Panera Bread Company Case Analysis Essay

2338 Words Dec 13th, 2009 10 Pages
Panera Bread Company’s Growth Strategy
Case Analysis Among the crowded field of casual, quick-service restaurants in America, the distinctive blend of genuine artisan bread and a warm, comfortable atmosphere has given Panera Bread Company a golden opportunity to capture market share and reward shareholders through well-planned growth. With the objective of opening approximately 1,000 more bakery-cafes in the next three years, Panera Bread Company must make prudent strategy decisions about new store locations, supply-chain management and expanded offerings, all the while continuing its above-average earnings per share growth of at least 25 percent per year. With 170 stores in the development pipeline in 2007 and several
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If their OPM percentage continues to shrink, it might indicate that the company is not running its operations efficiently since taking on more locations. Production capacity must be monitored and track simultaneously with existing store demand and new locations. Also cutting heavily into these profits is the amount of their labor costs. In 2002, they had only $63,172,000 in labor expenses. As of 2006, this grew significantly to $204,956,000. However, it is expected that increased expenses will come

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