On the other hand, there also kinds of restaurants which serve good food with high quality but their disadvantage is the time taken for service and preparation is slow. Examples of restaurants that fall into this category would be Chili’s, Red Lobster and so on. There is something lacking in the both of this group. When Panere Bread jumped into the boat of serving good and quality food as well as serving their food with good speed in an enjoyable environment. This caused the emergence of fast food casual where good and healthy food is served fast. This gives them a unique position in the market.
Due to this, they create an attraction to the public because the food they serve has higher quality than fast food and is served faster than food served at casual dining restaurants. This has given them a unique position and an advantage over their rivals in the same industry. This unique position has contributed to its success by adding a bonus to the mix-specialty food, opening for breakfast, lunch, and dinner also offer hand-tossed salads, signature sandwiches, and hearty soups served in edible sourdough bread bowls along with hot and cold coffee drinks.
In addition, providing catering services through its via Panera catering business, suggesting a new time of day to eat specialty foods, calling the time between lunch and dinner ”chill-out” time. Moreover, the unique position also has providing an inviting neighborly atmosphere adding to their appeal as well. Yes, Panera Bread will reach its goal of becoming a leading national brand in the restaurant industry because the company is counting on its unique positioning strategy, its signature foods, and savvy execution to make this goal a reality.
The Essay on Fast Food or Sit down Restaurants
... a short amount of time. Some people may think fast food compared to sit down restaurants are almost the ... each place does have a signature sauce they serve, taco bell has there mild ,medium, hot, and ... To me having something fun at your restaurant is good it gives the place character and everyone ... different food items at these two places, they are different but that’s what makes each place unique. Taco ...
Q2) Porter’s Five Forces Competitors: The main competition Panera Bread Co. experiences is from coffee shops such as Starbucks and Caribou Coffee, along with specialty restaurants such as Chipotle Mexican Grill. Starbucks is a global company with superior market share and brand awareness. Caribou coffee is closer in scale to Panera Bread Co. ; both have high growth outlooks and are currently expanding. Chipotle competes with Panera Bread at lunch and dinner, whereas Starbucks and Caribou compete with Panera Bread in the mornings and at non-traditional dining hours.
Panera Bread Co. ’s free Wi-Fi network gives the company a considerable competitive advantage. Substitutes: Small, privately owned local coffee shops or delis could be substitutes for a chain restaurant such as Panera Bread. The small neighborhood atmosphere that “mom and pop shops” offer could potentially be eliminated. Panera Bread Co. has the ability to offer a wider array of goods and services than substitutes such as these. Since Panera Bread offers a broad assortment of goods on its menu, the threat of substitutes is not of large concern.
Potential Entrants: The specialty restaurant industry is by no means mature and has plenty of room for growth, as seen by Caribou and Panera Bread Co. ’s expansion into new markets. In researching competitors, there were few companies with an identical structure and strategy as Panera Bread Co. , which exhibits its belief that there is room for profit in the specialty restaurant industry. As seen through Chipotle’s success, the specialty chain restaurant model can work and the threat of new entrants to the industry is possible.
The Term Paper on The restaurant industry and the 5 forces
Introduction In this assignment we are going to analyses the restaurant industry in Ireland and we are going to apply the Porter’s Five Forces and Pest on this industry for to be able to write a report to give some advice to a new restaurant that is trying to enter in the market. The restaurant industry To have a restaurant in the past before recession, was easier than nowadays .An equipped ...
However, the current restaurant market is experiencing commodity and labor inflation that could contract the current margins in the industry and inhibit new entrants. Power of Suppliers: Since many of Panera Bread’s items on the menu are directly correlated to commodity prices such as wheat and dairy prices, the suppliers are quite powerful in this industry. A recent shift Panera Bread made was attaining some its baked goods from external vendors instead of being produced by its own fresh dough facilities (FDF’s), which again increases the power of suppliers.
Customers: Patrons love Panera Bread for the wonderful smells and flavors that fill its stylish and very relaxed bakery/cafe shops. The place tends to be a hotspot for the “soccer mom” crowd, but with the largest free Wi-Fi network in the country, it looks as though businesspeople may become regulars. Its customers have substitutes in the specialty restaurant industry but Panera Bread Co. tends to have loyal customers. Panera Bread’s strategy is “to provide a premium specialty bakery and cafe xperience to urban workers and suburban dwellers. The concept is a mix between fast food and casual dining, or fast casual. By choosing this strategy, Panera is attempting to achieve competitive advantage in the unique offerings it provides, offering that rivals don’t have and can’t afford to match. In this case, delicious handcrafted bread arriving fresh daily, served in an inviting atmosphere is the company’s competitive advantage and core competency.
Q3) Barriers to entry that Panera Bread has created for potential competitor are product differentiation and cost advantages independent of size. The barrier for Panera Bread is low. In product differentiation, Panera Bread very proud for their business because they can delivers high quality of food and products with faster speed compare to other casual dining. Besides, the barrier of cost advantages independent of size is the emergence of fast casual which is the new category in the restaurant industry.
The Business plan on Panera Bread’s Strategy
1. What is Panera Bread’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve? The two core elements of Panera’s strategy were to aggressively expand its market presence across North America and to improve the quality of the ...
The owners of Au Bon Pain and Saint Louis Bread Company felt that they could help pioneer this new category. The maintenance cost is low, there are less competitors. It is necessary to consider entry barriers when assessing dominance, when determining whether unilateral conduct might deter new firms from participating in a market, and when analyzing the likely competitive effects of mergers. Entry barriers because competition will not be reduced if new firms could enter easily, quickly, significantly.
Q4) Panera Bread’s primary sources of competitive advantage are its position in the restaurant industry, the atmosphere of its restaurants, the distinctive products, brand strength, customer loyalty, and financial performance. The advantages for position in the industry are avoid from arising of competition, success in positioning and execution, positioning strategy of various restaurant chains and also snack time. Besides, the atmosphere are franchised outlets have been operated, convenience, customer attraction, and also expansions.
The next is distinctive products which provides product differentiation and offers various kinds of foods. For brand strength is special in brands and foods and also fast-casual category. Furthermore, the customers loyalty which is teamwork and manager-customer relationship. Lastly, the financial performance can avoid threats to profitability and increase of sales. References 1. Panera Bread position, research from: http://www. antiessays. com/free-essays/421278. html 2. Porter’s five forces, research from: www. trinity. edu/smf/inc/reports/PNRA. oc 3. Panera Bread position, advantages of primary sources, research from: https://docs. google. com/viewer? a=v&q=cache:2Ow6jb9_g-EJ:eshare. stut. edu. tw/EshareFile/2011_12/2011_12_41a57d4a. ppt+Do+you+think+Panera+Bread+will+reach+its+goal+of+becoming+a+leading+national+brand+in+the+restaurant&hl=en&gl=my&pid=bl&srcid=ADGEEShBx7Llys8yZ-7i2-500tGOybggsozWXzUjym1Ueg4idLVJlFVzIc_bqVOJ_rhmrzmDSU4RvhjFpTE-RVxp_9Q6KYVHp9f42sK72OD–pq5J0FJQ2J-pMjyZyafaF1SHZ_sy8K9&sig=AHIEtbRos7KiryelsJM71tuaW5YP9SXS9A
