2 Company Overview Au Bon Pain Company Founded1978 in Boston, MassachusettsPurchased Saint Louis Bread Company in 1993Sold Au Bon Pain Division in 1999Changed company name to Panera Bread Company
3 Company OverviewThe Panera Bread Company’s name is derived from the words:“Pan” which means bread in Spanish and Italian.“Era” meaning period of time.
4 “A loaf of bread in every arm” Mission Statement“A loaf of bread in every arm”
5 StrategyTo provide:fresh, high quality, organic meals to metropolitan citizens.fast meals in a visually appealing, comfortable environment.meals with reduced additives or preservatives.
6 Product Differentiation Panera Bread uses a market niche strategy based on differentiation; backward vertical integration.Panera internally produces fresh dough for company-owned and franchised bakery-cafes.
7 Product Differentiation This competitive strategy focuses on a small group and caters to the wants and desires of that particular group of customersPanera Bread’s marketing strategy wants these customers to feel as if they are getting something better and more wholesome for the same price as they would from the company’s competitors.
8 DemographicsWhite collar, upper-middle class suburbanites and city dwellers.Organics/healthy crowd.Americans who are changing their eating habits by moving away from high calorie, or high cholesterol meals.
9 Atmosphere “Panera Warmth” is: Visually appealing décor comfortable furniture that focus on catering to group settings.Many locations contain fireplacesFree Wi-Fi is available; which is an attraction for business meetings and college study groups.
11 Strengths High Customer loyalty Distinctive Menu Menu options Signature Café designsInviting ambienceOperating systemsUnit location strategyDistinctive MenuSeasonal menu changesDemographical menu changesOrganic menu choices
12 Strengths Extensive employee training program Extensive demographic study for new site locationsFree Wi-Fi access for customersCompetitive advantage from centralized dough making operations.
13 Weaknesses Low public awareness Stringent franchising guidelines for new entrepreneursLack of foreign developmentMarket competition with “specialty foods” has a low market nicheLack of “traditional” dinner menu
14 OpportunitiesLower stringent franchising guidelines for new entrepreneursDevelop presence in foreign marketsDevelop a better dinner menu
15 Threats Lagging economy McDonald’s Subway Starbucks Competition from the fast food industry leaderSubwayOffers fresh sandwiches for lessStarbucksDirect threat to “Panera Warmth”COSI, a copy cat company
19 Panera’s current ration is narrowly above the 1.0 ratio. The ability to pay current liabilities using easily convertible assets to cash. Should be 1.0, ratios of 2.0 or higher are better.Panera’s current ration is narrowly above the 1.0 ratio.
20 Financial AnalysisWorking capital represents a company’s ability to expand without the need to raise more equity or borrow money.
21 Rival Companies Atlanta Bread Company Bruegger’s Corner Bakery Café Closest Rivals that also feature baked goods, soups, salads, sandwiches, coffee, and teas:Atlanta Bread CompanyBruegger’sCorner Bakery CaféJason’s DeliMcAlister’s Deli.
22 Locations As of June 2009, there were more than: 1,340 Bakery-Cafés 565 Company-owned Locations780 Franchised Locations
23 Strategic Problems Lack of foreign development Low market niche for “specialty foods”Lack of a “traditional” dinner menu
24 Growth and Opportunities Two main growth drivers:Growing its base of locationsGrowth in sales at existing cafés
25 Growth and Opportunities Currently opening a bakery-café every other day.The organics/ healthy crowd or Market niche group is growing at 15% - 20%.Increase domestic locations by striving for 4,000 United States locations.
26 Growth and Opportunities Panera is currently opening restaurants in Canada.Develop international locations of Panera Bread.Management teams have created new menu options, new breads and sandwiches, to boost sales at already existing restaurants.