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HOSPITALITY AND TOURISM OPERATIONS RESEARCH EVENT
PLAINFIELD DECA
Plainfield High School
1 Red Pride Drive
Plainfield IN, 46168
Megan Broman
January 24, 2012
Table of Contents
I. Executive Summary.............................................................................................................................1
II. Introduction.........................................................................................................................................2
A. Description of the business or organization...................................................................................2
B. Description of the community........................................................................................................2
C. Description of the business’s target market...................................................................................4
III. Research Methods Used in the Study..................................................................................................4
A. Description and rationale of research methodologies selected to conduct the research study.....4
B. Process of conducting the selected research method(s)................................................................5
IV. Findings and Conclusions of the Study..............................................................................................16
A. Findings of the research study......................................................................................................16
B. Conclusions based on the findings................................................................................................17
V. Proposed Strategic Plan.....................................................................................................................17
A. Goals/objectives and rationale.....................................................................................................17
B. Proposed activities and timelines.................................................................................................18
C. Proposed budget..........................................................................................................................21
D. Proposed metrics to measure ROI, sales, customer retention, customer satisfaction, etc...........22
VI. Bibliography.......................................................................................................................................22
VII. Appendix............................................................................................................................................23
I. Executive Summary
In this project, I have accepted the responsibility of enhancing a customer loyalty program of a business of my choice. I have extensive food allergies, so finding a place to eat with foods that my stomach can handle is quite rare. However, there is one place that makes their food with all natural ingredients. That place is Panera Bread. Since I am able to eat Panera Bread’s food, I go there a lot. I am an extremely loyal customer; I would pick Panera Bread over any other food place any day, no matter what the prices were. So, being a loyal customer, I would like to be rewarded for my loyalty. Panera Bread does have a loyalty system already set up, the MyPanera card, but it is not living up to its full potential. Throughout this report, I have identified many possible areas of improvements that could be made. In addition, I conducted a research study, analyzed the results, and prepared a strategic plan to enhance Panera Bread’s customer loyalty program, the MyPanera card.
Description of Organization
Located in 40 states and 1 province, Panera Bread is a casual bakery that bakes and cooks all of their food choices. It is a warm-welcoming place that brings people together. It is the perfect place to go on business lunches, out with friends, or just to grab a bite with peace and quiet. Panera Bread puts a whole new meaning to quality food.
Research Methods Used
Throughout this project, I conducted many research methods. From calling 50 randomly selected individuals, to sitting down with the general manager, I gathered valuable information that helped me to the conclusion of how to enhance the MyPanera card.
Research Method Used ResultCalled 50 randomly selected numbers Customers’ opinionEmailed friends and family Customers’ opinionEmailed coworkers of parents Customers’ opinionSent out questionnaires to teachers at Plainfield High School
Customers’ opinion
Personally interviewed employee Employee’s opinionPersonally interviewed the general manager General manager’s opinion
Plan to Enhance Program
Make the MyPanera card more convenient for customers to obtain. Create a reward point system to clarify the benefits of the MyPanera card. Increase awareness of the MyPanera card by 20 percent.
Page 1
II. Introduction
A. Description of the Business or Organization
Panera Bread is a casual bakery that makes and sells soups, sandwiches, their specialty bread,
and other bakery items. Bakers at Panera Bread have the skill to perfect the way bread is made.
At Panera Bread, each loaf of bread is made from scratch, using the best and natural ingredients
to ensure high quality. However, bread is not the only high quality food Panera Bread offers.
Panera Bread has a wide variety of warm soups, elegant sandwiches, refreshing smoothies,
freshly tossed salads, and sweet pastries. All of course made with only the best and natural
ingredients. Panera Bread gives casual bakeries a whole new meaning.
