Panera Bread Case Study
Week 2 Assignment
1. SWOT Analysis
Strengths a. Minimal Long-Term Debt. Most expansion is financed by cash flow from operations. b. Quality control is maintained by making fresh dough daily at one of several fresh dough facilities. The dough is then transported daily from the facility to stores and baked fresh in the store. The average length of each trip is 300 miles. c. Strong brand recognition. d. Free Wi-Fi at most locations. However, to encourage frequent customer turnover, many locations limit Wi-Fi to 30-60 minutes or turn it off completely during peak business hours. e. Growth through successful franchise operations. f. Growth through acquisition; Paradise Bakery & …show more content…
Captain D's Seafood is just starting this transition in its home market of Nashville. They are installing upscale interiors, adding Wi-Fi service, and expanding the menu with grilled items like Alaska salmon, tilapia, and farm-raised catfish. Another example is the DQ Grill & Chill concept that now accounts for 10% of the Dairy Queen chain. In addition, big name celebrity chefs are downgrading to the fast casual concept. Bobby Flay, Rick Bayless, and Wolfgang Puck are attracted to the blend of menu flexibility and economics of scale the segment can offer (qsrmagazine.com, 2011).
Competitive pressures from suppliers in the form of increased costs have been passed onto the consumer by way of increased prices. Panera enters into agreements with suppliers to purchase commodities at a fixed price over a one month to one year period. They have also entered into swap agreements to manage fluctuating butter prices.
Competitive pressures from buyer bargaining power have been minimal. Instead of discounting their product to lure customers back, they focused on offering guests an even better "total experience" through new menu items, new china, and maintaining their present labor force so the customer did not have to wait longer, or the employees did not become frazzled from overwork.