In May 1999, all of Au Bon Pain Co., Inc.'s business units were sold, with the exception of Panera Bread, and the company was renamed Panera Bread. Since those transactions were completed, the company's stock has grown thirteen-fold and over $1 billion in shareholder value has been created. Panera Bread has been recognized as one of Business Week's "100 Hot Growth Companies." As reported by The Wall St. Journal's Shareholder Scorecard in 2006, Panera Bread was recognized as the top performer in the restaurant category for one-, five- and ten-year returns to shareholders. (Panera, 2013)
Discuss Panera’s business level strategy.
Panera operates in three different business segments; company-owned bakery-café operations, franchise operations, and fresh dough operations. As of June 2013 there were 1708 operating Panera restaurants in 44 states as well as in Ontario Canada both company owned and franchise. That’s an increase of 328 restaurants in 4 years. (Panera, 2013)
The key element of Panera’s growth strategy focused on growing store profit, increasing transaction and gross profit per transaction, using its capital smartly, and putting in place drivers for concept differentiation and competitive advantage. Panera has always kept an eye on the market, the new markets as well as existing markets. In 2009 Panera had a strategy that was different than others. This is the time when the economy took a turn for the worst. Some restaurants lowered their prices to get customers, while Panera kept their prices the same. They e...
... middle of paper ...
....com/articles/2013-10-03/panera-bread-ceo-ron-shaich-on-restaurant-industry-competitiveness on November 07. 2013
Griffith University (2013). “Franchise Problems.” Retrieved from http://www.franchise.edu.au/franchise-problems.html on November 07. 2013
Gouze, E (October 24, 2012) “Competitive Landscape of Restaurant” Retrieved from http://rig001.blogspot.com/2012/10/competitive-landscape-of-restaurant.html on November 07, 2013.
Panera (2013) “Why Panera” retrieved from https://www.panerabread.com/en-us/company/careers.html on November 07. 2013
Vincelette, J.P., & Fogarty, E.A. (2012) “Panera Bread Company (2010): Still Rising Fortunes?” (13th ed.). Upper Saddle River, N.J.: Pearson Prentice Hall.
Wheelen, T. L., & Hunger, J. D. (2012). ‘Strategic management and business policy: toward global sustainability” (13th ed.). Upper Saddle River, N.J.: Pearson Prentice Hall.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Panera Bread Company Background 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%.... [tags: business, financial analysis, marketing strategy]
2053 words (5.9 pages)
- Did you know Panera Bread is one of the fastest growing franchises in America (Panera Bread Franchise). The restaurant must have great qualities for people of all kinds to love it as much as they do. Visiting Panera Bread I had an awesome experience mainly because of its physical environment. Panera Bread has a great environment which is ideal for encouraging consistent business. Panera Bread’s atmosphere is enjoyable. The employees and the managers keep the restaurant clean at all times. When I walked into the restaurant for the first time there were visible employees wiping off the table and sweeping.... [tags: franchises in america, restaurants]
854 words (2.4 pages)
- 1. In the case it describes Panera Breads strategy is to aggressively expand its market presence in North America and to improve the quality of the dining experience for its customers. As for how Panera Bread is assessed within The Five Generic Competitive Strategies the group has determined they are a best cost provider. The best cost provider is deemed as a hybrid strategy combining both differentiation and best cost strategies to provide the best value for customers over fellow competitors. To make it different compared to other fast casual dining locations Panera Bread has made a wide variety of items on their menus available and established a superior dining environment.... [tags: SWOT Analysis]
705 words (2 pages)
