Panera Case Analysis

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Panera Bread

Table of Contents

Executive Summary3

Introduction3

Strategic Issue4

SWOT Analysis4

Strengths4

Weaknesses5

Opportunities5

Threats5

Alternatives6

More aggressive marketing campaign6

Enter untapped domestic markets through franchising6

Sell products in grocery and specialty stores6

Co-ops7

Enter foreign market7

Open more stores in low penetration markets7

Better supply chain management7

Expand Catering Program7

Community Sponsorship7

Recommendation8

Conclusion8

Executive Summary

Panera Bread has experienced an extreme amount of success since it was established in 1981. However, the company still faces the strategic issue of how to make great bread broadly available to consumers across the United States. In this report, we will conduct an in depth analysis of Panera bread, identifying its strengths (menu, quality, franchise agreements, and financially sound,) weaknesses (stringent franchise requirements and routine customer schedules,) opportunities (open more outlets, expand internationally, and increase menu options,) and threats (competition, threat of imitation/substitute goods, and location selection.) Next, we will present a list of alternative solutions to satisfy the strategic issue, including: more aggressive marketing campaign, enter untapped domestic markets through franchising, sell products in grocery and specialty stores, co-ops, enter foreign markets, open more stores in low penetration markets, better supply chain management, expand catering program, and community partnerships. Finally, we will make our recommendation based upon our analysis, which is entering untapped domestic markets through franchising,

Introduction

Panera Bread Company is a bakery-café restaurant that specializes in offering customers with a diverse menu that offers quality ingredients along with providing customers with a relaxing, comfortable atmosphere. Panera Bread, also called St. Louis Bread Company was founded in 1981 as Au Bon Pain Company by Louis Kane and Ron Shaich. Rated high as a bakery-café restaurant, they offer a wide selection of breads, soups, and salads. Panera is considered a “quick casual” restaurant offering sit-down dining in addition to catering services. The company rivals conventional fast food companies, as well as restaurants that cater to the on-the-go customers. A key concept and strategy that Panera has employed is offering a diverse menu made with quality ingredients while providing an inviting ambience for its customers. Panera restaurant locations are based in urban settings, giving customers the ability to meet with friends. Panera’s café-bakery restaurants offer customers a warm setting, including comfortable seating while also providing free Wi-Fi connections that encourages customers to stay longer to enjoy the experience. Panera’s overall strategy allows it to be successful in the course of every meal offered throughout the day.

Along with the aforementioned strategy concept, Panera has created a well-built group of suppliers, which helps facilitate lower costs. Panera also has a network of regional fresh dough facilities which produces fresh dough for both company owned as well as franchised café-bakery restaurants daily. These facilities are located throughout the country to provide quick distribution to each of its local bakery-cafes. By providing freshly made dough, Panera’s management claims to have created a competitive advantage amongst its competitors, also guaranteeing efficiency and consistency in the quality of its products. A variety of suppliers provide Panera with its other essential supplies including sweet goods, coffee, paper goods etc., preventing any individual supplier from having too much leverage. Panera’s strategy has allowed it to outdo much of its competition, from its...
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