Panera Bread announces huge changes to win back customers

Panera Bread is spending millions to overhaul its menu in an attempt to lure back the customers it’s lost in recent years. In a downward fast-food spiral, Panera hasn’t significantly increased its revenue since 2023. Now, the company says it’s putting money back into better ingredients, staff, and its cafés. 

The St. Louis-based chain, known for its sandwiches, soups, and salads, hasn’t been delivering on its signatures. Panera last year started using the cheaper iceberg lettuce in its salads, for example, and customers weren’t happy.

“You know what guests told us?” said Paul Carbone, CEO of Panera Brands, the parent company of Panera Bread, Einstein Bros. Bagels, and Caribou Coffee. “No one likes iceberg, and no one gets that and says, ‘Oh, my god, that white salad, it looks so appetizing.” 

Now, full romaine salads are making a comeback.

In 2023, Panera’s sales reached $6.5 billion, which is still about the highest it has been. The company said today that its goal is to clinch $7 billion in annual sales by 2028 from the roughly $6 billion it brings in currently.

After surveying its customers, Panera found that they wanted better portions and improved cafés. The chain plans to increase portions and food variety.

It’s introducing drinks like frescas (fruit drinks) and “energy refreshers” (lower-caffeine beverages), and increasing salad toppings to eight ingredients from the regular five. Guests will notice that avocado halves and cherry tomatoes will be sliced, not whole, starting early next year.

“We make the guest chase the cherry tomato around the bowl,” said Carbone, who assumed his role in March. 

Panera is also vowing to update its cafés, an important effort as around 25% of meals are eaten within restaurant walls.

It had invested in kiosks for ordering, but it got to the point that customers couldn’t find human employees, said Carbone. Now, the restaurant is pouring money back into labor and renovating the older café locations.

“What does the café of the future look like?” Carbone said. “We’re doing a lot of work around that, we’re going to test different things.”

JAB Holding Company, the investment firm that owns Panera Brands, had planned to take the company public in 2021. The deal was broken the next year, and Carbone said it’s off the table until Panera’s sales increase. 

—Ava Levinson

This article originally appeared on Fast Company’s sister publication, Inc.

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