Panera Bread Company: Still Rising Fortunes? Essay

2054 Words Apr 18th, 2014 9 Pages
Panera Bread is a renowned restaurant that has come about from the merging of great companies and people. However, the beginning was actually with Au Bon Pain which was started in Boston’s Feneuil Hall as a demonstration bakery. Louis Kane was struck by this store’s growth potential and purchased the business in 1978. Between 1978 and 1981 the company opened 13 stores, but subsequently closed 10 of these stores, in the Boston area and had major debt. Ronald Shaich, a recent graduate from Harvard, opened the Cookie Jar in 1980 and befriended Louis Kane. In 1981, the friends merged the Au Bon Pain and the Cookie Jar to form one business known as Au Bon Pain Co. Inc. The co-CEO’s were able to lower debt, expand the business, and centralized …show more content…
Panera also believes in providing bakery-café operators the chance to participate in the success of the location, which enable the company to attract and maintain experienced and highly qualified personnel.
Findings of Fact:
Franchising a Key to Success:
Franchising is a key component in the growth that Panera has experienced. Since a franchisee is purchasing the use of the Panera name, this means that they are also purchasing the business model and trademark for their location. This allows the company to grow quickly and the franchisee contributes the resources and capabilities necessary to implement the Panera concepts and strategies. The franchise program began in 1996, and as of December 2009 there are 795 franchise-operated bakery-cafés open throughout the US and Canada. There are also commitments to open another 240 additional locations. Panera sells locations via the Area Development Agreements (ADAs) and the franchisee must be able to meet financial requirements set forth by Panera. The strategic choice perspective, which proposes that not only does the company adapt to changing environments, but they also have the opportunity and power to reshape their own environment, means that Panera is able to draw customers who can afford to spend a little more.
By opening franchises across the country, the company is reaching for a functional strategy by achieving corporate and business unit objects. By implementing the strategy

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