- Synopsis Panera Bread Company is a national bakery-cafe with locations across the US and Canada. Panera bread prides itself on selling breads, sandwiches, soups and salads. Panera grew out of a company called Au Bon Pain which was a demonstration bakery (Wheelen & Hunger, 2012, p. 32-2). Louis Kane purchased Au Bon Pain in 1978. From 1978 to 1981 he piled up $3 million in debt (Wheelen & Hunger, 2012, p. 32-2). Kiane who was ready to declare bankruptcy gained a new business partner, Ronald Shaich a recent Harvard graduate.... [tags: bankrupcy, breads, salads, coffee]
1021 words (2.9 pages)
- “A loaf of bread in every arm” is the mission statement of Panera Bread Company (Vincelette & Fogarty, 2010, p.1). Panera started as a small bakery under the name Au Bon Pain and grew to one of the largest fast food service companies in the U.S. In 2008 they had the 5th overall rating in the restaurant industry. “Panera Bread is widely recognized for driving the nationwide trend for specialty breads” (Panera Bread, 2011). Company Timeline Over $3 million in debt and preparing to file for bankruptcy Kane partnered with Ronald Shaich.... [tags: Business Analysis ]
1349 words (3.9 pages)
- Synopsis Panera Bread Company is an intriguing business operation that came to be an exceptional “fast casual” restaurant through observing, learning, acquiring, and divesting of unprofitable assets. Panera’s history began when Pavailler, a French oven manufacturer, opened a demonstration bakery in Boston by the name of Au Bon Pain in 1976. In 1978 an adventure capitalist by the name of Louis Kane purchased Au Bon Pain. Kane had great aspirations for expanding Au Bon Pain, but had little success.... [tags: restaurant, Au Bon Pain, management, Louis Kane]
1995 words (5.7 pages)
- ... Panera Bread can still utilize the concept of marketing by word of mouth but in a more directed manner—that is to be able to get key people influential enough to talk about the Panera Bread Bakery and café experience and to talk about it where many people can hear (e.g. TV, Radio, Print, and even internet advertisement). The purpose of getting endorsers is to make the Panera Bread café experience relatable to a lot of people. This likewise opens the opportunity to broaden the market of people that the company caters to.... [tags: business analysis]
886 words (2.5 pages)
- Competition within the Industry The main competition for Panera Bread in the Food Service Industry is not necessarily restricted to coffee shops as I originally thought. Instead I consider Panera’s direct competition as including Bakery-Cafe restaurants such as Starbucks and Einstein Bros. but also Fast Casual such as Chipotle Mexican Grill, Panda Express, Baja Fresh, Q’Doba, and McCallister’s Deli. Panera and all of these restaurants are also in competition with Quick Service Restaurants such as McDonald’s and Jack-In-The-Box, and Casual Dining Restaurants like Applebee’s and Olive Garden.... [tags: Fast casual restaurant, Fast food restaurant]
1391 words (4 pages)
- According to the Panera Bread website (2011), the company mission is simply “A loaf of bread in every arm.” (para 7). Panera Bread Company is a bakery-café that serves specialty sandwiches, gourmet soups, and sweet treats. The founders of Panera, Shaich and Kane, have consistently developed the company around a strategy of growth. The Shaich and Kane initially operated Au Bon Pain; a bakery served large urban areas. Seeking to extend into other markets, the pair obtained St. Louis Bread Company, seeing the benefits of acquiring an already established enterprise.... [tags: business case model, restaurant, solution]
1276 words (3.6 pages)
- Business Case: Panera Bread Company The main challenge is to determine how Panera Bread can continue to achieve high growth rates in the future. Panera Bread is operating in an extremely high competitive restaurant market which forces the company to improve and to grow steadily for staying profitable. The company’s mission statement of putting “a loaf of bread in every arm” is just underlying Panera’s commitment for growing. They are now in a good financial situation and facing growth rates of up to 20% per year in a niche market that has a great growth potential.... [tags: Business Strategy Analysis Management]
788 words (2.3 pages)
- Parenting for the Second Time
- Structural Identification Of Unreinforced Masonry Structures
- How Does Our Consumption of Animal Products Affect the Environment?
- Detrimental Effects of Social Media on Teenagers
- The Identity of the Middle East: Context, Origin, and Social Influence
- Cartesian Dualism vs Logical Behaviorism