Au Bon Pain Co. Inc.
Bon Pain and the cookie store to form Au Bon Pain Co.
Inc. Both individuals formed a synergistic relationship that only helped the company grow into an overwhelming success. “Isaiah was the hard driving, analytical strategist focused on operations, and Kane was the seasoned businessperson with a wealth of real estate and finance In 1985, the partners added sandwiches to bolster daytime sales as connections” . ” They noticed a pattern In customer behavior” . What the two realized is that their customers were buying Au Bon Pain’s bread and using their own cold cuts to make sandwiches their self.
This realization was the launching point for the Industry first fast casual restaurant’.
By 1991 the company had $68 million in sales and became a leader in the quick service bakery segment. It was at this time that Kane and Isaiah took the company public. However, even with their explosive growth the company was modeled upon a limited growth concept. Isaiah called this concept, “high density urban feeding” . The company’s main customers were office workers who lived in highly dense metro areas such as New York.
Boston, and Washington DC.
As the text states, “this strategic factor limited expansion possibilities” . Looking to capitalize on the ‘suburban marketplace’ Au Bon Pain acquired the Saint Louis Bread Company In 1993. This acquisition would be the springboard for what Is now known as Pane. The Au Bon Pain brand was faltering due to a rapid expansion that resulted In major operational problems, declining margins and a vast realm of debt. The Au Bon Pain segment was subsequently sold and the company was able to focus all of their time and resources on the Pane chain.
With the sale of Au Bon Pain the new Pane Bread Company was debt free and had the cash to immediately expand its bakery- oaf© stores. “Throughout the sass, Pane grew through franchise agreements, acquisitions, and new company-owned bakery-cafes” . Pane had grown roughly 100,000 times when it began by serving 60 customers a day. Pander’s concept was “to create a casual but comfortable place where customers could eat fresh-baked artisan breads and fresh sandwiches, soups, and salads without worrying about whether it was nutritious” .
Bread was Pander’s platform and symbolized Pane quality. Pane gave their customers a totality of experience that they could take home to their friends and family.
Pane offered superior customer service and an environment that was known for an unpretentious, relaxing, and welcoming atmosphere In wanly you could get Nell quality Perhaps one AT teen boldest steps ever taken by Pane, or any fast casual dining establishment, was Pane not setting prices in one of their newly opened stores but asking customers to pay what they wanted.
This spoke volumes on what the company thought they were really worth. Pane operated in three business segments: company-owned bakery-cafe© operations, franchise operations, and fresh dough operations. Additionally, Pane offered a nationwide catering service that provided the same breakfast assortments, sandwiches, salads and soups. Pane competes through differentiation. They pride themselves on their healthy, fresh foods.
Any new branch must comply with protocols in order to ensure that each piece of bread is up to Pander’s standards.
Not only do they create fresh, great tasting foods, they also create a welcoming environment. Pane also operates on a basis of “get more cash out of each customer rather than just more customers” . During the economic downturn in 2009, Pane continued to execute their long-term strategy of investing in the business to benefit the customer while others in the industry downsized as a whole. Isaiah saw this as a time to increase the food experience when customers least expected it, and it paid off.
Mathews – Executive Vice President and SCOFF Michael Simon – Executive Vice President and Chief Marketing Officer Mark Wesley – Executive Vice President and Chief Development Officer Scott Blair – Senior Vice President and Chief Legal Officer and General Counsel Mark Borderland – Senior Vice President Irene Cook – Senior Vice President, Chief Company & JP Operations Officer Liz Dunlap – Senior Vice President and Chief People Officer Thomas Kiss – Senior Vice President – commerce Customer Service Centers William Simpson – Senior Vice President and Chief Franchise Officer Joan Mister – Senior Vice President and CIO Resources
From a humble beginning more than twenty years ago, Pane Bread Company has amassed and refined their resources. Potentially their greatest resource, CEO Ronald Isaiah created Pane as place that could be an “everyday oasis” for those seeking a higher quality food. Pane has done much to earn their corporate brand name recognition. There is comprehensive front and back house training of employees, whom they see as skilled providers of the Pander’s “Concept Essence,” and not merely cogs in machine.
Something unique, Pane gives healthcare benefits to everyone who works 25+ hours a week, employee stock purchase plan, and impotently, or many times, enlarger wages than competitors. I nee well-trainer associates and owners in return maintain excellent quality control.
The high quality of food, and excellent quality control had led to a great amount of namesake for the company. Capabilities Pander’s menu is portioned into: salads, sandwiches, drinks, panning, kids, and pasta, stew & soups.
Menu items are regularly reviewed and updated to keep in line with customer desires. Pane does not rely on a test kitchen’. Instead, Pane relies on their heavily trained staff to surface ideas based on their market knowledge and well-versed skill base. Additionally, Pane is able to capitalize on favorable lease terms on their real estate deals, which further lowered their operating costs.
Pane also remained true to their initial vision, offering artisan breads, while still expanding and offering many other menu options.
Their positive reputation attracts new customers, and their friendly environment keeps them coming back. They have proven skilled at training new managers and in choosing only extremely qualified candidates for their franchise openings. Competencies Pander’s core competency is its selling of high quality food at a reasonable price. We believe our menu innovation is one reason our value scores with customers remain so strong.
Goat’s 2011 consumer-generated National Restaurant Chains Survey for eating on-the-go rates us number one among chain restaurants with fewer than 5,000 locations in the Best Salad and Best Facilities categories while ranking us among the top five in the Best Value, Best Grilled Chicken, Top Service, and Best Breakfast Sandwich categories” . Findings Franchising is an integral part of Pander’s success “Our success in part depends on the success of our franchisees business” .
In December of 2011 Pane had over 800 franchise operated stores with commitments for over 1 50 more. Low Debt as Pander’s main capital resource Pander’s main capital resource is generated by their current operations. As of fiscal year 2011 Pane had no borrowings outstanding .
Pane has an overwhelming growth potential outside of the United States Pane relies heavily on word of mouth marketing and has not sought to expand their brand globally. Pane could utilize its goodwill and expand globally to further expand their operations whereby increasing its revenues.