Synopsis of the Case:
Panera Bread Company started in 1976 and quickly developed into the phenomenon it is today. Panera was created on the concept of using simple ingredients to create the sourdough in its bread. The use of sourdough cultivated the company into success, while being the vision and driving force behind everything the company does (Hoffman, Wheelen, Hunger, & Bamford, 2015, pp. 16-2). Since starting in 1976, the company has gone public, invested in new acquisitions, while changing their business concepts and strategies. During the 2000’s, Panera grew substantially through new acquisitions, marketing, and by focusing on their customer wants. Panera’s business concepts and strategies are unlike any other fast food firm in the …show more content…
Similar to Panera, Starbucks is known for being a fast casual environment that offers exceptional customer service and products. Starbuck’s CEO Howard Schultz agrees that long lines are a priority. “The challenge for us is that we want to improve our speed, but we don’t want to become a fast-food chain. At this point in the company’s evolution, drastic changes to the in-store experience would be risky. Anything that may encourage people to perceive Starbucks as “fast food” quality would ravage the brand” (Bhasin, 2012). To improve the speed of its customer service the company developed a vocabulary for its so ordering would be more efficient. Starbucks also installed faster payment devices at its registers to improve line efficiency (Bhasin, 2012). Focusing on speed and efficiency has improved Starbuck’s customer service, profits, and …show more content…
Improving speed during the lunch rush would enable Panera to keep its reputation as a fast casual restaurant, while improving customer service. One recommendation for Panera would be to invest in faster payment options. For example, some restaurants utilize employees to take customers orders and payments in line. The customer is able to quickly order their food, make their payment, and find a place to sit all without going to an actual register. Another option is for Panera to separate to go ordering from in house ordering. Panera could have a separate area for customers who wish to order and take their lunch with them because of time. Customers who have more time and wish to eat at the restaurant could order from a separate line. This would allow the customer who doesn’t have much time to get in and out of the restaurant quickly. Alternative Recommendations:
Another option Panera should consider is increasing workers during the lunch rush. For example, if the company added two four hour shifts during the lunch rush the additional two employees could support the additional payment or line separation recommendation. The increase in workers would drive up labor costs, but as stated before an increase of 6 customers each day would increase profits by 1%. The increase would cover the additional labor costs and could potentially increase profits more.
Conclusion:
Panera Bread Company started in 1976 and quickly developed into the phenomenon it is today. Panera was created on the concept of using simple ingredients to create the sourdough in its bread. The use of sourdough cultivated the company into success, while being the vision and driving force behind everything the company does (Hoffman, Wheelen, Hunger, & Bamford, 2015, pp. 16-2). Since starting in 1976, the company has gone public, invested in new acquisitions, while changing their business concepts and strategies. During the 2000’s, Panera grew substantially through new acquisitions, marketing, and by focusing on their customer wants. Panera’s business concepts and strategies are unlike any other fast food firm in the …show more content…
Similar to Panera, Starbucks is known for being a fast casual environment that offers exceptional customer service and products. Starbuck’s CEO Howard Schultz agrees that long lines are a priority. “The challenge for us is that we want to improve our speed, but we don’t want to become a fast-food chain. At this point in the company’s evolution, drastic changes to the in-store experience would be risky. Anything that may encourage people to perceive Starbucks as “fast food” quality would ravage the brand” (Bhasin, 2012). To improve the speed of its customer service the company developed a vocabulary for its so ordering would be more efficient. Starbucks also installed faster payment devices at its registers to improve line efficiency (Bhasin, 2012). Focusing on speed and efficiency has improved Starbuck’s customer service, profits, and …show more content…
Improving speed during the lunch rush would enable Panera to keep its reputation as a fast casual restaurant, while improving customer service. One recommendation for Panera would be to invest in faster payment options. For example, some restaurants utilize employees to take customers orders and payments in line. The customer is able to quickly order their food, make their payment, and find a place to sit all without going to an actual register. Another option is for Panera to separate to go ordering from in house ordering. Panera could have a separate area for customers who wish to order and take their lunch with them because of time. Customers who have more time and wish to eat at the restaurant could order from a separate line. This would allow the customer who doesn’t have much time to get in and out of the restaurant quickly. Alternative Recommendations:
Another option Panera should consider is increasing workers during the lunch rush. For example, if the company added two four hour shifts during the lunch rush the additional two employees could support the additional payment or line separation recommendation. The increase in workers would drive up labor costs, but as stated before an increase of 6 customers each day would increase profits by 1%. The increase would cover the additional labor costs and could potentially increase profits more.
Conclusion: