Panera Bread/Saint Louis Bread

Franchise Concept: Bakery/cafe
Actively seeking Franchisee's in: West

Fresh Bread Makes Friends

Started up in 1981 by Ron Shaich and Louis Kane under a different name - Au Bon Pain Co. - the Panera Bread Company has quickly raised itself to prominence within the United States as well as outside of the country. First doing well in the East Coast region of the United States, the owners of Panera then found that their bread was marketable on an international scale. While not only baking bread but serving customers in a café setting as well, Panera Bread became, over the past two decades, the number one bakery and café combination on the market. Today it continues to enjoy great success, and is therefore potentially a highly lucrative investment for interested entrepreneurs who wish to open up a Panera Bread franchise.

Since the purchase of St. Louis Bread company - with its sum of 20 stores - in 1993, it was apparent that Au Bon Pain Co. would be a key player in the bakery industry. Right after this, the company launched a re-engineered business plan and was able to skyrocket its rate of production dramatically. In fact, by boosting the volume of its units by a whopping 75% over the brief time span of four years - between 1993 and 1997, the company positioned itself to become one of the big hitters in the bakery-café industry. At this point in 1997 the stage was set for success, but like any story of great achievement, the most daring move yet had to be undergone. In the end, it was the consolidation of resources that proved to be the winning business scheme. By selling off all of the Au Bon Pain Co. units except for one - Panera Bread - the company (whose name, of course, became Panera Bread) quickly soared in value so that its net worth among shareholders is about $1 billion. Now, Panera Bread boasts more than 700 locations in the majority of US States.

The market for franchising is ripe for entrepreneurs seeking to start up with a Panera Bread company of their own. Indeed, the company cherishes development agreements as one of its two major growth strategies. (The other growth option being pursued is the direct operation and ownership of locations by the company). It should be mentioned here that the choice of Panera Bread as a franchise option comes with the commitment of developing a series of bakery-café locations within a given area, rather than just a single unit. The target number of locations to be developed is currently around 15, and this is expected to be done within 6 years by the franchisee. Of course, there is a definite need for the franchisees to demonstrate sufficient liquid assets and net worth along with proven business experience running a series of operations simultaneously if they are to be considered by the Panera Bread Company.

Specifically, liquid assets will need to amount to $3 million while an applicant\'s net worth must not fall under $7.5 million. In addition, it is expected that the franchisee have the building space and resources that are needed, along with a working familiarity of the development area\'s local real estate to measure up to the time pressures being put on by Panera Bread. Moreover, applicants are required to have developed excellent reputations in their previous restaurant management experiences while exhibiting full dedication to the Panera Bread brand name and its product.

Franchise Information

Financial & Terms

Minimum Net Worth	$3,000,000
Equity/Liquid Capital	$1,200,000 and up
Min Total Investment	$850,000 to $1,500,000
Initial Franchise Fee	$35,000
Ongoing Royalty	5%
Advertising Fee

Contact Information

Address	Panera Bread/Saint Louis Bread, 6710 Clayton Rd, Richmond Heights MO 63117
Sales Contact	Peter Wright VP Franchise Development 800-301-5566 314 633-7100

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