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Panera Bread

Lauren Byers
Kyle Crowe
Christina Lashley
Ryan Mechura
Jason Metzger

Curbside Pickup
Opportunity to increase revenue and market share with
minimal cost impact on the staff or physical store
Customers are using their dining rooms instead of Paneras
(beneficial on busy nights)
Curbside pickup will allow customers to be served more
efficiently
Will have great appeal to time constrained customers
Overall goal is to make Panera Bread even more convenient

Target Market
People on a lunch break looking for a quick bite to eat
People in a rush on their way home from work
Time constrained parents
According to the National Restaurant Associations Industry
Fact Sheet,69% of adults said purchasing meals from
take-out and delivery restaurants makes it easier for
families with children to manage their day-to-day lives.

How to Implement Curbside Pick-up


Designate a number of parking stalls at curbside pick-up
area (side of restaurant)
Put up signs ensuring that customers will know where
to pick up their food
Assign service duties to staff
Who will take the order, who will take the food out to
the car, and who will handle the transactions?
Be prepared to handle multiple payment methods

SWOT Analysis: Strengths


Main competitor in QSR and bakery-cafe retail segment
77% market share in bakery-cafe retail segment
Major financial growth in last four years
Net profit from $67.4 million (2008) to $173.4 million
(2012)
Wide variety of food menu offerings that other specialty
competitors in either segment cannot compete with
fresh baked breads, baked sweets, soups, sandwiches,
freshly prepared salads, roast coffee, and other caf
beverages

SWOT Analysis: Weaknesses


More expensive price point than other
competitors
Lack of drive thru or order pickup services
Only current option is to order and pickup inside
restaurant
Study determined the price and speed of delivery are
two most important factors for people deciding a
QSR to order from.

SWOT Analysis: Opportunities


US restaurant industry still growing despite
struggles of US economy
Industry projected worth of $758.9 billion by 2016
Projection expected to be higher as more restaurants
add quick service methods

Adding curbside pickup will increase the consumer


base that Panera will reach and projected
revenues with minimal increase in expenses

SWOT Analysis: Threats


Overall competitiveness of QSR industry
Companies copy popular trends quickly

Change in brand image


Customers may perceive quicker service options as
less focus on quality
Need to avoid being perceived as typical fast-food
restaurant

Strategy of Marketing Plan


Target new segment of consumers with Curbside Pickup
service by emphasizing convenience of service
Working young to middle age professionals and college
students
Inform current consumer base of our new service and how
to use service through promotional tools
Assure old and new consumer bases that Panera is still a
brand that is focused on quality of food and service.

Marketing Methods
National television commercials
Test market in St. Louis and other select markets with local ads
before national launch
Target audience (college students and young professionals) more
likely to watch television at night or on weekend.
Use two separate ads over the course of 6 months

Place signs where new designated pickup spots are located


in Panera parking lots
Feature new service on gift cards and coupons Panera
offers customers

National Television ads


Panera has too many locations across the US and Canada to use
only local cable stations : 1,736 total locations
Therefore we are opting to use a national television ad once per
day between 8 and 10 pm
Will use 30 second ad to inform and 15 second ad for branding
This time frame is more likely to reach new target market of this new
service

Average cost of national 45 second ad time = $513,000 per day


Two months of 30 sec ad, two months of both ads, and 2 months
of 15 second ad

Costs of Plan
Total projected marketing costs: $61,200,000
Outback curbside pickup contributes 19% of its total revenues
We estimate earning half the percentage of what Outback Steakhouse
attributes to its Curbside service (19% / 2 = 9.5%)
Assuming it will take a year to inform a majority of current and new
consumer base of the service
Therefore we estimate that additional revenues from marketing and use
of the Curbside Pickup service by our consumers will add 9.5 % to our
current revenue stream in our first year

Projected Financial Benefits


Using Paneras 2012 financial statements to projected financial benefit:
Additional revenue = $1,879,280,000 * 9.5% = $178,531,600
Net profit = Revenue - additional costs = $117,331,600
Additional per location profit = Net profit / 1,736 total locations = Average
$67,587 additional profit per location.
Panera will become more attractive to stockholders
Stock attractiveness to stockholders
Stock prices increase, stock splits possible
Additional profit can go towards paying shareholder dividends
Maintenance and renovations of existing locations plus expansion of new
locations possible

Summary
Curbside Pickup adds more convenience and accessibility to Panera for
customers that they did not have before
We will have this service implemented and operating efficiently into all 1,736
locations across the US and Canada within 1 year.
Our plan provides immediate financial growth and growing brand awareness
across all locations
We continue to provide quality food and service for our consumers along with
our convenience that Curbside Pickup gives consumers
This new strategy will continue Paneras mission to place a loaf of bread in
every arm

Works Cited
"Contact Us | Panera Bread." Contact Us | Panera Bread. N.p., n.d. Web. 1 Dec. 2013. <https://www.panerabread.com/en-us/customer-service/contactus.html>.
Mason, Kevin, et al. Consumer Perceptions of Quick Service Restaurants. Journal of Business and Economics 13.4 (2013): 109-116. Business Source Complete.
Web. 2 Dec, 2013
"Panera Bread Company SWOT Analysis." Panera Bread Company SWOT Analysis (2013): 1-8. Business Source Complete. Web. 1 Dec. 2013.
"Part Ii: Strategic Perspectives: Chapter 10: Dayparts." Restaurant & Foodservice Market Research Handbook. 76-83. n.p.: Richard K. Miller & Associates,
2007. Business Source Complete. Web. 1 Dec. 2013.
Selected Economic Characteristics. American FactFinder (2013). United States Census Bureau. Web. 2 Dec. 2013.
Selected Social Characteristics in the United States. American FactFinder (2013). United States Census Bureau. Web. 2 Dec. 2013.
"Top Bakery and Cafe Chains, 2012." Market Share Reporter. Ed. Robert S. Lazich and Virgil L. Burton, III. 2014 ed. Detroit: Gale Group, 2014. 880 pp. 2 vols.
Gale Directory Library. Gale. Towson University. 8 Oct. 2013
Wagner, Nancy. "How Much Does Television Advertising Really Cost?." Chron. Houston Chronicle, 7 Jul. 2012. Web. 3 Dec 2013.
Panera Bread Company 2012 Annual Report to Stockholders. (2012)
https://www.panerabread.com/content/dam/panerabread/documents/financial/2012/ar-2012.pdf

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