...Elizabeth Hartsig Panera Bread Company The success or failure of a company depends on how well the company can manage key environmental factors. Each and every company out there has a specific environment that will move it. Some of the factors can be prevented while others are completely out of control of the company. Panera Bread is one of the fastest growing chains in America today, there is only 5 states that do not have a Panera. A big key environmental force that created a great opportunity for Panera Bread was Technological and Competitive. Panera Bread offers an app in the Play store for Android and on ITunes for Apple, this app makes it super easy to order your food to go and pickup as soon as you get there with no line no waiting. A few more key factors that led to the growth of Panera Bread is the way they treat their customers. Customer service is a key factor that influences the consumers to keep coming back. Customers do not just pay for a meal but they pay for the entire experience. Excellent customer service skills and waitresses going above and beyond kept customers coming back. Another remarkable key factor was Panera Bread had the ability to respond quickly to shifting market conditions. Customers were constantly changing what they wanted, and restaurants needed to keep up with those changes (Dr. Desmarais, 2011). In order for a restaurant to be able to compete with rival companies it must have the ability to change. Panera Bread changed its menu to satisfy...
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...Panera Bread Company’s Vision and Mission Statement During 1999, Panera Bread sold the Au Bon restaurants and began focusing solely on the growth of the Panera Bread restaurants. As the company attempted to expand their operations across North America, their vision and mission statement became an even larger part of the operations. However, the statement is vague and offers little guidance to the employees of the company. “A loaf of bread in every arm” is not only next to impossible to achieve, but it also lacks specifics as to how the employees are to accomplish the company’s goals. In an attempt to clarify the statement, the company issued its “bread leadership goal,” which states “With a single goal of making great bread broadly available to consumers across America, Panera Bread freshly bakes more bread each day than any bakery-café concept in the country.” Although this statement is more specific, it still lacks the details on how the company is going to achieve the stated goals. What is the company doing to fulfill the statement and ensure there is a loaf of bread in every arm? The mission of Panera Bread states that the “Panera Cares community cafes exist to feed each and every person who walks through our doors with dignity regardless of their means.” The services that are offered in these cafes are attempting to fulfill the goal of getting a loaf of bread into every arm. Not only is the company tackling the issues of hunger, but they are also trying to maintain the...
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...Panera Bread Case 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? Panera Bread utilizes a differentiated strategy. While it should be acknowledged that to some extent all firms in the quick service industry are cost leaders, within that category firms must differentiate themselves further. The food options and free Internet provide points of differentiation that can attract consumers. Panera targets a broad market with this differentiated strategy. The company is seeking to have a competitive advantage in product quality and customer experience within the framework of the quick service business. 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? Panera has a few strengths from which it can draw competitive advantage. The food is generally of good quality for the industry. Panera has good profitability for the industry, and this profitability has been stable over the past five years. In addition, there is good balance sheet strength, with strong liquidity and no long-term debt. Operationally, Panera is strong but nothing unusual for the industry. The major weakness for Panera is that it lacks economies of scale relative to other competitors in the...
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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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...In 1976, Au Bon Pain (“where good bread is”) Bakery was opened as a response to the request for a conceptional fast casual restaurant. Ronald Shaich and Louis Kane merged their business, Cookie Jar Bakery and Aub Bon Pain Bakery, together after a period of debt to create Au Bon Pain Co. Inc. In 1985, the two decided to add fresh made sandwiches to their menu after noticing that their customers were buying their fresh baked bread in order to capitalize on their profit. As of September 25, 2012, they have over 1,600 locations in over 44 states and Canada. More than 776 of its locations are company-operated, while the rest are run by franchisees. Its locations operate under the names Panera Bread, Saint Louis Bread Company, and Paradise Bakery & Café. Panera offers the projection of an inviting atmosphere in all of its establishments. The stores are located mostly in suburban areas with their target consumers being the urban workers and local community. Panera Bread Company has the mission statement of “a loaf of bread in every arm”. The main goal of Panera Bread is to change America’s eating habits. They produce more bread each day than and other bakery-café in the country. The menu at Panera ranges from muffins and bagels to soups, made-to-order sandwiches, and salads. They also have multiple coffees, frozen drinks, teas, and soft drinks. Panera is recognized for leading the nationwide trend for specialty breads. The Wall Street Journal reported that according to...
