Essay on Fast Casual Dining Restaurant Options

2226 Words Apr 17th, 2016 null Page
The major threats can be summarized as,
• Increased competition.
• Other fast casual dining restaurant options are growing in interest.
• Decent chance of new entrants into the fast casual segment. In 2008 fast casual concepts grew by 4.5%.
• Easy entrance to the field and low market retention rate
• Strategies of Panera may soon get saturated. Others can easily imitate operating model and restaurant ambience and Panera will not be able to differentiate themselves in the market.
• Harder to find a potential locations for expansion.
• Ingredients and raw materials getting costlier.
• Increased hourly wages for workers.
• Heavy dependence on suppliers for items that are not made in-house
• Low cost for customers to change their dining options.
• Loss of customer loyalty can happen very easily, especially if there is an issue that results in reputation loss (like any issues in the food quality, any salmonella virus related issues or similar issues)
• It is up to customer to buy what they want, Panera cannot control the customer preferences much.
• Alternate/substitute options are easily available and in some cases less expensive. Many other options for customers like bagels (Bagel shops like Einstein`s Bagels) and snacks in coffee chains (Starbucks, Dunkin Donut),
• Competitors or potential competitors have more cash and resources
• Limited distribution range for each truck and increasing transportation costs.
• A slowdown of economy may affect them in future.
• Heavy…

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