Panera Bread
Making the Dough at Panera Bread Company
Terri Wilson
John Totherow
Rebecca Hall
March 3, 2013 Executive Summary
Repetti and Vincelette (2005) found that Panera Bread Company “Panera” opened 419 new bakery-café stores from the initial unit expansion beginning in 1999 through 2003 as system-wide revenues increased (p. 29-1). Annualized unit volumes and system-wide comparable sales percentages declined each year since 2003 indicating a decrease in company growth and narrowing profit-margin (Repetti & Vincelette, 2005, p. 29-1). A failure to develop effective strategies and initiatives will negatively impact the company. Panera sells baked goods, sandwiches, soups, and coffee at their bakery-cafes. The separate bakery counter, areas for small gatherings, booths for privacy, free Wi-Fi, and casual atmosphere attract consumers who desire more from the standard fast food chains.
Panera’s artisan bread, flavorful menu, customer service, and prices also appeal to consumers.
In order to sustain a business, several strategies must be considered and countless more are needed to increase business. Panera must continue to invest in researching and developing strategies in order to increase their competitive advantage over other bakery-cafes. A review of current strategies and alternative recommendations are included in this case analysis.
Making the Dough at Panera Bread Company
I. Current Situation
In the recent past, fast-food chains have been worried about how declining consumer confidence has been hurting sales in the recent past, but restaurants like Panera are drumming up constant results even without dollar menus. Panera has “devoted diners” that are more than happy to feast at their bakery-cafés and plunk down two times as much compared to quick food restaurants such as McDonalds or Taco Bell. With a more than delectable menu including: made-to-order sandwiches on artisan bread, homemade soups and salads, freshly baked breads
Terri Wilson
John Totherow
Rebecca Hall
March 3, 2013 Executive Summary
Repetti and Vincelette (2005) found that Panera Bread Company “Panera” opened 419 new bakery-café stores from the initial unit expansion beginning in 1999 through 2003 as system-wide revenues increased (p. 29-1). Annualized unit volumes and system-wide comparable sales percentages declined each year since 2003 indicating a decrease in company growth and narrowing profit-margin (Repetti & Vincelette, 2005, p. 29-1). A failure to develop effective strategies and initiatives will negatively impact the company. Panera sells baked goods, sandwiches, soups, and coffee at their bakery-cafes. The separate bakery counter, areas for small gatherings, booths for privacy, free Wi-Fi, and casual atmosphere attract consumers who desire more from the standard fast food chains.
Panera’s artisan bread, flavorful menu, customer service, and prices also appeal to consumers.
In order to sustain a business, several strategies must be considered and countless more are needed to increase business. Panera must continue to invest in researching and developing strategies in order to increase their competitive advantage over other bakery-cafes. A review of current strategies and alternative recommendations are included in this case analysis.
Making the Dough at Panera Bread Company
I. Current Situation
In the recent past, fast-food chains have been worried about how declining consumer confidence has been hurting sales in the recent past, but restaurants like Panera are drumming up constant results even without dollar menus. Panera has “devoted diners” that are more than happy to feast at their bakery-cafés and plunk down two times as much compared to quick food restaurants such as McDonalds or Taco Bell. With a more than delectable menu including: made-to-order sandwiches on artisan bread, homemade soups and salads, freshly baked breads