Table of Contents I.
Company Vision and Mission Statement
II.
S W OT A n a l y s i s
III. III.
The The Five Five Forc Forces es Mode Model l of Comp Compet etit itio ion n
IV. IV.
Thin Thinki king ng Stra Strate tegi gica call lly y abo about ut the the Comp Compan any' y's s Sit Situa uati tion on
V.
Anal Analyz yzin ing g a Comp Compan any' y's s Reso Resour urce ce and and Comp Compet etit itiv ive e Posi Positi tion on
VI.
F i n a n c i al A n a l y s i s
VII.
Recommendations
I. Vision and Mission Statement 1. Vision Rais Raisin ing g Qua Quali lity ty of awar awaren enes ess s abo about ut Pane Panera ra by cont contin inui uing ng to feat featur ure e the the cali calibe ber r a nd appeal of its breads and baked goods, by hammering the theme “food you crave, f ood you can trust” and by enhancing appeal of its bakery-cafes as a neighborhood g athering place. Open more cafes’ and have nearly 2,000 Panera Bread Cafe s open by 2010. Rais Raise e awa aware rene ness ss and and boo boost st trai trail l of of din dinin ing g at at Pan Paner era a Bre Bread ad at mult multip iple le meal meal time times s (breakfast, lunch, “chill out” times and dinner). To offe offer r a mor more e aut authe hent ntic ic and and aes aesth thet etic ical ally ly plea pleasi sing ng dini dining ng expe experi rien ence ces s to to urb urban an workers and suburban dwellers. Incr Increa ease se perc percep epti tion on of Pane Panera ra Brea Bread d as as a viab viable le even evenin ing g mea meal l opt optio ion n and and to driv drive e early trails of Panera for dinner (particularly among existing Panera lunch cus tomers). i.
Analysis Panera Bread presents a vision that is cohesive with the needs and dynam ics of the industry that they are in. They want to increase their company by op ening up in new locations and have set specific goals and timeliness in achievin g this. They are also trying to reach out to consumers of two major categories which are urban workers and suburban dwellers. They are doing this by providing
fast food that is healthy and tasty in a more aesthetically pleasing environmen t. They also want to become the dominant restaurant in the specialty bakery-caf e segment and by doing so they will have to establish themselves as the dominant brand in that industry. 2. Mission Statement “To provide a premium specialty bakery and café experience to urban workers and subu rban dwellers.” ” i. Analysis By looking at the mission statement, I have noted that they want the cafe locati ons to not only be a place where people come to gain sustenance but also for it to provide the consumer with an experience. It also tells me that they want to provide this experience to a niche market that is urban workers and suburban dwe llers. Lastly what I can tell by looking at their mission statement is that the y are premium in their product offering. So in saying this I think that they fo llow two types of Porters Strategies which are Product Differentiator and Niche Strategy.
II.
SWOT
1. Strengths ii. Product Brand The Panera Bread brand has value that is perceived through their aesthetically p leasing environment and presentation of their foods. Their brand also boasts sp ecialty bread that is made with no preservatives. Variety They compete in five sub-market categories, trying to target different needs by consumers. They target, breakfast, lunch, daytime “chill out”, light evening fare, for eat-in or take-out and take home bread. Quality Using natural products and ingredients, they avoid any preservatives and guarant ee that their bread is made fresh everyday and delivered to each cafe. They als o employ trained chefs that help produce the dough and final bread products. Award Winning Scored the highest level of customer loyalty among casual restaurants in the Mid west and Northeast regions of the United States in all categories, which include d environmental, meal, service, and cost. In 2005, for the fourth consecutive year, Panera Bread was rated among the best of 121 competitors in Sandleman and Associates national customer satisfaction su rvey of more than 62,000 consumers. They also won “best of” awards in nearly every market across 36 states. Presentation Thei Their r pro produ duct cts s and and envi enviro ronm nmen ent t are are targ target eted ed to be aest aesthe heti tica call lly y ple pleas asin ing g to to the thei i r consumers. The introduction of the G2 bakery where they concentrate more of p roviding a warm and home-like experience offers cafes with fireplaces well lit b akery counters and comfortable couches and atmosphere. Free Wi-Fi Internet Free Free wire wirele less ss inte intern rnet et is offe offere red d at at all all thei their r loc locat atio ions ns whic which h att attra ract cts s con consu sume mer r s who want to use the time to eat and do work at the cafes. iii.