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...Panera Bread is a chain of bakery-café fast casual restaurants in the United States and Canada. Its headquarters are in Missouri, a suburb of St. Louis, and operates as Saint Louis Bread Company in the St. Louis metropolitan area.Offerings include soups, salads, pasta, sandwiches, and bakery items.The store of St. Louis Bread was founded in 1987 when the first location was opened in Kirkwood, Missouri. Panera bread is the newer name for St. Louis Bread Company outside of the St. Louis area. In 1993, Au Bon Pain Co. purchased the St. Louis Bread Company, which was founded by Ken Rosenthal in 1987. At the same time, the St. Louis Bread Company was renovating its 20 bakery-cafés in the St. Louis area. Between 1993 and 1997,average unit volumes at the revamped Saint Louis Bread units increased by 75%, and over 100 additional Saint Louis Bread units were established. One of founders of au Bon Pain, Ron Shaich, believed that Panera Bread had the potential to become one of leading fast-casual restaurants chains in the nation. Between January 1999 and December 2006, close to 850 additional Panera Bread bakery-cafes were opened, some company owned and some franchised. The driving concept behind Panera Bread is to provide crave-able food that people trust, served in a warm, community gathering place by associates. Panera bread's distinctive menu, signature cafe design,inviting ambience, operating systems and unit locations tragedy allowed it to complete successfully in five submarkets...
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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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...Q1. How has Panera Bread established a unique position in the restaurant industry? How has this unique position contributed to the firm’s success? Do you think Panera Bread will reach its goal of becoming a leading national brand in the restaurant industry? Why or why not? Panera Bread has established a unique position in the restaurant industry by developing itself with various approaches. First of all, Panera Bread has observed the consumer always wanted good food quality and speed services. This has given the Panera Bread an opportunity to reposition itself by joining the concept of fast food and casual dining category. This category provided the consumer the alternative they wanted by capturing the advantages of the both categories. Besides, with the good timing which became the first mover to this new category also led itself to this favorable position. This new category has made Panera Bread’s position not only unique but also contributed to its success. Panera Bread did a lot of things to distinguish itself from its rivals such as adding specialty food, different menus, catering service, new time suggesting of specialty food and providing inviting neighborly atmosphere. According to the text, Panera Bread serves nearly six million customers a week systemwide and become one of the largest chains. This shows that the unique position has contributed to its success. In my opinion, I think Panera Bread will reach its goal because the company is relying on its unique position...
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...Panera Bread Company Josiah Maroko Metropolitan State University Abstract Panera Bread Company is a leader in the easy casual restaurant industry with multiple cafe-bakeries located in 36 states, of the United States. Panera operates under the banner of Panera and Saint Louis Bread Company. Almost 400 of its 1,027 bakeries are company-operated and the remainders are franchisees. Panera Bread’s core competencies are in their market niche, offering a premium specialty bakery and café experience to urban workers and suburban dwellers. Penera’s focus is offering their customers a quick service meal and a more aesthetically pleasing dining experience than offered by traditional fast food restaurants. By providing top-notch service, they knew customers would pass up their competitors in outlets of other easy casual restaurants to dine at the nearest Panera Bread. SWOT, and financial analysis conducted indicate that the company is doing well even though profitability is slowing down and has the potential to rapidly expand. Looking at house the company markets itself and how it function among its competitors there is a discrepancy there fore a clear definition of their strategy in necessary. 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 ...