B. Description of the Community
Panera Bread bakeries can be found in many locations. Located in 40 states and 1 province,
Panera Bread operates 1,504 bakeries. Since Panera Bread uses all natural ingredients, prices of
food are on the pricier side. Because of this, Panera Bread bakeries are located in areas where
people are able to afford the high quality of food . A run down town will not have Panera Bread,
but a nice town like Plainfield would. The Panera Bread in Plainfield is the bakery where I am
basing all of my research off of. The communities of the town Plainfield and of the bakery of
Panera Bread are extremely similar. They are both welcoming of all types of people, filled with a
variety of people, and want to provide the highest quality for the people.
Economic
Due to the fact that Panera Bread uses all natural ingredients, it is inevitable that their prices
would be on the higher side. So as a result, affordability comes into play. Customers have to be
Page 2
both willing and able to afford Panera Bread’s products. Because Panera Bread’s prices are
higher than other fast-food places, customers are typically middle class and above.
Geographic
Because Panera Bread’s prices are higher than the typical fast food place, a Panera Bread bakery
cannot be placed in any random area, it has to be placed where customers can afford the high
quality food. That is why Panera Bread is not located everywhere in the world, unlike a
McDonald’s, where almost everyone can afford a Big Mac. Operating 1,504 bakeries, Panera
Bread bakeries are located in 40 states and 1province.
Demographic and socioeconomic
Panera Bread bakeries are always welcoming to anyone who walks through the doors. Various
types of customers enjoy Panera Bread’s food on a daily basis. However, the demographic of
Panera Bread is very different than the demographics of other fast-food types of places. Panera
Bread has older customers, mostly from teens up. However, there are a few kids with their
families, but mostly teens, adults, and businessmen and women.
In conclusion, Panera Bread bakeries can be found in many locations. Located in 40 states and 1
province, Panera Bread operates 1,504 bakeries. Since Panera Bread uses all natural
ingredients, prices of food are on the pricier side. Because of this, Panera Bread bakeries are
located in areas where people are able to afford the high quality of food. A run down town will
not have Panera Bread, but a nice town like Plainfield would. The Panera Bread in Plainfield is
the bakery where I am basing all of my research off of. The communities of the town Plainfield
and of the bakery of Panera Bread are extremely similar. They are both welcoming of all types
of people, filled with a variety of people, and want to provide the highest quality for the people.
Page 3
C. Description of the Target Market
From little kids to businessmen, Panera Bread has a wide range of customers. So, as a result,
Panera Bread’s target market is very broad. Panera Bread does provide a kids menu that brings
in the little kids and their families. Also, the fast and high quality of food brings in the
businessmen and women on their lunch breaks or lunch meetings. Because the food is prepared
fast, the working population can get their high quality of food while meeting their lunch break
time limit. In addition, consumers that want good, fast food without all the grease and fat, go to
Panera Bread. So as a result, Panera Bread’s target market is very broad.
III. Research Methods Used in the Study
A. Description and Rationale of Research Methodologies Selected
to Conduct the Research Study
To conduct my research of Panera Bread’s loyalty program, MyPanera Card, I used many
different researching methods. I personally spoke with employees and managers of Panera
Bread and asked them questions. I conducted phone call interviews with 50 random people in
the Indianapolis area. I also conducted a mass email questionnaire to coworkers of both of my
parents, soccer teammates from all over Indiana, and as well as random friends in the area of
Plainfield. In addition, I sent out the same questionnaire to every teacher at Plainfield High
School. Unlike the phone interviews, sending out the questionnaire got me a lot more results
and valuable answers. All answers are shown in the appendix.
Page 4
B. Process of Conducting the Selected Research Method(s)
To get an interview with workers and managers of the Panera Bread in Plainfield, I had to first
speak with them to set up a time to meet when they were not working. The first worker I met
with, Ryan, has been a worker at Panera Bread for almost a year and a half. He spends most of
his day working the cash register, personally speaking with customers, and preparing items such
as, bagels, pastries, and smoothies, for the customer. Since he is in direct contact with
customers, I decided that he would be a good person to interview. I asked him a series of
questions and he gave me valuable answers in return. Since he is just a worker and basically
does what his manager tells him to do, I decided to sit down with the general manager, Narissa
Batman. I spent almost an hour talking about the MyPanera card with Narissa and gaining
valuable information that would later help me come up with a plan to enhance the loyalty
program. All questions and answers can be found in the appendix. After I got answers from the
people who run Panera Bread, I had to research the customers that give the bakery a reason to
keep running.