Human Re Resources
• Empl Employ oyee ee Sele Select ctio ion n and and Trai Traini ning ng: : Pane Panera ra empl employ oys s and and trai trains ns spec specia ialt lty y chef chefs s that that facilitate every aspect of the production on the fresh-dough bread process. • Prog Progre ress ssiv ive e Mana Manage geme ment nt Team Team: : Top Top man manag agem emen ent t at Pane Panera ra brea bread d inst instit itut uted ed rese resear arch ch initiatives to see what consumers wanted out of a bakery-cafe. This initiative by leadership is what started the direction that resulted in Panera Bread. iv. Consumer In Involvement in in In Initiatives ii. ii. Test Test kit kitch chen ens s prod produc uced ed dif diffe fere rent nt mea meals ls and and the then n pres presen ente ted d it to a segm segmen en t of their cafes to test whether consumers took to the new product or not. v. Fresh Catering • Work Workpl plac aces es, , scho school ols s and and part partie ies s can can orde order r fres fresh h brea bread d and and sand sandwi wich ches es vi. Revenues and Margins Margins are maintained at a positive. Their sales and franchises grow every yea r. They have a net profit that grows every year and they are debt free. ii. Weaknesses 1. Transportation Co Costs ▪ Tran Transp spor orta tati tion on cost costs s can can be up to 27% 27% of the the cost cost of each each unit unit of sale sale. . They They ha ve to deliver fresh bread daily to different locations, some trucks travel 500 m iles total in delivering to different locations. 2. Product Costs ▪ The The cos costs ts of thei their r pro produ duct cts s are are high higher er than than othe other r fas fast t foo food d cha chain ins s as as the they y pro produ du ce all their bread fresh. 3. D i n n er M e n u ▪ It is hard hard to sell sell thei their r low low cost cost sitsit-do down wn expe experi rien ence ce to thos those e who who want want to grab grab dinner. Initiatives in this market need more attention. 4. Location ▪ Pane Panera ra has has no no pre prese senc nce e in in sev sever eral al US mark market ets s tha that t are are fert fertil ile e gro groun und d for for many many re staurants. Some of these areas include New York City, Atlantic City, Washington DC, and a number of other large markets. If Panera was to venture into these mar kets they could potentially expand their business. iii. Opportunities 1. Technology ▪ Webs Websit ite e Mark Market etin ing g and and orde orderi ring ng: : One One of thei their r goal goals s is to achi achiev eve e a dinn dinner er cons consu u mer base. They can do this by providing online ordering so that they can expedi te their ordering time and avoid waiting times at cafes. 2. M a r k et g r o w t h ▪ Expa Expans nsio ion n of Geog Geogra raph phic ical al Loca Locati tion on: : Pane Panera ra also also has has the the oppo opport rtun unit ity y to expa expand nd i nto other U. S. markets, such as New York City, Atlantic City and other large me tropolitan areas. ▪ Expa Expand ndin ing g the their ir prod produc uct t lin line e to to inc inclu lude de curr curren ent t tre trend nds s suc such h as as org organ anic ic food foods, s, or dietary meals would expand their market as well. 3. Investments ▪ Pane Panera ra Brea Bread d cou could ld inve invest st some some of thei their r res resou ourc rces es in buyi buying ng othe other r sma small ller er bake bakery ry -cafes and use them as innovative testing environments for potential integration of new ideas and even old ideas that generate revenues. ▪ Inve Invest stin ing g mor more e res resou ourc rces es in Cate Cateri ring ng, , and and expl explor orin ing g the the expa expans nsio ion n of of the their ir comp compa a ny ▪ Capi Capita tali lize ze on the the nat natio ions ns move move towa toward rds s hea healt lthy hy meal meals s and and orga organi nic c pro produ duct cts. s. ▪ Movi Moving ng glob global ally ly and and ext exten endi ding ng thei their r ope opera rati tion ons s to to oth other er mark market ets s int inter erna nati tion onal ally ly that share similar cultural and consumer trends as the USA and their sub regions . iv. Threats 1. Fluc Fluctu tuat atio ion n in Econ Econom omy: y: Cons Consum umer ers s will will spen spend d less less for for a fast fast food food prod produ u ct during down turns in the economy. 2. Entr Entran ance ce Barr Barrie iers rs: : The The entr entry y barr barrie iers rs are are low low and and the the prod produc ucts ts and and ambi ambie e nt experience that Panera Bread offers can easily be duplicated by new rivals. 3. Competition ▪ Appl Applee-be bees es: : A dire direct ct exte extern rnal al thre threat at to the the comp compan any. y. They They have have twic twice e as many many s
tore locations as Panera bread.
