SWOT Analysis of Panera Bread for Marketing People

Panera Bread SWOT Analysis

by Shamsul
Panera Bread
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SWOT Analysis of Panera Bread for Marketing People

Company Name: Panera Bread

Founded: 1987

Founder: Ken Rosenthal, Ronald M. Shaich, Louis Kane

CEO: Niren Chaudhury

Annual Revenue: $279 crores (2016)

Headquarters: St. Louis, Missouri, United States


In order to understand the SWOT analysis of Panera Bread, you need to go through the past and future aspects of this company. It is a celebrated bakery-café in America with so many stores. It is a casual type of restaurant where you can get high-quality appetizers and coffees. In the US and Canada, it covers more than 2000 locations and offers a wide variety of items such as pizzas, salads, soups, cookies, muffins, kinds of pasta, brownies, flatbread, you name it. They also offer a complete range of special drinks such as smoothies, lattes, tea, lemonades, hot chocolate, and much more.

Panera Bread works as the subsidiary of “Jab Holding Company”. Presently, Panera Bread has more than 52,000 employees. Au Bon Pain and Paradise Bakery & Café are the subsidiaries of Panera Bread.

Panera Bread

Development Through the Years:

  • The company established in 1987.
  • In 1993, it was purchased by Au Bon Pain.
  • The name of the company was suggested “Panera” in 1997.
  • In 2000, Richmond Heights, Missouri headquarter of Panera Bread.
  • In 2007, it has 51 percent stake in Paradise Bakery & Café.
  • IDuring 2014, they launched Panera 2.0.

Panera Bread SWOT Analysis:

This SWOT analysis of Panera Bread highlights some useful strategies that they can use to fortify their position and make the most of profit. It also shows the competition within the market and tells you how you can get a competitive edge. It helps to identify your weaknesses and threats so that you can take any decision carefully. This is necessary to acquire long-term stability.

Strengths of Panera Bread – SWOT Analysis Panera Bread

“S” officially stands for Strength in this SWOT analysis of Panera Bread. It is a crucial thing in conducting SWOT analysis of Panera Bread especially its strengths. It shows the success secret of the company highlights its stable growth. Here are some strengths of Panera Bread,

  • Marketing Tactic:

The biggest strength of Panera Bread is its data-driven strategy. Their innovative and technological strategies satisfy the new market demands and customer needs. Most of their strategies are designed to cope with the 21st century.

  • High Quality Items:

Apart from the stores, Panera Bread operates ecommerce facilities. Their diverse menu and use of natural ingredients are one of the biggest successes of the company. They don’t use chemicals, artificial flavors, sweeteners, and colors in their products.

  • Service Strategies:

The social media and marketing strategy of Panera Bread is very robust. With the help of these strategies, they are attracting millions of customers on the basis of demographics. Its consumer-centric service strategies are proving beneficial for the company. They offered free delivery during the pandemic.

Weaknesses of Panera Bread – SWOT Analysis Panera Bread

Having weaknesses is completely normal and Panera Bread has some common weaknesses. They need to focus on their weaknesses in order to develop effective strategies to deal with these weaknesses. Due to the high competition, Panera Bread can face growth issues and revenue problems. Only long-term strategies can help to eliminate these weaknesses. The following are some weaknesses of Panera Bread,

  • Lack of Product Diversity:

Over the years, Panera Bread has been facing criticism over its lack of product diversity. Its small menu is not enough to fulfill the customer requirements.

  • Limited Presence:

Panera Bread is only functional in the US and Canada. But, their competitor like Starbucks operates globally. This kind of limited global presence makes Panera Bread a weak company.

  • Lawsuits:

Franchising and lawsuits can weaken the position of the company. They can also hurt the company’s name, image, and revenue.

Opportunities for Panera Bread – SWOT Analysis Panera Bread

In order to survive in the competitive market, Panera Bread should identify its opportunities for survival. They must adapt their strategies and policies by creating favorable opportunities. They can do this by watching or evaluating the market. Here are some wonderful opportunities for the company,

  • Global Expansion:

Panera Bread has a wonderful chance to increase its revenue by expanding its operations globally. They can expand their business to different regions of the world just like their competitors. It opens the door to success for Panera Bread.

  • Product Diversity:

By increasing the diversity in their menu and offerings, they have a great opportunity to maximize their revenue and growth.

  • New Consumers:

They can focus on the customer’s demands and offer the menu that the customer wants. It helps to gain more customers. Moreover, they can increase their customers by offering different things like groceries. They can create policies according to demographic and age groups.

  • Free Services:

Panera Bread has offered a free coffee subscription to its customers where they can get unlimited coffee at a discounted price throughout the day.

Threats to Panera Bread – SWOT Analysis Panera Bread

The food market is really competitive and it brings multiple threats for companies. Some serious threats can destroy the business, so it is crucial to understand the market conditions and act accordingly. Here are some serious threats to Panera Bread,

  • Joblessness:

Unemployment is the biggest threat to Panera Bread and this threat has increased due to the ongoing pandemic and global recession. It leads to unemployment and the image of the company in jeopardy just like other companies in the market.

  • Climate Change:

The food industry is facing food scarcity right now due to climate change. It is really difficult to find raw and fresh food to provide healthy food to customers.

  • Worldwide Recession:

It is a big threat for the company and they don’t have many capabilities to survive any other threat in the future.

  • Competition:

Panera Bread has some of the biggest competitors like McDonald’s, Dunkin’s Donuts. Starbucks, and etc. They are continuously hurting the profitability and market reach of Panera Bread due to their global reach and strong customer base.

  • Pandemic:

The recent pandemic and lockdown have impacted the company in terms of revenue loss. It can affect the company’s revenue and profit.

Conclusion – SWOT Analysis Panera Bread

This SWOT analysis of Panera Bread predicts that the company has so many amazing opportunities for rapid growth. They can perform better by increasing their diversity. They can maintain their position by following some useful means.

Panera Bread Company need to focus on their expansion. They can enter into Asian and European markets. This thing leads to income generation and the geographical reach of the company. In this way, they can create job opportunities for unemployed people.

They can enhance their delivery service, product range, and organic ingredients consumption that easily targets new customers.

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Read More:

How to Efficiently Conduct a PESTLE & SWOT Analysis

Pass the SWOT Analysis: Example of Project Management


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