Panera’s Secret: Consumers Tend To Bypass Competitors To Get There

Panera Bread Co., whose acquisition by Krispy Kreme owner JAB Holdings for $7 billion was recently announced, is a paradigm of success in today’s restaurant chain world. Its menu is upscale and distinctive, the service is fast. But it really began to surpass rivals when three years ago it adopted its ”2.0 plan,” which featured advanced technology for customer ordering and payment, a commitment to clean food (i.e., no preservatives, no artificial or other dubious ingredients), and a sophisticated delivery system. The philosophy is summarized by CEO Ron Shaich: competitive advantage means “being a place where people want to walk past your competitors to come in."