CASE STUDY "PANERA BREAD". by. Fanerick G. Kawatu

CASE STUDY PANERA.

BY. FANERICK G. KAWATU, SE

SUMMARY

The Panera Bread® legacy began in 1981 as Au Bon Pain Co., Inc. Founded by Louis Kane and Ron Shaich, the company prospered along the east coast of the United States and internationally throughout the 1980s and 1990s and became the dominant operator within the bakery-cafe category. In 1993, Au Bon Pain Co., Inc. purchased Saint Louis Bread Company®, a chain of 20 bakery-cafes located in the St. Louis area.

The company then managed a comprehensive re-staging of Saint Louis Bread Co. Between 1993 and 1997 average unit volumes increased by 75%. Ultimately the concept's name was changed to Panera Bread. By 1997, it was clear that Panera Bread had the potential to become one of the leading brands in the nation. In order for Panera Bread to reach its potential, it would require all of the company's financial and management resources.

In May 1999, all of Au Bon Pain Co., Inc.'s business units were sold, with the exception of Panera Bread, and the company was renamed Panera Bread. Since those transactions were completed, the company's stock has grown thirteen-fold and over $1 billion in shareholder value has been created. Panera Bread has been recognized as one of Business Week's"100 Hot Growth Companies." As reported by The Wall St. Journal'sShareholder Scorecard in 2006, Panera Bread was recognized as the top performer in the restaurant category for one-, five- and ten-year returns to shareholders.

In 2007, Panera Bread purchased a majority stake in Paradise Bakery & Café®, a Phoenix-based concept with over 70 locations in 10 states (predominantly in the west and southwest). The Company purchased the balance of Paradise in June 2009.

In May 2010, Ron Shaich transitioned to the role of Executive Chairman of the Board and Bill Moreton, who had previously served as the company’s Executive Vice President and Co-Chief Operating Officer, was named Chief Executive Officer and President and to the Board of Directors. 

As of December 28, 2010, there are 1,453 bakery-cafes in 40 states and in Ontario Canada operating under the Panera Bread®, Saint Louis Bread Co.® and Paradise Bakery & Café® names, delivering fresh, authentic artisan bread served in a warm environment by engaging associates.

STATEMENT OF THE PROBLEM

“Bagaimana Panera Bread Company mempertahankan eksistensi dan menjaga high growth rates yang telah diperolehnya, dikaitkan dengan ancaman akan pola hidup masyarakat yang mulai mengarah ke Low Carb Diet, hadirnya competitor pada segmen sama, perubahan kondisi ekonomi dan perubahan demographic market?”

SWOT ANALYSIS

Strength

1.        Panera Bread merupakan salah satu dari 10 fastest-growing chains with sales over $200 million in 2001

2.        Panera Bread adalah perusahaan yang berdiri melalui merger antara Au Bon Pain Co. dan St. Louis Bread Co. sehingga menjadikannya sebuah usaha yang mapan

3.        Today Panera Bakery-Cafes produce among the highes average retail unit volumes of any concept outside of casual dining

4.        As of December 2003 the company had over 602 bakery-cafes with average unit volumes of $1.85 million. It is ranked as one of the top growth companies in the food service industry

5.        Panera Bread bakes more fresh bread each day than any other bakery-café operation in the united states

6.        The Company regularly reviews its product offerings to ensure it is satisfying changing customer preferences

7.        Panera is the first national chain to take substantial steps forward in meeting growing customer demand for high-speed internet access without charging for the service

8.        In December 2003 Panera Bread and Viking Culinary arts Centers announced they were teaming up to offer monthly classes on how to prepare fresh baked breads at home.

9.        The company has also developed a dough for funds program that allows nonprofit groups to sell special coupons for Panera Bread products and keep the proceeds for their causes

10.    The Management team is filled with individuals with a great deal of food experience

11.    As of December 28, 2003, the company was working with with 32 franchisee groups, had 429 franchised bakery-cafes open, and had commitments to open 409 additional franchised bakery-cafes

12.    Independent distributors are used to distribute sweet goods products and other materials to the bakery-cafes. This allow Panera to eliminatean investment in distribution system and focus on its retail operations

Weakness

1.        Panera Bread Company tidak memiliki varian produk jenis Organic food/low-carb, yang saat ini tengah digemari masyarakat, sebagaimana pergeseran tren konsumsi makanan ke jenis Healthy food

