Environmental Analysis
Introduction
The United States Fast Food Industry has entered a period of slow growth in recent years as consumer attitudes regarding health and nutrition have changed. Panera Bread Company has been a pioneer in a new developing sector of the market that has been responsive to changes in consumer tastes. In this paper we will briefly describe industry features and identify environmental risks and opportunities facing Panera Bread Company. We will specifically look at the remote environment, the industry environment, and the operating environment in an attempt to formulate a strategy that can assist the company in achieving long-term growth.
Industry and Company Description
The United States Fast Food Industry is comprised of businesses who sell food and drinks for immediate consumption in their establishments or elsewhere. The market is currently divided into four sectors; Quick Service Restaurants, Takeouts, Mobile/Street Vendors and Leisure Locations. (DataMonitor 1) In 2004, over 50% of worldwide fast food revenue was generated in the United States. Recently the US fast food market has experienced a slower rate of growth than European and Asian markets but it still is continuing to grow. The US market reached a value of more than $50 billion in 2004, and has exceeded expectations for 2005.
The sharp rise in consumer health awareness and the staggering national obesity rate of 30% seem to be major contributors to the slow market growth of the past few years. Consumer response to unhealthy foods have prompted many industry leaders to reduce excessive portion sizes, introduce healthier menu items to their menus, and diversify corporate holdings to include the next generation of fast food,' fast casual'.(Hajim ...