Panera Bread has been hugely successful in executing their strategy. Having the financial resources at hand to compete for prime locations is necessary for survival. Because of this, the sector will continue to grow.
However, due to their success with the fast casual concept and their proven track record of mastering this concept, they will likely not consider this move until they have reached maximum market penetration and their sales begin to plateau.
What strategic moves are rivals likely to make next?
However, the cost of entry into this market may be prohibitive, especially since one of their main competitors; Au Bon Pain is already entrenched in that market. It is difficult to find any weaknesses that the company displays. Panera puts a lot of effort into strategic placement of their restaurants.
What are the key factors for future competitive success? Our text states that rivals seek to set themselves apart via pricing, food quality, menu theme and selection, dining ambience and atmosphere, service, convenience, and location.
As mentioned above, the company has yet to penetrate the Manhattan market. Sometimes, doing nothing is the best option. There are also changes in who is buying the fast casual product.
Another key factor is time savings. Continued growth is expected as more consumers spend their disposable income in fast casual restaurants such as Chipotle and Panera Bread franchisedirect.
As commercial real estate market improves, stores may experience difficulty negotiating favorable long-term leases. They have been very successful in the fast casual sector and have plans to continue expanding their growth using their proven record of accomplishment as their guiding light.
Application of 7 questions in chapter 4 to Panera Bread A. Our text however lists several competitors in this sector and they run the gamut from regional, to national, to international with size of 39 locations Nothing But Noodles to over locations Chipotle Mexican Grill.
I will usually leave if I know the wait is going to be greater than 45 minutes. The competition may already have the prime real estate locations. How strong are competitive forces?
Panera has rewarded its shareholders handsomely. They do not pay a dividend now and have no plans on paying a dividend for the foreseeable future, preferring instead to use their cash flow to continue expansion.
They already have the regional dough centers established. Defining features of a fast casual restaurant are debatable. Most expansion is financed by cash flow from operations.
It was also suggested above that daily delivery of their fresh baked products to retail groceries would expand their product line to consumers who have not tried their product.
Competitive pressures from buyer bargaining power have been minimal.
Other competitive moves might include pricing or discounting for the same product line, or the evolution of existing product lines.Industry Analysis: Dominant Economic Features Definition of Full-Service Restaurant Industry According to the United States Census Bureau, Panera Bread would fall under the Full-Service Restaurant Industry (NAICS codeSIC ).
Panera Bread seeks to be a nationally recognized name and a dominant operator in upscale, quick service dining. Purchased the Saint Louis Bread Company (chain of 20 units) To be the first choice for diners craving fresh-baked goods, a sandwich, soup, a salad, or a beverage served in a warm, friendly, comfortable dining environment.
InRon determined that Panera had the potential to be nationally dominant, but it would require all of our resources.
As a result, in all of the Au Bon Pain Co. Inc. divisions were sold, and the remaining company was renamed Panera LLC. Panera Bread Company Analysis Company History Began as segment of Au Bon Pain Co.
Inc. in founded by Louis Kane and Ron Shaich Au Bon Pain purchased St. Louis Bread Company and changed the name to Panera Bread. Au Bon Pain Co.
sold its other chains, including Au Bon Pain in order to direct all management and financial. What are the industry's dominant economic features? Panera Bread is a part of the Fast Casual Restaurant Industry. Fast casual restaurants are defined as hybrids of quick service and casual dining that offers the consumer more freshly prepared and customized product than a fast food restaurant.
What Are The Industry S Dominant Economic Features Panera Bread ABDM ENTREPRENEURSHIP Case Panera Bread: Occupying a favorable position in a Highly Competitive Industry Program Finance and Investment Tutorial class Group 7 Tutor’s name Mr.
Tang Jut Weng Date of Submission 8th March Student’s Name .Download