Panera Bread Company

1019 words 5 pages
Panera Bread Company 9/4/11

Panera Bread’s mission is to make great bread broadly available to consumers across the United States.

Panera Bread’s vision is to create specialty cafés anchored by an authentic, fresh-dough artisan bakery and upscale quick-service menu selections.

By targeting urban workers and suburban dwellers looking for a quick-service meal and a more aesthetically pleasing dining experience, Panera Bread’s long-term objective and strategic intent is to make Panera Bread a nationally recognized brand name and to be the dominant restaurant operator in the specialty bakery-café segment.

Panera Bread’s values are Product, Environment and Great Service (PEGS).

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Many locations offer high quality furniture, cozy seating seats and fireplaces. In addition, Panera Bread offers free Wi-Fi, which allows them to provide a great option for studying, working or gathering with friends.

Growth Strategy – Panera Bread’s growth strategy has been to capitalize on its market potential by opening both company-owned and franchised PB locations as fast as was deemed possible. Franchising has been the key component of the company’s efforts to broaden its market penetration.

To promote growth, Panera Bread’s franchising strategy was to enter into franchise agreements that required the franchise developer to open a number of units, typically 15 bakery-cafés in six years. Franchisee candidates had to be well capitalized, have a proven track record as excellent multi-unit restaurant operators and agree to meet an aggressive development schedule. In addition, franchisees were required to purchase all of their dough products from sources approved by Panera Bread.

As part of the agreement, Panera Bread has the right to purchase all bakery-cafes opened by the franchisee at a defined purchase price, at any time five years after the execution of the franchise agreement.

Marketing Strategy - Panera Bread’s marketing strategy is to compete on the basis of providing an entire dining experience of high-quality food at reasonable prices. Franchise-operated bakery-cafés have been required to contribute 0.7 percent


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