Panera Bread
Case Study
By: Ashley Tanchak, Kendall Mumma, Isabella
Feldmann, & Gabriela de Oliveira
Agenda/
Outline
Agenda/Outline
▰ Background of Panera Bread
▰ Discuss Critical Questions
▰ Stereotypes of fast-food chains
▰ Hiring a new CEO/what type of person to look for
▰ Further Research about Ron Shaich & Panera Bread
▰ Discuss Final Recommendations
3
Background
Ron Shaich
▰ Founder, chairman and CEO of Panera
▰ Initially wanted to be a public servant
▰ In college, had the opportunity to open a store run by
students, for students
▰ The store ended up being a big success
5
How it started
▰ Shaich and Louis Kane partnered up and created Au Bon
Pain.
▰ Purchase of Saint Louis bread company
▰ Renovated and renamed as Panera
▰ Panera = bread (Pane) + time (era) in Italian
▰ Panera became a leader in the fast-casual restaurant segment
6
2000s
▰ Focus exclusively in Panera
▰ Implementation of resources to intensify the guest
experience (WIFI, change in interior design)
▰ Improvement in food quality by eliminating artificial
additives
▰ Included calorie count on the menu
7
Mission and values
▰ "A loaf of bread in every arm"
▰ "Panera Bread. Food as it should be."
▰ "Food should taste good. It should feel good. It should do
good things for you and the world around you."
8
Critical
Questions
9
Fast Food Industry Stereotypes
▰ “Fast food is unhealthy.”
▰ Panera food is 100% clean (no artificial
preservatives, sweeteners, flavors, or
colors)
▰ Bakery items are fresh and baked overnigh
in store
▰ Nutritional information is displayed on the
10 menu
Fast Food Industry Stereotypes
▰ “Fast food workers are inexperienced,
underpaid, and rude because of this.”
▰ Panera employees are paid 30% more than
their closest competitor.
▰ Rarely short-staffed and more motivated
to keep customers happy
11
Fast Food Industry
Stereotypes
▰ “Fast food is cheap.”
▰ The average cost for a meal at Panera is $12.
▰ Target Market Values:
▰ Healthy food and experience
▰ Amount of time spent in restaurant
12
Fast Food Industry Stereotypes
▰ “Fast food is fast.”
▰ Typically takes longer than other fast food chains
▰ Provides many options for ordering
▰ Online, at the counter, at a kiosk, drive-thru, delivery,
and buzzers
13
Panera in the Fast Food
Industry
▰ Panera Bread is a “fast casual”
restaurant that has managed to
distinguish itself from the fast food
industry segment.
14
Problem Solving
You are a leadership succession consultant called in to assist in hiring a
new CEO. What personality characteristics of Panera's founder Ron
Shaich contributed to his success and that of the company? How good
of a fit are these characteristics with Panera at its post entrepreneurial
stage of operations? What would you identify as the three or four most
important of Shaich's personal qualities that should be sought after in
the next CEO, and why?
15
Problem Solving
When calling in a new CEO, we would want their personality
characteristics to be ones similar to Ron Shaich’s, as his traits are ones
that fit Panera perfectly in it’s post entrepreneurial stage of the
company.
Ron is: Creative, Open-minded, and a Visionary
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Creative
Ron’s creativity is what makes Panera
bread unique which makes for a
competitive advantage
- Bakery-Cafe: not just a bakery, not
just a cafe
- Developed “fast casual” industry
17
Open minded
- Openness to experience when good or bad:
Next-play mentality
- selling APB: focus on Panera
- dot.com years: Panera’s new technology
- Great Recession: continuing to invest in
guest experience
18
Visionary Leader
- Makes decisions for long term success
- “Quarter-to-quarter” thinking
- Committed to transformation
- Never get complacent
19
Ron Shaich
“I believe a long-term perspective, a
commitment to transformation, and industry-
specific experience remain the most important
contributors to competitive advantage today. I
want to help others realize that competitive
advantage, so I’m putting my money where my
mouth is.”
20
Further Research
Panera’s Recent Sales:
▰ Slated to surpass $2 billion in digital sales for 2018
▰ Only 33% of sales
▰ Digital Sales → considered online, mobile, and
kiosk orders
▰ Last initiative: Panera 2.0
21
Further Research
Shiach Management Style (Motivating Himself & Others):
▰ Objective → create a workplace where he wanted to work and have a
positive impact on the world
▰ Associates encouraged to bring authentic selves to work
▰ Treated with respect and honesty
▰ Believe in driving innovation (the most important role of the CEO)
22
Further Research
▰ Panera is on the leading edge of the industry
▰ Digital sales accounted for 33% of their sales, Chipotle’s were 11%
▰ 2014 → Panera 2.0 campaign was launched
▰ McDonald’s and Chipotle → 2018
▰ Technomic released its annual 2016 Top 500 Chain Restaurant Report (examining top
players in the chain industry and ranks those restaurants by sales)
▰ Panera was in the top 10
23
Further Research
Shifting Customer Values & Perceptions of the
Fast Food Industry:
▰ Shifting Customer Values → the value for
technology → digital sales
▰ First fast food business to start kiosks →
beneficial for staying ahead of the “tech
world”
▰ Older target audience may not want kiosks
24
Final
Recommendations
and Solutions
Final Recommendations
▰ Personality Trait Tests
▰ Using technology to stay ahead of
competitors
▰ Strong values while adjusting to
society
26
Questions?
Sources
“Panera Bread Company Competitors.” Craft.co, https://craft.co/panera-bread-company/competitors.
Erprose. “Panera Is Losing Nearly 100% of Its Workers Every Year as Fast-Food Turnover Crisis Worsens.” CNBC, CNBC, 29 Aug. 2019,
www.cnbc.com/2019/08/29/fast-food-restaurants-in-america-are-losing-100percent-of-workers-every-year.html.
Miles Media. “Why Panera Bread Has Become a Success?” Miles Media, 26 Dec. 2017, milesonmedia.com/why-panera-bread-has-become-a-
success/.
Shaich, Ron, and Nick Brawley. Ron Shaich - Meet Ron, www.ronshaich.com/meetron.php.
Schawbel, Dan. “Ron Shaich: Panera's Success Comes Down To These 3 Things.” Forbes, Forbes Magazine, 25 Sept. 2017,
www.forbes.com/sites/danschawbel/2017/09/25/ron-shaich-paneras-success-comes-down-to-these-3-things/.
Tristano, Darren. “What's Fueling The Success Of Panera Bread.” Forbes, Forbes Magazine, 14 June 2016,
www.forbes.com/sites/darrentristano/2016/06/13/how-panera-became-the-first-fast-casual-to-penetrate-the-top-10/#6f0715f66f20.
Whitten,
28 Sarah. “Panera Is Set to Hit $2 Billion in Digital Sales by the End of This Year.” CNBC, CNBC, 30 Oct. 2018,
www.cnbc.com/2018/10/30/panera-is-set-to-hit-2-billion-in-digital-sales-by-the-end-of-2018.html.
