Threat of new entrants in restaurant industry

Threat of the substitutes of the restaurant industry is high due to the high availability of other choice of the customer. From the diagram, overall of the result shown that it is not an attractive industry to the company and there are three of the threats to the profitability. In what ways has Panera Bread successfully positioned itself against the forces that are suppressing the profitability of the restaurant industry as a whole? PorterвЂ™s Five Forces Model | High| Medium| Low| Threat of Substitutes| X| | | Threat of New Entrant| X| | | Rivalry among existing firm| X| | | Bargaining power of suppliers| | | X| Bargaining power of buyers| | | X| The diagram above analyses the restaurant industry using PorterвЂ™s Five Forces Model. In my opinion, I think Panera Bread is able to reach its goal of becoming a leading national brand in the restaurant industry, because the company manage to indentify the needs and wants of the customers in the early stage and take action before their competitors. It serves nearly six million customers a week and has sales up to 1. Besides that, Panera Bread is currently one of the largest restaurant chains in the United States. These numbers reflect a strong contributed to the firmвЂ™s success. Despite the economic suffered in a difficult condition during 2008 to 2010, Panera Bread still managed to have a sales jumped up to 10. It helped the company grown from 602 company owned and franchised units in 2003 to 1450 in today. This unique position currently entered by the Panera Bread has a major contribution to the firmвЂ™s success. The company is offering variety specialty bread along with the bagel, pastries and baked food. To be the вЂњFirst MoverвЂќ in the fast-casual category, Panera Bread is differentiated themselves from other restaurant by adding bonus to the specialty food.

Threat of new entrants in restaurant industry