I used three different research methods to gather information. I called 50 randomly selected
individuals, emailed friends/family and coworkers of my father, and sent out paper
questionnaires to my mother’s coworkers as well as to the teachers at Plainfield High School. In
total, I got 82 responses. In those 82 responses, 83% have gone to Panera Bread at least once,
54% do not have a MyPanera card, 66% of the individuals that do are happy with the card, and
84% of responses who have a card said that it could be improved. Figures 1-4 illustrate my total
information gathered. My first researching method was to call 50 randomly selected individuals.
However, this was not the most helpful method of research. Out of 50 numbers, only 1
individual had a MyPanera card. So, simply to get answers, I sent out a mass email to friends,
Page 5
family, and coworkers of my father. This was an extremely more beneficial, so I decided to ask
the same questions to my mother’s coworkers and the teachers at Plainfield High School. Even
though my research had become not necessarily random, I got the valuable data that would
help me in the process of coming up with a new plan to make the MyPanera card live to its full
potential. I have broken down each researching method and game up with exact numbers for
just that method in Figures 5-20.
Page 6
Have gone to Panera Bread at
least once before
Have NEVERgone to Panera Bread before
Out of 82 Total Responses
14
68
Have a MyPanera
card
Do NOThave a
MyPanera card
Out of the 68 Responses that Have Been to Panera Bread
3137
Figure 1
Figure 2
Page 7
Are happy with the
card
Are NOThappy with
the card
Out of the 31 Who Do Have a MyPanera Card
11
20
Said NO it couldn't be improved
Said YES it could be
improved
Out of the 31 Who Do Have a MyPanera Card
5
26
Figure 3
Figure 4
To make sure the research wasn’t bias or targeted towards a particular group of people, I got a
list of 50 phone numbers to call. However, this way of research wasn’t the most helpful.
Figures 5-8 illustrate my research results from phone numbers. Out of the 50 numbers I called,
36% were disconnected, 42% went to voicemail, and only 22% answered. However, out of that
22% that answered, 55% were willing to answer questions. Out of those 6 numbers, 67% have
gone to Panera Bread before, and only 25% has a MyPanera card. Out of that 25%, 100% were
happy with it and
100% said it could
be improved.
Since this way of
researching
wasn’t the most
helpful, I had to
approach
researching
customers in an entirely different way.
Page 8
Disconnected
Voicemail
Answered
Out of 50 Numbers Called
18
Were willing to answer
questions
Were NOTwilling to answer
questions
Out of the 11 Numbers that Answered
Have gone to Panera Bread at
least once
Have NEVER gone to Panera Bread before
Out of the 6 Numbers Willing to Answer Questions
2
4
11
21
Page 9
Do NOT have a MyPanera
Card
Have a MyPanera
Card
Out of the 4 Numbers that Have Been to Panera Bread
1
3
Figure 7
Figure 8
I sent out a mass email to coworkers of my father, soccer teammates from all over Indiana,
family from different states, and friends from Plainfield. This process of research was extremely
more helpful than the phone interviews. Figures 9-12 illustrate my research results from emails.
In total, I had 36 responses. However, 5 of those responses have never gone to Panera Bread
before. So, out of the 31 responses left, 55% did not have MyPanera cards. The other 45% did
have MyPanera cards, but only 71% of them were happy with it. Almost exactly a third of the
responses that do have a MyPanera card are not happy with it. Also, 64% of the responses that
did have a MyPanera card said that the program could be improved. So, out of the 31 responses
that have been to Panera Bread before, more than half do not have cards and almost exactly a
third are not happy with it. And, a startling 64% said that the program can be improved. With
my plan, I believe that I can lower that dissatisfaction percent.
