Panera Bread Case Study

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1. Panera Bread’s strategy is to deliver a high quality dining experience by offering high quality food; an inviting and comfortable atmosphere; sought after menu options; friendly service; efficiently and at an affordable price. Their strategy includes growing the business both organically, through encouraging higher frequency of visits from current customers throughout the day, as well as growing through the opening of additional franchise bakery-cafes.

Panera Bread is trying to achieve a competitive advantage by the quality of their food offerings. Their point of difference compared to many other quick service dining options is their baking expertise as well as their use of all natural, high quality ingredients. Additionally, Panera’s restaurant environment is a point of difference compared to other quick service restaurants, as Panera’s décor offers a very comfortable setting. These are Panera’s distinctive core competencies.

2. Strengths: Baking expertise; use of all natural high quality ingredients; high customer ratings and loyalty; comfortable and unique dining environment with some locations in high traffic shopping areas or with outdoor seating and/or fireplaces; free Wi-Fi Weaknesses: Stringent franchise qualifications and agreement might affect ability to increase number of outlets Opportunities: Use catering business to increase revenue and as a marketing tool to gain new customers; increase current customers’ trial of different dining time options; increase the number of locations in current markets and penetrate untapped markets both domestically and abroad Threats: New restaurant entries; changing customer preferences

3. Panera’s financial performance is very strong. Both company operated and franchise store revenues and earnings per share, have increased every year between 2000 and 2006. Like most companies that are continuing to invest in their future, Panera goes through ebbs and flows as far as their amount of...
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