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Panera bread company case study analysis
Panera bread case study according to industry analysis
Panera bread strategic objectives
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Because of the paradigm shift in the industry there are several changes that have been made to the company’s strategy. One change that company has made is that they now require their goods to be fresh and clean, which means they have no hormones, preservatives, artificial colors, etc. Another change that the company has made to their strategy is to find the market their company as being healthier than their competitors. The company has focused on being a family friendly restaurant and they want to continue growing that concept. Another strategy that Panera Bread has implemented is to have a competitive advantage over their rival companies. “What sustains a company over the long term is how it thinks, not what it does. Because what it does …show more content…
They found a niche in the industry, fast-casual/healthy, and they went for it. Panera Bread identified a problem in the industry and they took advantage of the opportunity to renovate their company. The company found that many customers were willing to pay a slightly higher price for a higher quality food, if they could still acquire it quickly. Therefore, Panera set their sights on becoming that company. The decision that are made at Panera would be best describe as being programmed decisions. The decisions that the company has made based on the paradigm shift would be programmed because they exist for solving a problem. The company knew that consumers were becoming aware of the unhealthiness of their food choices and that they needed to fix the problem. The decision to remove artificial flavoring, additives, and preservatives from their goods were programmed decisions because they are well structured. Looking at the decisions we can see that there was a clear answer to how to solve the issue. We can see that Panera Bread uses a programmed decision making method because their decisions were based on the issues consumers had with unhealthy food choices and they could fix the issue by focusing on what consumers
Chick-fil-A recognizes that their brand promise starts the minute the customer enters the premises. When a store opens for the first time, the franchised operator doesn’t just see an opportunity to sell his food product, but rather a “chance to interact, build community, and engage with customers and the community at large. We do this in a variety of ways. First and foremost, we strive to provide 2nd Mile Service to each customer. As we work to continuously improve, we want customers to experience something unique. We want to build community and create relationships between our customers and our food, people and restaurants” [3].
With a high turnover, it can mean two things for a company. Panera Bread is either ineffective in
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.
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.
Pret is more upscale than its competition but everything comes standard, so you can’t control the condiments. Many of competitors believe that fresh means made-to-order. Panera Bread, one of Pret’s biggest competitions, is well known through the New York City area. Panera Bread advertisement their products and offer hot food made to order. Even though the line can get long the customers do not mind the long wait knowing that their food is precisely the way they want it done. These intense competitions can entice Pret’s consumers away with personalized. For an upscale chain, prices start at $3.50 for a smaller proportion. Pret is only found in dense urban area does not appeal similar to Panera, which could be found in rural settings. But Pret stands out from the competition with their fresh food, customer service and charity
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.
The digestive system otherwise known as the gastrointestinal tract (GI tract) is a long tube which runs from the mouth to the anus. It operates to break down the food we eat from large macromolecules such as starch, proteins and fats, which can’t be easily absorbed, into readily absorbable molecules such as glucose, fatty acids and amino acids. Once broken down, these molecules can cross the cells lining the small intestine, enter into the circulatory system and be transported around the body finally being used for energy, growth and repair.
The Panera Bread Company began in 1981 as Au Bon Pain Co., Inc. Founded by Ron Shaich and Louis Kane, the company thrived along the east coast of the United States and internationally throughout the 1980’s and 1990’s and became the dominant operator within the bakery-café category. In the early 1990’s, Saint Louis Bread company, a chain of 20 bakery-cafes were acquired by the Au Bon Pain Co. Following this purchase, the company redesigned the newly acquired company and increased unit volumes by 75%. This new concept was named Panera Bread. Top management chose to sell their previous bakery-café known as Au Bon Pain Co. due to the financial and managerial needs of Panera. In order for Panera to become the success top management visualized all resources needed to become available for Panera. Panera Bread is now the most successful bakery-café in the category in which there are currently 1,777 bakery-cafes in 45 states and in Ontario Canada (Panera Bread).
According to Wheelen & Hunger (2010), Panera management believed that its specialty bakery-café concept had significant growth potential, which it hoped to realize through a combination of owned, franchised, and joint venture-operated stores. Franchising was a key component of the company’s growth strategy. (p. 29-10).
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
Panera Bread The company is a line of bakery based outlets in the US and Canada that makes and sells pastries alongside accompaniments mostly the different types of soup on the menu, in addition to this, the restaurant also serve pasta, salads and sandwiches. As of 2014, it had established restaurants in 1800 different locations in Canada and the United States offering the same delicious recipes to a growing number of customers. The company became the first to provide calorific information in all its outlets and it broadened the customer experience by its online platform that offers several tools including a nutritional calculator.
The term “Sandwich Generation” is what some are using to describe those people who, for one reason or another, are ‘sandwiched’ between the need to provide care not only for their own children but also for at least one aging parent. There has been much debate on what classifies someone as being included in such group, and little emphasis on the hardships that accompany the transition between child and caregiver. This paper will discuss the classification that make up the “sandwich generation’ and some of the financial and emotional stress that comes with this new responsibility.
In conclusion, Built to Last gives many examples of companies that have focused more on building an organization rather than making a profit. Many of the most successful companies have gotten to that point through a passionate commitment to a core ideology. They continually look to preserve that core, while creatively seeking ways to improve and stimulate progress. These are the timeless management principles that have worked for visionary companies of the past, present, and future. According to Collins and Porras, "one of the most important steps you can take in building a visionary company is not an action, but a shift in perspective" (Collins & Porras, 2002). To be built to last, you have to be built to change.
America is a capitalist society. It should come to a surprise when we live like this daily. We work for profit. We’ll buy either for pleasure or to sell later for profit. It should come to no surprise that our food is made the same way because we are what we eat. We are capitalist that eat a capitalist meal. So we must question our politics. Is our government system to blame for accepting and encouraging monopolies?