Page 10
Have gone to Panera
Bread at least once
Have NEVERgone to Panera Bread
Out of 36 Email Responses
5
31
Figure 9
Page 11
Do have a MyPanera
Card
Do NOThave a
MyPanera Card
Out of the 31 Responses that Have Been to Panera Bread
1417
Are happy with the card
Are NOThappy with
the card
Out of the 14 Who Do Have a MyPanera Card
4
10
Said YES it could be
improved
Said NO it couldn't be improved
Out of the 14 Who Do Have a MyPanera Card
5
9
Figure 10
Figure 11
My research methods don’t stop there. I typed up the same questions that were emailed and
sent them into work with my mother to get answers from her coworkers. I also sent those same
questions to every teacher at Plainfield High School. Figures 13-16 illustrate my research results
for the questionnaire given out to my mother’s coworkers.Out of my mother’s 19 coworkers, 5
(26%) have never gone to Panera Bread before. Out of the other 74%, 71% do not have a
MyPanera card. The very small percentage of 29%, do have MyPanera cards. Of the 29% that
do have MyPanera cards, only exactly half are happy with it, and 100% said that it could be
improved.
Page 12
Have a MyPanera
card
Do NOT have a MyPanera
card
Out of the 14 Responses that Have Been to Panera Bread
4
10
Have gone to Panera Bread at least once
before
Have NEVERgone to
Panera Bread before
Out of 19 Responses
5
14
Figure 12
Figure 13
Page 13
Are happy with the
card
Are NOThappy with
the card
Out of the 4 Who Do Have a MyPanera Card
2 2
Said YES it could be
improved
Out of the 4 Who Do Have a MyPanera Card
4
Figure 15
I not only handed out the paper questionnaire to my mother’s coworkers, but to the teachers at
Plainfield High School as well. Figures 17-20 illustrate my research results from the teachers at
Plainfield High School. Out of the 21 responses I got, 90% have gone to Panera Bread at least
once. A surprising 63% did have a MyPanera card, while only 37% did not. However, out of that
63%, 58% are happy with it, and the other 42% were not. But, out of that 63% a startling 100%
said that it could be improved.
Page 14
Have gone to Panera Bread at
least once before
Have NEVERgone to Panera
Bread before
Out of 21 Responses
2
19
Have a MyPanera
card
Do NOThave a
MyPanera card
Out of the 19 Responses that Have Been to Panera Bread
7
12
Figure 17
Page 15
Are happy with the
card
Are NOThappy with
the card
Out of the 12 Who Do Have a MyPanera Card
5 7
Said YES it could be
improved
Out of the 12 Who Do Have a MyPanera Card
12
Figure 19
I chose each research method specifically to get the answers I needed to come up with a plan to
enhance the MyPanera card. By using the questionnaire both electronically and by paper and
calling random numbers, I got a lot of helpful answers that helped me come to a conclusion in
my study.
IV. Findings and Conclusions of the Study
A. Findings of the research study
Through my different methods of research, I learned about the customers’ opinions about the
MyPanera card, as well as the opinions of the people who provide the MyPanera card. Each bit
of information learned from my research study helped me come to conclusions about the
MyPanera card.
These conclusions would include:
Most responses have gone to Panera Bread at least once.
Most responses do not have a MyPanera card.
Most responses that do have a MyPanera card are happy with the MyPanera card.
Most responses that do have a MyPanera card said yes, the program could be
improved.
Page 16
B. Conclusions Based on the Findings
Based on the conclusions above I have calculated that:
83% of responses have gone to Panera Bread at least once.
54% of responses do not have a MyPanera card.
66% of responses are happy with the MyPanera card.
84% of responses said yes, the program could be improved.
Figures 1- 4 on pages 6-7 illustrate these conclusions based on all of my research methods
combined.
