Panera reportedly benefited from a donor relationship with the California gov. Gavin Newloom. FOX Business’ Lauren Simonetti reports.
Panera Bread has launched a multimillion-dollar plan to transform its operations to increase traffic and reverse years of steady growth.
Panera, one of many fast-casual restaurants facing a challenging landscape, announced its transformation strategy on Tuesday, called “panera” focused on renewing the menu and customer experience by improving its network.
The company intends to use this strategy to help it reach more than $7 billion in program sales by 2028, up from the $6 billion it currently brings in annually. In 2023, US sales are expected to reach $6.5 billion, but their units and sales have not increased significantly since, according to reports that release data from Technic.
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“As we transform our business, we are investing in four strategic aircraft that put this guest in everything we do,” said Ponera Bread Carbone, adding that the company has “made great progress in strengthening” its foundation.
Panera has launched a change plan to increase sales, which includes updating the menu. (Panera Bread)
The fast-casual chain that specializes in salads, sandwiches and baked goods, had 2,239 bakeries, company-owned and franchise locations throughout North America. Part of the turnaround includes building new locations and “making a statement” about its current restaurants to “ensure consistent excellence across all franchise and Panera Company Bakery-Caferes,” the company said. Panera did not reveal when the new locations will open or what they will look like.
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The company said its plan also includes upgrading the company’s food served throughout the day to “include more ingredients, with different textures.” It also aims to improve its bakery and beverage options. Panera will also promise to have a variety of price points “so its menu stays affordable.”
The exterior of the panera bread is visible. (Panera Bread)
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The company will also employ more front-of-house staff to enhance the guest experience.
Panera is the latest company to implement a major change as the industry grapples with increased disruptions and rising labor costs associated with trending traffic. Starbucks Chief Brian Niccol announced “back to the Starbucks plan” shortly after making the decisions in 2024. The program is focused on the improvement of Traffic through development, maintenance of the store portfolio and innovation.
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Earlier this year, TGI Friday CEO Ray Blanchette told Fox Business that it had been scaling back its menu as part of its comeback from bankruptcy.
Similarly, hooters is also trying to make a comeback after emerging from bankruptcy this year. Its new owners are revamping its menu and changing the image that once defined the restaurant.
Panera is introducing dynamic strategies to increase sales, including updating the menu. (Panera Bread)
At the time, DEADE Global CEO John Peyton told FOX Business that the company is working to increase sales by combining the most focused strategies, ihop, with Applebee’s One, Applebee. The goal is to create a model with a brand that allows you to capture and serve customers throughout the day – breakfast, lunch, in a way that, “No other restaurant company can.”
