Panera Bread 2011 Annual Report Download - page 19

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11
Damage to our brands or reputation could negatively impact our business.
Our success depends substantially on the value of our brands and our reputation for offering a memorable experience with superior
customer service. Our brands have been highly rated in annual consumer studies and have received high recognition in several
industry publications. We believe that we must protect and grow the value of our brands through our Concept Essence to differentiate
ourselves from our competitors and continue our success. Any incident that erodes consumer trust in or affinity for our brands
could significantly reduce their value. If consumers do not continue to perceive us as a company that customers can trust to serve
high quality food in a warm, friendly, comfortable environment, our brand value could suffer, which could have an adverse effect
on our business.
Competition may adversely affect our operations and consolidated results of operations.
The restaurant industry is highly competitive with respect to location, customer service, price, taste, quality of products, and overall
customer experience. We compete with specialty food, casual dining, and quick-service restaurant retailers, including national,
regional, and locally owned restaurants. Many of our competitors or potential competitors have greater financial and other resources
than we do, which may allow them to react to changes in pricing, marketing, and the restaurant industry better than we can.
Additionally, given our recent success other companies may develop restaurants that operate with concepts similar to ours or that
try to replicate the things we do well. We also compete with other restaurant chains and other retail businesses for quality site
locations and hourly employees. If we are unable to successfully compete in our markets, we may be unable to sustain or increase
our revenues and profitability.
Additionally, competition could cause us to modify or evolve our products, designs, or strategies. If we do so, we cannot guarantee
that we will be successful in implementing the changes or that our profitability will not be negatively impacted.
Loss of senior management or the inability to recruit and retain associates could adversely affect our future success.
Our success depends on the services of our senior management and associates, all of whom are “at will” employees. The loss of
a member of senior management could have an adverse impact on our business or the financial market’s perception of our ability
to continue to grow.
Our success also depends on our continuing ability to hire, train, motivate, and retain qualified associates in our bakery-cafes,
fresh dough facilities, and support centers. Our failure to do so could result in higher associate turnover and increased labor costs,
and could compromise the quality of our service, all of which could adversely affect our business.
We operate in Canada and therefore, we may be exposed to uncertainties and risks that could negatively impact our
consolidated results of operations.
We expanded our Company-owned operations into Canadian markets. Our expansion into Canada has made us subject to Canadian
economic conditions, particularly currency exchange rate fluctuations, increased regulations, quotas, tariffs, and political factors,
any of which could have a material adverse effect on our consolidated financial condition and results of operations if our Canadian
operations continue to expand. Further, we may be exposed to new forms of competition not present in our domestic markets, as
well as subject to potentially different demographic tastes and preferences for our products.
If we fail to comply with governmental laws or regulations or if these laws or regulations change, our business could suffer.
In connection with the operation of our business, we are subject to extensive federal, state, local, and foreign laws and regulations,
including those related to:
• franchise relationships;
• building construction and zoning requirements;
• nutritional content labeling and disclosure requirements;
• management and protection of the personal data of our employees and customers; and
• environmental matters.
Our bakery-cafes and fresh dough facilities are licensed and subject to regulation under federal, state, and local laws, including
business, health, fire, and safety codes.