V. Proposed Strategic Plan
A. Goals/Objectives and Rationale
The goal of any customer loyalty program is simply to make more money and increase customer
base. By making customers more loyal to a business, they are less likely to spend their money
somewhere else when prices change or competition heats up, etc. The customer loyalty
program that Panera Bread has right now, in my opinion, is not maximizing the company’s
revenues. The MyPanera card doesn’t make customers want to spend more money or visit the
bakery more often. Unfortunately, the MyPanera card is not creating an incentive for customers
to come to Panera Bread. To solve this problem, I have come up with a plan to make this goal
possible and easy to reach.
Page 17
B. Proposed Activities and Timelines
Customer loyalty programs are made and designed to make customers more loyal to the certain
business to keep the buying no matter what the circumstance is. I however, feel that the
MyPanera card of Panera Bread is failing to make customers more loyal to Panera Bread. The
rewards are given randomly instead of systematically. The rewards should be based on the
amount of money spent or the number of times visited. To solve this problem and make
customers more loyal to Panera Bread, I am proposing three steps to make the MyPanera card
profitable:
1. Make it more convenient for customers to obtain the MyPanera card.
2. Create a reward point system to clarify the benefits of the MyPanera card.
3. Increase awareness of the MyPanera card by 20 percent.
When I interviewed the cashier at Panera Bread, he said that one of the biggest complaints of
customers is that signing up for a MyPanera card is too inconvenient. To sign up for the card,
the customer has to either fill out a card while eating or sign up online when they aren’t even
thinking about Panera Bread. However, telling the cashier all of the customer’s information
would be too time consuming and a hassle when the bakery gets busy. To solve this problem of
inconvenience, while not causing chaos, I would simply have the cashiers ask for the customer’s
email and phone number so their card would be registered right there on the spot. Now if the
customer wishes to personalize their card and add information, such as their birthday or dietary
restrictions, they can do so online when they get home. If they forget, they still benefit from
having the card because the card has been registered since the moment they decided they
wanted one.
Page 18
The second step of my proposed solution is to create a reward system to clarify the benefits of
the MyPanera card. I have come up with a system that I believe will work. My plan is a simple
point system. With this point system, it will get customers in the door more often and make
them spend more money. Each food item will be given different point values. When a customer
makes a purchase, each point value of each item will add up. Once the customer has enough
points, they can redeem their points for a free item. To get them to spend more money, the
higher priced food items will be worth more points. All of these points will accumulate during
the month and can be “cashed in” for a free item. However, these points will reset every two
months, making the customer visit Panera Bread more often to build up enough points and
eventually use those points on their item of choice. I firmly believe that having a point system
will bring more customers through the doors more often and bring in more money as well.
Therefore, this point system will make the card worthwhile to have and will clarify the benefits
of having it.
The third and final step of my proposed solution is to market the card to increase awareness of
the MyPanera card by 20 percent. Once the card is worthwhile to have, it has to be marketed so
more people know about it. The more people that know about it, the higher chances of
increasing customers, which leads to increase in sales. However, not only the new MyPanera
card would be marketed during commercials or on a billboard; specific items that Panera Bread
offers will be marketed too. My plan is to have the card keep track of each customer’s most
bought items. This data will show which items are more desired and which ones are bought
most frequently. So, essentially this data will show the numbers for each individual item.
Panera Bread can then decide which item they want to market more over other items. Once the
decision is made, the card and specific food items will be marketed together. Marketing both
the new MyPanera card and specific food items will double the chances of increasing customer
Page 19
base. Marketing would include commercials, magazines, billboards, or even ads in the paper.
But, no matter what type of marketing, the new MyPanera card would need to be marketed to
get the word out.
