Panera Bread SWOT Analysis 2022 – JAB Holding Co.

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SWOT Analysis Of Panera Bread analyzes, Panera Bread Co. is a fast-casual retail company that operates over 2000 bakery-cafes, including Panera Bread, Saint Louis Bread Co. and Paradise Bakery & Cafe. Panera Bread, which had been a publicly traded company for many years, was eventually privatized by JAB Holding Company. Panera Bread has been a major player in the retail bakery and cafe industry over the years.

Did you know? 

All bagels, baguettes and loaves of bread, bagels and muffins are freshly baked and sold in the same day. All items that aren’t sold by the end the day are donated to the Day-End Dough-Nation charity.

Panera Bread started in 1981 as Au Bon Pain Co., Inc. Founded by Louis Kane and Ron Shaich; the company prospered along the east coast of the United States and internationally throughout the 1980s and 1990s and became the dominant operator within the bakery-cafe category. In 1993, Au Bon Pain Co., Inc. purchased Saint Louis Bread Company, a chain of 20 bakery-cafes located in the St. Louis area.

This can only be achieved through a firm with extensive knowledge, experience, and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities, and threats, it is necessary to conduct a SWOT analysis by Panera Bread.

Panera Bread At A Glance – Panera Bread SWOT Analysis

Company: JAB Holding Co.
Founders: Ronald M. Shaich | Louis Kane
Year of establishment: 1980, Boston, Massachusetts, United States
CEO: Niren Chaudhary
Headquarters: St. Louis, Missouri, United States
Employees (Dec 2020): 140,000
Ticker Symbol: PNRA
Type: Public
Annual Revenue (Dec 2020): US$3.2 Billion
Profit net income (Dec 2020): US$728 Millions

Products & Services: Freshly Baked Breads | Sandwiches | Bagels | Muffins | Pastries | Soups | Salads | Custom Roasted Coffee | Complementary Products | Fresh Dough | Farm Produce | Tuna | Cream Cheese | Supply Sweets

Company Website: www.panerabread.com

Top Panera Bread Competitors 

Competitors: Chipotle | Wendy’sDunkin Donut | StarbucksMcDonald’s | Dine Equity | Tim Hortons | Subway | Chick-Fil-A | Jason’s Deli | Sweetgreen | Potbelly Sandwich Shop | MOD Pizza | Qdoba | Potbelly Corp | Del Taco | Au Bon Pain | Domino’s | KFC

Panera Bread SWOT Analysis – SWOT Analysis Of Panera Bread

SWOT Analysis Of Panera Bread analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Panera Bread SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Panera Bread SWOT Analysis. Below Is The Detailed SWOT Analysis Of Panera Bread.

Panera Bread Strengths – Panera Bread SWOT Analysis

1. Data-Driven Strategies Panera’s management uses data-driven decision making in the operation of the company. This makes sure that every decision is a win for the company’s bottom line. Panera began offering breakfast, which was referred to as the “ultimate portable on-the go breakfast.” It also increased digital sales to $2Billion.

2. Highly innovative: Technological superiority is the greatest advantage of the 21st century. Panera has made huge investments in technology such as mobile-placed orders and in-store orders. Panera’s innovations have facilitated the delivery of services and made it more convenient for customers.

3. Effective use of ecommerce: Companies that make e-Commerce work better have an advantage over their competitors. Panera successfully adopted e-Commerce which accounts for between 35% to 37% of its total business. It receives more than 1.7million digital orders each week.

4. Panera has a variety of offerings: Panera offers many options, including plant-based sandwiches, salads, pastries, snacks, and more.

5. Healthy Products Panera eliminated all harmful ingredients from its menu in 2017, including artificial colors, flavors and sodium benzoate. Panera also modified its menu to include healthy options, reformulating around 120 ingredients.

6. Refined positioning: Targeting specific segments and customers in a market will increase your chances of success, as the company is focused on a very small market. Panera has the perfect position to target consumers aged 25-44 years. This includes millennials, who are the driving force of the consumer market.

7. Customer-Centric Strategy: While many companies are focused on the customer’s needs, Panera is more concerned with what customers love and don’t like about fast food restaurants. This customer-centric strategy was implemented through the Panera 2.0 initiative. It has allowed Panera to eliminate long checkout lines and enhance customization.

8. No Delivery Charge: Millions of people have taken to working from home due to the risk of contracting this virus. Panera began offering free delivery to this target audience.

Panera Bread Weaknesses – Panera Bread SWOT Analysis

1. Inadequate diversification: Having a single market segment increases the risk of losing customers and can lead to severe losses in the event of a slowdown. Panera is a niche restaurant that offers a limited range of foodservice options.

2. Management Friction: Quality of Service and Productivity are negatively affected by conflict or friction in management. Panera’s management has been involved in ongoing conflicts with investors as well as the founder.

3. National Operator: Panera operates over 2000 restaurants in the US, with a few Canadian locations. The company will be more affected by socioeconomic problems in North America than its global competitors Starbucks.

4. Human Touch is being lost: With the rapid adoption of technology to automate processes, warm smiley faces have been replaced by answering machines and other apps. Panera’s customers are dissatisfied with the service they receive and the quality of their customer service has declined.

5. Controversial Lawsuits A company’s reputation is damaged if it is accused of wrongdoing in the present or in the future. Panera and its founder are locked in bitter court battle over issues with Panera’s hiring process.

Panera Bread Opportunities – Panera Bread SWOT Analysis

1. Global Expansion – A larger global market allows for a greater number of customers. Panera is a North American company that can expand internationally and reach broader markets.

2. Diversify Offers: Panera is able to cater to all market needs to increase its revenue and growth. Panera introduced breakfast to its menu, which led to a dramatic increase in revenues.

3. Target Market Expansion: Customers who are between 25 and 44 years old are not eligible for the service. Panera can increase its market share by offering groceries and other products to cater to all age segments within the foodservice industry.

4. Subscription offer It’s not only technology companies like Netflix and Amazon who have subscription-based models . Panera Bread also offers a free subscription service called “MyPanera+ Coffee”. Unlimited coffee for $8.99 per month

Panera Bread Threats – Panera Bread SWOT Analysis

1. Climate Change: Food Scarcity is one the greatest threats to climate change. Panera will have more difficulty accessing the fresh farm products it requires as ingredients, as prolonged droughts and severe flooding increase.

2. The Coming Recession: Countries around the globe are falling deeper into recession. Despite Panera’s success in the 2008 recession the company might not be as fortunate in the future.

3. Strong Competition: Panera’s strong rivals threaten its market share.

4. Global Pandemic: Panera’s sales have been reduced by the lockdown imposed on it by authorities. This has forced Panera to switch to groceries in order to offset the losses. If the pandemic continues, Panera’s revenue and profits will be at risk.

Panera Bread SWOT Analysis Overview Template

Panera Bread SWOT Analysis Overview Template

This is the SWOT report that Panera Bread has done. Please let us know if you have additional suggestions to add.


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