Introduction If you analyzed the restaurant industry using Porter’s five forces model‚ you wouldn’t be favorably impressed. Three of the threats to profitabilitythe threat of substitutes‚ the threat of new entrants‚ and rivalry among existing firmsare high. Despite these threats to industry profitability‚ one restaurant chain is moving forward in a very positive direction. St. Louisbased Panera Bread Company‚ a chain of specialty bakery-cafés‚ has grown from 602 company owned and franchised
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financial success? Steve Ellis started a taco shop in Denver‚ CO with the intent of reinventing Mexican food. He didn’t want fast food‚ he wanted real food. Despite his nay-sayers stating no one would want to pay $5 for a burrito‚ no one wants to see an open kitchen and certainly no one will stand in line to have something assemble before them‚ by 1998 he had opened 16 restaurants and McDonald’s decided to back his endeavors. With McDonald’s investment‚ the company grew to 500 stores by 2005. By January
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Louis. The Panera business plan had worked well and management concluded it had broad market appeal and could be rolled out nationwide. The management team quickly realized the potential of Panera Bread to flourish into one of the leading fast-casual restaurant chains in the nation. With this realization came the need for a more focused management team and greater financial resources. It was not in their best interest to continue with both Au Bon Pain and Panera Bread. In 1998‚ they went exclusively
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Already customers perceive Chipotle’s menu to be healthy. CMG can show that eating at their restaurants will help them stay on the right path at a decent cost. It should also focus on their naturally raised meat as a key factor to their healthy selection. It encourages people who are conscious about eating natural foods‚ and those who are conscious about humane animal treatment to eat at their restaurants. Promotion – Chipotle’s typical method of advertising is word-of-mouth therefore creating the
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Restaurant Operation Management EXECUTIVE SUMMARY This project is about us being hired as a restaurant manager of a new American ethnic restaurant. It has a seating capacity of 80‚ which it serves mainly American cuisine accompanied with various types of alcohol and non-alcoholic beverages. The operation time is from 11am – 1am and our target market would consist of 50% local and 50% tourist. As restaurant manager‚ we are assigned to produce a proposal for this upcoming restaurant which will
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The restaurant industry is a competitive industry. From low cost meals to specialty food items‚ restaurants have become savvy in their efforts to attract customers. Panera Bread has developed a strategy to attract customers that are looking for a change from fast food. Consumers are looking for new ideas for meals. They are looking for quality foods over cheap fast food. Panera has been able to attract and draw customers away from the fast food market with their unique food ideas by drawing upon
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into Panera Bread (PNRA). In the past five years Panera’s stock has returned 243%‚ making it the second-best-performing U.S. restaurant after Chipotle (CMG). Shaich (pronounced "shake")‚ 58‚ had a big 2012: Panera‚ with $1.8 billion in revenue and $3.4 billion in system wide sales‚ including franchisees‚ joined the Fortune 1‚000 and in February opened its first restaurant in the Big Apple. Shaich’s story: A mission describes the company in its current state. Strategic vision‚ on the other
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Rivalry among competing firms. Threat of new entrants The threat of new entrants in the restaurant industry is moderate to high. However‚ not all operators will be afforded the luxury of a big advertising budget to garner sustainable market share. For firms to successful‚ they will have to offer a wide variety of menus to differentiate them from competitors and establish their own niche. For fast casual restaurants to be successful‚ they have to be consistently providing quality meals and an ambience
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sandwiches to tossed-to-order salads and soup served in bread bowls; delivered in the same time as a fast food restaurant. Panera Bread focuses on the individuals who take pleasure in a more peaceful dinning experience. This has made them very successful‚ and has developed a loyal following of customers. What I believe makes Panera Bread fall short competition with other fast food restaurant is their lack of advertising. Panera Bread only wants to attach a certain type of customers because
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CURRENT SITUATION Panera Bread’s intention is “to make Panera Bread a nationally recognized brand name and to be the dominant restaurant operator in the specialty bakery-café segment.” Panera experienced competition from many numerous sources in its trade areas. Their competition was with specialty food‚ casual dining and quick service cafes‚ bakeries‚ and restaurant retailers‚ including national‚ regional‚ and locally owned. The competitive factors included location‚ environment‚ customer service
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