Chipotle vs Panera

1775 WordsNov 13, 20108 Pages
Chipotle vs. Panera Bread Company Introduction Fast Casual Restaurant fast casual restaurant is a type of restaurant that does not offer full table service but promises a higher quality of food and atmosphere than a fast food restaurant. In the USA it is a relatively new and growing concept to fill the space between fast food and casual dining. The typical cost per meal is in the US$8–$15 range. Two emerging fast casual restaurants are Chipotle Mexican Grill and Panera Bread. When Chipotle opened its first store in 1993, the idea was simple: demonstrate that food served fast didn 't have to be a "fast-food" experience (Chipotle.com, 2010). Chipotle uses high-quality raw ingredients, classic cooking methods and a distinctive interior…show more content…
Panera is proficient in making good, quality products. Their financial position is strong; and they are known for quality products and great customer service. Panera is not trying to be the Wal-Mart, Starbucks or Microsoft. In a down economy, CEO Ron Shaich continues to target the 92% of Americans who still have jobs. Shaich is also taking advantage of the company’s cash position and the slow real estate market by bargaining down lease rates by 20% to 25% from 2008 levels. Plus, Panera can lock in these low terms for the next 20 years (2009). Chipotle, on the other hand, “seems to have created a sustainable branding strategy that leverages its good food, humorous ads, distinctive interior design, and in-store world music” (Wikinvest.com, 2010). The company is positioned to capitalize on their organic and farm raised food, and high quality ingredients. “According to the organic Trade Association (OTA), organic food sales are growing at a 20% clip annually in the US, although such food only accounts for 3% of all food and beverage sales” (Wikinvest.com, 2010). Chipotle is also positioned to tap multiple markets: baby boomers who can afford to dine out, Hispanics, two income families who do not have time to cook, and the socially conscious consumer. Organizational Control Strategies Panera Bread offers franchising opportunities to facilitate its expansion. The company has a highly selective process and requires franchisees to

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