Panera Bread Case Analysis

Panera Bread Company-2010 Strategic Audit
I. Current Situation:
A. Current Performance
Healthy financial position: company experiencing growth without debts, increased revenue, increased earnings per share. Higher operating cost, small revenue compared to competitors
 Increased price per share
 Total company revenue increased by 4.2%
 Hoover Europe still showing losses.
 Net Income increased by 27.6%
 55 net new Bakery cafes opened
 Highest sales revenue among the fast-Casual Chain Restaurants in America
 12,000 new permanent Associates employed in 2009 alone
 Higher operating costs of $1,212,597 in total costs and expenses compared to $1,353,494 in total revenue.
 Sales of franchise stores higher than those of company’s own stores.
B. Strategic Posture
Objectives
 “To included a target of 17%–20% EPS growth through the execution of its key initiatives
 “To focus on differentiation through innovative salads utilizing new procedures to further improve quality.
 “To test a new way to make paninis using newly designed grills.”
 “To roll out improved versions of several Panera classics while continuing to
 focus on improving operations, speed of service, and accuracy”
 To increasing our store profit through investing in the quality of our customers’ experience to drive differentiation and competitive advantage, unit growth, driving operating leverage and deploying our excess capital in high-ROI investments positions us well to continue to deliver our targeted long-term EPS growth rate of 15% - 20% annually.
3. Strategies
 Expand through franchise partners to enabled the company grow more rapidly as more franchisees are brought on board.
 Attract targeted customers through their blueprint dubbed “Concept Essence,” that is geared to differentiate the company from its competitors.
 Enhancing customer experience by offering high-quality food at their bakery-cafés to uphold customer trust.
 To open more 80-90 system wide bakery-cafés opening in