III. III. The The Five Five Forc Forces es Mode Model l of Comp Compet etit itio ion n a. Rivalry Among Competing Sellers i. One One of Pane Panera ra's 's majo major r comp compet etit itor ors s hol holds ds simi simila lar r pric prices es for for thei their r meal meals. s. You can purchase a meal at Apple-bees and Panera bread for roughly 10 dollars. ii. ii. Cons Consum umer ers s are are will willin ing g to to try try new new prod produc ucts ts in this this indu indust stry ry and and if if you you do not stay innovative, Panera could lose sales to new rivals. iii. iii. Riva Rivals ls off offer er sim simil ilar ar pro produ duct cts s in the their ir res respe pect ctiv ive e loca locati tion ons, s, and and the the mod mod el and experience that Panera Bread provides can be easily duplicated, hence low entry barriers. iv. Competitive force is strong to mode oderate. b. T h r e at of S u b s t i t u te P r o d u c t s i. Duri During ng down down turn turns s in the the econ econom omy, y, buye buyers rs will will subs substi titu tute te Pane Panera ra Brea Bread d wi th a cheaper alternative, such as McDonald's or Wendy's. ii. ii. Rest Restau aura rant nts s in in the the same same indu indust stry ry tha that t are are movi moving ng to orga organi nic c men menus us and and me me als in lieu of the trend in consumer health consciousness. iii. iii. New New riva rivals ls wil will l offe offer r prod produc ucts ts that that coul could d pote potent ntia iall lly y be sub subst stit itut ute e prod prod ucts; this could draw consumers away into these new locations. iv. iv. Low Low ent entry ry barr barrie iers rs to atta attain inin ing g subs substi titu tute te prod produc uct t by by com compe peti tito tors rs. . v. Competitive fo force is is st strong to to mo moderate. c. Potential New Entrants i. Entr Entran ance ce barr barrie iers rs into into the the spec specia ialt lty y bake bakery ry-c -caf afe e indu indust stry ry are are low. low. They They offer products that can easily be adopted by larger restaurant companies and al so can be developed by new entrants into the industry. ii. ii. Lowe Lower r cost costin ing g fast fast foo food d serv servic ices es dec decid ided ed to to ente enter r this this seg segme ment nt by by offe offeri ri ng the more aesthetic and ambient experience that Panera offers. iii. iii. So the the comp compet etit itiv ive e forc force e is stro strong ng. . d. Power of Buyers i. Buye Buyers rs can can alte altern rnat ate e betw betwee een n low low cos cost t rest restau aura rant nts s if they they are are not not sati satisf sf ied with the quality or do not perceive that they are paying the right price for what they are getting. ii. ii. Prod Produc ucts ts are are sta stand ndar ardi dize zed d for for the the most most par part t whic which h prov provid ide e low low swit switch chin ing g costs for buyers. iii. iii. Comp Compet etit itiv ive e forc force e is stro strong ng due due to to the the high high bas based ed cus custo tome mer r focu