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Panera bread company case study
Panera bread company case study
Panera s business strategy
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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.
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.
In the book Fast Food Nation: The Darks Side of the All-American Meal, Eric Schlosser claims that fast food impacts more than our eating habits, it impacts “…our economy, our culture, and our values”(3) . At the heart of Schlosser’s argument is that the entrepreneurial spirit —defined by hard work, innovation, and taking extraordinary risks— has nothing to do with the rise of the fast food empire and all its subsidiaries. In reality, the success of a fast food restaurant is contingent upon obtaining taxpayer money, avoiding government restraints, and indoctrinating its target audience from as young as possible. The resulting affordable, good-tasting, nostalgic, and addictive foods make it difficult to be reasonable about food choices, specifically in a fast food industry chiefly built by greedy executives.
Some strengths that Panera Bread has over it’s competition is that is provides the high and good quality ingredients to its customers. It also gives these customers a difference dining experience compared to McDonalds and Five Guys just to name two competitors. They have catering, fresh baked goods and quickly prepared foods. They also have a great brand name over the years. They have been able to continue on growing financially over the years. Studies also show that majority of customers are very satisfied with Panera Bread.
Chick-fil-A has much recompense over chipotle. For one it additionally has a fast food pick-up window; whereas, chipotle only has the walk in and order restaurant. With the upper hand of this Chick-fil-A has a higher quality food/fast food than many other fast food restaurants or chipotle. At the business-level chick-fil-A’s strategy may include advertising and marketing to help escalate their brand recall. Also, at the corporate-level chick-fil-A’s strategy may include established brand, sponsorship to numerous sports events, and successful advertising campaign- for example, ‘Eat morchickin’.
Despite the economically uncertainty Pret A Manger keeps on thriving in the U.S. fast food market. It’s growing fast, with huge success. Pret is proving to the world its a big threat in the sandwich industry. In 2011, U.S. sales up 40% from the year before, “the company’s overall profits grew by 37% in 2010, and annual workforce turnover is only 60%, compared to fast food industry averages of 300-400%.” (Smart Advantage)
Ludmilla Ivanovic attempted to summarize her husband’s personal philosophy towards baking by creating the company Mission Statement for Iggy’s Bread of the World. This Mission Statement promises that Igor and Ludmilla will “make breads of the highest quality and then deliver them daily to our customers with the highest standards of service and integrity … (while also) creating a nurturing and respectful environment at our workplace that fosters cooperation, communication and a sense of accomplishment for all employees.” By trying to introduce their business model with a socially conscious platform, however, the Ivanovics have differentiated themselves from the competition posed by traditional bakeries. Igor’s unhesitant refusal to use non-organic ingredients in his recipes; despite the significant savings this would bring to the bakery’s bottom line, is a strategic...
Firms such as P.F. Chang’s and Applebee’s, and Olive Garden, offer’s menus that may be (more or less) good substitutes of each other, but none of them perfect substitutes. When viewed from this stand point, no one company has the market cornered. Indeed, virtually every restaurant location must compete not only against other publicly traded chains, but also a wide array of delis, pizzerias, fine dining restaurants and the economy. The Cheesecake Factory is noticeably differentiated in its bakery, and represents commodity diversity that uses this segment of the company to stand out from a large number of
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. In the next 7 years the fast-casual market is expected to grow by 500% in sales to a total of $30 billion.
PepsiCo can potentially acquire California Pizza Kitchen and integrate it in the company’s decentralized management approach. Since PepsiCo executives have experience in the quick service food industry, it should not be a reach for the company to successfully run this casual dining restaurant. For this venture to be successful, it is imperative that management cut down the operating costs at California Pizza Kitchen through the PepsiCo Food Systems distribution network and improve on the 3.1% operating margin that California Pizza Kitchen is currently operating at.
The vision of Panera was to make Panera Bread a nationally recognized brand name as well as becoming the dominant restaurant operator in upscale, quick-service dining. The top management believed for their vision to become a reality they must depend on being better than the guys across the street. In addition Panera wanted to offer a unique dining experience at Panera so attractive that customers are passing by other fast casual restaurants to dine at their nearest Panera Bread Company. Management further implemented this strategy by following a blueprint for attracting and retaining customers. This blueprint called, Concept Essence underpinned Panera’s strategy and embraced several themes that, taken togethe...
Discuss how the employee selection methods at Outback Steakhouse help the organization achieve a competitive advantage
Fast Company,(139), 69-70,73,16. Retrieved from Research Library. Document ID: 1870795761. Wheelen, Thomas L. & Hunger, J. David, (2010). Strategic management and business policy.
2. Thompson and Strickland (2002), Strategic Management: Concepts and Cases, 13th Edition, Chicago Irwin Publications.
In Forward Integration, Panera Bread is doing a great job in their delivery service. First, they set the starting place in West
This article described an interview between Dan Schawbel and Panera’s CEO, Ron Shaich. Shaich was chosen for this interview because of his role as the main guest speaker at the Eleventh Annual Conscious Capitalism CEO Summit. Giving a preview of his talking points, Shaich discusses his tips of leading one of the most successful national restaurants chains and continuing his methods of conscious capitalism. Throughout his time as CEO he strives for other companies to take his advice and company practices for their own, he continues to claim that “Conscious Capitalism works”. Shaich additionally stresses Panera’s commitment to “undertake long-term transformations”, delivering support and overall results to their stakeholder, team members, but especially their guests. The results under Shaich’s leadership has been clear, with an over