Case 14 Panera Bread

PANERA BREAD CO.

Teaching Note

Case Overview:

This case is set in the year 2004. It was inspired by the authors’ visits to Panera restaurants and their curiosity to find answers to the fundamental question what makes a business successful. How is it that Panera has been so successful? Why are there so many other restaurants around us that do not show similar growth & profitability? What can we learn from a successful experience?

The case is introduced through a very simple question of “Can Panera expect to achieve its growth goals?” The first section of the case describes the Restaurant Industry as a backdrop for this ambitious goal. The second section provides the history, business concept and strategy, management, company operations including information systems, distribution, franchise operations, and supply chain. Thus, it provides sufficient information for both external and internal analyses to construct a unique picture of a highly successful company.

The case has been constructed from secondary sources.

Teaching Suggestions:

1. Discussion questions may be assigned as guidance for students to think about the case. Students who have reached a high level of maturity in strategic thinking may not need such guidance.

2. Students may also be assigned the task of researching any other information on Panera Bread Company using any of the Internet Search Engines to zoom in on financial as well as other information to see the company’s progress towards its goals.

Teaching Objectives:

1. To apply the concepts of industry and macro-environmental analysis to synthesize a judgment of attractiveness of an industry.

2. To apply the concepts of competitive strategy and internal analysis to synthesize a judgment about the competitive position of a company.

3. To understand the challenges of leading a successful company.

4. To devise creative and insightful solutions for fine-tuning strategy for a successful company in...