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MBA6225 Consumer
Behavior and Marketing within the Hospitality Indus
try

Putting a Loaf of Bread in Every Arm: Panera Bread
Introduction
Panera Bread emerged from a previous business calle
d the Saint Louis Bread Company that was
founded in 1987. Throughout the years, the organiza
tion has metamorphosed into one of the
leading bakery cafe units within the United States.
This case study examines the growth and
development of the Panera Bread Company along with
the emergence of the fast-casual
segment of the foodservice industry. Documentation
is provided at the end of the case study in
order to orientate the reader to various aspects of
Panera Bread, including its menu, company
financial data, and the mission statement.
History
The Panera Bread Company originated as the Saint Lo
uis Bread Company in 1987. The Saint
Louis Bread Company was originally initiated as a o
ne-unit bakery cafe in the suburbs of Saint
Louis. After 1987, the company developed and succes
sfully operated nineteen bakery cafes until
its acquisition by the Boston-based company, Au Bon
Pain Co. Inc., in 1993. At the time, the
370-unit Au Bon Pain company was looking to acquire
additional fast-casual or quick-casual
concepts to launch as growth vehicles throughout th
e United States.
Au Bon Pain, which translates into “At the Good Bre
ad,” originated in Boston’s Faneuil Hall in
1977 as a marketing tool used by a French manufactu
ring company named Pavailler to
demonstrate their bakery manufacturing equipment an
d tools. The fledgling company became a
commissary of French breads for a number of fine-di
ning restaurants within the Boston
metropolitan area. Au Bon Pain continued its commis
sary business of bakery goods until Ron
Shaich approached it in 1980. Ron Shaich, the owner
and operator of a retail cookie business,
was searching for a way to increase traffic sales i
n the morning business hours. He found the Au…