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Panera Bread Co

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Panera Bread Co

Howard Palmer

Strategic Management


Most consumers are gifted with five major senses; sight, taste, touch, hearing, and smell. These same senses unconsciously guide us through our daily decision making processes. What, when, and how consumers choose to make purchases can easily be foreseen by companies and played to their advantage. Being that food is a substance in which we must have to survive, our senses become keen in being able to identify it.  Fresh baked bread is one of those identifiers that comes easy for most of us. Panera bread co has taken that concept and ran with it. Their unforgettable aroma can be smelled through out the United States and some parts of Canada. Established in St. Louis, MO 1988, Panera has since soared to heights unimaginable. Panera’s strategy is to set up stores in highly populated urban and suburban areas has faired well for the steadily growing company. Panera’s mission “a loaf of bread in every arm” truly speaks to what the company has set out to do.

Remaining victorious over the past few decades’ economical depths, Panera has continued expansion while simultaneously watching their stock prices rise into the triple digits. Their success is largely due to the company’s ability to create a place that can par any and everyone’s standards. Panera’s use of soft colors and comfortable furniture’s have had a particular way of provoking relaxation to all consumers willing to indulge. Having the ambiance that relinquishes peace and tranquility accompanied by a healthy selection of fresh made foods and refreshments seem to be exactly what consumers look forward to.

Another resource Panera has is their Employees. To successfully navigate through any body of water a ship must be equipped with a highly functional crew to ensure safe travels. Panera is no different. Their employees go through extensive front and back of the house training before they are allowed to offer services. Though training and expectations are in the highest regard, Panera does do their do diligence by taking care of their employees. All members of the company work over twenty five hours a week are offered stock purchase plans, healthcare, and wages that exceed competitors.

Panera’s baking expertise gives them the ability to offer consumers a large variety of selections. Being that the people main focus is towards living healthier lifestyles it come as no surprise that Panera would keep fresh and updated entrees on their menus. Instead of finding one good thing and taking the “lets ride it out” approach, efforts are constantly being made to challenge consumer’s taste buds. Panera’s Research and development process for adding new entrees truly sets the bar high for competitors. Twice a year Panera selects a team to retreat to Adirondacks; Once there the team members take turns trying to out do each others made up concoctions. This method of picking new entrees for their menus has lead to some very successful additions.

Another aspect that must be addressed is Panera’s integrity. As the company continues to make a return of it’s investment they use their earnings to open more stores in areas where they receive higher sale volume. This strategically brilliant method offers opportunities’ for Panera to acquire real estate leasing contracts at favorable pricing.

Due to the value Panera brings to consumers, they continue to be the number one competitor in their market place. Promising fresh ingredients cooked with quality and integrity makes every experience delightful. ““We believe our menu innovation is one reason our value scores with customers remain so strong. Zagat’s 2011 consumer generated National Restaurant Chains Survey for eating on-the-go rates us number one among chain restaurants with fewer than 5,000 locations in the Best Salad and Best Facilities categories while ranking us among the top five in the Best Value, Best Grilled Chicken, Top Service, and Best Breakfast Sandwich categories” (Panera Bread Company 2011 10-K).



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