Panera: A Competitive Plan For Success

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As you walk through the doors of Panera Bread, the lighting and décor calm you while the fresh smells of the bakery envelop you. Every detail has been carefully coordinated to ensure a high quality dining experience at a reasonable price. This sophisticated concept for Panera began when a cookie company and a fast casual restaurant, called Au Bon Pain, synergized their efforts and found a propitious niche between fast food and fine dining (Repetti & Vincelette, 2005). By 2003, the company was able to generate significant revenues through company-owned stores, through the sale of fresh dough to franchisees, and through royalties and fees paid by franchisees (Repetti & Vincelette, 2005). In an effort to ensure success of Panera’s strategic direction, I outlined a plan that focuses on growth, customer service, and financial strategy. The plan that Panera actually pursued was similar to my proposal. However, to achieve Panera’s level of success and industry dominance, I would have selected to follow the plan that Panera’s management designed.

The success of Panera’s competitive strategy is based on the company’s ability to create value for customers, effectively expand their reach through new locations, and their ability to exercise financial control of their operations. Panera has created a valuable experience for their customers by combining the casual atmosphere of a coffee shop with the quality of a sandwich shop and the expedited service of a fast food establishment. Furthermore, Panera experienced incredible progress from 1999 to 2003 based on their well planned growth strategy. The company avoided the limited growth experienced by restaurants in urban areas by strategically placing their new locations in areas that were pre...

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...rieved from EBSCOhost.

Panera Bread Company. (2004). 2003 Annual report. Retrieved from http://www.panerabread.com/pdf/ar-2003.pdf

Panera Bread Company. (2011). 2010 Annual report. Retrieved from http://www.panerabread.com/pdf/ar-2010.pdf

Repetti, T., & Vincelette, J. P. (2005). Panera Bread Company: Rising fortunes? In T.L. Wheelen & J. D. Hunger (12th ed.), Strategic management and business policy (pp. 29-1 – 29-23). Upper Saddle River, NJ: Prentice Hall.

Rockwood, K. (2009). Rising dough. Fast Company, (139), 69-73. Retrieved from EBSCOhost.

Tritto, C. (2007, April 15). Panera. St. Louis Business Journal. Retrieved from http://www.bizjournals.com/stlouis/stories/2007/04/16/focus22.html?page=2

Wheelen, T. L., & Hunger, J. D. (2012). Strategic management and business policy: Toward global sustainability (13th ed.). Upper Saddle River, NJ: Prentice Hall.

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