Panera Bread

What is Panera Bread’s strategy? Which of the five generic competitive strategies (from Chapter 5) most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve?

Panera Bread’s success is based on the strategy of providing a high quality dining and café experience with an enjoyable atmosphere, healthy choices andaffordable fast food.

Based on the five competitive strategies, my analysis concludes that Panera Bread is opting for a broad differentiation strategy. Since the beginning of its operations, Panera Bread has maintained a distinction in the quality of its products and services that are appealing to the customer’s taste and budget. Additionally, Panera has gained prestige with a fast, casualrestaurant concept that gives the company a wide competitive advantage in the market.
According to the information provided in the case study, Panera Bread’s performance in the first six months of 2011 increased revenues from $743.3 million to 873.2 million; this is a more than 30% increase in net income. By 2012 the company expects to open among 100 to 110 new bakery cafes in the country andconsolidate its position as one of the major casual restaurants in America.
What does a SWOT analysis of Panera Bread reveal about the overall attractiveness of its situation? Does the company have any core competencies or distinctive competencies?
Strengths
- Excellence in service
- Quality and exclusivity
- Comfortable and relaxed atmosphere
- Loyal customers
- Strong financial status
-Strong marketing position
- Health menu choices
- Fresh bakery products
- Free WiFi

Weaknesses
- High cost to establish a franchise
- High prices compared to other fast food retailers
- Supply of fresh dough for its products

Opportunities
- Expansion to the international market
- Create an organic line of products
- Give more information about nutrition and healthy lifestyles
-Improve menu choices
Threats
- Finding strategic locations
- Competitors creative marketing campaigns
- Food regulations and licensing

The SWOT analysis confirms that Panera Bread has more strengths than weaknesses. Therefore, Panera needs to maintain and improve its strengths, especially the loyal relationship with its clientele, since a satisfied customer will always bring anothercustomer. I don’t see any significant weakness in the company overall, but I would suggest being careful with the supply chain and constantly looking for possible logistical improvements. As it can also be noted, Panera Bread has many more opportunities than threats. Expansion in an international level could be considered as major opportunity to position the brand overseas. However, due to the currentdomestic strength and possible greater competition overseas, I don’t necessarily see it as a priority. M report doesn’t observe major threats; however regulation and licensing laws always need to be observed in the food retailing industry.
Panera’s competitive distinction is based on the dining experience, where a customer enjoys a relaxed atmosphere with classical music in the background.The smell of fresh bread and pastries are strategically located at the entrance of every location, and are key factors that make the customer want to always come back!
What is your appraisal of Panera Bread’s financial performance based on the data in case exhibits 1, 2, and 8? How well is the company doing financially? Use the financial ratios in Table 4.1 of Chapter 4 as a guide in doing thecalculations needed to arrive at an analysis-based answer to your assessment of Panera’s recent financial performance.

Panera Bread Company and its subsidiaries operate 1,493 company-owned and franchised bakery-café in 40 states, the District of Columbia, and Ontario in Canada. They operate under the concept names Panera Bread, Saint Louis Bread Co., and Paradise Bakery &Café (Thompson, 2011)....