Reasons Behind Panera 's Continued Growth And Success

Panera Bread is a symbol of warmth and welcome and they believe that food should be so good that you should feel good about eating it. Thirty years ago Louis Kane and Ron Shaich began a simple commitment: to bake fresh bread from fresh dough in their bakery-cafes, taking no short cuts, just bakers with simple ingredients and hot ovens (Panera Bread, Media, n.d.).

The Panera Bread Company is starting 2007 with unfinished goals and missed targets previously set and a review of their strategy is in order to continue their ongoing success. The company has grown substantially since its inception in the competitive restaurant industry; however, an aggressive target of 2,000 Panera Bread bakery-cafes will require a focused strategic plan. The company has a strong base with loyal customers who appreciate Panera’s unique dining atmosphere with a focus on quality products at a reasonable price. Panera will need to continue its market research and focus on environmental issues, which are an important core value. The opportunity for

Expanding the target market of Panera Bread is a good growth opportunity for them. This can be achieved by product line (menu options) extension or by entering international market outside the American continent so as to increase their geographical coverage. In addition, Panera has an opportunity to get additional market and growth by adapting rapidly to changing market and customer preferences. They need to advertise and market themselves as a healthy option for eating out. Health oriented food or food that are low in calories, sugar, cholesterol, etc. is getting very important as people started becoming very health conscious and selective. Their effort to roll out new products with fresher ingredients such as antibiotic-free chicken needs to be further expanded. Recognizing the health risks associated with transfat, Panera had completely removed all transfat from its menu by 2006. Organic food, non GMO, etc. They could increase number of their franchises. A number of markets were still available for franchise development. The have opportunity in front of them to open more outlets, both company-owned and franchises. They could open within North America and mainly in areas where they are not present now, and those areas where the growth potential is good, like some of the suburban markets. Many good locations for fast casual dining options are available in many of the untapped areas. Panera has a good market opportunity outside the small urban niche where greater growth

Panera Bread has established itself as one of the most popular, fast growing “bakery-café” restaurants in the United States as well as in Canada. With 1,800 locations in 45 states, the franchise appears to be unstoppable. This in part is due to the superior customer service experience that keeps customers coming back time and time again. Just to give you an example, in 2012; the most recent year that data is available, Panera Bread brought in an astounding $2.13 billion in revenue, about $1 billion more than its revenue in 2008.

By 2010, Panera Bread Company (PBC) stood ahead of the crowd; once a pioneer in the fast casual concept of dining, the organization has now far surpassed its competition (Vincelette & Fogarty, 2010). Enduring economic challenges that only strengthened the organizations position as industry leaders while competitors struggled to exist, Panera’s co-founder and majority shareholder Ronald Shaich pushed through the years with strategic plans, implementation, and actions (Wheelen, Hunger, Hoffman, & Bamford, 2015), that led to success in creation of the “fast-casual” innovation of dining (Vincelette & Fogarty, 2010). The concept offered consumers healthier, quick dining choices in comparison to the outdated version of fast food chains (Vincelette & Fogarty, 2010). Food wasn’t the only attraction that led to brand name recognition...trends towards an atmosphere that was cool and inviting with upscale decor, inviting, comfortable atmosphere (Vincelette & Fogarty, 2010), warm and friendly welcoming employees, and product and menu diversifications contributed to Panera’s appeal (Rowe, 2006). This made consumers wanting to come back (Vincelette & Fogarty, 2010), therefore adding to the quality and value of the company’s organizational structure and social culture (Wheelen, et al, 2015). Shaich’s vision used strategy as a means to expand the organization in many

The sale of Au Bon Pain lead to their corporate name change to Panera Bread Company. In the early 2000’s the company grew through franchise agreements, acquisitions and expansion. In 2010 Shaich stepped down from his roll of CEO to the company’s executive chairman to focus on concept and strategy. Shaich had what he referred to as concept essence the blueprint of what he wanted to achieve. “Concept essence included a focus on artisan bread, quality products and a warm, and friendly, and comfortable environment” (Vincelette & Fogarty, 2010, p4.).

Panera is also consistently referred to as “the leader in the fast-casual industry.” This leads us to believe that there are not a plethora of competitors with equal size and competitive strength at the moment. Panera also has one of the most loyal consumer bases in the industry. TNS Intersearch conducted a study in 2011 that scored Panera the highest level of customer loyalty among quick-casual restaurants. They are less likely to switch to rival competitors.

Being a nationally recognized brand and a dominant in restaurant operations in the specialty bakery café segment and to expand broadly in the regional market is Panera’s strategy. And by giving high quality product Panera is following their strategy.

Panera Bread began in 1981 as Au Bon Pain Co., a fast-casual bakery and café chain, founded by Louis Kane and Ron Shaich. Throughout the 1980s and 1990s, the chain grew along the east cost of the United States and internationally. It dominated in the bakery-café category. In 1993, Au Bon Pain Co. purchased Saint Louis Bread Company, which was founded by Kenneth Rosenthal. At this time, the Saint Louis Bread Company was in the midst of renovating its 20 bakery-cafes in the Saint Louis area. The concept’s name was ultimately changed to Panera Bread.

Among the crowded field of casual, quick-service restaurants in America, the distinctive blend of genuine artisan bread and a warm, comfortable atmosphere has given Panera Bread Company a golden opportunity to capture market share and reward shareholders through well-planned growth. With the objective of opening approximately 1,000 more bakery-cafes in the next three years, Panera Bread Company must make prudent strategy decisions about new store locations, supply-chain management and expanded offerings, all the while continuing its above-average earnings per share growth of at least 25 percent per year.

Panera Bread Company got its start when in 1980 Louis Kane and Ronald combined Au Bon Pain and the Cookie Jar bakery to form one company. By combining their individual strengths they were able to work as a team and expand the business, decrease company’s debt and centralize facilities for dough production (Wheelen, Hunger, Hoffman & Bamford, 2015). In 1993 the company acquired the Saint Louis Bread Company. With the three companies now working as one the company eventually became the Panera Bread Company with 1464 bakery cafes in 2010 including one in Ontario, Canada. Today Panera Bread has a board of directors that consists of six members divided into three classes of membership.

Ronald M. Shaich is the only internal member and he created the company’s “starter.” He was the master baker who combined the ingredients and cultivated the leavening agent that catalyzed the company’s phenomenal growth. Mr. Shaich has been the vision and driving force behind Panera’s success from the company’s beginnings until his resignation as CEO and Chairman effective May 13, 2010.

The Panera Bread Company began in 1981 as Au Bon Pain Co., Inc. Founded by Ron Shaich and Louis Kane, the company thrived along the east coast of the United States and internationally throughout the 1980’s and 1990’s and became the dominant operator within the bakery-café category. In the early 1990’s, Saint Louis Bread company, a chain of 20 bakery-cafes were acquired by the Au Bon Pain Co. Following this purchase, the company redesigned the newly acquired company and increased unit volumes by 75%. This new concept was named Panera Bread. Top management chose to sell their previous bakery-café known as Au Bon Pain Co. due to the financial and managerial needs of Panera. In order for Panera to become

Panera Bread is known for its family atmosphere and at-home comfortable feel with its homemade tasting foods. Panera bread is a customer based restaurant and prides itself in the happiness and satisfaction of its customers, proper training and promotion of its employees and the development of its

Panera knows what it's good at and has used that as their foundation. Their menu was designed to provide target customers with products built on the company's bakery expertise. They specialized in fresh baked goods, made-to-order sandwiches on freshly baked bread, soups, salads, custom roasted coffees, and other cafe beverages. They offer over 20 varieties of bread.