Case 12 Panera BreadGrowing a Company with Personality Using Chapter 12 content from the Schermerhorn, John Fl. .lr. ErpioriagManngemem, Set-emit Edition, please completely answer the following questions. To earn full points; it is important to utilize content and examples from the text to support your answers. Poaero Bread is in the business ofsutisiing customers. With 'ESh'bditIE-id breads, gourmet soaps, and efcient service, tiiefrancitise has surpassed oii expectations for success. But how did a start-up food componyyet so big, so fast? French Roots, American Staptes What's so exciting about bread and soap? For some people, it conjures up images of bland food that soothes an upset stomach. thers think of the kind of simple gruel offered tojailed prisoners in movies. But for Panera Bread. a company able to successfully spot longterm trends in the food industry, artisanstyle bread served with deli sandwiches and soups is a combination proven to please the hungry masses. Panera's roots go back to 1'93] , when Louis Kane and Ron Shaich founded Au Eon Pain Company Inc. The chain of Frenchstyle bakeries soon became the dominant operator in the bakeryicafe category on the East Coast. In a 1993 expansion move, Au Eon Pain purchased the Saint Louis Bread Company, a Missouribased chain of about 2'3 bakery-cafes. It renovated the stores and renamed them Panera Bread, and their sales skyrocketed. [n lggg, Panera Bread was spun off as a separate company. Since then, its offerings have grown to include not only a variety of soups and sandwiches, but also souffles, salads, paninis, breakfast sandwiches, and a variety of pastries and sweets. l'v'lost ofthe menu offerings somehow pay homage to the company name and heritagebreadand Panera takes great pride that its loaves are handmade and baked fresh daily. Modern Tastes, Modern Trends Panera's self-perception as a purveyor of artisan bread well predated the current national trend for fresh bread and the explosion of artisan bakeries throughout metropolitan America. In addition, Panera proactively responded to unease about trans fats by voluntarily removing them from its menu. "Panera recognized that trans fat was a growing concern to our customers and the medical community; therefore, we made it a priority to eliminate it from our menu," said Tom Gumpel, former vicepresident ofbakery development. Panera menu items are free from trans fats, except for small amounts that occur naturally in dairy and meat products as well as in some condiments. According to Ron Shaich, former CE] and new executive chairman of the board of Panera, \"Real success never comes by simply responding to the daytoday pressures; in fact, most of that is simply noise. The key to leading an organization is understanding the long-term trends at play and getting the organization ready to respon .\" Stay Fresh Personality Ron Shaich, growing up in Livingston, New Jersey, wasn't focused on being a bread magnate. He wanted to be a public servant, working in government on public policy. As a high school student he even interned for a congressman from his home state. His entrepreneurial spark was ignited during his sophomore year in college at Clark University, when the owner ofa local convenience store that didn't cater to students threw him and his friends out. That negative experience lit Shaich's entrepreneurial fire. It was at that point when he had the inspiration for the student government at his collegehe was the treasurerto open a store for students, run by students. The store was a huge success at Clark. He became an impassioned advocate of student governments opening their own stores, speaking on the topic across the country. Shaich's personal transformation from a governmentpublic service focus to a retailingmarket focus emerged from the recognition that a store for the people, run by the people, could be a success. Following college, he matriculated to Harvard Business School, where after graduation he went to work for the Original Cookie Company. With a desire to start his own cookie business, he was ultimately able to find a tiny retail location, opening the Cookie Jar in 19313. This first taste ofentrepreneurialism ultimately led to a license agreement with Au Bon Pain, and to the story that has become famous with the explosion of Panera Bread Co. Sticking It Out All of Panera's attention to monitoring trends paid off handsomely. Businessl-'Veek recognized Panera as one ofits \"lfl Hot Growth C ompanies." And Forbes named it number 4 on its list of \"Top 2i] Franchises for the Buck." It consistently ranks at the top of Sandleman Es Associates" surveys ofcustorner satisfaction. Under Shaich's leadership, Panera demonstrated that sticking to company ideals while staying in the lead on industry trends pleased customers time and time again. But can this company continue to navigate the changing dietary trends and concerns about fast food in today's unstable market? Check the News! From trend follower . . . to trend setter? Panera Bread has maintained an extremely nimble approach toward changing consumer trends, responding time and again to changing customer preferences and tasteswhich has paid off handsomely for the fresh bread innovator. Perhaps in anticipation of an emergent consumer trend, in a bold move, Panera Bread became the rst national restaurant chain to introduce a climate friendly tag to menu items in its stores. 1|Ir'vlhat do you think? Always savvy to evolving customer preferences. has Panera tapped into the neat emergent trend? Is sustainability in the restaurant industry a passing fad, or is it here to stay? Case Analysis Questions 1. Discussion [5 Points] How might consumers' perception of Panera's menu and atmosphere affect their dining experience and tendencies to return as customers? 2. Discussion [5 Points] Descrihe th stereotypes about the fastfood industry might positively and negatively affect Panera. Do you think of Panera as a fastfood restaurant, or has the company managed to distinguish itself from this ind ostry segment? 3. Problem Solving (10 Points) What personality characteristics would you expect Panera's founder Ron Shaich to display? How would these characteristics help or hinder him during Panera's early entrepreneurship stage and during its continuing growth stage? As a leadership succession consultant, what would you identify as the three or four most important of Shaich's personal qualities that should be sought after in the next CEO, and why