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Panera bread strategic objectives
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“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. Shaich saw potential in Kane’s business and the first strategic move was to offer extended menu choices to boost morning sales. From 1981-1984 the company was expanding their business, they were working to lower their debt and to centralize their dough production. In 1985, through the observation of customers bringing in deli meat to add to their bread, Kane had his first “eureka moment”. The new strategy was fresh quality sandwiches, bread & coffee. In 1991 Kane and Shaich took the company public. Unfortunately they were facing limited growth opportunities. The restaurants were catering to office workers and their locations were in big cities with high real-estate prices. In 1993 the company acquired Saint Louis Bread Company. This offered them entrance into a market in suburban areas and later became the platform for Panera Bread. Kane and Shaich planned a new strategy, this strategy would include: the type of food they would have on their menus, the employees they wanted interacting with their customers and what kind of atmosphere they wanted to provide their customers. In 1995 the second “eureka moment” happened, this again was through the observation of customers. Kane realized that people nee...
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...average weekly sales hit a new company high. With their strong strategic goals and their willingness to change to meet the needs of their customers I believe the company will continue to experience success.
Works Cited
Hunger, D.J., & Wheelen, T.L. (2012). Strategic Management and Business Policy, Toward
Global Sustainability (13th ed). New York: Prentice Hall.
Panera Bread Company. (2012). Investors Relations: Financial Reports. Retrieved from:
http://www.panerabread.com/about/investor/
Ruggless, R. (Feb. 7, 2012). Panera’s 4Q earnings increase 5.8%. Retrieved from:
http://nrn.com/article/paneras-4q-earnings-increase-58
Vincelette, J.P., Fogarty, E.A. (2010). Panera Bread Company (2010): Still Rising Fortunes?
Retrieved from: http://csuglobal.blackboard.com/bbcswebdav/pid-394203-dt-content-rid-29343_2/courses/KEY_MGT510/MGT510_Mod6CT_Case29.PDF
...ense has decreased 82.8% from 2000 to 2004. All the above are contributing factors in Applebee’s achieving higher earnings, a 75% increase in net earnings from 2000 to 2004. Average shares has fall due to consistent share repurchasing programs by Applebee’s. Overall, the common-size analysis of the income statement are relatively consistent over the five years of study. Cost of goods has stayed consistent between 74%-75%, the Depreciation and amortization is between 9%-11%, income from Continue operations and Net Income are also both between 9%-10% in common-size analysis for income Statement. No unusual flutuations has been discovered.
Brookshire Grocery Company, known for its commitment to excellent customer service, was established in 1938. The company began with one store in downtown Tyler, Texas under the name Brookshire Brothers. Soon after, the company changed its name to Brookshire Grocery Company and expanded to four stores in Tyler and Longview, Texas, which included the first air-conditioned store in East Texas (brookshires.com). Over the years, the Brookshire Grocery Company chain has grown to more than 150 stores throughout Texas, Louisiana, Arkansas and, most recently, Mississippi.
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.
The fast food restaurant industry, which includes quick-service and fast-casual restaurants, is highly segmented with the top 50 companies accounting for only 25% of the industry’s sales. The $120 billion industry includes over 200,000 restaurants with 50% of those specializing in hamburger entrees. (hoovers.com 2008) The major competitors in the industry include McDonald’s, Burger King, Taco Bell, Subway, and KFC – Chick-fil-A’s major competitor in chicken sales. Chick-fil-A’s unique position in the market, specializing in chicken-based entrées, has lead to a competitive advantage which the company has been able to capitalize on. Recently, many competitors have added chicken entrees in order to compete in the market segment. Through marketing strategies and company initiatives, Chick-fil-A has tried to stay distant from competitors, offering a fresh alternative to the ordinary fast food restaurant.
Steve Oliver Maass purchased a grocery store that was in bankruptcy back in 1988, in Cotati, CA, mortgaging his house to come up with the payment of $200,000. Although he had no grocery store experience besides working in the produce department of one, he felt he could not do any worse than the previous owner did. The store was run down and a mess requiring a lot of cleaning. With limited funds, he was only able to paint instead of doing much remodeling, as he wanted to do. Maass renamed the store Oliver’s Market after his middle name, and he and his wife worked the store for the first four years. During those years, Oliver’s added a Service deli and a Health foods section. Following the format of Whole Foods, Oliver’s carried a section of organic health foods and included conventional items as well.
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.
After conducting a basic 10 year financial analysis of the company, it has become evident that even with a highly competitive market structure they are able to improve on their performance. Ranging from 2004 to 2013 financial information, the company has shown a significant increase in their sales revenue roughly $3865 million sales in 2004 to almost four time that valuing $12970 million in 2013, which was an “increase of 10.4% over the 53 week prior year” The company’s growth strategy has been to diversify its product market and make them...
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Panera seems poised to continue to dominate the bakery-café market and continued sustainable growth is very likely. Works Cited The “Annual Report” (2010). Retrieved from http://www.panerabread.com/pdf/10k-2010.pdf “Company Overview.” (2011). Retrieved from http://www.panerabread.com/about/company/ “News Release.”
withstanding a large recession, and commanding high market share. In the last five years, the company’s
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This is our road to sustainable, profitable growth, creating long-term value for our shareholders, our people, and our business partners”