Proposed timeline of launching new loyalty program is as follows:
March 2012- Updated software would be created to be installed in the computers
March 2012- New cards would be designed and printed
Throughout April- New MyPanera cards would be marketed
Early April 2012- Emails would be sent out to every current MyPanera user explaining
the new MyPanera card and how it works
Late April 2012- Emails would be sent out to every current MyPanera user saying what
rewards they currently have and when they expire (if expiration date is past May, all
rewards will be canceled the last day of April) because the new system will be put in
place soon which cancels out all rewards with the original MyPanera card
May 2012- New MyPanera card would be in effect
In conclusion, I have come up with a three step plan to make the MyPanera card successful.
Step one would be to make it more convenient for customers to obtain the card. Step two
would be to clarify the benefits of having the card. And, step three would be marketing the card
to increase awareness of the card by 20 percent. With these three simple steps, the MyPanera
card will bring in more customers and make those customers loyal to Panera Bread. Loyal
customers lead to increase in sales. Panera Bread would benefit from my proposed plan.
Page 20
C. Proposed Budget
To make this plan possible, a few costs will result. However, all costs will be short-term and pay
off in the long run. First, new menus would have to be printed with the point values off to the
side. Secondly, new cards should be associated with the new program, so new MyPanera cards
would have to be designed and printed. Thirdly, the new program requires updated software
for computers. This would be a small fix, therefore a small cost, but should still be accounted
for. Finally, the cost of marketing the new MyPanera card would result. The cost of marketing
Panera Bread items on TV or in magazines or in newspapers would add up. Each of these costs
are consistent with the costs Panera Bread is dealing with now, my plan is just refocuses the
message. All new costs would benefit in the long run. So as a result, having the point system
will actually bring more money in to the bakery and make more customers happy and loyal. All
costs and their associated amounts are in the table on the next page. Each cost amount has
been estimated and has been left with some leeway room due to subject to change along with
the market changing.
All costs for proposed plan are as follows:
Cost Amount
Page 21
New menus $7,000
Designing and printing new cards $6,000
New programs for computers $7,000
Marketing new MyPanera card $90,000
Total $110,000
D. Proposed Metrics to Measure ROI, Sales, Customer Retention,
Customer Satisfaction, etc
I would spend $110,000 for the first three months in new costs in launching and promoting the
new program. However, once the new menus and new programs for computers are made and
installed, those costs will no longer be necessary. But to calculate ROI, those costs will be
included. In the first three months I will have spent $110,000. As shown in the figure on page
30 of the appendix, in just a month I would be making $34,343.14 more then I would have with
the old program. I multiplied that number by three to get my additional money brought in for
the first three months and got $103,029.41. When I divided the additional amount brought in
by the amount cost I got 94% return on investment in just the first three months. Since most of
the costs will not be necessary in the future, that percentage would increase over time. To
increase customer retention and satisfaction, I would simply increase the percentage of
customers who use the card from 46% to 66%. This increase in usage would show both that
customers understand the new benefits of the card by obtaining one and their satisfaction by
the number of times the card is swiped. My proposed plan will increase sales and customer
base, which is the goal of any customer loyalty program.
Page 22
VI. Bibliography
Personal Interviews:
Narissa Batman, General Manager of Panera BreadRyan Meacham, Employee of Panera Bread
Email Questionnaires:Coworkers of Craig Broman at Praxair, Inc. of Indianapolis, IndianaSoccer teammates from all over the Indianapolis areaFriends of Michele Broman in the Plainfield, Indiana area
Paper Questionnaires:Teachers at Plainfield High SchoolCoworkers with Michele Broman in the cafeteria at Plainfield High School
Phone interviews:50 randomly selected phone numbers from Indianapolis, Indiana
Websites:Company Overview and MyPanera program http://www.panerabread.com/
VII. Appendix
Interview questions and answers with employee, Ryan Meacham:
1. Q: How does MyPanera work? Are users rewarded randomly? By the number of times they visit? Or by the amount of money they spend?
A: “Randomly.”
