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PANERA BREAD COMPANY Case Study #8. Company Overview Au Bon Pain Company Founded1978 in Boston, Massachusetts Purchased Saint Louis Bread Company in 1993.

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Presentation on theme: "PANERA BREAD COMPANY Case Study #8. Company Overview Au Bon Pain Company Founded1978 in Boston, Massachusetts Purchased Saint Louis Bread Company in 1993."— Presentation transcript:

1 PANERA BREAD COMPANY Case Study #8

2 Company Overview Au Bon Pain Company Founded1978 in Boston, Massachusetts Purchased Saint Louis Bread Company in 1993 Sold Au Bon Pain Division in 1999 Changed company name to Panera Bread Company

3 Company Overview The Panera Bread Companys 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

5 Strategy To 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 customers Panera Breads 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 companys competitors.

8 Demographics White 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 fireplaces Free Wi-Fi is available; which is an attraction for business meetings and college study groups.

10 SWOT Analysis Panera Bread Company

11 Strengths High Customer loyalty Menu options Signature Café designs Inviting ambience Operating systems Unit location strategy Distinctive Menu Seasonal menu changes Demographical menu changes Organic menu choices

12 Strengths Extensive employee training program Extensive demographic study for new site locations Free Wi-Fi access for customers Competitive advantage from centralized dough making operations.

13 Weaknesses Low public awareness Stringent franchising guidelines for new entrepreneurs Lack of foreign development Market competition with specialty foods has a low market niche Lack of traditional dinner menu

14 Opportunities Lower stringent franchising guidelines for new entrepreneurs Develop presence in foreign markets Develop a better dinner menu

15 Threats Lagging economy McDonalds Competition from the fast food industry leader Subway Offers fresh sandwiches for less Starbucks Direct threat to Panera Warmth COSI, a copy cat company

16 Financial Analysis Panera Bread Company

17 Financial Analysis Sales vs. Cost of sales

18 Financial Analysis Gross Profit

19 Paneras 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. Current Ratio:

20 Financial Analysis Working capital represents a companys ability to expand without the need to raise more equity or borrow money.

21 Rival Companies Closest Rivals that also feature baked goods, soups, salads, sandwiches, coffee, and teas: Atlanta Bread Company Brueggers Corner Bakery Café Jasons Deli McAlisters Deli.

22 1,340 Bakery-Cafés 565 Company-owned Locations 780 Franchised Locations Locations As of June 2009, there were more than:

23 Lack of foreign development Low market niche for specialty foods Lack of a traditional dinner menu Strategic Problems

24 Growth and Opportunities Two main growth drivers: Growing its base of locations Growth 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.


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