Profit to the company
Rural communities will not be able to open up franchises and with the large number of rural communities in the target base area for Panera Bread was first founded and based out of. This not offering the product in rural communities is forcing those who live in small towns to either do without Panera Bread or to have to travel quite some distance to eat at a Panera Bread.
The idea of having single owned franchises as an option for some franchisees based on demographics, locations and populations in surrounding areas could really help to bring Panera Bread into a wider market and make them more marketable overall in their interactions with all people and offering al people the ability to be consumers of Panera Bread. I am not saying do away with the franchise rule for all franchisees.
I agree that this works great in some areas, but what I am saying is offering an option to franchisees from areas with significantly smaller populations in order to better be able to serve the customer base and promote more widespread sales and knowledge should be considered. It would be a good idea to have a set limit on standards and how one is able to franchise a smaller number of restaurants. Another thing that could be done to better market Panera Bread and to get a larger and more loyal customer base would be to have some corporate owned locations and for not all of the locations to be franchised based. Also read P anera Bread PESTEL analysis
This also could open a wide range of availabilities to the company and huge profit margin in areas where Panera Bread franchises are not owned and operated. This would also allow some of the stores to be started by the corporate ownership, for them to make money and later sell to smaller investors just wanting to start out in owning a franchise and operating a Panera Bread location. Also Panera Bread should be opening up more options to move to an international market base. Not only should Panera Bread be looking into Canada but other countries as well for providing a much broader spectrum of services to their consumers.
Panera Bread should continue to look into the operations and openings of new Panera Bread locations in Canada as well as other countries in order to better meet the needs of the company and the consumers. If Panera Bread is continuously looking into options for an international market then they will be able to open up their services and their profitability as the options of a new market will add a great amount of profit to the company. Another area where Panera could seek to improve is where they are building their locations.
Panera Bread could continue to move their marketability by looking into ways to open up franchises in close proximity to grocery stores. This would be a great market as many people do not go out of their way to purchase breads from Panera Bread as that would require them typically traveling some distance from the nearest grocery store. If Panera Bread were located in close proximity to some grocery stores then the availability would be more convenient and the locations could gather more business to the regular shoppers who are looking to prepare quality meals at home for their families.
Another suggestion to offer a wider market for Panera Bread would be for Panera Bread to be willing to attempt to coordinate a contract with a grocery or multi-service store chain. If a store were to have a small Panera Bread location located within it’s walls then the overhead costs for the franchise owners would be lower an the idea of having the good quality product readily available to the masses would prevail and would make them a more profitable and marketable brand.