Panera Bread Case Study Essay
Early on Panera's marketing strategy was more of a passive approach. They relied heavily on customer loyalty and word of mouth to develop their brand awareness. In 2006, Panera stepped up its marketing strategy. One element aimed at raising the quality of awareness about Panera by hammering the theme "food you crave, food you can trust." With this theme they looked to market Panera as a neighborhood gathering place . Also, instead of the hard-sell, in-your-face approach, Panera aimed at a softer touch, allowing its new customers to "discover" Panera. Panera also looked to increase its evening sales by capturing its existing lunch customers.
Panera Bread's franchising strategy was to enter into franchise agreements that required the franchise developer to open a number of units, typically 15 bakery-cafes in six years. To protect the company and ensure success, applicants had to meet eight stringent criteria to gain consideration for a Panera Bread franchise. A franchise fee of $35,000 per location and continuing royalties of 4-5% on sales was typically included in the franchise agreement. Dough products had to be purchased from approved sources by Panera Bread. The