Panera Bread Company SWOT Analysis 

 

 

 

 

Panera Bread Company SWOT Analysis

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Panera Bread Company SWOT Analysis

Panera Bread Company is best known as bread and pastry experts in the food and restaurant industry. They specialize in producing high-quality products while upholding industry standards.  They provide an ambiance environment to their customers who work in urban areas and those living in suburban areas. This has been a key differentiation strategy for Panera Bread Company that has seen a niche in the market. The differentiation strategy is aimed at maintaining customers while attracting new customers. The strategies have worked in spearheading the pastry market.

• What does a SWOT analysis of Panera Bread reveal about the overall attractiveness of its situation?

SWOT analysis is important to every company (Gürel & Tat, 2017). SWOT analysis defines the company strategies and how they aim to stay relevant in an ever-changing environment. A company always have their strengths, weaknesses, opportunities, and threats from industries competitors. Panera bread company SWOT analysis is discussed as follows:

   Strengths

Panera Bread Company’s strengths include quality and affordable fresh food, repeat customers, new customers that spread the good services offered, a good business location that provide a good ambiance, and free Wi-Fi while waiting for an order. All these strengths have propelled Panera to curve a niche in the pastry and restaurant industry.

   Weaknesses

Customers are always attracted by affordable prices offered to products. Panera prices for their products are slightly higher compared to other key industry players. Moreover, they are only based only in certain geographical areas. Additionally, Panera requires a high initial capital setup to buy machinery and hiring of new staff. They also need to hold high inventory to meet the demands of their diverse menus. Having limited services forms a weakness, unlike other restaurants that offer various services such as lunch and dinner.

   Opportunities

Panera Bread has a lot of diverse opportunities to become a global brand. Their rating in various places they operate is high and can expand their business in other areas. Expanding to other areas will increase their sales and becoming a household name for many people. Companies that have ventured into various markets other than the home market have made tremendous sales and become household names. Panera Bread can increase their opportunity by adding more services to their restaurant that will attract a lot of customers. Additionally, Panera can incorporate the idea of drive-through for their products.

Threats

Every company must face their threats. Panera is not excluded from the threats they face in their industry. They face threats from competitors such as Starbucks and other industry players offering breakfast and pastry services. Moreover, they must work under a certain legal framework and high standards defined by government bodies. This legal framework requires the company to pay its employees according to standards, proper waste management, and customer’s priority.

Core and distinctive competencies

Based on the above SWOT analysis, it’s evident that Panera has to fight for a pie in the market share. There are many opportunities available to them, especially if they decide to expand their operations to other countries. The company has distinctive competence in their operations of upholding health consciousness to their products.

• Fast-Casual restaurant competitors to Panera Breads

Panera Bread has many competitors from different industries. The uniqueness of Panera Bread makes it difficult to compare it to an exact competitor. The major competitor that leads the industry is Starbucks.  Starbucks is a multinational company that offers a variety of coffee and roaster services. Starbucks has a higher competitive advantage compared to Panera bread. Starbucks seems prepared to be a major force in the fast-casual restaurant space. This is represented by the fact that Starbucks is a multinational company while Panera bread operations are based in one region. Additionally, Starbucks a wide range of products compared to Panera bread. Starbucks is limited to tea and roaster services and provides pastry and other food services. Panera bread majorly deals with pastry with limited additional services.

A lot has transpired since the article on Panera Breads was written. Recently, many businesses had been hit by the COVID19 pandemic, and Panera has not been spared either. Rules and regulations have been introduced to keep distance, and restaurants have been affected greatly. Panera had to devise ways to keep afloat. They have been launching massive campaigns on social Media to attract customers. They have been offering loyalty programs to their customers and poaching of staff from other companies. Panera breads focus on developing major stores and franchising that enhance growth tremendously (McGrath, 2017).

• Panera Bread social responsibility

Social responsibility is an important aspect that most companies should adhere to. The laws and regulations require that every company must practice social responsibility. Social responsibility entails giving back to society. The idea of Pay-What-You-Want bakery was considered a brilliant way that portrayed Panera Bread’s social responsibility. This idea was introduced to allow people to afford meals; otherwise, they wouldn’t afford it. The concept was to raise awareness and money for the less fortunate in society. Panera bread hopes that various generous customers will give tips above their bills that might hedge on the less fortunate to afford standard food (Thompson, 2016).

• Strategic issues and problems that Panera bread management need to address.

One of the key areas that Panera’s management needs to address is competitors. Competition from a similar industry is lowering the customer’s base, and hence the management needs to address these competitors. The management should offer more loyalty programs to the customers and vigorous advertisement to create awareness about the existence of Panera Breads.

Secondly, management should utilize technology effectively to reach a lot of people. Using technology, Panera’s management will rest assured people have been reached since it’s a digital world. Additionally, the management should introduce their products online delivery instead of relying on walk inns only. Some people will be tied up in their job areas and will be convenient if the tea was brought to their workplaces. The management should incorporate technology to get the best out of it.

Conclusion

Panera Bread have made a great milestone since its incorporation. It has continued to overcome challenges while offering the best pastry services to its customers. The management is on the right track in these highly competitive industries is steering the company towards success. By maintaining their quality, Panera Breads has continued to grow aggressively and the management needs to expand the business to other geographical regions. Although the COVID19 pandemic has brought many uncertainties, Panera Breads Company is slowly coming back to life through various media campaigns to create awareness that life must go on.

References

Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International

Social Research, 10(51).

McGrath, M. (2017). Panera Beats Earnings Expectations As Investment In ‘Panera

2.0’ Begins To Pay Off. Retrieved January 21, 2018, from https://www.forbes.com/sites/maggiemcgrath/2017/02/07/panera-beats-earnings-expectations-as-investment-in-panera-2-0-begins-to-pay-off/#5555437911c2

Thompson, A. (2016). Panera Bread Company in 2016- Is the Company’s Strategy to

Rejuvenate Its Growth Working?  In: A. Thompson, M. Peteraf, J. Gamble and L. Strickland, ed., Crafting and Executing Strategy, 21st ed. New York: McGraw-Hill Education, pp.142-162.