focuse sed d stra strat t egy that needs to be employed in order to make the consumer happy and make them stay or attract new consumers. e. Supplier i. Pane Panera ra has has num numer erou ous s sup suppl plie ier r res resou ourc rces es for for the the ingr ingred edie ient nts s tha that t the they y nee nee d and can alternate between the best suited for each location. ii. ii. Comp Compet etit itiv ive e forc forces es from from the the supp suppli lier ers s are are low low due due to this this. . iii. iii. Pane Panera ra mak makes es the their ir own own dou dough gh for for the the bre bread ads s so ther there e is very very low low sup suppl pli i er pressure when it relates to their bread dough. IV. Conclusions a. Look Lookin ing g at at the the five five forc forces es of comp compet etit itio ion n and and how how it it rel relat ates es to Pane Panera ra B read, we can note that there are low entry barriers and strong competitive force s for customers that want to use substitute products that are offered by new ent rants into the market as well as large restaurant chains. This brings to the at tention the fact that Panera bread has to stay innovative in their menu offering s and base their menus on consumer needs and trends. They however have weak com
petitive forces when it comes to their suppliers because they deliver to their “co mpany owned” bakery-cafes, and their franchised bakery cafes daily. They make the ir own bread from scratch and have a large database of suppliers for the resourc es that they need to make the bread. My overall impression through my competitiv e analysis shows that Panera needs to concentrate on their consumers and their n eeds, they also have to look in eating trends in society and continue to be inno vative and ahead of their competitors.
V. Thinking Strategically about the Company’s Situation 1. What are the Industry s Dominant Economic Features? i. Econ Econom omic ic Fluc Fluctu tuat atio ions ns: : The The econ econom omy y has has bein being g taki taking ng a down downtu turn rn worl worldw dwid id e and with more and more layoffs and pay cuts. Panera will have to see if consu mers are willing to pay a higher cost for a better experience and atmosphere. ii. ii. 47.5 47.5% % of cons consum umer er’s ’s foo food d doll dollar ars s are are spen spent t in the the rest restau aura rant nt ind indus ustr try. y. iii. iii. Sale Sales s at at com comme merc rcia ial l eat eatin ing g pla place ces s aver averag aged ed abou about t $1 $1 bil billi lion on dail daily. y. iv. iv. USA USA rest restau aura rant nt indu indust stry ry was was grow growin ing g at 5 perc percen ent t annu annual ally ly. . v. Sale Sales s at 925, 925,00 000 0 food food serv servic ice e loca locati tion ons s were were fore foreca cast st for for 2006 2006 to be abo abo ut $511 billion. vi. vi. The The prof profit itab abil ilit ity y of a rest restau aura rant nt loc locat atio ion n rang ranged ed fro from m exce except ptio iona nal l to go od to average to marginal to money losing.
