Abstract
Founded by Louis Kane and Ron Shaich in 1981, Au Bon Pain Company was the forefather of Panera Bread. After many years of success in St Louis, Missouri, the Company grew up fast and now Panera Bread Company represents 1,027 units in 36 states and is one of the dominant restaurant operators in the specialty bakery-cafe segment.
So what is the reason of this spectacular success?
During the 1980's the dominant model was those of fast-foods chains like McDonald's, Wendy's or Burger King. These types of restaurant were successful because they answered needs of customers who searched quick service meals, at the lowest price.
But in the 1990's trend has changed, Panera Bread's management noticed that many patrons of fast-food restaurants could be interested in a higher-quality and quick service meals. So there was a new unsatisfied need on the market. From this period Panera Bread instituted a Broad differentiation strategy.
To compete on the market of the fast-food restaurant and especially on the bakery-cafe segment the Company had to offer buyers something attractively different from competitors. In order to do that Panera Bread provide "a premium specialty bakery and cafe experience to urban workers and suburban dwellers".
