Panera Bread Company

1. Panera Bread Company • By: Dan McLindon Kyle McDaniel Jeremy Smiley Tom Anderson Ray Moorman

2. Contents • The Key Question • Panera Bread Company History/Overview • External Environment (PEST) • Market Overview (Demand) • Industry Overview (Supply) • Competitive Landscape • Internal Analysis • SWOT Analysis • Recommendations

3. Key Question for Panera Bread • Is the plan of expansion and reliance on franchise partners the right strategy for Panera Bread to grow at the rate they want to?

4. Contents • The Key Question • Panera Bread Company History/Overview • External Environment (PEST) • Market Overview (Demand) • Industry Overview (Supply) • Competitive Landscape • Internal Analysis • SWOT Analysis • Recommendations

5. Panera Bread Company Overview

6. Panera Bread Company Overview • Strategic Intent • “Make great bread broadly available to consumers across the United States”

7. Contents • The Key Question • Panera Bread Company History/Overview • External Environment (PEST) • Market Overview (Demand) • Industry Overview (Supply) • Competitive Landscape • Internal Analysis • SWOT Analysis • Recommendations

8. Internal Analysis – Core Competencies Red – Easy for competitors to develop Yellow – Possible for competitors to develop Green – Very difficult for competitors to develop

9. Internal Analysis – Growth Initiative • Expanding number of locations at a rapid pace • Heavy reliance on franchise partners • Targeting 17% increase per year in number of locations by 2010 • No international locations but considering expansion into Canada • Is this aggressive growth strategy prudent in the highly competitive and mature QSR industry?

10. Internal Analysis - Franchises • Strong franchise network with strict requirements to entry • New partners to commit to 15 cafes over 6 years • Average startup cost $1 million to $2.25 million per location ($15 million to $33.75 million for 15) • Majority of franchise partner financed by debt (highly leveraged) • Can Panera find enough new franchise partners to meet growth targets? • Strong franchise partners are critical to preserve consistent quality and atmosphere at Panera restaurants • Bad partner can damage strong customer loyalty Panera has built • Panera does have out as it can elect to buy out any franchisee for a predetermined price

11. Contents • The Key Question • Panera Bread Company History/Overview • External Environment (PEST) • Market Overview (Demand) • Industry Overview (Supply) • Competitive Landscape • Internal Analysis • SWOT Analysis • Recommendations

12. SWOT Analysis for Panera Bread