Babson Professor Robert Rosenberg, Case Director
Jeffrey Palter, Case Writer

Arthur M. Blank Center for Entrepreneurship,
© Babson College, 2002 .

Abstract

Panera Bread is a rapidly growing, French bakery-café franchise in the expanding “fast casual” segment of the $380 billion (2001) restaurant industry. As franchisees of Panera Bread, Mitch Roberts and David Peterman have successfully opened nine of the required 20 bakery-cafés, according to the Area Development Agreement (ADA) they have signed with Panera Bread. Each of their bakery-cafés generates annual sales of approximately $2 million.

Recognizing that there exists great market demand for their bakery-cafés, Mitch and David are wrestling with several options including harvesting after opening four more cafés, selling once their 20-unit obligation is completed, expanding by renegotiating with Panera Bread for larger territory, or simply fulfilling and operating under their current ADA.

Location of the company: Manchester, New Hampshire
Years spanned by the case: 1987-2002
Industry segments: food and restaurant industry, fast casual
Stage of the company: growth
Age of the entrepreneurs: late 30s – late 40s
Key Words: entrepreneurship, franchise, food, restaurant, fast casual

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