Panera Bread Company: Still Rising Fortunes? Essay
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