In-Class Case PMBA Class Spring 2007 Introduction Changing Consumer Tastes Panera’s roots go back to 1981, when it was founded under the name of Au Bon Pain Co. and consisted of three Au Bon Pain bakery-cafés and one cookie store. The company The Emergence of Fast Casual As the result of these changing consumer tastes, a new category in the restaurant industry, called “fast-casual,” emerged. This category provided consumers the alternative they wanted by capturing the advantage of both the fast-food category (speed) and the casual dining category (good food), with no significant disadvantages. The owners of Au Bon Pain and Saint Louis Bread Company felt that they could help pioneer this new category, so they repositioned their restaurants and named them PaneraBread. The position that Paneramoved into is depicted in the graphic titled “Positioning Strategy of Various Restaurant Chains.” A market positioning grid provides a visual representation of the positions of various companies in an industry. About Panera’s category, industry expert T. J. Callahan said, “I don’t think fast-casual is a fad; I think it’s a structural change starting to happen in the restaurant industry.” {draw:frame} Panera’s Version of Fast-Casual To establish itself as the leader in the fast-casual category and to distinguish itself from its rivals, Panera (which is Latin for “time for bread”) added a bonus to the mix—specialty food. The company has become known as the nation’s bread expert and offers a variety of artisan and other specialty breads, along with bagels, pastries, and baked goods. Panera Bread’s restaurants are open for breakfast, lunch, and dinner and also offer hand-tossed salads, signature sandwiches, and hearty soups served in edible sourdough bread bowls, along with hot and cold coffee drinks. The company also provides catering services through its Via Panera catering business. Its restaurants provide an inviting neighborly atmosphere, adding to their appeal....