Panera Bread Case Study

Topics: Panera Bread, Competitor analysis, Competition Pages: 6 (1860 words) Published: April 18, 2013
Panera Bread has established and staked put a favorable position in the restaurant industry by the pioneering and implementing a newly category of positioning strategy called “fast-casual”. A “fast-casual” is a strategy whereby the restaurant provides the consumers an alternative they want which combined the advantage of fast food and casual dining. In other words, Panera Bread restaurant is providing a fast speed service and high quality goods to their loyal and potential customers with no significant disadvantage. By practicing this positioning strategy, it leads Panera Bread held flourished while the other restaurants were suffered losses in sales and profits during recession period. When the rivals in restaurant industry are falling and hurting into discounting war, one of the Panera Bread’s Chairmen, Donald Shaich envisioning in another way out. He seeks the environment potential opportunities and minimizes the threats in the market based and considered on company’s strengths and weaknesses. He discovered that the American eating habits are changing and increasingly looking for “special” products. The run-of-the-mill restaurant food, a traditional strategy no longer satisfies the consumers require. So, they distinct and segmenting their foods towards beneficial and value-added by serving fresh- baked and healthy foods to consumer. Due to the exclusive visionary from management and leadership, these made the restaurants become extraordinary and overwhelm the challenges from the direct competitors. The specialty foods that Panera Bread provides covered a wider range and variety to satisfy customers’ option. They have a unique operating hours not only serving breakfast but also lunch and dinner. In their menus, they serve bagels, pastries, hand-tossed salads, signature sandwiches, soups in edible sourdough bread bowl, and also coffee drinks. Most of their meals are using organic and natural ingredients; serve in healthier way which fits today’s consumers’ lifestyle like meals such as Low-Fat Vegetarian Black Bean soup and antibiotic- free chicken. The restaurants even create a warm and comfortable environment to their consumers. All these customer-oriented factors have result Panera Bread increase in not only sales and profits but also increase number in franchises, share prices and values to community. Based on my opinion, Panera will reach its goal of becoming a leading national brand in the restaurant industry in America because the foods and services they are offering is met to the needs of various consumers group. Besides that, their healthy meals offering are charging on a reasonable price which fit to the current consumers purchasing behavior and living lifestyle.  

Porter’s five forces model is a framework that was developed by a professor in Harvard name Michael Porter. Basically this model is illuminating the five forces that will determine and resulting the profitability rate of a business in particular industry. The five forces that are covering in this model consist of threating of new entrants, threating of substitutes products, rivalry of existing company, bargaining power of suppliers and bargaining power of the buyers.

In this model, substitute products are refer to a replacement products in other industries. A threat of substitute exists when the company product demand is affected by the number of availableness in substitutes. The close substitute products may draw out the existing customer from continuous consuming the company product. Next, Rivalry of existing companies can be explained as the competition among the businesses in same industry. The rivalry is a factor that will suppress company profitability because it will constrains the business capability in price control over their product.

Following the threats of new entrants are referring to the participating/ involving of potential competitors into an industry, especially when the business industry is currently...
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