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CASE STUDY
PANERA BREAD COMPANY CASE STUDY ANALYSIS Jeremy Svagdis Columbia
College June 18, 2012
Panera Bread Company and its subsidiaries operate a national bakery-cafe concept with
1,541Company-owned and franchise-operated bakery-cafe locations in 42 states, the
District of Columbia,and Ontario, Canada, serving almost 6.5 million customers a week
(Panera Bread Company, 2011 10-K, 2012).There are 740 Company-owned bakery-cafs, 801
franchise operated bakery-cafs, and 24 fresh doughfacilities (22 are company owned, and
2 are franchise operated) (Panera Bread Company, 2011 10-K,2012).
Total revenues in fiscal 2011 increased 18.1 percent to $1,822.0 million compared to
$1,542.5million in fiscal 2010.Net bakery-cafe sales in fiscal 2011 increased 20.6 percent
to $1,593.0 million compared to$1,321.2 million in fiscal 2010.Franchise royalties and fees
in fiscal 2011 increased 7.7 percent to $92.8 million compared to$86.2 million in fiscal
2010
(Panera Bread Company, 2011 10
-K, 2012).Identification of Resources:Through this recession, as many are wondering
where they are getting their next meal from,Panera Bread Company has expanded
operations, experienced double digit yearly earnings increases,and watched as their stock
price continues to rise. A startup more than twenty years ago, Panera BreadCompany has
amassed and refined their resources. Potentially their greatest resource, CEO Ronald
Shaich created Panera as place that could be an everyday oasis for those seeking higher
quality food, a
sweet treat, or maybe a smoothie. Panera offers a great variety of healthy, fresh
menu items. Panerahas done much to earn their corporate Goodwill and brand name
recognition. There is comprehensive
front and back house training of employees, whom they see as skilled providers of the
PanerasConcept Essence, and not merely cogs in mac
hine. Something unique, Panera gives healthcarebenefits to everyone who works 25+
hours a week, employee stock purchase plan, and competitive, ormany times, higher wages
than competitors. The well trained associates and owners in return maintainexcellent
quality control. The high quality of food, and excellent quality control had led to a
greatamount of Goodwill for the company, as well as brand name recognition. Much of the
advertising and
review and innovateour menu offerings to feature new taste profiles we believe our
customers crave
(Panera Bread
Company 2011 10-K).
We believe our menu innovation is one reason our value scores with customersremain so
strong. Zagats 2011 consumer
-generated National Restaurant Chains Survey for eating on-the-go rates us number
one among chain restaurants with fewer than 5,000 locations in the Best Saladand Best
Facilities categories while ranking us among the top five in the Best Value, Best Grilled
Chicken,Top Service, and Best Breakfast Sandwich categories
(Pa
nera Bread Company 2011 10-K).Management of corporate and franchise growth, as well a
deep sense of community
involvement and the desire to give back to community, further solidify Paneras placement
as something
different in today marketplace.
Paneras deep sense community can be seen as Panera gives away
leftover bread to homeless shelters and collects money for other charitable causes such
as theOperation Dough-
Nation program, and the opening of the Panera Cares bakery
-caf in Missouri, which
had no set prices; instead customers were asked to pay what they wanted (Wheelen 32
-4).