Panera Bread is launching a multimillion-dollar initiative to overhaul its operations to boost traffic and reverse years of stagnant sales growth.
Panera, one of many fast-casual restaurants contending with a challenging landscape, announced its transformation strategy on Tuesday, dubbed “Panera RISE,” which is focused on refreshing the menu, boosting its value proposition and customer experience by enhancing the look of its restaurants and expanding its network.
The company aims to use this strategy to help it reach more than $7 billion in systemwide sales by 2028, up from the $6 billion it currently brings in annually. In 2023, U.S. sales peaked at $6.5 billion, but its units and sales haven’t substantially increased since, according to reports citing data from Technomic.
“As we transform our business, we are investing in four strategic pillars that put the guest at the very center of everything we do,” Panera Bread CEO Paul Carbone said, adding that the company has already “made considerable progress in strengthening” its foundation.
The fast-casual chain specializing in salads, sandwiches and baked goods, had 2,239 bakery-cafes, company-owned and franchise locations across North America. Part of the turnaround includes building new locations and “modernizing” its current portfolio of restaurants “to ensure consistent operational excellence across franchise and Panera company bakery-cafes,” the company said. Panera didn’t disclose where the new locations would open or what they would look like.
The company said its plan also includes elevating the company’s food served throughout the day to “incorporate abundant, flavorful and distinctive, high-quality ingredients.” It also aims to enhance its bakery and beverage options. Panera will also promise to have a “variety of price points” so its menu remains affordable.
The company will also deploy more staffing into front-of-house service to enhance the experience for guests.
Panera is the latest company to initiate a major turnaround as the industry contends with supply-chain disruptions and rising labor costs coupled with subdued traffic. Starbucks chief Brian Niccol announced a “Back to Starbucks” turnaround program shortly after taking the reins in 2024. The program is focused on driving traffic through operational improvements, store portfolio optimization and innovation.
Earlier this year, TGI Fridays CEO Ray Blanchette told FOX Business that it was revamping its menu as part of its comeback from bankruptcy.
Similarly, Hooters is also trying to make a return after emerging from bankruptcy this year. Its new owners are updating its menu and changing the image that once defined the restaurant chain.
Meanwhile, Dine Brands Global CEO John Peyton told FOX Business that the company is working to boost sales by strategically combining its morning-focused brand, IHOP, with its evening-centric one, Applebee’s. The goal is to create a dual-branded model that allows it to capture and serve customers throughout every daypart – breakfast, lunch, dinner and late night – in a way that, as Peyton puts it, “no other restaurant company can.”
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