Q1: How has panera bread established a unique position?

This famous business, has established a unique position in the restaurant industry combining the
two special needs that Panera Bread’s owners found, fast food combine with a higher-quality
experience. As a result of these changing consumer perceptions, a new category called “fast-casual”
emerged. This category provided consumers the alternative they desired by taking the advantage of
both, the fast-food category (speed) and the casual dining category (good food).

Q2: How has Panera Bread’s unique position in the restaurant industry
contributed to the firm’s success?
The key elements of its successes are attributed to its positioning and execution of different
strategies taken in different times. At the time of beginning the business in 1981, Panera was founded as
Au Bon Pain Co. and had three bakery-café and one cookie store. In the 90s, they acquired Saint Louis
Bread Company in the St. Louis area. The combined effort and analysis of the consumers revealed of the
“special” food with quality and speed in serving them. This is termed as “Fast Casual”. Panera's unique
strategies and positioning made it in acquiring a distinct place in the mind of the customers. And also an
extra edge in their choice, preferences by serving well in a cozy environment. They also added a meal
time called “chill-out” that attracts many consumers. Thus the company expended in many regions by
franchising and positioning. Customers have positive impressions for Panera Bread as evidences in an
interview of one of the fans and franchisee owners. As a result, it wants to establish itself as a leading
national brand using its strengths

Q3: What barriers to entry has Panera Bread created for potential
competitors?
Panera Bread has created barriers to entry in the following areas:
Economies of scale: Panera Bread has 1,450 restaurants, which allows it to negotiate discounts when
buying food and non-food products for its restaurants.

Product Differentiation: Panera’s brand is growing in strength. In addition, its Artisan breads and other
bakery products are distinctive in terms of their taste and quality. The unique Fast-casual has also added
extra advantages.

Cost Advantages Independent of Size: As a first-mover, Panera Bread has snapped up many of the
locations that are ideal for a fast-casual restaurant in many leading highly profitable markets. These
barriers are very much significant for any new comers to the industry. Gaining a good market share
needs cost competitiveness which Panera Bread has occupied very well than others. They have stared
and are the pioneer in the industry. So, they know each and every aspects very well than others. As a
result, this acts as huge disadvantages for others. Panera Bread has many product lines and their
services have served many customers for many a years. That’s why its advantages are very good barriers
for the new competitors.
Capital requirements: Panera Bread restaurants are not large but are stylish and are often located in
premier locations, suggesting that considerable capital would have to be accumulated to build even a
handful of competing restaurants.

Q4: What are Panera Bread’s primary sources of competitive

advantage?
Panera’s primary sources of competitive advantage are:

 its position in the restaurant industry (fast-casual vs. fast-food or casual dining).
 its brand strength (its in the market for many years).
 the atmosphere of its restaurants  (which has created a new time of day for people to eat
specialty foods, which Panera calls “chill-out” time (which is between lunch and dinner).
 the distinctive nature of its bakery products.

These sources of advantages are sustainable as they are embedded in the bakery's system. They are
practicing these for many years and have been successful by using these. Moreover, these have enabled
the organization to increase from the zero state to 1,270 units. So, they are pretty sustainable.

Q5: What are the ways that Panera Bread can conduct ethical and proper forms
of competitive analysis to learn about potential competitors entering the fast
casual category?

Identify competitors :

 Learn the strengths and weaknesses of competitors.

 Gather information: - business strategy - development orientation in the upcoming period - the
product will be launched on the market - the speed of business: rise or decline.
 Make research and surveys of market tastes and needs of consumers
 Make a research about the quality of services of competitors' restaurants. Ex: experiencing their
food, challenge their staffs by giving them some request.
 Meanwhile, the marketing strategy is also important, they must know clearly how their rival do
to maintain the business