Panera Bread Company Analysis

4461 Words 18 Pages
Abstract This paper is an overall analysis of Panera Bread Co. and details the company’s lifespan. Louis Kane and Ron Shaich created a bakery-café enterprise names Au Bon Pain Company Inc, who bought out Saint Louis Bread, which was eventually transformed into what we now know as “Panera Bread Company.”(Thompson, Jr.) A financial analysis of Panera Bread Co. and their main competitors, McDonalds, Starbucks, and Yum Brands are portrayed. I have discovered that Panera Bread is an incredibly flexible and successful company and they remain near the top of the chain despite the monumental competition. However if they wish to remain an industry competitor, Panera must take some risks and expand globally. This is because the food industry …show more content…
They now also serve breakfast for all the early birds. Panera bread point of differentiation is bread and the ability to enhance the customer experience by creating an environment that is relaxing and soothing similar to Starbucks. “Bread is our passion, soul and expertise”. Panera bread focuses on handmade artisan bread, chicken, homemade style soups, as well as other nutritious menu items. Panera bread has usefully supplied these concepts by ensuring that fresh bread is available for the customer each and every morning by having bakers work throughout the night. The ability to get to transport materials quickly to the dough factories will increase the strength of Panera Bread Co. by meeting demand if inventory ever runs low or if the economy takes a blow. Successful companies such as Panera Bread understand that you must not only offer the best quality you must generate a long lasting experience that keeps the consumer dedicated to your services and products. Through building deeper relationships through the MyPanera Customer loyalty program, Panera ensures consistent quality by having fresh baked bread for the customer each and every morning as well as instituting a joint venture program that rewards managers on the amount the of cash flow they generate will produce Panera bread …show more content…
One test market is Louisville, Ky., which the company announced in March. Panera is also continuing to build out catering-delivery hubs in some markets.
“We’ve come to believe that delivery offers us the potential to materially increase our sales volumes per café and become a long-term driver of sales growth,” Shaich said. (nrn.com, Web).

Threats: The overall rise in supplier cost due to inflation and the U.S unemployment’s rate is a major risk to Panera Bread business and financial results. William Morton, the CEO of Panera Bread said that they recently lifted menu prices this quarter. Panera bread’s uniqueness and differentiation gives them the pricing power to increase their menu prices as the cost of the supply increase. However increasing cost can slow down as consumers become resistance to paying the added cost. Although the U.S unemployment rate fell, U.S. consumers are still hesitant to open their wallets to spend money on somewhat expensive meals. Economic uncertainty is still affecting the minds of many U.S workers and because of slower rates of growth in consumer spending, businesses are looking for ways to be more efficient and save on

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