Paneras roots go back to 1981, when it was founded under the name of Au Bon Pain Co. and consisted of three Au Bon Pain bakery-cafs and one cookie store. The company grew slowly until the mid-1990s, when it acquired Saint Louis Bread Company, a chain of 20 bakery-cafs located in the St. Louis area. About that time, the owners of the newly combined companies observed that people were increasingly looking for products that were specialmeaning that they differed from run-of-the-mill restaurant food. Second, they noted that although consumers were tiring of standard fast-food fare, they didnt want to give up the convenience of quick service. This trend led the company to conclude that consumers wanted the convenience of fast food combined with a higher-quality experience. In slightly different words, they wanted good food served quickly in an enjoyable environment. Paneras roots go back to 1981, when it was founded under the name of Au Bon Pain Co. and consisted of three Au Bon Pain bakery-cafs and one cookie store. The company grew slowly until the mid-1990s, when it acquired Saint Louis Bread Company, a chain of 20 bakery-cafs located in the St. Louis area. About that time, the owners of the newly combined companies observed that people were increasingly looking for products that were specialmeaning that they differed from run-of-the-mill restaurant food. Second, they noted that although consumers were tiring of standard fast-food fare, they didnt want to give up the convenience of quick service. This trend led the company to conclude that consumers wanted the convenience of fast food combined with a higher-quality experience. In slightly different words, they wanted good food served quickly in an enjoyable environment. To establish itself as the leader in the fast-casual category and to distinguish itself from its rivals, Panera (which is Latin for time for bread) added a bonus to the mixspecialty food. The company has become known as the nations bread expert and offers a variety of artisan and other specialty breads, along with bagels, pastries, muffins, scones, and baked goods. The bread and bakery items are typically baked by an on-staff baker each day before dawn. Some locations also participate in a program that donates their unsold baked goods to local charities after closing each day. Panera Breads restaurants are open for breakfast, lunch, and dinner, and also offer hand-tossed salads, signature sandwiches, and hearty soups served in edible sourdough bread bowls, along with hot and cold coffee drinks and other beverages. The company also provides catering services. Its restaurants present customers with a neighborly atmosphere and relaxing decor, adding to their appeal. Panera even suggests a new time of day to eat specialty foods, calling the time between lunch and dinner chill-out time. Paneras leadership in the fast-casual category and its financial performance have drawn considerable attention. The company employs more than 47,000 people, serves 8.3 million customers per week, and is currently one of the largest restaurant chains in the United States. It also continues to innovate and evolve. In 2012, Panera started testing a notion called Panera 2.0, which is a series of integrated technologies intended to enhance the guest experience. The concept was rolled out in a select number of restaurants in 2014 with more being added each year. Panera 2.0 brings together new capabilities for digital ordering, payment, and operations. The Panera Bread restaurants that have transitioned to Panera 2.0 have table kiosks, which the company calls Fast Lane, where customers may place an order and pay without going to the counter. The orders are placed on iPads. Customers can also place orders and pay via a smartphone app.

Question: Read Case 5.1, which focuses on Panera Bread. Discuss some of the barriers to entry a firm would have to deal with and try to overcome if it tried to compete to compete against Panera Bread in the casual dining segment of the restaurant industry.