Case Study: Panera Bread Company (2010): Still Rising Fortunes?

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I think it would be wise to consider opening locations within retail and grocery stores around the nation. For example, here in Saint Louis there are Subway restaurants in the Wal-Mart stores and Starbucks in the Target stores. I know in different regions of the country there are different choices of restaurants in Wal-Mart stores, for example in Florida, it is more common to see a McDonald’s restaurants inside a Wal-Mart, as opposed to a Subway. I personally feel it would be wise to open Panera Bread locations in less popular regions inside retail or grocery stores. You would hardly need advertising, as all the people walking into the store and past the restaurant would be advertisement enough. People who might not normally choose to eat there, may be more apt to eat there by simply walking by and seeing all the bakery items or smelling the aroma of the fresh baked bread. I think this is something definitely worth considering. I definitely think we need to see more Panera Bread cafés in food courts within malls and in a chain retail store, such as Target or Sam’s Club. I think it be extremely beneficial for the company’s bottom line.

Finding of Fact #2- Panera should consider expanding their menu options to accommodate the choices individuals may consider in the later evening, such as more dinner options, wine, and possibly specialty beers.

Panera Bread has focused most of their attention thus far to the breakfast and lunch menu. While this is understandable being a bakery/café, I believe the company could benefit from focusing on expanding the menu options in the evening. Panera has already established itself as being a meeting place among people and is extremely popular among college students. Students utilize the café to grab a bite, study, and access Wi-Fi, which makes Panera a great off-campus alternative. Panera could easily take this one step further by expanding menu options in the evening which would not only increase Panera’s overall customer base, but would also guarantee loyal customers coming back.

I think adding alcoholic beverages, such as wine and specialty beers to the menu in the evening would be a nice addition to the menu. It wouldn’t be an addition that would change the environment in a negative way, but in a way that would make the atmosphere more relaxing in the evening. By researching current trends in the geographical area, Panera would have the ability to focus on how the company can adjust to fit the lifestyles of more prospective customers. Offering alcoholic beverages in the evening in a low-key, relaxed atmosphere, like a café, would appeal to not only the college student crowd, but would appeal to older individuals wanting to enjoy a glass of wine in the evening.

I would suggest implementing this in select stores across the country on a trial basis. The use of a POS system would be beneficial in tracking the sales and activities to give a better picture of whether or not this is something that would be beneficial to implement in every bakery/café. I think the company would find that in doing this, the restaurant would attract people to stay later, and possibly attract a whole new segment of individuals in the later evening.

Finding of Fact #3- Panera Bread Company should place more focus on their advertising and marketing strategy for not only financial gain, but for brand loyalty purposes.

While Panera’s marketing strategy has proven to be successful, I believe it could be taken to the next level. In 2010, Panera realized the importance of their marketing strategy and “primarily used radio and billboard advertising, with some television, social networking, and in store sampling days” (Wheelen, Hunger, Hoffman, Bamford 16-16).

Increasing brand awareness and brand loyalty could really take the company to the next level. In the past, Panera has been more apt to letting individuals discover their bakery/cafés on their own and had a less aggressive marketing strategy. Now that the marketing strategy is a bit more aggressive, it might be beneficial to use more social networking for coupons and incentives. Holding local events and promotions in the restaurant is a great way to network as well.

I personally think a great way to increase brand awareness and brand loyalty is selling your products in a retail or grocery location on the shelf. For example, last week when I was at Wal-Mart, I was looking through the cheese display. I saw Cracker Barrel block cheese that I had never seen before. I love to eat at Cracker Barrel and if it has the Cracker Barrel name on it, it must be good right? So I bought it, and of course my family enjoyed it so I will be purchasing it again. When a company sells their products in a grocery location, and someone who enjoys their menu in the store sees them, they are going to be more likely to purchase the products with the brand name that they are seeing on the shelf. Another example of this would be when Red Lobster put their cheddar biscuit mix out in the grocery stores. That product is a Red Lobster staple and people were attracted to it that enjoy eating at Red Lobster.

Another way they could achieve this is creating partnerships with other companies. For example, using Panera brand name bread in a well-known restaurant, like Outback Steakhouse or Ruby Tuesday, could be beneficial for both companies.

I think all of these would be good ways to expand on the advertising and marketing strategies of Panera Bread Company and would aid in financial gain and brand loyalty in the long run.

Works Cited

Wheelen, Thomas L., J. David Hunger, Alan N. Hoffman, and Charles E. Bamford. Strategic Management and Business Policy. 14th ed. Upper Saddle River: Pearson Education, 2015. Print.

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