Panera Bread Company (2010): Still Rising Fortunes" Case 32

Panera Bread Company (2010): Still Rising Fortunes" Case 32

Introduction

Panera Bread Company is operating in 'Fast casual' restaurant category with a defined mission of providing the best and differentiated customer experience. Panera bread has its roots from 1976 with Au Bon Pain which was then sold to Louis Kane. Further transitions included its merger with cookie store to form Au Bon Pain Co. Inc led by Kane and Shaich. Due to growth limitation, the business expanded to serve more customers from suburban categories that included the acquisition of Saint Louis Bread Company in 1993 which later become the platform of Panera Bread. The bakery-café gained popularity under Saint Louis Bread co and resulted in immediate results. This brought the store to the pinnacle of success by increasing sales, expanding business and gave birth to the concept of fast casual category. The first mover advantage in fast casual category gave Panera Bread the competitive edge that leads it to maintain its leadership even in recessionary period. The goodness of artisan bread coupled with a serene environment provided its consumers the prompt services of fast food at the luxury of fine dining environment.

Identification of Resources

Panera bread resources lie in its leadership that focuses on the vision of serving highest customer value. The leadership included the founders who envisioned Panera Bread as the leader in fast casual segment. Ronald Shaich who served as CEO was the master mind behind the organization success as he realized the potential of artisan bread offerings to customer in a bakery-café atmosphere.

The top management is one of the prime resources that evolved Panera. Since the target market demographics for organization is 25 to 50 years old the top management falls close to this age range within 42-57 years and thus contributing through their own range of experiences that realize the demand pattern of the demographics while considering the business aspect of organization.

The financial strength of Panera also contributed in its overall growth and market leadership. The evolution of Panera was based on a debt-free condition that increased the influx of capital into establishment of bakery-café restaurants. Also, since it focused on franchising its business with almost 57% of its cafes owned by franchises, it served as a mean of contributing to its financial resources.

Panera's resources also included its ability to setup bakery-store at strategic positions that lead to stronger sales even in recessionary period. This was possible as Panera had a profitable financial statements and strong management skills that made it a desirable tenant for these locations. The human resource is prime resource of Panera considering it is operating in services industry. Panera recruited skilled associates for its bakery-cafes, dough facilities and support center operations and also designed different training programs in order to increase its level of operations. Since the organization was witnessing boom it also lead the managers to enjoy the success which helped in capturing the highly skilled and experienced human capital that ultimately funneled ...