Market Analysis of Panera Bread

Topics: Fast food restaurant, Franchising, Bread Pages: 3 (873 words) Published: November 4, 2010
Describe positioning and operational effectiveness at Panera Bread. Identify numerous examples in your description.

According to company’s profile given in case 8, Panera Bread’s establishment started in 1981 by Louis Kane and Ron Shaich as a bakery café. Sooner they have studied the market and opened café chains in different states. They had realized that they had an opportunity to compete with other fast food companies if they could offer higher quality and at the same time quick dining experience. As author states the vision was to create a specialty café anchored by an authentic, fresh-dough artisan bakery and upscale quick-service menu selections (Thomas, 2008). This is what the consumers were looking for; “convenience fast food with higher quality”. While market had high competition and many substitutes Panera Bread succeeded to open near 900 company owned and franchised cafes, and increased its sales every year. Other fast food provider like McDonalds, Wendy’s, Burger King and etc. were trading off high quality for lower prices and fast service. As results they were gaining market share by this way. On the other side, firms as Panera Bread gave up this tradeoff and instead they chose to serve higher quality food for slightly higher prices with fast serving. And they also had succeeded in their industry as a result of good strategic positioning and operational effectiveness. So, the strategic positioning of Panera Bread was to provide fast food with higher quality and by this distinguishing itself from its rivals. For example, as given in the case 8, the rich menu offerings of Panera Bread were regularly reviewed and revised to sustain the interest of regular customers, satisfy changing customer preferences, and be responsive to various seasons of the year. New menu items were tested first in few cafes and then if they were successful they were rolled out system wide. By this, Panera distinguished itself as a bread expert in its industry, by making...
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