Panera Bread SWOT Analysis

The Panera Bread Company is a well known nationwide brand that provides finest food quality in a sophisticated ambience.

Following is a SWOT analysis of the Panera Bread to analyze its potential strategic strengths in the market and what opportunities and threats lay ahead for the company:


• Strong brand image all across the country.

• The company is known as the pioneer in the bakery “first casual “segment of the whole industry.

• A core competency of Panera bread is in artisan foods .The Company’s artisan bread is considered to be a signature product for its loyal customers.

• Strong customer loyalty, the company provides all its customers an attractive and appealing menu to cater the needs of all health conscious customers.

• Highest quality of food available.

• The ambience of the restaurant gives a warm and at home kind of feel to the customers.

• Strong market in the niche segment.

• Wifi facility is also available.

• The company has a cost advantage over its rivals. Panera can lower the cost of its menu and can easily charge its product at higher prices whenever possible keeping in mind their competitive edge in the market.


• The brand presence of the company is not as strong as compared to Star bucks. If the company works on improving its brand image it can help them to boost profit immensely.

• The company has not been able to increase the quantity of customers who dines at the restaurant.

• Due to its restricted criteria the company cannot open its franchise easily.

• The company doesn’t provide the fastest take away and pick up option just like other known restaurants.

• The company is only confined to North America and hasn’t been able to set a mark outside the country.

• The company earns lesser revenue than other competitors and need to expand itself globally.


• The company can have a control over its opportunity cost.

• Further market expansion can lead to the company’s growth.

• Entering into international markets like Europe and Asia can increase Panera’s geographical presence.

• New demand for organic products can be a good opportunity for the company to boost its revenue.

• As the consumer’s tastes change with time the company can adapt itself accordingly by making changes in the menu and food quality.

• Drive through-to go option can be helpful for the company.


• High competition in the market.

• The company provides fresh dough to each location through controlled vehicles. A bad weather or technical problem can cause a disruption in the company’s supply and leads to a decline in the sales.

• An immense demand of vegetarian food can be a threat to the company if they don’t adapt their menu according to the new demand and will remain left behind by its competitors.

• An increase in the minimum wage can also be a threat to Panera . By increasing minimum wage the labor cost also gets increased and therefore creates an impact on the company’s profitability.

2 Responses to “Panera Bread SWOT Analysis”

  1. Christian says:

    Thank you so much for the elaborate details on SWOT analysis. it has helped me to improve so much in my Procurement field of study

  2. Sauni says:

    I love Panera Bread. I do have one suggestion. Lower your prices and the quantity of customers will increase. Send out coupons – people use coupons. They will purchase items they do not even need if they have a coupon.

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