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...success is based upon those competitive advantages, such as providing high quality products at reasonable prices to its customers, consistent products, dependability, brand loyalty and offering a great casual dining experience. In addition, the culture plays a critical factor in the Panera family, meaning that employees share common values and beliefs. They are empowered by management which contributes to the team atmosphere. Such culture provides a competitive advantage for the company in terms of transferring satisfaction from the employee to the loyal customer. Panera Bread was established in 1981 by Ron Shaich and as of September 2011 was operating 1,504 company-owned and franchised-operated bakery-cafes in 40 states and Ontario Canada. Originally known as Au bon Pain Company, a competitor was purchased in 1993, Saint Louis Bread, and the name was ultimately renamed Panera Bread in 1999. Their Mission was “A loaf of bread in every arm. Panera Bread’s success spread from East to West with another acquisition. In 2007, Paradise Bakery & Café, a Phoenix based bakery-café concept that added an additional 70 stores and 10 states (1). The core competency of Panera Bread is the quality of its bread offerings. This is at the root of many of their strengths including the customer satisfaction and repeat customer loyalty. This combined with the conservatively operated...
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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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...Organizational Analysis History Over the years Panera Bread has become a dominating force in the restaurant industry, from originating with the intention to be simply a bread company steered by the mission “A Loaf of bread in every arm” to emerging as a leader in the quick-casual business with 1,708 bakery cafes in 44 states and in Ontario, Canada. Today Panera Bread’s mission has evolved into “provide high quality products and exceptional service to our customers. We will conduct our business by reaffirming daily our commitment to: NEIGHBORHOOD … maintaining our position as THE neighborhood bakery in our markets. SERVICE … always exceed our customers' expectations ADDED VALUE … offer our customers healthy, natural, premium quality breads and specialty foods at a fair price. COMMUNITY … engages in a working partnership with civic and charitable activities. OPPORTUNITIES … associates will be given equal employment and advancement opportunities with our Company. ENTREPRENEURISM … empower our associates with a challenging and rewarding work environment that allows them to do their best work.” (Panera Bread, 2013). The company was founded in 1981, under the name Au Bon Pain, and has been led for 25 years by the CEO and President Ron Shaich. Its first locations opened up along the East Coast in malls and shopping centers and spreading out internationally in the 1990s. In 1993, Au Bon Pain Co., Inc. extended its portfolio by purchasing Saint Louis Bread Company, a chain of 20 bakery cafes located...
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...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? Panera Bread’s strategy is to used focused differentiation to create the “quick-casual” style of dining that many new food chains are adapting today. Urban workers construct a large portion of Panera’s target, while suburban residents make up a differentiated target demographic. Panera provides comfortable, clean dining with fresh and healthy ingredients, which consumers pay a slight premium for over fast food. Panera’s competitive advantage is the high-quality product at a reasonable price that customers will choose over the options of their competitors. 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: Product Differentiation Good dining experience Franchises Strong Brand High Quality/healthy Ingredients Vertical Integration Strong Growth Model Known for generally good corporate ethics Weaknesses: Pricey food options Geographic Concentration Ingredients have short shelf-life Opportunities: More Franchise locations Breakfast foods Improving economy (more disposable income) Rising Organic Market Take-Home Grocery option Threats: Rely on many gluten foods More competitors...
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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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...Analysis Strategic Group Mapping Competitors Analysis Key Success Factors in the Industry Attractive/Unattractiveness of the Industry Company Situation Analysis Company Strategies Company’s Performance/Financial ratios SWOT Analysis Competitive Strength Assessment Key issues or problems Strategy Alternatives Final Recommendations Implementation Concerns Work Cited Page Background Panera Bread is a company with over 1,300 locations and $94 million in net income per year. They are a leader in the food service industry and continue to incorporate new and innovative ways to keep current customers and attract new customers. They have been in business since 1981, though they have undergone several name and owner changes. Their headquarters are in Richmond Heights, Missouri, and Ken Rosenthal is the founder. They are considered to be a Fast Casual Bakery-Café and their signature item is their fresh baked bread. Throughout this paper we will discuss the strengths and weaknesses of Panera and their competitors to get a better understanding of their market position and where they go from this day forward. Macro-Environmental Analysis Governmental, technology, demographic, societal, and economic factors all play a significant role in the foodservice industry. In the foodservice industry, there are many government regulated laws that affect the production and storage of foods, as well as the cleanliness...
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