Essay: Threats to Panera

30 Aug

Essay: Threats to Panera

The continuing slump in the economy of the United States decreases the amount of purchases made consumers. Although Panera’s products are basic needs that consumers will still buy even in harsh economic conditions, the bad economy could increase costs incurred in the production of its products, thereby affecting profitability.

The food industry is a very delicate industry, and Panera suffers from the risk of food contamination or cases of unhealthy foods associated with its ingredients and additives.

The resignation of its long-serving CEO and Chairman Ronald Shaich in May, 2010 could threaten the company’s future success. Shaich has served the company since it was founded with exemplary management skills. It is unclear whether the new CEO will continue to make the company a success.

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