Panera Bread Essay

1853 WordsApr 26, 20138 Pages
| Panera Bread Company | Case 8 | | Team H (Averett, Elkins, Kedzior) | 3/18/2013 | | INTRODUCTION During 1995 the Panera Bread Company (PBC) began as a vision to create specialty cafes based on fresh dough, artisan bakery breads, and upscale, quick service menu items. The bakery cafes are built to provide a warm and welcoming atmosphere. The dining atmosphere and unique menu were meant to set Panera apart from the rest, and it succeeded. The artisan breads and pastries are baked daily at each Panera store by specially trained bakers and bakery staff. The vision rapidly became reality and as of mid 2011, Panera Bread Company had 703 company owned stores and 790 franchised bakery-cafes operating in 40 states and Canada. In spite of a poor economy and an extremely competitive industry, PBC was able to continue growth and remain profitable. However, the management at PBC has not been able to meet the targeted growth rate or generate the targeted EPS consistently. Management at PBC has a strong vision, but the strategy necessary to reach that vision is not in place. There has been too broad a focus on growth and EPS with not enough thought given to the strategic and operational changes that must be made in order for PBC to remain profitable and relevant in the restaurant industry. The vision of PBC has been stretched and PBC is no longer offering value to customers as it was in the beginning years of operation. The objectives of this study were to examine PBC’s performance and identify strategic and operational changes that may be required to ensure continued financial success and positive growth. The report that follows is divided into five parts as follows: Part I: - Current performance Part II: - Future outlook Part III: - Improvement strategies Part IV: - Conclusions and recommendations Part V: - Appendix PART I: CURRENT

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