Introduction
The Panera Bread Company manages and owns bakeries, as well as retail cafes, in major cities and towns located in America and Canada. Louis Kane and Ron Shaich founded the Panera Bread Company in the 1980s as Au Bon Pain Company. It began its operations in the east coast of America and spread across Canada and other parts of America with time (Boone & Kurtz, 2014). The company ranks top among the best bakery-cafes in the industry despite its operations in only three major segments.
The Panera Bread business deals in three major operations that include franchise operations, bakery-cafe operations and fresh dough. In addition, it manages other operations involving the products it offers. In 2013, the business increased its overall revenues through its ownership and operations in1777bakery-cafes. The essay details an overview of the corporation as well as its products/markets, industry, and major competitors.
Overview of the Company and its Products/Markets
Previously known as Au Bon Pain Company, Panera changed its name in 1999 to the currently recognized Panera Bread Company. As a result, in 1993, the business purchased Saint Louis Bread Company, which was a retail chain of about 20 bakery-cafes, thus increasing its unit volumes by 75% (Schermerhorn, 2011). The Panera Bread Company mainly engages in baking bread as its name suggests. It is the dominant operator within the bakery-cafe delivering fresh bread in a warm environment to its numerous customers. The Panera Bread Company delivers its products in the market based on its three major segments. The franchise operations, the bakery-cafe operations, and the fresh dough operations sector are the major sections of the company (Spinelli, Rosenberg & Birley, 2004).
The licensed Panera Bread and/or Paradise Bakery & Cafes names are controlled in the franchise operations section, which also foresees the bakery-cafes. In addition, the Bakery-Café Operations sector is in charge of the bakery-cafes registered as companies under the Panera Bread Company and the Saint Louis Bread Company names. Through the on-premise sales, Panera supplies and franchises salads, freshly baked goods and soups as well as catering services. Together with its subsidiaries, the Panera Bread Company sells its products in cities and towns that are located in Canada and the US because the company’s markets and customers are in the US and Canada.
The Company’s industry
The Panera Bread Company franchises and operates in the Specialty Eateries industry. The industry consists of about nine companies that fall under the service sector. Considering market capitalization, the Panera Bread Company mostly ranks third in performance among other businesses in the industry (Boone & Kurtz, 2014).
Its financial strength, growth rate, and level of valuation place it third in the industry. Through the information regarding calories on its products, Panera’s reputation improved ranking it second in the industry. The Specialty Eateries industry has few firms, thus making the company under study dominate the market in providing products. The firms make substantial profits from their sales, thereby remaining competitive in the business. The Specialty Eatery industry in the US is the most profitable company that deals with eateries that targeting the young generation (Schermerhorn, 2011). This strategy is evident from the investment performance and revenues of the companies in the industry. The industry also engages in social corporate responsibilities such as donations to the less-privileged persons in an effort to build a good reputation.
The Company’s Major Competitors
The Panera Bread Company’s major competitors lie within the Specialty Eateries industry. However, the business also has both direct and indirect competitors in the sale of its products. Panera’s top competitors include Starbucks Corporation, Chipotle Mexican Grill, and Einstein Noah Restaurant Group (Hitt, Duanne-Ireland & Hoskisson, 2006). These companies operate within the eateries industry to create an epochal change in the eating habits of their customers. The Panera Bread Corporation has only half the market capitalization of Chipotle and one tenth of Starbucks, thus showing the exemplary performance to its competitors who have higher PEG ratios and Price Earnings (P/Es) in relation to Panera. Einstein Noah Restaurant Group is the closest competitor for Panera with a PEG ratio of 0.97 and a P/Es of 19.82 (Pride, Hughes & Kapoor, 2011). However, it does not have a big lunch and dinner business as Panera. In addition, Panera enjoys steady growth and opportunities for expansion. Thus, the competition offered is healthy as it fuels the provision of quality products in the industry.
Conclusion
Panera continues to rank top in the quick-casual restaurant business despite the competition and other challenges it faces. The company operates under the banners Saint Louis Company, Paradise Bakery & Café, and Panera Bread to record high annual revenue of about $2385 (Boone & Kurtz, 2014). The overview shows the development of the company from a small business to the currently competitive Panera Bread Company. It also shows the company’s diverse products such as the made-to-order sandwiches and pastas. The industry in which Panera operates also shows its major competitors who are significant for every competitive company. Potential investors require such an overview of information in making informed decisions regarding their investments.
Reference List
Boone, L., & Kurtz, D. (2014). Contemporary marketing, update 2015. Mason, OH: Cengage Learning Publishers. Web.
Hitt, M., Duanne-Ireland, R., & Hoskisson, R. (2006). Strategic management: concepts and cases. Mason, OH: Cengage Learning Publishers. Web.
Pride, W., Hughes, R., & Kapoor, J. (2011). Business. Mason, OH: Cengage Learning Publishers. Web.
Schermerhorn, R. J. (2011). Exploring Management. New Jersey, NJ: John Wiley & Sons Publishers. Web.
Spinelli, S., Rosenberg, R., & Birley, S. (2004).Franchising: pathway to wealth creation. New Jersey, NJ: FT Publishers. Web.