2. Q: What rewards can users get with it?A: “Free pastry/sweet, free drink, free smoothie, free bagel.”
3. Q: Does anything pop up on the screen when a MyPanera card is used?A: “Yes, in the corner a light flashes if they have rewards.”
4. Q: Does the card actually keep track of someone’s most bought items?A: “I don’t think it goes off of your preferences.”
Page 23
5. When Panera Bread First opened up, MyPanera was not part of the bakery, so what was the deciding factor with coming out with this Panera promotion?
A: “Other places having loyaltyprograms. Became a demand for businesses.”
6. Q: About what percentage of customers use a MyPanera card?A: “At least 45%, if it gets too low we are required to ask customers if they would like
one.”
7. Why do you think that some locations do not offer MyPanera rewards?A: “I do not know, but Plainfield’s Panera Bread is one of the first to try it, also they are
one of the cafes that try out new things for other Panera Breads to follow.”
8. Q: Have sales increased because of the program? A: “I would say yes, when I starting working they already had it here. But yes because
people will come in the next day to use their reward and pick something up in addition to the free item.”
9. Q: Are there any program updates to come? A: “I haven’t heard of anything.”
Interview questions and answers with general manager, Narissa Batman:
1. Q: How does MyPanera work? Are users rewarded randomly? By the number of times they visit? Or by the amount of money they spend?
A: “It is totally random, not based on money or the number of times the card is swiped. Sometimes big families ring up their order separately because they think it has to do with the number of times the card is used. The MyPanera card is also called ‘Surprise and Delight’. It randomly rewards customers and surprises them. Sometimes it rewards customers based on valued items. ”
2. Q: What rewards can users get with it?A: “The card randomly chooses bakery items, soup, smoothies, You Pick Two, or dollar
off breads or meal. If customers said they have certain dietary needs when they registered the card, they will not be given rewards that they are allergic to.”
3. Q: Does anything pop up on the screen when a MyPanera card is used?A: “Yes, the screen will tell the person’s name, what rewards they have, and when those
rewards expire. Also, it will tell is the card has not been registered. The difference between activating the card and registering the card is that activating ties to a particular café. So, when a card is activated, I get credit for handing out that card. When the card is registered it means that the customer has entered their name and phone number either online or
Page 24
during their meal. Without registering the card, the customer is unable to redeem rewards.”
4. Q: Does the card actually keep track of someone’s most bought items?A: “Yes, it does. The card is relatively new, about 1-2 years old. It keeps track to
surprise people or get them to buy new things. It also emails the customer with upcoming events.”
5. When Panera Bread First opened up, MyPanera was not part of the bakery, so what was the deciding factor with coming out with this Panera promotion?
A: “Not only to reward current customers, but to attract new ones. Panera Bread did have a loyalty program before. It was a bagel or coffee card and we would punch the card every time one was bought and after 10 purchases or so, a free bagel would be rewarded. The problem with the old loyalty program was that customers were buying the punched cards online on EBay and getting free bagels and coffee when they didn’t actually pay for any of it. Also, this card was a way to get away from just being rewarded with just bagels or coffee. ”
6. Q: About what percentage of customers use a MyPanera card?A: “It depends on the café, but my district is 40-45% which is Panera Bread’s goal.”
7. Why do you think that some locations do not offer MyPanera rewards?A: “It is supposed to be rolled out through entire companies so all cafes should use it.
However, some franchises do not use it. There are no franchises in Indiana.”
8. Q: Have sales increased because of the program? A: “We are not able to see yet, it is too new. But I would say yes, it is building sales, but
since the economy is going back up, it is hard and too early to tell.”
