Swot Analysis Panera Bread

Question 1 -

Part 1- Practical growth leaders always assesses competitive strengths, weaknesses, threats and opportunities. Additionally, there is a need of bird eye for industry interruption to become a leader (Welch & Althaus, 2007).One of the pioneer of restaurant industry is Panera Bread. Factors contributing to its unique position in the restaurant industry are:

1. Great observing power - Panera Bread brought about an industry disturbance in the casual and easy going restaurant industry. They observed that customer had new choices, that they require control, good, quick services and friendly environment (Welch & Althaus, 2007).

2. Bridging a gap between customers and restaurant industry by introducing fast and casual dining concept- First and casual restaurant are considered as a blend of standard eating

and fast service food restaurants, such restaurants not only provide a rich menu but provide fast service also (Birchfield, 2007, p. 5).Panera Bread focused on the niche market between the traditional restaurants and fast food restaurants. They offered a high quality of meals and services that casual a huge variety of fresh and healthy food with quick services (Walker, 2008, p. 29).
3. Introduction of new menu - Panera Bread's recognizable menu, highly designed café allowed them to meet with the day to day requirement of industry. They introduced the concept of 'chill out' time between 2pm to 5pm. Instead of emphasized on two old fashioned meal concept Panera Bread attracted the customers with in a new time (K, 2004)They constantly revised the menu to cover the regular needs of customers (Wang & John, 2013, p. 138).
4. Becoming Bread Expert- Panera Bread twisted off as a separate company. Since firm wanted to separate itself from others in soup and sandwich industry. Their offering have grown to include not a variety of soups, sandwiches but also salads, souffles etc. They introduced their own brand 'bread' 'Panera Bread'. Panera take introducing pride in taking note that its bread is handmade and baked fresh daily (Schermerhorn, 2011).
5. Understanding customer behavior and trends- Panera Bread realized that their success depends on providing healthy customer service, understanding customer's behavior and trends so that they can merchandise and administrate the daily needs of customer, services that consumers will want, like, use and recommend to others (Wayne D Hoyer, Deborah, J. Machmis, & RK Pieters, 2008).
6. Catering Services- Panera Bread provides catering services through its Panera catering business. They know to deliver fresh breads to its customers through company's own owned and franchised locations. (Spinelli, Rosenberg, & Birley, 2004).

Part 2-
1. By introducing the concept of fast casual service- By introducing the concept of fast casual Panera Bread became a leader in restaurant industry. Jackie Schultz, Panera Bread supervisor says, with 2012 sales, Panera earn more than $1 billion and profits $ 167 million from its 1600 store chain and Panera Bread continues to attain its top position in the fast & casual dining industry. (Mosley & Pietri, 2011).
2. Locations and Franchise establishments- By getting unique position in restaurant industry Panera Bread began a high level based franchising program in 1996. Panera Bread covered almost all the main geographical locations by franchise and their own owned restaurants to feed customers needs and earned billions of dollar profit. (C. Sondhi & Taub, 2008).
3. By addressing customer needs and satisfying services- The company has proven itself a leader in providing excellent customer service and customer satisfaction by building the trust and loyalty with this such services (Gustavo, 2010) (Thompson, Gamble, & Strickland, 2010). Customer value explains the perceived value stemming from a perception of performance rather than the services provided by a dealer (Woodruff, 1997, p. 141).Higher is the perception of goods or services, the higher the perception of value (Oh, 2000a, p. 59)
4. Product Innovation- Product innovation result in creation of new or improved services and products that leads to success. One of the innovation of product is given by Panera Bread 'By a piece of loaf in every arm' that is of its own brand (J Silverstein, Fiske, & Butman, 2005) (Schermerhorn, 2011).
5. Quality control know- how- With the fast casual dining it is highly recommendable that quality products should be provided. While fast food may not maintain strong quality control. But Panera Bread focus on fast casual segment to maintain a high standard of quality to control that how to guarantee customers have delicious meals which will promote their earnings.

Part 3- Swot Analysis
STRENGTHS-
1.

Products strongly different from other- Panera's main concept is to cater high quality of bread and allows customers to be a part of ambience atmosphere of their café's for many urban and rural residents (Spinelli, Rosenberg, & Birley, 2004).Panera's food is provided with quick service in a comfortable atmosphere.

2. Strong brand name and image- Panera is well known for its award winning services and known as bakery expertise. Panera is a leader in the selection of healthy food. People trust them because of their innovative menu.

3. Strong financial conditions- Panera expand its business by franchise and its own stores (Annual Stock Report, 2010). It increases its profit each year from 2000 to 2006. These revenue increased optimally (Report, 2010)

4. High rate of customer satisfaction- Customer value is key to create a brand loyalty and to make highly risky decisions (Oh, 2000a)Panera proved itself as an excellent customer care able to win the customer satisfaction by building loyalty and trusts.

5. Good franchise- Franchise option adds too much in their daily earnings and to cater day to day needs of customers.

WEAKNESS-
1. Too narrow product line for competitors- Panera's food options are not suited to all. Not only with the bread can’t they be an industry leader. McDonald also offers healthy food options with hygienic atmosphere.
2. Very high underutilized plant capacity- Panera Bread expenditure on its regional fresh dough facilities is very much high, Almost $52 million they are spending which is very excessive in amount (Report, 2010)
3. Poor marketing concepts- Panera Bread only spends 2% for advertisement for local markets and 7% for national level (Report, 2006) which is too low.
4. Only located regionally- It is a brand that is limited to some places in USA.
OPPORTUNITIES-
1. Expanding itself to new geographical locations- Panera is thinking of moving itself to new locations in US. That will add to its earnings and popularity.
2. High consumer demand for Panera's product- As customer are aware about their health so Panera's light, healthy and less fatty food a option to attract customer
3. Fast casual restaurant market is growing market
THREATS-
1. Ease of Exit- Panera Bread always need to sure about to keep upping its image and quality of food. If a restaurant starts to get a bad reputation, then customer won't come back
2. New entrant rivals- Threat of new entrance is always there. It is may be same like that offers same services like Panera.
3. Increased competition by rivals- restaurants every day adding new varieties in their menu.Also drive thrus are competing with Panera strategies.

By keeping in mind Strengths, weakness, opportunities and threats Panera can lead as a National Brand. Improved operations should be the main focus to enhance companies position in future (Report, 2014)