Panera Bread Company in 2016 Case Study Help

About Panera Bread

Panera Bread is one of the limited-service restaurant company thatbegan to operate its business as Au Bon Pain Co. in 1981.It was founded by Louis Kane and Ron Shaich. The company thrived along the east coast of the US as well as on theglobal scale. It specializes in providing orders to grocery and convenience stores. In order to maintain its high-quality standard, Panera Bread focuses on the key menu groups: hot breakfast selection, fresh-baked goods, bagels and cream cheese spreads, made to order sandwiches, hot Panini, and soups, salads, frozen drinks, fruit smoothies, beverages and espresso bar selection.The co-founder & management of the company has established the superior customer service and legacy of quality products, & those values are still driving Panera today

SignificantProblems/Issues

Regardless of the ongoing sequences of store openings, the company is faced with reducing growth. Intense competition, fickle consumers and changing market all combined to exert the pressure on the company’s bottom line. The expansion in terms of store openings has been drastically curtailed by the company instead of operational improvements at current stores to drive additional sales. An ongoing series of store opening was eroding the revenues and depressing its stock price. Now, the company is expecting earnings per share growth of 2 to 5 percent in the year 2016. Faced with the declining growth rate and slower than desired revenue earnings, Panera Bread is urged to rethink the business and come up with new strategic decisions in order to get to the position that it had aimed for in the market.

Due to the intense competition in the market, the competitors have been attempting to oversaturate the marketplace, thereby getting ahead of the competitors, which in turn has lastedevitable impact on Panera Bread to strategically position itself in new markets, to bring in sales, as well as to cater the right demographic of customers.

Company’s Current Situation and Most Recent Strategies

The strategy of Panera Bread is to offer a premium specialty café and bakery experience to its customers. The company is focused on becoming the first choice for diners craving for high-quality products in a comfortable and warm dining environment. The strategy of a company highly depends on multiple activities which include marketing, advertising, rewards and loyalty cards, enhancing the customer experience through delivery and Panera 2.0 initiatives, remodeling the stores and reinventing menu. The activities of the company revolve around its efforts in order to attract or entice the maximum number of customers to walk through its doors. The company intends to capitalize on the market potential through opening franchised and company-owned locations. So, the company intensely worked with franchisees to open new stores, which is a core component of the efforts taken by thecompany to broaden its market penetration.

In addition to this, although business has been operating wellfrom the past few years, the development of the Panera 2.0 app has enabled digital payment and ordering by customers. Panera planned to use the in-house delivery drivers instead of third party delivery in order to assure faster delivery time and consistent quality. Growth has been high since the new initiative went into effect. Throughout new initiatives, the company has continued to stand by its quality food philosophy by creating an unacceptable list of ingredients. Also, these initiatives have paid off for the company in an exceptional and big way. The Panera at Home has generated 1 billion dollars in retail sales & over 300 million dollars in wholesale revenues. The long term objective of the company’s management is to make it a nationally and internationally recognized brand and become the dominant restaurant operator in upscale quick-service dining. The company has adopted a broad differentiation strategy through differentiating the product offerings from the market competitors by offering high-quality products that appeal to the broad spectrum of purchasers……………….

 

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