Penera Bread Analysis

Q1: What is Panera Bread’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve?

Concept of Panera Bread Company

Panera Bread’s vision: to create a specialty cafe anchored by an authentic, fresh-dough artisan bakery and upscale quick-service menu selections, and to become one of the leading fast-casual restaurant chains in the nation.

Long-term objective and strategic intent: to make Panera Bakery a nationally recognized brand name and to be the dominant restaurant operator in the specialty bakery-cafe segment.

The driving concept: to provide a premium specialty bakery and cafe experience to urban workers and suburban dwellers.

Target markets: Panera Bread focus on its target market on urban workers and suburban dwellers looking for a quick-service meal and a more aesthetically pleasing dining experience than that offered by traditional fast-food restaurants.

1st step of evolution: In 1993, Au Bon Pain Company purchased Saint Louis Bread Company, a chain of 20 bakery-cafes located in the St. Louis. Following by that, the company changed the menu and the dining atmosphere.

2nd step of evolution: in order to go exclusively with the Panera Bakery concept and divest the Au Bon Pain Company, in 1998, it was announced that the sale of its Au Bon Pain division for $73 million in cash to ABP Corporation. Moreover, in 1999, Au Bon Pain Company officially changed its name to Panera Bread Company.

Strategy of Panera Bread

Focused Differentiation Strategy: Panera Bread’s strategies allow itself to compete successfully in five submarkets of the food-away-from-home industry which are breakfast, lunch, daytime (between breakfast and lunch; between lunch and dinner), and light evening fare for eat-in, eat-out, and take home bread. The unique strategies can be broke down by five categories: Distinctive...