Panera Bread Essay

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Synopsis:
Panera was created by Ronald Shaich, CEO and Chairman of Panera Bread Company. Shaich, combined the ingredients and cultivated the leavening agent that catalyzed the company’s phenomenal growth. Panera’s total system wide revenues rose from USD$350.8 million in 2000 to total USD$1,353.5 million in 2009, consisting of USD$1,153.3 million from company-owned bakery-café sales, USD$78.4 million from franchise royalties and fees, and USD$121.9 million from fresh dough sales t franchises (Panera Bread Company Inc., 2009 Form 10-K, p.25 and 2006 Form 10-K, p.20)
Panera Bakery grew throughout 2000s, through franchise agreements, acquisitions, and new company-owned bakery-cafes. Panera had become a national bakery-café locations in 40 states …show more content…

Décor provided a more enjoyable experience for the customer as the environment of fast casual restaurants. The décor also created a generally higher perception of quality.
Panera’s recipe to success was very simple. The company wanted to get more cash of every customer, rather than just more customers. Panera’s high prices targeted customers who could afford USD$8.50 for lunch. The company believed that the higher prices are reasonable based on the quality of food.
Strategic management is a capability that Panera knew how to apply in the business environment. The company was having very successful strategy during recession, by offering higher priced products. Also, companies downsized drastically during the recession. Panera’s strategic management believed that reducing the labor will create longer waits, slower service, and overall negative experience for the customer.
According to Strategic Management and Business Policy 14 edition, Panera provided selected general managers and multi-unit managers with a multi-year bonus program based upon a percentage of the cash flow of the bakery-café they operated. The purpose of the program was to create stable management team, and stronger associate engagement and customer

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