Panera Lags Behind

Panera Lags Behind

According to Business Week, there are current problems in Panera and it simply because they are too slow when it comes to their competition. The core of their problems come from the kitchen. Panera kitchens do not have enough workers, insufficient equipment and telephone calls that slow down labor. Panera raised their prices which in turn drove sales down for the company not only at a corporate level, but franchise as well.

Panera Chief Executive Ronald Shaich defined Panera as in between the “red hot” competition which is fast food and casual dining. One way Panera is trying to keep up with competition is by making their menu more complex by constantly adding on items. This does not only frustrate the customer, but confuse them into what to get. Another thing the customers do not like is their speed expectations are not met. The reason for that is because of the competition Panera is against like Chipolte. Even though Panera is at the higher end of fast food almost being at casual dining, customers still expect quick service with quality food. Panera is lacking on both ends when a year ago they were leading their market.

Panera has come up with many ideas that the company will implement after Thanksgiving. The company chain will add kitchen-display systems to help move orders along. The company will also simplify their menu still offering all dishes, but taking the McDonald’s route in presenting their items in store. Lastly, Panera will stress online orders along with phone orders. Even if that means leaving a customer at the counter…

There are many takeaways from this article for marketers. The first takeaway is how much workers affect the company. Slow workers can have a strong presence just because not only are they slowing down operations, but slowing down the team. Marketers can keep this in mind when creating the marketing teams and the camaraderie that goes along with the team. Another key takeaway from the article is the competition that is going on between the fast food chains and how important customer service is. Marketers can use this when advertising companies and how much of an affect the fast food companies can have on the industry. The last takeaway is the customer experience and how much of an impact it has on society. Marketers can use this in many ways, but one way is when they advertise their business they can stress quality customer service and testimonials. They can also monitor what customers say on social media.


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