Opportunity

1.        Memiliki segmen produk yang mengakomodir selera masyarakat umum, yakni Bread dan kuliner, sehingga berpotensi merambah pasar secara global

2.        Sebagai fast-casual restaurant, Panera mampu menjawab kejenuhan masyarakat akan fast food

3.        Consumers are showing an increased interest in more healthful foods

4.        About half of 18-to 34-year-olds, who represent 37 percent of fast-food customers, are also eating at fast-casual chains

5.        In the spring of 2003, Panera was ranked as the top-performingcompany in standard and poor’s small Cap

6.        In the same year Panera received for the second consecutive year, top ranking in the “Choice and Chains” awards sponsored by Restaurant and Institutions magazine

7.        Panera was also ranked number one for food quality among all 95 competitors

8.        Nations Reataurant News announced Panera Bread was ranked number one in a national customer satisfaction survey of more than 71.000 customers

Threat

1.        Large competitors. There are approximately 8 million restaurant in the world and about 300.000 restaurant companies

2.        Low-Carb diets are affecting restaurant sales. The National Beard Leadership Council reported that U.S consumers are eating 63 percent less bread in 2003 than they did in 2002. The council predicts this number will increase n 2004

3.        There are changes in consumer eating habits: fewer bread requests and greater numbers of meat and vegetable requests

4.        Today’s customer is demanding better-quality food, better service, and better food safety. Restaurateurs must meet these demands with innovative food preparations and service

5.        The quick service (fast food) restaurant are responding to trends by refreshing their menus and expanding into fast-casual concepts

ALTERNATIVE COURSE OF ACTION

1.        Panera Bread Company harus memperluas segmen produknya, menyesuaikan dengan tren selera masyarakat akan makanan organic, sehingga mampu menjawab kebutuhan consumers

ü  Advantages:

Keinginan Consumer dapat dijawab, dan brand image perusahaan semakin baik, sebagai restaurant yang memiliki pilihan menu lengkap

Ø    Disadvantages

Membutuhkan biaya operasional yang besar untuk merintis produk baru, khsusnya biaya observasi dan promosi

2.        Merubah sepenuhnya segmen produk, dari penyedia Fast Casual Product ke Healthful organic foods, dalam rangka menyesuaikan dengan tren keinginan consumer

ü    Advantages

Seluruh produk yang ditawarkan, sesuai dengan tren pasar, sehingga dipastikan perusahaan hadir dengan penawaran actual

Ø    Disadvantages

Apabila dikemudian hari terjadi perubahan demographic/tren keinginan consumer, maka perusahaan harus kembali menyesuaikan produknya, dengan biaya yang besar dan dikhawatirkan tidak akan menciptakan brand loyalty

RECOMMENDATIONS

Dalam rangka menjawab tren pasar akan makanan organic dan low-carb, maka Panera Bread harus segera merespon keadaan ini, apalagi kelompok makanan fast food seperti McDonald, KFC etc. telah menjawabnya dengan kemasan varian produk baru dengan tema healthy food. Oleh karena itu direkomendasikan untuk melakukan action pertama; Panera Bread Company harus memperluas segmen produknya, menyesuaikan dengan tren selera masyarakat akan makanan organic, sehingga mampu menjawab kebutuhan consumers. Dengan hadirnya varian produk organic yang sesuai tren pasar, maka Panera Bread akan kembali kompetitif, tanpa harus merubah keseluruhan jenis produknya, sehingga perusahaan tidak kehilangan identitas dan Consumer Loyalty yang telah terbangun sebelumnya

ACTION PLAN

1.      Riset dan observasi pasar serta competitor yang ada, untuk menetukan produk apa yang mampu bersaing dan diterima pasar

2.      Menentukan waktu yang tepat untuk meluncurkan produk tersebut, agar mampu menarik perhatian pasar, tanpa adanya baying-bayang produk lain

3.      Proses penentuan nama produk adalah hal kecil namun berdampak masiv. Oleh karenanya, harus diberi perhatian extra didalam menetukan nama produk yang menarik

4.      Menyiapkan system promosi yang baik agar supaya produk baru tersosialisasi dengan baik dipasar, berkaitan dengan kelebihan dan keunggulan yang dimilikinya

5.      Secara berkala melakukan survey evaluasi dari performance produk baru tersebut, sebagai bahan informasi pada pengembangannya