2. What What Fact Factor ors s Are Are Driv Drivin ing g Indu Indust stry ry Chan Change ge and and What What Impa Impact cts s Will Will They They Have Have ? i. Heal Health thy y Eati Eating ng: : Cons Consum umer ers s are are beco becomi ming ng more more heal health th cons consci ciou ous s and and are are lo oking to vegetarian and organic foods, this can have a positive effect on Panera if they try to embrace this consumer trend and work that into their menus. ii. ii. Dini Dining ng Ambi Ambian ance ce and and atm atmos osph pher ere: e: besi beside des s the the food food item items s tha that t con consu sume mers rs a re buying at these restaurants, they also want to experience a comfortable setti ng to enjoy their meals. iii. iii. Inno Innova vati tion on: : by rota rotati ting ng menu menu items items, , they they can can keep keep cons consum umer ers. s. One One thin thing g that was noticed in this case was that consumers will get bored of the same pro duct if there are alternative or substitute products offered by competitors. iv. iv. In a nut nutsh shel ell, l, one one can can note note that that the the need needs s and and eati eating ng tren trends ds of cons consum umer er s were the highest industry driving factor in this particular industry. 3. What What Mark Market et Posi Positi tion ons s Do Do Riv Rival als s Occ Occup upy— y—Wh Who o Is Is Str Stron ongl gly y Pos Posit itio ione ned d and and Who Who Is Not? Strongly Positioned: i. Appl Appleb ebee ee’s ’s: : The They y own own twic twice e as as man many y loc locat atio ions ns as Pane Panera ra and and off offer er alco alcoho holi lic c beverages which accounted for 12% of their sales. They also offer a wide variet y of food items. They are the strongest competitor for Panera Bread in terms of market share and sales. ii. Chili s Grill and Bar: Is a full service restaurant and offers more ite ms on their menu. They also cover almost every state except one. They are stro ngly positioned to invest in consumer needs based on their capital investment in each location. iii. iii. Star Starbu buck cks: s: They They do not not offe offer r many many food food item items s righ right t now, now, espe especi cial ally ly hot hot food, if they do decide to move in this direction they can capitalize on their a lready huge market share. Not Strongly Positioned i. Corn Corner er Bake Bakery ry: : They They do not not have have enou enough gh mark market et shar shares es as yet. yet. They They aver avera a ge about the same price but do not offer free Wi-Fi. They are very similar to Pa nera Bread but do not have as many locations in the different hubs as Panera Bre ad. ii. ii. Noth Nothin ing g but but Nood Noodle les: s: They They own own con consi side dera rabl bly y low low amou amount nt of stor stores es in that that
segment and do not have enough of a presence amongst all the states as some of t he other restaurants in that industry. 4. What Strategic Moves Are Rivals Lik Likely to Make Next? i. With With the the mov move e to to org organ anic ic and and “lo “low w car carb” b” eati eating ng habi habits ts of the the con consu sume mers rs, , riv riva a ls will most likely move to offer these kind of products in their menus. They wi ll also try and promote and market themselves in this way. ii. ii. Riva Rivals ls mig might ht int intro rodu duce ce onl onlin ine e orde orderi ring ng to to fill fill ord order ers s that that tar targe get t work worker er s and schools that do not have large break times. iii. iii. Riva Rivals ls wil will l try try to int intro rodu duce ce inn innova ovati tive ve men menu u offe offeri ring ngs s that that cou could ld low lower er the entity and perceived value of Panera Bread. iv. iv. As the the cat cater erin ing g bus busin ines ess s is is a gro growi wing ng segm segmen ent t in in thi this s ind indus ustr try, y, we can can n ote that rivals might capitalize on this and move fast and invest more in this s egment. 5. What What Are Are the the Key Key Succ Succes ess s Fact Factor ors s for for Futu Future re Comp Compet etit itiv ive e Succ Succes ess s (KSF (KSF)? )? i. Pane Panera ra prov provid ides es an expe experi rien ence ce that that is ambi ambien ent t and and aest aesthe heti tica call lly y war warm m and and pleasing to those who dine there. They also provide free Wi-Fi at all their lo cations. They offer seasonal products and also cater to the needs of their con sumers tastes. Their fresh made bread that is of high quality is also a key to them being successful as a company. They need to stay competitive in being inno vative and also allowing themselves to adjust to consumer needs and trends in ea ting habits. They need to incorporate more dietary information on their product s to cater to the growing health conscious consumer. They also need to expand i n cities that they are not so prominent. They have fewer locations in more popu lated cities which if changed can deem very profitable for the company. 6. Does Does the the Out Outlo look ok for for the the Indu Indust stry ry Pres Presen ent t an an Att Attra ract ctiv ive e Opp Oppor ortu tuni nity ty i. The The rest restau aura rant nt indu indust stry ry is cons consta tant ntly ly grow growin ing. g. And And with with the the dual dual-i -inc ncom ome e family where time is not a luxury, the fast food industry can see growth in tho se seeking a quick meal that can be both healthy and provide a good atmosphere. Forecasts for the end of the 2006 year predict that sales will grow to $511 bil lion dollars.
