'Panera Bread Company: Still Rising Fortunes? Essay\r'

'Panera Bread is a noted restaurant that has come about from the conflux of great companies and muckle. However, the counterbalance was truly with Au Bon dis hostelry which was started in Boston’s Feneuil Hall as a demonstration bakery. Louis Kane was struck by this store’s ingathering potential and purchased the descent in 1978. Between 1978 and 1981 the lodge undecided 13 stores, more(prenominal)over subsequently closed 10 of these stores, in the Boston atomic number 18a and had study debt. Ronald Shaich, a late graduate from Harvard, overt the cookie Jar in 1980 and befriended Louis Kane. In 1981, the friends merged the Au Bon Pain and the Cookie Jar to form one business known as Au Bon Pain Co. Inc. The co-CEO’s were satisfactory to lower debt, exposit the business, and centralized facilities for terminal income cropion. In 1985, the guild added sweet-scented made sandwiches to their harvest-timeion when they find client behavior of get a baguette cut in fractional and using cold cuts brought from home to benefit sandwiches. This allowed for a bracing way to slide by clients with firm supporter, all the darn staying nutritious.\r\nPanera brusked in three business segments: connection owned bakery-café operations, liberty operations, and fresh dough operations. The key initiatives of Panera’s growth was think on growing store profit, increase transaction and gross profit per transaction, hold its majuscule smartly, and put in accede drivers for concept differentiation and competitive advantage. During the recession, while separatewise companies were lowering pricing and fiber of honests, Panera was doing the opposite. The caller-up sort of targeted client who could present to drop off an average of $8.50 on lunch. So during 2009, the participation raised prices twice, on bagels and soups, which alterd the partnership to provide much for less. This attitude withal allowed t he come with to bear on employees and customer satisfaction. By arresting labor consistent with gross revenue and continuing to invest in its employees as a way to reveal perform its customers. In 2009, Panera had sales of nearly $2.8 one million million and was ranked as the largest fast fooling chain.\r\nPanera learned from its competitors, none of those competitors had yet to design out the formula for Panera’s success. Panera has act to add untested and exciting products to its wit and attempt to suit subject the expectations of its customers, and this include the red-hot breakfast sandwiches introduced in 2008. The transportation was redesigned and its menu boards with the hope of drawing the customer midsection to the highest margin items. These new menus withal include the calorie information for items in 2010, intumesce before any other ships fraternity did so. The corporation has been fitting to anticipate and move to c descendes in feed and supply costs, included fuel, proteins, dairy, wheat, tuna, and cream cheese in lather to drive gross profit per transaction. Re inceptions:\r\nWhen dealings with resources there a few that pass across out much(prenominal) as: Panera’s intellectual capital, its financial eyeshot, and the executives. Each of these resources en suitable the corporation to grow and provide service to customers while maintaining their current standards. Panera has been able to date st international ampere their go with happen to pay off profits, march on employees working, and grow the corporation. Since the company is so good to their employees and franchisees, these employees be eager to maintain shade, which in stoop leads to more loyal customers. Panera substantialised that the key ingredient was the kind of people behind the counter who provides the customer service. Because the company is maintaining note, which includes freshness and nutrition this allows the customers to choose this day-by-day fast forage location for a much give out meal. Since the company is doing closely financially, they argon able to continue expanding, which leads to more telephone lines and potential for the areas surrounding the store. This in turn enables the company to maintain their financial position and continue to invest in new ventures. Capabilities:\r\nPanera purports a great value on their products. This wellnessy option offers a lean of varieties which enable customers to get anything from soup to pastries. Since trends are always changing, Panera does a good job in changing their menu to keep with customer demands. This ever changing menu has passs to satisfy changing customer preferences, ameliorate its products, and maintain customer interest. By maintaining the customer interest in its menu items Panera mustiness continue to do research and scram new goods. As Panera doesn’t prepare a test kitchen, these items are instead tested these items out directly in the cafés. The research and nurture police squad nominate twice yrly retreats that allow these team members to â€Å"out do” each other with their creations. Panera has also been able to negotiate the real estate locations so that be actually favors the company. This is also true with the ordering diet products and other goods. Most of these companies go away offer discounts on goods due to the name comprehension and stability of the company when others are failing. impression Competencies:\r\nWhen looking into core competencies Panera has proven and positive many of these. The goal in the beginning was to sell high prime(a) food with a mid-price level. Panera has since exceeded the goal and customer expectations in the casual fast food category. The company continues to maintain these expectations by having fresh dough distribution centers in regional areas. This provides the product quickly and allows for faster use which keeps the product fresh er for customers. While Panera strives to maintain these standards, the company also reaches out to the surrounding company by giving away left(p) over bread to homeless shelters and collects donations for other charities. Panera also believes in providing bakery-café operators the chance to get in in the success of the location, which enable the company to attract and maintain experienced and highly qualified personnel. Findings of Fact:\r\nFranchising a rouge to Success:\r\nFranchising is a key gene in the growth that Panera has experienced. Since a franchisee is purchasing the use of the Panera name, this delegacy that they are also purchasing the business model and authentication for their location. This allows the company to grow quickly and the franchisee contributes the resources and capabilities demand to implement the Panera concepts and strategies. The franchise program began in 1996, and as of December 2009 there are 795 franchise-operated bakery-cafés open throughout the US and Canada. There are also commitments to open another 240 additional locations. Panera sells locations via the Area maturation Agreements (ADAs) and the franchisee must be able to meet financial requirements influence forth by Panera. The strategic choice perspective, which proposes that not only does the company adapt to changing environments, but they also have the opportunity and agent to reshape their own environment, nub that Panera is able to draw customers who whoremonger afford to spend a little more. By open up franchises across the country, the company is reaching for a functional system by achieving integrated and business unit objects.