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Specialty eateries. Panera Bread Yiwen Lin. Industry overview. Industry trend. Specialty eateries: intent on boosting their appeal and expanding revenue streams Growing interest and demand for healthy eating options Primary area of store-growth is emerging markets

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specialty eateries
Specialty eateries

Panera Bread

Yiwen Lin

industry trend
Industry trend
  • Specialty eateries: intent on boosting their appeal and expanding revenue streams
  • Growing interest and demand for healthy eating options
  • Primary area of store-growth is emerging markets
  • International growth helped to spur on revenue

E.g.

  • Triple its cafes in China
  • Double its locations in South Korea by 2016
possible venues for expansion
Possible venues for expansion
  • 17% meal orders in U.S. restaurants are now eaten in cars
  • Added convenience of a drive through option
  • Panera Bread Co. intended to build drive throughs in 20 to 30 percent of its new locations
  • Starbucks works on growing food offerings
  • Regular menu changes
porter s five force

Industry competition

  • Demand is driven by demographics, consumer tastes, and personal income.
  • Cutthroat competition
  • Large companies have advantage in purchasing, finance, and marketing.
  • Small companies can offer high-quality menus and superior customer service
Porter’s five force
porter s five force cont

Bargaining power of buyers: High bargaining power

  • Meet customer preferences otherwise they will switch to another restaurant
  • Low switching costs for buyers
Porter’s five force (Cont.)
porter s five force cont1

Bargaining power of suppliers: low

  • Numerous contracted suppliers  lowers the risk for one supplier driving up the price
Porter’s five force (Cont.)
porter s five force cont2

Threat of substitution: no substantial substitute for food because people need to eat.

  • However, substitutes exist in various types of food
Porter’s five force (Cont.)
porter s five force cont3

Threat of entry: very high

  • Barriers to entry are low and the pool of entry candidates is large
  • No legal patent needed for specialty eateries
  • New restaurants are advantageous
Porter’s five force (Cont.)
company overview
Company overview

Panera Bread

swot analysis

My Panera rewards card: gain points and receive discounts—build loyal customer relationships

  • Healthy menu options: fresh and quality ingredients
  • In-house fresh bakery: reduced delivery cost
  • Dining experience: friendly and relaxing environment
SWOT Analysis

Strengths

swot analysis1

Branding: relatively smaller presence compared to Starbucks

  • Limited menu options: mainly focus on salad and made-to-order sandwiches
SWOT Analysis

Weaknesses

swot analysis2

International expansion in emerging market

  • Keep up with customer tastes and preferences—expand menu options
  • Ready to serve food in supermarkets
SWOT Analysis

Opportunities

swot analysis3

Chipotle Mexican Grill: similar target customers and operating strategy

  • McDonald’s: fast-food chain focusing on low-cost strategy
SWOT Analysis

Threats