WELCOME TO OUR

PRESENTATION

Prepared by--Incredible

PANERA BREAD COMPANY

PANERA BREAD COMPANY OVERVIEW

Origin 1981 Au Bon Pain Company founded by Louis Kane and Ron Shaich.

Growth on US East Coast & Internationally 1980s and 90s stores opened in malls, airports, shopping centers.

Acquisition of Saint Louis Bread Co.

1993 mgt team studied fast food restaurants which led to overhaul of Saint Louis Bread Companies 1999 sold for $73m to ABP Corp. Renamed to Panera Bread Company
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Sold Au Bon Pain bakery-caf division

FEASIBILITY ANALYSIS
Industry Analysis:
Few
High

competitors
industry operating margin

Moderate

growth rate

Product Analysis:
5

the

customer is satisfied by competing products

that are already available

CONT..

Target Market Analysis: Moderate growth rate potential. High purchasing power of customers. Moderate awareness of the new products.

Financial Analysis: Modest financial performance of similar business. Moderate initial capital investment.
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Founders Analysis: Extent to the founders or founders professional and social networks in the relevant industry

Founders have Moderate skill as relate to the proposed their products and services.

PEST ANALYSIS FOR PANERA

Category Issue Threats/Opportunities Rankin g (1-5)

Political Economic

None Restaurant business extremely competitive Sales at food service locations in US trend upward
Threat Opportunity 4 3

Social

Increasing level of health consciousness (ex. Good carbohydrates)

Neither -- most restaurants react quickly to changing consumer tastes. Level playing field. Threat existing markets Opportunity untapped markets Opportunity

Consumers prone to try new establishments Consumers loyal when satisfied with experience Technologica l None

1 3 5 8

Industry Overview (Supply)

Porters five forces:
Threat of substitute products HIGH

Bargaining power of suppliers LOW

Rivalry among existing competitors

Bargaining power of buyers

HIGH

Threat of new entrants LOW

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Porters Five Forces

Factor Analysis Substitute products are easily accessible (eat at home, convenient stores) Economic downturn limits disposable income substitute products become more appealing. Panera has multiple options to source each ingredient they use. Economic downturns affect on consumer eating behaviors cheaper meal at home. Over 21 direct competitors/alternative eating establishments of Panera. Differentiation and constant menu changes to appeal to consumer preferences. Many competitors in industry. High investment threshold to enter market Impact

Threat of substitute products

HIGH

Bargaining power of suppliers

LOW

Bargaining power of buyers

HIGH

Competitive rivalry Threat of new entrants

INTENSE
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LOW

SWOT ANALYSIS FOR PANERA BREAD

Strengths
Strong/Loyal Customer Base in NE & Midwest Menu Options/ Variety Able to provide healthy options to customers Analysis of market

Weaknesses
No presence in large markets (south & west) Want customers to discover Panera Decentralized Distribution each caf placed orders Rely on franchise partners as key to growth very tough standards

Opportunities
130m consumers daily Grow number of customers that consider Panera as a dinner option Get existing customers to come at different times of the day (ex breakfast crowd to come for dinner)

Threats
Multiple types of competition fast food, sit down restaurant, eat at home, QSR, fast casual Differentiation?? What makes Paneras 11 different than competitors 76% of meals eaten at home

QUESTION
1.Analyze the restaurant industry Using Porters five forces model. In what ways has Panera Bread successfully itself against the forces that are suppressing the profitability of the restaurant industry as a whole? Ans: Business world are gradually changed, new company are coming for the threat in Panera Bread. A consumer wants to new substitutes product. Panera Bread medium suppliers in the market consumer world. Determine the levels of suppliers are threat in the favorable position helped new category the number of seafood suppliers is relatively small compared to the number of beef and chickens supplier.

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2.What barrier to enters has Panera Bread created for potential Competitors? How Significant are this barriers.

Ans: In the time ambivalent of the market of business strategy changes of the product quality, Sturbuck caf is new of the market entrants threat for Panera Bread. Business world are gradually changed, new company are coming for the threat in Panera Bread. A consumer wants to new substitutes product. Panera Bread medium Potential Competitors barriers.

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