Panera Bread is a company that owns, operates and franchises retail bakery cafes in the United States and Canada. The Company started in 1993 when Au Bon Pain bought St. Louis Bread Company. In 1999, Au Bon Pain sold the other restaurants and renamed itself to Panera Bread Company. The company has realized huge potential of the brand through the organization structure, management values, goals, culture, strategic issues, operations and resources.
Organization structure
The company operates in three sections: Bakery Cafe Operations, Franchise Operations and Fresh Dough and Other Product Operations. The Bakery Cafe Operations section operates company owned bakery cafes under the Panera Bread, Saint Louis Bread Company, or Paradise bakery and Café names that produce fresh baked goods, soups, salads, made-to-order sandwiches, custom roasted coffees and other complementary products by on-premise sales. It also provides catering services to their customers. The Franchise Operation sector has operating activities of the franchise business unit, which permits qualified operators to carry out business under Paradise Bakery and café names or Panera Bakery (Gamble, 2008). The third segment which is Fresh Dough and Other Product Operations, supplies fresh dough, produce, tuna cream cheese. The segment permits operated bakery cafes, and indirectly supplies propriety sweet goods substance through a contract manufacturing arrangement to company-owned.
Management values
Management valued interests Panera Bread cafes. This commitment is shown by the quality and value of the product that were being offered. Human Resource Management believed that the attractive menu of the bakery-cafes provided significant growth opportunity. It strived to becom...
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...e for a new café and lowered costs. Company had a policy to not finance new franchisees and area development payment agreement. The operational model led to minimal long term debt and low capital intensity to expand the brand. All cafes offered an assortment of twenty and above varieties of bread that was baked daily (Gamble, 2008). Every bread and sandwich was regularly reviewed to determine whether the product matched regular customer requirements and seasonal relevance. The complexity of the product line, enabled industry to match menu items with a variety of customer needs.
In conclusion, Panera Bread Company is the most preferred bakery industry. It owns, operates and franchises retail bakery cafes. Success of the industry is as a result of several factors including organizational structure, culture, Management values, Resources, operation, goals and strategy.
The article discusses how Panera Bread had to rethink its service model seven years ago. Customers had to wait in line approximately eight minutes to place an order. Furthermore, ten percent of the time, the orders were incorrect. As a result, the company decided that online ordering was the solution to their problem. In 2012, the organization opened a Panera prototype in Braintree, Massachusetts to test the elements of “Panera 2.0”. “Panera 2.0” consisted of self-order kiosks, delivery, digital ordering and a new practice of bringing food to customers’ tables. Getting the right process took Panera Bread over six years. However, all the time spent and money invested paid off for the company. Panera is now recognized as one of the best-performing chains in the industry. In addition, a quarter of the company sales come from online ordering and customers waiting time to place an order reduced to one minute. In 2016, the company posted its best sales growth in four years, outperforming the industry average by 6.5% points.
With a high turnover, it can mean two things for a company. Panera Bread is either ineffective in
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Receiving steady business and making sure customer’s wants and needs are met in the restaurant world is the only way to ensure a successful business. The environments you experience can affect everything. Panera Bread’s comfortable relaxed environment encourages a happy mood which will lead to people continuing to dine with them. Panera Bread is an excellent restaurant and my overall experience was amazing. I will recommend the restaurant to other with no discretion.
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Panera’s viewpoint revolved around the idea of “being better than the guys across the street” (Gamble, Peteraf and Thompson, 2013, p.333). This idea gives you a look into how all companies really view the business operations and/or the accomplishments or lack thereof. All companies try to find its competitive advantage. Having the competitive advantage allows the business to stand-out amongst its competitors. Because Panera has been viewed as a company that follows servant leadership, it requires that the company rely on the following features: ability to listen, compassion, influence, forethought and responsibility. As stated by Spears, “servant leadership requires the aforementioned attributes to be present in order for
The Panera Bread Company began in 1981 as Au Bon Pain Co., Inc. Founded by Ron Shaich and Louis Kane, the company thrived along the east coast of the United States and internationally throughout the 1980’s and 1990’s and became the dominant operator within the bakery-café category. In the early 1990’s, Saint Louis Bread company, a chain of 20 bakery-cafes were acquired by the Au Bon Pain Co. Following this purchase, the company redesigned the newly acquired company and increased unit volumes by 75%. This new concept was named Panera Bread. Top management chose to sell their previous bakery-café known as Au Bon Pain Co. due to the financial and managerial needs of Panera. In order for Panera to become the success top management visualized all resources needed to become available for Panera. Panera Bread is now the most successful bakery-café in the category in which there are currently 1,777 bakery-cafes in 45 states and in Ontario Canada (Panera Bread).
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