Panera Bread Comapany Case Study

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PANERA BREAD COMAPANY

Submitted by:

Grace An V. Canarias

Mary Green L. Estoque

Honeylyn G. Magsico

Uriel Rein G. Pagalan

Aldren Ace Lao L. Perez

Haide H. Suyom

Nathalie B. Vitor

Submitted to:

Daniel Pacoy

Date of Submission:

October 24, 2018

TABLE OF CONTENTS

CONTENTS                                                                                          PAGE

I- Introductory Page……………………………………………………………………………………………………………..3

Name and Address of business…………………………………………………………………………………3

Brief History……………………………………………………………………………………………………………..3

Nature of business and mode of franchising…………………………………………………………….3

II- Executive Summary………………………………………………………………………………………………………….4

III- External Audit: Industry Analysis…………………………………………………………………………………….5

Economic Forces………………………………………………………………………………………………………5

Social, Cultural, Demographic, and Natural Forces……………………………………………………7

Political, Governmental, and Legal Forces………………………………………………………………..8

Technological Forces………………………………………………………………………………………………..9

Porter’s Competitive Forces Analysis………………………………………………………………………11

IV – Internal Audit………………………………………………………………………………………………………………13

   Operation Audit ………………………………………………………………………………………………………………13

Inventory Management…………………………………………………………………………………………..13

Quality Management……………………………………………………………………………………………...14

Location Strategy…………………………………………………………………………………………………….14

Layout Strategy……………………………………………………………………………………………………….15

Supply Chain Management……………………………………………………………………………………..15

Human Resource Management……………………………………………………………………………….15

    Marketing Audit ……………………………………………………………………………………………………………..16

Market Segmentation……………………………………………………………………………………………..16

Product/Service Positioning…………………………………………………………………………………….16

Product……………………………………………………………………………………………………………………17

Price………………………………………………………………………………………………………………………..17

Promotion……………………………………………………………………………………………………………….17

Finance/Accounting Audit (Financial Ratios) at least 3 years…………………………………..18

V – SWOT Analysis………………………………………………………………………………………………………………21

V – Statements of the Problem (Major and/or Minor Dilemmas)………………………………….……23

VI – Alternative Courses of Action………………………………………………………………………….…………..24

VII – Recommendation (1 or 2 strategie/s)…………………………………………………………………………25

List of Tables

Table1. Porter’s Five Forces………………………………………………………………………………………………..11

Table 2. Financial Ratios……………………………………………………………………………………………………..18

Table 3. SWOT Analysis………………………………………………………………………………………………….…..22

I – Introductory Page

 Brief Background History of Panera

The Panera Bread Company began in 1981 as Au Bon Pain Co., Inc. Founded by Ron Shaich and Louis Kane, the company thrived in malls, shopping centers, and airports in 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 and instituted a comprehensive overhaul of the newly acquired company altering all menu and dining atmosphere by increasing the unit volumes by 75% and 100 additional Saint Louis Bread units were opened. This new concept and vision of bakery-café was named Panera Bread.

Panera Bread Company, together with its subsidiaries, owns, operates, and franchises retail bakery-cafes. The company operates through three segments: Company Bakery-Cafe Operations, Franchise Operations, and Fresh Dough and Other Product Operations. It operates bakery-cafes under the Panera Bread, Saint Louis Bread Co., and Paradise Bakery Ron Shaich believed that Panera Bread Company had the potential to become one of the leading fast-casual restaurant in the nations.

II. Nature of business

Panera Bread Company operates a retail bakery-cafe business and franchising business under the concept names Panera Bread and Saint Louis Bread Co. As of December 26, 2006, the Company’s retail operations consist of 391 Company-owned bakery-cafes. The Company specializes in meeting consumer dining needs by providing high quality food, including fresh baked goods, made-to-order sandwiches on freshly baked breads, Crispani, hand-crafted pizza, soups, salads, and cafe beverages, and targets suburban dwellers and workers by offering a premium specialty bakery and cafe experience with a neighborhood emphasis. Bakery-cafes are principally located in suburban, strip mall, and regional mall locations and currently operate in 38 states. Bakery-cafes use fresh dough for their artisan and sourdough breads and bagels. As of December 26, 2006, the Company’s fresh dough operations, which supply fresh dough items daily to both Company-owned and franchise operated bakery-cafes, consisted of 18 Company-owned fresh dough facilities