Essay on Panera Bread Case Study

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Panera Bread Case Study: Rising Fortunes?

Executive Summary:
In 1993, AU Bon Pain Company purchased the Saint Louis Bread Company. In 1995, top management at Au Bon Pain instituted a comprehensive overhaul of the newly-acquired Saint Louis Bread locations. The overhaul included altering the menu and the dining atmosphere. The vision was to create a specialty cafe anchored by an authentic, fresh-dough artisan bakery and upscale quick-service menu selections. This acquisition proved successful for Au Bon Pain. Between 1993 and 1997, average unit volumes at the revamped locations increased by 75% and over 100 additional locations were opened. In 1997, the bakery-cafes were renamed Panera bread in markets outside of St Louis.
The Panera …show more content…
They are subject to various federal, state, and local environmental regulations. Compliance with applicable environmental regulations is not believed to have a material effect on capital expenditures, financial condition, results of operations, or our competitive position.
The Americans with Disabilities Act prohibits discrimination in employment and public accommodations on the basis of disability. Under the Americans with Disabilities Act, we could be required to expend funds to modify our Company-owned bakery-cafes to provide service to, or make reasonable accommodations for the employment of, disabled persons. Compliance with the requirements of the Americans with Disabilities Act is not believed to have a material effect on our financial condition or results of operations.

The Task Environment/ Industry:
The US bakery industry has about 2,500 commercial bakeries, with combined annual revenue of $25 billion, and 6,000 small retail bakeries, with $3 billion total revenue. The commercial side of the industry is highly concentrated: the 50 largest commercial bakers hold more than 80 percent of the market. The retail side of the industry is fragmented: although big companies may operate dozens of bakeries, the typical baker operates just one facility.
Competition:
The company experienced
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