company can get them into some hot water. Securing an ideal location: In retail, the location can be a good deal or a bad one to the success of the company (Brown, 2004). The type of product can also have an impact of a certain location. For example, in the urban...
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...Panera Bread Case Study Paper August 16, 2013 Introduction Panera Bread Company got its start in 1981 known as Au Bon Pain Co. Inc. Since that time it has gone through several changes until it eventually became the Panera Bread Company in 1999. They have forged forward through the recession and a weak economy to become a well-respected restaurant known for its quality food. This review will take you through the beginnings of Panera Bread to where they are now. It will also cover their main competition and how they compare to each other, and the different charitable organizations that Panera sponsors. Founded by Louis Kane and Ron Shaich, Au Bon Pain Co was established in 1981. Their stores were mainly along the east coast of the United States and internationally where they prospered throughout the 1980’s and 1990’s. “In 1993, Au Bon Pain Co., Inc. purchased Saint Louis Bread Company, a chain of 20 bakery-cafes located in the St. Louis area” (Panera Bread, 2013). During that time the St. Louis Bread Company was in the process of renovating its bakery-cafes in the St. Louis area. Between 1993 and 1997 average unit volumes increased by 75% after completing a comprehensive re-staging of Saint Louis Bread Company. Eventually the name was changed to Panera Bread. Panera is a word that has roots in “breadbasket” in Latin. Panera Bread knew that they had the potential of becoming one of the leading brands in the nation. In order for Panera Bread to reach its potential...
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