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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

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


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


least once

Have NEVER gone to Panera Bread before

Out of the 6 Numbers Willing to Answer Questions

2

4

11

21

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

Do have a MyPanera

Card

Do NOThave a

MyPanera Card


1417

Are happy with the card

Are NOThappy with

the card


4

10


improved

Said NO it couldn't be improved


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


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

Are happy with the

card

Are NOThappy with

the card


2 2


improved


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


least once before

Have NEVERgone to Panera

Bread before

Out of 21 Responses

2

19

Have a MyPanera

card

Do NOThave a

MyPanera card


7

12

Figure 17

Are happy with the

card

Are NOThappy with

the card


5 7


improved


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

http://www.panerabread.com/

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”

Page 25

“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:


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:


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”


4. Are you happy with the MyPanera card?Yes: 2No: 2

5. Do you think it can be improved?

Page 27

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:


2. How often do you go?“Few times a year”“Only once”“Maybe twice”“Once every couple of weeks”


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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