1. Open cafés in untapped markets, and focus on utilizing franchising to achieve the desired
1:160,000 café: person ratio by 2010. We found that the restaurant industry life cycle is still in
growth. This growth coupled with Panera‟s strong franchising capability offers a significant
opportunity for Panera to pursue. To achieve this Panera must first use the current site selection
and market analysis processes to chose ideal locations for new cafés in untapped markets. Panera
should also utilize this process to assess the logistics necessary to support the potential locations.
Next, Panera needs to utilize the established, stringent franchisee selection criteria to identify
candidates that are a good fit, and then work with the selected franchisees using the existing
franchise assistance programs to educate and train franchisees in Panera‟s unique brand, vision
and culture. Once Panera sets up franchising systems in new markets, the company should
measure success by whether or not the 1 café per 160,000 people per location by 2010. Panera
also must assess the new franchisees based on the historical areas of success.