V.
Anal Analyz yzin ing g a comp compan any’ y’s s Reso Resour urce ce and and Comp Compet etit itiv ive e Posi Positi tion on
1. How Well Is the Company s Present Strategy Working? i. Rais Raisin ing g Qua Quali lity ty of awar awaren enes ess s – Thro Throug ugh h my my ana analy lysi sis s I foun found d tha that t the they y are are d oing a good job of this, by introducing a G2 bakery-cafe that caters to higher e nd buyers that are looking for a place that is home away from home. They are equ ipped with couches a fireplace and pleasant aesthetics in the lighting of the lo cation. ii. Open more cafe s – They are doing well in this respect when it comes to fr anchising cafes but are not moving as fast to open company owned bakery-cafes. iii. iii. Rais Raise e awar awaren enes ess s and and boos boost t tria trial l of dini dining ng at at Pane Panera ra Bre Bread ad at at mult multip iple le me me al times – they are trying out a dinner menu but have not seen growth that was sub stantial however their catering segment is growing fast and attaining good reven ues. iv. iv. Incr Increa ease se perc percep epti tion on of Pane Panera ra Brea Bread d as a viab viable le even evenin ing g meal mealI don don t see this as a viable move for the company as that market is saturated with those who specialize in evening sit down restaurants. v. Are the Company s Prices and Costs Competitive? i. In thei their r part partic icul ular ar indu indust stry ry thei their r pric prices es are are comp compet etit itiv ive. e. They They aver averag age e
about 7 to 12 dollars which is competitive in that industry. New initiatives a nd price breakdown can offer a differentiation from Rivals. vi. vi. Is the the Com Compa pany ny Comp Compet etit itiv ivel ely y Str Stron onge ger r or or Wea Weake ker r tha than n Key Key Riva Rivals ls? ? i. Thro Throug ugh h my anal analys ysis is I can can note note that that Pane Panera ra brea bread d is comp compet etit itiv ivel ely y stro strong ng er than most of its rivals. They have room to grow compared to a couple of indus try leaders but have showed gradual and constant growth in the last 5 years. Th ey also have more flexibility of product. vii. vii. What What Str Strat ateg egic ic Iss Issue ues s and and Prob Proble lems ms Meri Merit t Fron Frontt-Bu Burn rner er Man Manag ager eria ial l Atte Attent nti i on i. Thei Their r loc locat atio ions ns are are wid wides espr prea ead d and and are are not not conc concen entr trat ated ed on loca locati tion ons s whe whe re there is a higher population. For example in St Louis, they have 40 locations with a population of 67,000 consumers and places like Miami where they have 2 l ocations with a population of 1,126,000 consumers. ii. ii. The The opti option on of of havi having ng the their ir bre bread ads s made made fro from m scra scratc tch h in thei their r bake bakerr-ca cafe fes s would eliminate a huge transportation cost. iii. iii. Open Openin ing g in newe newer r loca locati tion ons s that that cou could ld off offer er hig high h sale sales s volu volume mes s like like New New York, New Orleans and even in Canada s Toronto and Vancouver. iv. iv. See See why why the the com compa pany ny is slow slowin ing g dow down n in in ter terms ms of comp compan any y ope opene ned d caf cafes es as opposed to franchised cafes which are opening at a much rapid pace.
VI.
