Daniel Barreira
Panera Bread Case Study
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?
Panera Bread’s goal is to be the leader of the “fast-casual” segment of the restaurant industry by offering better food and quality of service above its competitors. Panera Bread’s strategy also includes providing a bakery for its customers. Panera targets suburban dwellers and urban workers that seek a quick-service meal in a more pleasing environment than your average fast food restaurant can offer. Out of the five generic competitive strategies discussed in chapter 5, Panera bread has seemingly decided to follow the broad differentiation strategy. They have gone above and beyond what consumers expect relative to their closest competitors. For instance, Panera bases their menu changes on whether the consumers are pleased or not by regularly changing the menu based off of their desires. The atmosphere offered and plates with
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Its nearest competitors excel in this department and for Panera to compete with them they need to offer something that their competitors do not. Panera does not sell alcoholic beverages so this can be a factor that pushes consumers to choose another location. Panera may be inclined to add alcohol to their menu. This can be essential in requiring the family market for dinner. As a higher end environment depicts, Panera can position themselves in only selling wine so that it will attract the older consumer. This could bring them in with their family for meals and eliminate some of the gap between Panera and its competitors for dinner. I would only recommend wine and no other alcohol so that it can continue to differentiate itself as a higher end