9. Q: Are there any program updates to come? A: “Not at the moment, we are still trying to work out all of the bumps.”
Phone interview questions and answers:
1. Do you go to Panera Bread?Yes: 4No: 2
2. How often do you go?“Few times a year”“Only once”“Maybe twice”
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“Once every couple of weeks”
3. Do you have a MyPanera card?Yes: 1No: 4Why not: Do not go there often enough
4. Are you happy with the MyPanera card?Yes: 1, “but not though what it’d be”No: 0
5. Do you think it can be improved?Yes: 1No:0
6. IF YES: what improvements would you like to see?- “Have something buildup”
7. What rewards have you gotten?- “Nothing, I got a free muffin for signing up and a pastry for my birthday”
Email questionnaire answers:
1. Do you go to Panera Bread?Yes: 31No: 5
2. How often do you go?“2-3 times a month” (4 responses)“One time per week”“2 times a month” (2 responses)“Once every 3 months” (5 responses)“1 time per month” (6 responses)“3-5 times a year” (6 responses)“6-8 times a year” (2 responses)“1-2 times a month” (5 responses)
3. Do you have a MyPanera card?Yes: 14No: 17
4. Are you happy with the MyPanera card?
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Original MyPanera card
Panera Bread's specialty bagel in support of Breast Cancer
Yes: 10No: 4
5. Do you think it can be improved?Yes: 9No: 5
6. IF YES: what improvements would you like to see?- “Have something buildup”- “More signage at store”- “Earn points towards a variety of items”- “Reward more frequently”
7. What rewards have you gotten?- “Nothing”- “Smoothie”- “Drinks”- “Pastries”- “You Pick Two”
Paper questionnaire answers with mother’s coworkers:
1. Do you go to Panera Bread?Yes: 14No: 5
2. How often do you go?“As often as possible”“1-2 times a week”“1 time a week”“3 times a year”“Maybe every 3 months or so”
3. Do you have a MyPanera card?Yes: 4No: 10
4. Are you happy with the MyPanera card?Yes: 2No: 2
5. Do you think it can be improved?
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One of Panera Bread's soups in a bread bowl
Yes: 4No:0
6. IF YES: what improvements would you like to see?- “Have something buildup”- “Rewards more often, based on points”- “Better selection of free items”- “Base rewards on amount spent”
7. What rewards have you gotten?- “Smoothie, bagel, drinks, coffee”- “Breakfast pastry”- “Bakery items, coffee”- “None”
Paper questionnaire answers with teachers at Plainfield High School:
1. Do you go to Panera Bread?Yes: 19No: 2
2. How often do you go?“Few times a year”“Only once”“Maybe twice”“Once every couple of weeks”
3. Do you have a MyPanera card?Yes: 12No: 7
4. Are you happy with the MyPanera card?Yes: 7No: 5
5. Do you think it can be improved?Yes: 12No: 0
6. IF YES: what improvements would you like to see?
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A typical meal at Panera Bread
One of Panera Bread's delicious salads
- “Perhaps a free meal after so many purchases”
- “More rewards”- “Rewards more often!”- “More email updates about offers”- “I want the rewards to be
predictable so I have a choice”- “Incentive to go to Panera”
7. What rewards have you gotten?- “A few free food items”- “Bagel and cup of coffee”- “Drink, pastry”- “Coffee, $2 off meal”- “Drinks and sweets”- “Coffee, soup”- “None”
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The projections below are based on the follow
ing assumptions:
1) Increasing the # of daily transactions by 15% annually
2) Increasing the average check total by 5% each year
Actual Data from
2011Projections for
2012Projections for
2013Projections for
20143 Year G
rowth Rate
# of Daily Transactions (Average)519
596.85686.38
789.3352.09%
Check Total (Average)$10.63
$11.16$11.72
$12.3115.76%
Daily Revenue (Average)$5,516.97
$6,661.74$8,044.05
$9,713.1976.06%
Monthly Revenue (Avg for 30 Days)
$165,509.10$199,852.24
$241,321.58$291,395.81
76.06%Annual Revenue
$1,986,109.20$2,398,226.86
$2,895,858.93$3,496,749.66
76.06%Annual Profit
$119,166.55$143,893.61
$173,751.54$209,804.98
76.06%*Annual Profit is assum
ed 6%
A small sample of Panera Bread’s pastries
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