International Business Feasibility Study

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Panera Bread Japan Feasibility Study

Panera Bread Overview

Panera Bread is a chain of bakery-café restaurants in the United States. Its headquarters are in Sunset Hills, Missouri, a suburb of St. Louis, and cooperates as Saint Louis Bread Company in the St. Louis Metropolitan area (Dayton Business Journal.2009.August 19). Saint. Louis Bread began in 1987 when the first bread store was started in Kirkwood Missouri. In 1993, Au Bon Pain Co purchased Saint Louis Bread Company, a chain of 20 bakery-cafes, which located in the Saint Louis area (Our History. Panera bread.). By 1997, Panera Bread was becoming one of the famous brands in the United States (Our History. Panera bread). In May 1999, except Panera Bread, the other companies-Au Bon Pain Co., Inc.’ business units were sold. After then, the company was renamed Panera Bread. Moreover, the corporation’s stock has increased thirteen-fold and over $1 billion in shareholder value has been produced after those transactions were completed. In March 2010, to signify their partnership and shared commitment to Panera, the company announced that Ron Shaich and Bill Moreton would share the title of CEO. As of April 30,2014, there are 1,800 bakery-cafes in 45 states and in Ontario Canada operating under the Panera Bread, Saint Louis Bread Co. and Paradise Bakery& Café names, delivering fresh, authentic artisan bread served in a warm environment by engaging associates (Our History. Panera bread). Moreover, Ronald M. Shaich is their chairman& Co-CEO and William W. Moreton is their president& Co-CEO. There are about 4,767 full time employees in Panera Bread. Until Dec 31, 2013, the total revenue of Panera Bread is $2.385 billion and net income is about $196 million (Panera Bread Company annual SEC income statement. 2013.Dec 31).

Table-1: Income Statement of Panera Bread from Yahoo Finance

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From Table-1, we can see that the total revenue in Dec 27, 2011 is $1,882,032 billion. The total revenue in Dec 25, 2012 is 2,130,057 billion. Moreover, the total revenue in Dec 31,2013 is 2,385,002 billion. From 2011 to 2013, the increasing total revenue turns out that the operation of Panera Bread is pretty good right now.

Panera Bread is a fast casual bakery-cafes restaurant, which provides a wide range of nutrient food for the customers. In general, they have several varieties of bread, such as bagels and muffins, sandwiches, hot panini, salads, soups coffee and teas. Panera Bread has different menus for the different customers. First of all, they have lots of deserts for the customers. Desert menu includes bagels, brownies, croissants, cookies and so on. Secondly, they also have their famous menu for the different section they promotes foods, such as Panera kids section, hot breakfast sandwiches and so on (Our History. Panera bread). Moreover, they not only serve bakery section but also serve regular menu for customers, such as sandwiches, Pastas, Panera Kids, Fruit Smoothies, Frozen Drinks, Iced Drinks, Soups& More, Salads, Coffee, Tea and so on. Also, Panera Bread have a hidden menu the food is only advertised on social media, including a power breakfast egg white bowl with roasted turkey salad, power chicken hummus bowl and power Mediterranean chicken salad and so on. More importantly, one of most popular menu is called “ You Pick 2” option. Customers can pick the food half from one menu and the half from different menu. This applies to their sandwiches, salads or soups, of which customers can mix and match (Our History. Panera bread). Panera Bread will try their best to satisfy the needs of customers.