“A loaf of bread in every arm” is the mission statement of Panera Bread. Panera Bread bakes more bread each day than any bakery-cafe in the country. Panera’s menu spans from muffins and bagels to soups and salads to a variety of sandwiches. Panera Bread prides itself on providing the highest quality of food that customer enjoy.
Panera’s competitors include restaurants in the fast-casual restaurant market such as Applebee’s, Baja Fresh and Fuddruckers. Panera Bread also has to compete with common fast food restaurants such as McDonald’s and Wendy’s. Although, competition is fierce in these markets, Panera has been able to differentiate itself from other competitors.
One of the main problems that Panera Bread is facing is their pricing strategy. With the state of the economy today, it definitely affects the consumer’s ability to eat at places like Panera Bread, especially when there are less expensive options available. These competitors, most of which are in the fast food industry, offer less expensive food items, although they may be of a lesser quality, they still pose a major threat.
Fast food restaurants such as McDonalds may operate differently, however they have a strong presence in suburban areas, which is where Panera is primarily located. There is approximately one Panera location for every ten McDonald’s. Also, full service restaurants such as Applebee‘s, are beginning to offer lower priced menu options. For example, Applebee’s recently began offering 2 for $20 deals where customers can get an appetizer and two entrees for $20.
References: Donnelly, J. H., Jr., & Peter, J. P. Marketing management: Knowledge and skills. (9th ed.) (2009). Boston, NY: McGraw-Hill Irwin. Panera Bread Company Information Retrieved October 10,2009 from Panera Bread official website http://www.panerabread.com/about/company/ Julie Jargon (2009) Slicing the Bread But Not the Prices Retrieved October 10, 2009 from The Wall Street Journal http://online.wsj.com/article/SB125055615200338805.html?ru=MKTW&mod=MKTW Michael Arndt (2009) Panera Bread’s Apple Strategy Retrieved October 10, 2009 from BusinessWeek http://www.businessweek.com/the_thread/brandnewday/archives/2009/03/panera_ bread_is.html Market Scan (2007) Panera Bread in The Oven Retrieved October 10, 2009 from Forbes.com http://www.forbes.com/2007/10/24/panera-bread-update-markets- equity- cx_ml_1024markets36.html