Panera bread company

Résumé du document

Founded by Louis Kane and Ron Shaich in 1981, Au Bon Pain Company was the forefather of Panera Bread. After many years of success in St Louis, Missouri, the Company grew up fast and now Panera Bread Company represents 1,027 units in 36 states and is one of the dominant restaurant operators in the specialty bakery-cafe segment.
So what is the reason of this spectacular success?
During the 1980's the dominant model was those of fast-foods chains like McDonald's, Wendy's or Burger King. These types of restaurant were successful because they answered needs of customers who searched quick service meals, at the lowest price.
But in the 1990's trend has changed, Panera Bread's management noticed that many patrons of fast-food restaurants could be interested in a higher-quality and quick service meals. So there was a new unsatisfied need on the market. From this period Panera Bread instituted a Broad differentiation strategy.

To compete on the market of the fast-food restaurant and especially on the bakery-cafe segment the Company had to offer buyers something attractively different from competitors. In order to do that Panera Bread provide "a premium specialty bakery and cafe experience to urban workers and suburban dwellers".

Extraits

[...] Panera Bread Company 1 is Panera Bread's strategy? What type of competitive advantage is Panera Bread trying to achieve? Founded by Louis Kane and Ron Shaich in 1981, Au Bon Pain Company was the forefather of Panera Bread. After many years of success in St Louis, Missouri, the Company grew up fast and now Panera Bread Company represents 1,027 units in 36 states and is one of the dominant restaurant operators in the specialty bakery-cafe segment. So what is the reason of this spectacular success? [...]

[...] So that is a big competitor in term of size and geographic coverage for Panera Bread. Besides, Starbucks registered important revenues: in 2005 the company's revenues were $ 6.4 billion that is fourth time more than Panera's revenues that were $ 1.5 billion. But if we consider the revenues earned per company- operated location, Panera's locations million per owned bakery-cafe per year) are more profitable than Starbuck's 1.1 million). The second competitor for me is Brinker International, a multi-concept restaurant operator that owned many restaurant brands like Chili's grill & bar, Corner Bakery Cafe or Romano's Macaroni Grill. [...]

[...] For that, Panera could innovate in term of service or atmosphere by creating an advantageous loyalty program, by improving its Panera Fresh Catering service for instance or by improving again the quality of materials and furniture inside bakery-cafes. Finally, the company will have to fulfill its expansion program and even go beyond because if she wishes competing bigger competitor like Starbuck's, she will have to spread its bakery-cafes network if she wants to steal Starbuck's market shares. For that, Panera Bread could try to penetrate untapped market in U.S, like New York but she could think about starting its expansion abroad like in Europe as well. [...]

[...] All these efforts carried on originality, quality and diversity of the products bring a real value added to their products and that make the difference with those of the competitors. But food is not the only thing that managers concentrated on to differentiate their cafe. They wanted also to provide a more “aesthetically pleasing dining experience than that offered by traditional fast-food restaurants”. Situated generally in suburban, strip mall, and regional mall locations Panera Bread cafe are built with a particular attention. Inside, managers wanted to create a warm and relaxed atmosphere. Design of bakery-cafes has been recently modified to incorporate higher quality furniture, cozier seating areas and groupings. [...]

[...] Panera Bread Company is a competitive actor on its market. The company is growing each year, and open new bakery-cafes all over the U.S. But if the company want to strengthen its competitive position and its business prospects vis-a-vis other restaurant chain rivals, Panera Bread will have to work on several things. In order to stay competitive on his market, the firm will have first to keep following its Broad differentiation strategy that is the key factor of success of Panera. [...]