Financial Analysis 2006 2005 2004 Net profit margin .071 Return on stockholder’s equity Debt to Equity Ratio .365 Current Ratio 1.16 1.18
2003 .081 14.8% .381 1.05
Return on Sales 2006 Company stores Franchises Dough 9.9% Combined
2003 19.8% 88.0% 7.0% 24.6%
(Segmented) 2005 2004 18.5% 19.6% 88.0% 87.7% 9.0% 6.7% 23.3% 24.5%
2002 .081 16.5% .345 1.58
.084 15.9% .239 1.83
.076 15.8% .215
14%
20.70% 88.7% 25.8%
Overall Financial Strength and Ratio Analysis Looking at their ratio analysis we can note that: Sale Sales s are are incr increa easi sing ng by more more than than $100 $100 mill millio ion n sinc since e 2003 2003 but but the the grow growth th on return on sales has fallen by 1.5%. For For the the past past five five year years s the the retu return rn on sale sales s and and retu return rn on asse assets ts has has bee bee n stagnant except for 2006. Retu Return rn on sale sales s fell fell to 8.8% 8.8%, , whil while e retu return rn on asse assets ts drop droppe ped d 1% to 10%. 10%. This is due to the slowing growth of net income, with overhead costs increasing significantly from 2004. The The comp compan any y has has seen seen its its oper operat atin ing g prof profit it marg margin in decr decrea ease se by 2% sinc since e 20 02 due to its operating efficiencies. Pane Panera ra’s ’s doug dough h fac facil ilit itie ies s hav have e sav saved ed the the com compa pany ny sign signif ific ican ant t amo amoun unts ts of mo ney, as the cost of dough compared to revenues fell 8% from 2003. Sinc Since e 2004 2004 Pane Panera ra has has incr increa ease sed d its its Net Net Work Workin ing g Capi Capita tal l by $16 $16 mill millio ion n d ue to little to no debt. Shar Shareh ehol olde ders rs were were happ happy y wit with h the the comp compan any’ y’s s per perfo form rman ance ce whic which h ref refle lect cts s in in t he EPS which has risen 50% since 2004.
II. Recommendations One One way way that that Pane Panera ra Brea Bread d coul could d use use thei their r Dinn Dinner er menu menu forw forwar ard d is to offe offe r coupons and discounts to their daily customers who come in for other meals. Th is might give them a higher possibility of returning for dinner later on that da y or another day. They They can can offe offer r onli online ne orde orderi ring ng for for cons consum umer ers s who who are are on the the go, go, this this way way they can have a high turnover rate when it comes to wait times at the locations . They They can can open open more more stor stores es in cert certai ain n area areas, s, by doin doing g so they they can can cate cater r t o the specific needs of certain communities and neighborhoods like how Starbucks currently does. They They can can exp expan and d the their ir cate cateri ring ng busi busine ness ss by offe offeri ring ng work workpl plac aces es and and sch schoo oo ls catering discounts and coupons that can be given away that can be redeemed in -store by individuals. They They also also can can open open loca locati tion ons s in high highly ly popu popula late ted d area areas s that that have have fewe fewer r s tores, by doing so their trucks will not have to travel far between different lo cations to deliver dough. Thro Throug ugh h my anal analys ysis is I foun found d that that with with the the new new inno innova vati ting ng, , Pane Panera ra has has slo slo wly moving to become a meal providing high variety bakery-cafe. I think that th ey need to go back to their strong competence of making bread, and try and incor porate that into every meal in a unique way. By promoting it in this way, they w ill not fall into the category of another high end cafe. More More mark market etin ing g on thei their r free free Wi-F Wi-Fi i coul could d attr attrac act t stud studen ents ts and and afte after r hour hour workers. Anot Anothe her r Key Key elem elemen ent t I thin think k is that that they they coul could d elim elimin inat ate e thei their r doug dough h mak mak ing strategy and bring the dough making into each store. This will allow for fe wer waste products and also will eliminate high transporting costs. This will a lso show them in the light of being environmentally friendly due to that one ini tiative. Last Lastly ly I thin think k that that Pane Panera ra shou should ld Mark Market et itse itself lf from from a comp compan any y stan standp dpoi oin n t and not place so much emphasis on individual franchises marketing themselves. If the company uses that cost to effectively market themselves as a whole, they can be rest assured that customers who visit once might consider coming again ba sed on research.
