Panera Bread Co Business Model And Efficient Business Operations

1392 Words6 Pages
As of 2006, Panera Bread was operating nationwide with 1000 locations in 38 states. The freshly-baked bread leader officially established by Au Bon Pain in 1999 has managed to succeed achieving high sales and operating profits, and a 17% increase in the number of outlets. The company’s commitment to serve its customers a delightful meal, in a very amiable environment has led them to the possibility of restructuring their business strategies. This report provides a profound analysis and evaluation of Panera Bread Co. in respects to the company’s business model and efficient business operations. The methods of analysis utilized include: breakdown of several financial statements such as: income statements, balance sheets, pro-forma statements, as well as, short-term and long-term solvency ratios. As a result of poor performance of in-store sales, in its current growth phase, the company is facing inability to rely on internal funding; which has led to tighter margins. Increases in product and material costs, and increases in pricing have initiated a downward trend in transaction growth, which has affected Panera Bread causing the company to operate at tighter margins. In addition, there has been a huge decline in the company’s market share as a result of tighter margins, increase in costs, and weakening in transaction growth. These limitations have led Panera Bread to consider external financing in order to be able to continue their day-to-day operations. Our proposed solution

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