Thursday, October 24, 2019
Panera Bread Essay
Panera Bread is a nationwide known eatery that provides premium foods in a sophisticated atmosphere. Panera Bread is in the line of bakery-cafÃ ©. They decided to set themselves apart from eateries such as McDonaldÃ¢â¬â¢s, WendyÃ¢â¬â¢s, and Burger King. The stores are equipped with very intimate settings and Wi-Fi. Panera Bread specializes in a variety fresh baked bread and meal options for the health conscience customer. SWOT Analysis Strengths Ã¢â¬ ¢Panera Bread is known nationwide and this helps to attract customers. Ã¢â¬ ¢Panera Bread has an assortment of fresh breads and meal offerings to accommodate those that are health conscience. Ã¢â¬ ¢Panera Bread moved past the fast food market and decided to offer high-quality, premium food to its customers. Ã¢â¬ ¢The overall ambience of the eatery gives an intimate, at home feel that makes the customer want Ã¢â¬ ¢Scott Davis, senior vice president and chief concept office had a clear vision of the direction Panera Bread would take and a clear strategy of how to achieve that goal. Weakness Ã¢â¬ ¢The eatery offers premium, fast dining and the prices may appear to be on the higher end to customers. Ã¢â¬ ¢Panera Bread has not been able to increase the frequency of which customers dine at the eatery. Ã¢â¬ ¢In order to enter as a franchise, Panera Bread has a very strict list of criteria that makes it difficult to qualify. Opportunities Ã¢â¬ ¢Panera Bread can cease the opportunity to offer their fresh baked breads in supermarkets or sell their breads in store to customers. Ã¢â¬ ¢Panera Bread has the opportunity to offer a lower end eating experience. This lower end chain will appeal to potential customers who cannot afford and expensive meal for the family. Threats Ã¢â¬ ¢Panera BreadÃ¢â¬â¢s direct competition is fast-casual restaurants. Ã¢â¬ ¢The change in the economy has affected how often individuals and families go outside of the home to dine. Alternatives 1.Offer Panera BreadÃ¢â¬â¢s signature dough and bread to local supermarkets or for sell at the Panera stores. 2.Introducing a lower market restaurant. 3.Make entering the franchise easier by making the criteria to qualify less strict. Discussion of Alternatives Alternative 1: Pros: Offering their dough for purchase by customers has the potential to generate more revenue for the company. It will also introduce the Panera Bread brand into households of those who have not visited the restaurant. Cons: The cost to produce the fresh dough to customers may exceed the overall gain to the company. Alternative 2: Pros: Introducing an alternate chain to appeal to a lower income customer base will expand the customer base. With the present state of the economy, families are finding it hard to eat out especially when the prices are high. Cons: This particular alternative detours the company from their clear goal. With so many affordable eateries, Panera Bread strives to set itself apart from the others. Alternative 3: Pros: Easing the criteria would make entry in the franchise easier. This will allow for more Panera Bread stores to open. Cons: Easing the criteria would deteriorate the stability of the franchise. The strict criteria ensure the overall success of the franchise. Recommendations Panera Bread would benefit most by teaming up with supermarkets to supply fresh baked Panera Bread. Even though the company itself does not serve frozen bread, it may be a good idea to offer the frozen dough for customers to purchase.