\r\nBy implementing the strategy that each franchisee must open a set amount of locations within their study area can allow the company to expand and reach a great amount of customers. In 2009, 57.6% of the company’s bakery-cafés were owned by franchises comprised of 48 franchise groups. Panera does n ot facilitate the kink or development of the area where a location allow be built. Franchising is a great way for Panera to enter new markets with little to no cost to the company. This can be seen with how Panera moved into the Canadian market. Panera entered into a credit facility with a Canadian franchisee and in March 2010, Panera had repurchased the locations in order to be more directly conglomerate in the new Canadian market. By implementing ways for franchisees to continue to expand and generate more sales Panera would be able to lower some of the standards set to wrick a franchisee and this would allow for more opportunities for growth both inside and outside of the US and Canada. Quality and Concept Different from Competitors:\r\n face up competition from numerous sources in its address area means that Panera has to offer something unique. This means that Panera offers something different, such as fresh- sunbaked artisan breads, fresh sandwiches, soups, and salads wit hout worrying about whether it was nutritious. The unique dine experience to customers, combined with nutritious food and fast service keep customers approach path back. The friendly atmosphere, which includes comfortable seating, warm tones, and comfortable locations can offer customers a better option to be able to hang out and possibly spend more money. Panera handles this obstacle by offering specialisation food, casual dining, and quick service cafés. However, competitive factors include location, environment, customer service, price, and quality of products. This means that Panera competes for the best locations, hourly employees, and customers. The corporate destination within Panera has always been a solicitation of beliefs, expectations, and values learned and shared by the company employees. This results in employees striving to be the best that they can be when offering quality service and products.\r\nThere are competitors who have begun to test the concept of â €Å" upmarket” dining, may also test the health and wellness or sustainability component that could be included. By being able to maintain their core beliefs such as no chemicals or preservatives, the company is able to trifle customers back to simpler times and provide good, quality food. Since Panera is able to dedicate themselves to their concept the company has enjoyed brand loyalty, positive name recognition, and goodwill. Since Panera operated on three business segments such as company-owned bakery-café operations, franchise operations, and fresh dough operations the company is able to keep a better feel for those segments and maintain standards.\r\nPanera was able to extend its strong values in unpretentious ways in a accept atmosphere. Locations were often donating bread and baked goods to community organizations in need which showed that they were problematic in bettering their community. By ensuring that Panera sets the standards that competitors much strive t o reach, the goal is to find a gracious niche, such as the casual fast food dining experience with differentiation foods. Financial Growth\r\nPanera reported a 48% increase in net income of $25,845 million during the first quarter of 2010. Panera believed that its primary capital resource was cash generated by operations. The principle requirements for cash have resulted in the company’s capital expenditures for the development of new company owned bakery-cafés. By putting this capital to work for the company, such as purchasing new equipment, remodeling locations, or other needs such as enhancements to information systems or infrastructure, will be able to maintain standards for products. The company has access to a $250 million credit facility, which as of December 2009, had to borrowings outstanding. Panera will be able to use its cash flow from operations and available borrowing under its live credit facility will be sufficient to fund its capital requirements for the predictable future. Panera should continue to invest in training, labor, and quality products.\r\nPanera was able to increase costs, which resulted in better products while other competitors were cutting costs, and this resulted in a more loyal customer. The company should continue to increase performance and be able to increase stock prices. The franchise agreements also provide a source of income when fees are due. These royalties and fees in fiscal year 2009 were up and with the franchisee opening more locations that should continue to grow. Finding ways to provide quality products at a mid-level cost to the customer will continue to ensure that Panera will continue to see growth in the future. Panera should begin to spend some of the capital on marketing. Although most of the marketing has been do by word of mouth, there is no reason why the company couldn’t do some advertising. This would increase customer knowledge and traffic within the locations.\r\n boilers su it Panera Bread Co. Inc. is a stable company which has continued to grow as other competitors scaled back in the recent recession. Panera offers quality food, customer service, and a welcoming environment which some other competitors do not offer. By offering this typewrite of arrangement for customers, it encourages more spending and allows customers to take their time while getting their meals faster. world a national leader in business can allow the company to meet obligations and ensure that the capital will continue to grow. Panera will continue to set standards and strive to meet them every day.\r\n industrial plant Cited\r\nWheelen, Thomas L. and J. David Hunger. Strategic Management & Business Policy. 12th Edition. Boston: Pearson. 2012. fall guy\r\n'