Panera Bread Case Analysis

Panera Bread implements a mission to deliver fresh bread products to their customers. According to Panera Bread’s website, their mission statement “A loaf of bread in every arm” does not clearly describe who they are, what they do and why they are here. It does not describe any of the elements to create an effective mission statement.

Their vision of the company is to create a specialty restaurant made with fresh dough with an upscale, quick menu selection without the typical “fast food” feeling experience. They strive to produce better, healthier food selection to a variety of customers.

Their strategic objectives are to become a nationally recognized brand name and to also be the main restaurant in providing upscale, fast dining. Panera produces an environment that customers would prefer to eat at over any other restaurant of the same casual setting and atmosphere. Their focus is on the quality of the dough to make their breads and attention to detail in the food selection they offer. They have strategically placed their stores where a lot of traffic exists and offer a selection of foods for anytime of the day, not just the traditional breakfast, lunch and dinner.

Their financial objectives are to open more bakery stores, gain a larger market share, achieve average sales gains at 4-5 percent, and grow diluted earnings per share at the low end of its long-term target of 15 to 20 percent. They choose not to fund their franchisee stores, thus reducing their long-term debt.

Panera Bread is pursuing a broad differentiation strategy by differentiating themselves with high quality products, variety of soups, salads, beverages and bread selection to a broad range of customers. Panera differentiates from the rivals in the fact that th...

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...ating fresh dough locally and franchising their stores. Panera is also able to grow their company and maintain profits. Their core competency of high quality bread products and their distinctive competencies such as store locations and catering allow them to have competitively valuable capabilities. Panera’s dinner menu offering is a weakness. Other restaurants in this market offer more hot food items for dinner. Majority of their advertising is done by word of mouth from their customers. Increase market share by opening more stores internationally and not just in the United States, grow more market share by having stores in more suburban markets, open more “Panera Cares Community Cafes”, could sell Panera bread products in grocery stores, open a sit down dining restaurant with more dinner options, substitutes are viewed as low quality (Panera bread is high quality)