Panera (NASDAQ:PNRA) Revamps
Panera Bread Company (NASDAQ:PNRA) has been a serious contender in the market for quite a while now, and has undergone several significant changes since its establishment. In light of years of growth and yield in terms of earnings and revenue, it is looking to reinvest.
As its revenue is starting to become steady from the previous pressured trends and margins become independent of the effects of cost input increase and assets, the company is devising strategic objectives on long-term basis.
During a recent conference call held by the Panera (NASDAQ:PNRA) management, the company growth initiatives were discussed in detail. The new developed strategy is expected to bring about several major changes, however, this can’t happen overnight.
Panera (NASDAQ:PNRA) has coined its most recent reinvention of itself as ‘Panera (NASDAQ:PNRA) 2.0’. The new strategy circles around combining initiative with digital ordering and payment methods that includes an advanced kitchen software that will help with speeding up each transaction.
Hence, this initiative will enable customers to pre-order their chosen products and pick and pay for their purchase at a later time. This will help them avoid queues all together. In other varied scenario, customers can pre-book their tables and get seated the moment they arrive at the site. This ensures a more power that a customer can exert for their own comfort.
While this may seem like a very ambitious initiative and seems like a lot of work, it is being projected to out in to action in 100 restaurants by the end of year 2014. Out of the total 1845 of Panera (NASDAQ:PNRA) franchises, this comprises 5% of it. This is projected to give the company an idea of how well this is working for the brand and the time frame it takes to familiarize with the new system, for employees as well as customers.
Currently, the implemented sites are holding lessons for employees so that they don’t find the new system too alien to work with. As far as implementation of the strategy for year 2015 is concerned, Panera (NASDAQ:PNRA) is not projecting any targets for the moment. Analysts feel that once the test phase is cleared, only then the company will feel confident with implementing it all over.
This initiative is being foreseen by the Panera (NASDAQ:PNRA) management to be beneficial for the franchise in the long-term, as it will initiate useful updates in scopes of digital or mobile capabilities, software systems and the customer services. However, it goes without saying that initially, such dramatic change is expected to come with a heft bill of payments for all the ambitious updates.
The average costs per store are placed at $20,000 to $30,000. According to future ventures, management at Panera (NASDAQ:PNRA) feels that this is going to open many other venues of possibility and the company will continue to take steps towards enhancing its services.
Currently, the company hosts 9 delivery sites, which were developed in the last five quarters, with further increase in these sites being anticipated in the fourth quarter.