Panera Bread 2010 Annual Report Download - page 9

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franchisees. Franchise-operated net bakery-cafe sales, as reported by franchisees, were $1,802.1 million in fiscal
2010. See Note 19 to our consolidated financial statements for further segment information.
Our fiscal year ends on the last Tuesday in December. Each of our fiscal years ended December 28, 2010 and
December 29, 2009 had 52 weeks. Our fiscal year ended December 30, 2008 had 53 weeks, with the fourth quarter
comprising 14 weeks.
CONCEPT AND STRATEGY
Bread is our platform and the entry point to the Panera experience at our bakery-cafes. It is the symbol of
Panera quality and a reminder of Panera Warmth, the totality of the experience the customer receives and can take
home to share with friends and family. We strive to offer a memorable experience with superior customer service.
Our associates are passionate about sharing their expertise and commitment with our customers. We strive to
achieve what we call Concept Essence, our blueprint for attracting and retaining our customers that we believe
differentiates us from our competitors. Concept Essence begins with artisan bread, quality products, and a warm,
friendly, comfortable environment. It calls for each of our bakery-cafes to be a place customers can trust to serve
high quality food. Bread is our passion, soul, and expertise, and the platform that makes all of our other food special.
We believe our competitive strengths include more than just great food at the right price. We are committed to
creating an ambiance in our bakery-cafes and a culture within Panera that is warm, inviting, and embracing. We
design each bakery-cafe to provide a distinctive environment, in many cases using fixtures and materials
complementary to the neighborhood location of the bakery-cafe as a way to engage customers. The distinctive
design and environment of our bakery-cafes offer an oasis from the rush of daily life, where our associates are
trained to greet our customers by name and have the skills, expertise, and personalities to make each visit a delight.
Many of our bakery-cafes incorporate the warmth of a fireplace and cozy seating areas or outdoor cafe seating,
which facilitate the use of our bakery-cafes as a gathering spot. Our bakery-cafes are designed to visually reinforce
the distinctive difference between our bakery-cafes and other bakery-cafes and restaurants. In fiscal 2010, we
completed the rollout of our MyPanera
TM
loyalty program, which we believe will allow us to build deeper
relationships with our customers and entice them to return to our bakery-cafes.
Our menu, operating systems, design, and real estate strategy allow us to compete successfully in several
segments of the restaurant business: breakfast, AM “chill,” lunch, PM “chill,” dinner, and take home, through both
on-premise sales and off-premise Panera Catering». We compete with specialty food, casual dining, and quick-
service restaurant retailers, including national, regional, and locally-owned restaurants. Our competitors vary across
different dayparts. We understand people choose restaurants depending on individual food preferences and mood.
Our goal is to be the first choice for those customers craving soup, salad, or a sandwich.
In addition to the dine-in and take out business, we offer Panera Catering, a nation-wide catering service that
provides breakfast assortments, sandwiches, salads, or soups using the same high-quality, fresh ingredients enjoyed
in our bakery-cafes. Panera Catering is supported by a national sales infrastructure, and we believe it represents a
meaningful growth opportunity for our business.
MENU
Our value-oriented menu is designed to provide our customers with affordably priced products built on the
strength of our bakery expertise. We feature a menu containing proprietary items prepared with high-quality, fresh
ingredients, including our antibiotic-free chicken, as well as unique recipes and toppings designed to provide
appealing, flavorful products that we believe our customers will crave.
Our key menu groups are fresh baked goods, including a variety of freshly baked bagels, breads, muffins,
scones, rolls, and sweet goods, made-to-order sandwiches on freshly baked breads, hearty, unique soups and side
items, freshly prepared and hand-tossed salads, and custom roasted coffees and cafe beverages, such as hot or cold
espresso and cappuccino drinks and smoothies.
We regularly review and update our menu offerings to satisfy changing customer preferences. We seek to
continuously improve our products, or develop new ones, such as our improved Tomato Mozzarella Salad, Cuban
Chicken Panini, and our All Natural Steak Chili with Cornbread Crumbles.
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