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Specialty eateries

Specialty eateries. Panera Bread Yiwen Lin. Industry overview. Industry trend. Specialty eateries: intent on boosting their appeal and expanding revenue streams Growing interest and demand for healthy eating options Primary area of store-growth is emerging markets

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Specialty eateries

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  1. Specialty eateries Panera Bread Yiwen Lin

  2. Industry overview

  3. Industry trend • Specialty eateries: intent on boosting their appeal and expanding revenue streams • Growing interest and demand for healthy eating options • Primary area of store-growth is emerging markets • International growth helped to spur on revenue E.g. • Triple its cafes in China • Double its locations in South Korea by 2016

  4. Possible venues for expansion • 17% meal orders in U.S. restaurants are now eaten in cars • Added convenience of a drive through option • Panera Bread Co. intended to build drive throughs in 20 to 30 percent of its new locations • Starbucks works on growing food offerings • Regular menu changes

  5. Industry competition • Demand is driven by demographics, consumer tastes, and personal income. • Cutthroat competition • Large companies have advantage in purchasing, finance, and marketing. • Small companies can offer high-quality menus and superior customer service Porter’s five force

  6. Bargaining power of buyers: High bargaining power • Meet customer preferences otherwise they will switch to another restaurant • Low switching costs for buyers Porter’s five force (Cont.)

  7. Bargaining power of suppliers: low • Numerous contracted suppliers  lowers the risk for one supplier driving up the price Porter’s five force (Cont.)

  8. Threat of substitution: no substantial substitute for food because people need to eat. • However, substitutes exist in various types of food Porter’s five force (Cont.)

  9. Threat of entry: very high • Barriers to entry are low and the pool of entry candidates is large • No legal patent needed for specialty eateries • New restaurants are advantageous Porter’s five force (Cont.)

  10. Company overview Panera Bread

  11. My Panera rewards card: gain points and receive discounts—build loyal customer relationships • Healthy menu options: fresh and quality ingredients • In-house fresh bakery: reduced delivery cost • Dining experience: friendly and relaxing environment SWOT Analysis Strengths

  12. Branding: relatively smaller presence compared to Starbucks • Limited menu options: mainly focus on salad and made-to-order sandwiches SWOT Analysis Weaknesses

  13. International expansion in emerging market • Keep up with customer tastes and preferences—expand menu options • Ready to serve food in supermarkets SWOT Analysis Opportunities

  14. Chipotle Mexican Grill: similar target customers and operating strategy • McDonald’s: fast-food chain focusing on low-cost strategy SWOT Analysis Threats

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