In Practice Panera Bread Company When managers at Panera Bread investigated declining sales and profits, they learned that it wasn't the quality of the food that was causing the problem. People were just having to wait in line too darn long. In addition, ten percent of the orders were wrong when they did come out. Co-founder and former CEO Ron Shaich said customers were having to stand in a “mosh pit” of people for up to eight minutes just to place an order. Panera's leaders decided to rethink the service model and spent six years perfecting their online ordering process. Today, digital ordering makes up more than a quarter of sales for the company. Many Panera cafes have also added self-order kiosks inside the store. The average time a customer waits in line to order has shrunk from eight minutes to one. However, the transition wasn't totally smooth. Digital ordering increased volume and led to more customization of orders, meaning kitchen employees and other staff had a hard time keeping up. Revising workflow procedures and simplifying kitchen display systems helped to solve the problem. “It was literally hundreds of these little things that we did,” said Blaine Hurst, who recently retired as CEO. Customers like Catherine Rinehart appreciate the change. “It saves me from ... taking half my lunch hour to get the food,” said the marketing executive.
In Practice Panera Bread Company When managers at Panera Bread investigated declining sales and profits, they learned that it wasn't the quality of the food that was causing the problem. People were just having to wait in line too darn long. In addition, ten percent of the orders were wrong when they did come out. Co-founder and former CEO Ron Shaich said customers were having to stand in a “mosh pit” of people for up to eight minutes just to place an order. Panera's leaders decided to rethink the service model and spent six years perfecting their online ordering process. Today, digital ordering makes up more than a quarter of sales for the company. Many Panera cafes have also added self-order kiosks inside the store. The average time a customer waits in line to order has shrunk from eight minutes to one. However, the transition wasn't totally smooth. Digital ordering increased volume and led to more customization of orders, meaning kitchen employees and other staff had a hard time keeping up. Revising workflow procedures and simplifying kitchen display systems helped to solve the problem. “It was literally hundreds of these little things that we did,” said Blaine Hurst, who recently retired as CEO. Customers like Catherine Rinehart appreciate the change. “It saves me from ... taking half my lunch hour to get the food,” said the marketing executive.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Summarize the case study of Panera Bread. What was the issue and what was the solution? Identify the PESTEL factors in the Panera Bread case study.
Here are some ideas related to the Panera Bread Company:
Transcribed Image Text:In Practice Panera Bread Company
When managers at Panera Bread investigated declining sales and profits, they learned
that it wasn't the quality of the food that was causing the problem. People were just
having to wait in line too darn long. In addition, ten percent of the orders were wrong
when they did come out. Co-founder and former CEO Ron Shaich said customers were
having to stand in a “mosh pit” of people for up to eight minutes just to place an order.
Panera's leaders decided to rethink the service model and spent six years perfecting their
online ordering process. Today, digital ordering makes up more than a quarter of sales for
the company. Many Panera cafes have also added self-order kiosks inside the store. The
average time a customer waits in line to order has shrunk from eight minutes to one.
However, the transition wasn't totally smooth. Digital ordering increased volume and led
to more customization of orders, meaning kitchen employees and other staff had a hard
time keeping up. Revising workflow procedures and simplifying kitchen display systems
helped to solve the problem. “It was literally hundreds of these little things that we did,”
said Blaine Hurst, who recently retired as CEO. Customers like Catherine Rinehart
appreciate the change. “It saves me from ... taking half my lunch hour to get the food,”
said the marketing executive.
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