Panera Bread

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What is Panera Bread’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve? The driving concept behind Panera Bread was to provide a premium specialty bakery and café experience to urban workers and suburban dwellers. Its artisan sourdough breads made with a crafts- man’s attention to quality and detail and its award- winning bakery expertise formed the core of the menu offerings. Panera Bread specialized in fresh baked goods, made-to-order sandwiches on freshly baked breads, soups, salads, custom roasted coffees, and other café beverages. Panera’s target market was…show more content…
Stores receive fresh dough daily and use real avocados, not the paste typically found in kitchens.

Market Niche: Consumer tastes and desires evolve over time. Consumers are now wanting a more inviting in-store experience over speed and convenience. Panera put itself in a great position to capitalize on this market. Its helped pioneer the “fast-casual” dining experience, offering a work friendly and relaxing environment.


Brand Presence: Panera lacks a powerful brand image found with its competitors. If Panera can build a brand image to that of Starbucks, the intangibles that come with it would boost profits immensely.

Thin Menu: Its menu is narrowed to soups, salads, and sandwiches. It lacks large entrees with more substance that would be more suitable to attract a dinner crowd.

Pricing Power: Any company requiring raw inputs of ingredients to sell a product will face volatility in pricing. For management to improve margins Panera must grow its pricing power in supplier negotiations.


Catering: Plenty of demand for Panera soups, salads, and sandwiches outside the store walls. On a two year basis, it has grown its catering business 50% each quarter. In its last earnings call, management was excited about the potential of catering going forward. You should be, too.

Sore Growth: Panera is easily on pace to exceed their

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