On October 27 Panera Bread announced its plan to close all remaining fresh dough facilities within the next 18 to 24 months. The move is part of a transition to a par-baked model that began over a year ago, according to Nation’s Restaurant News.
Panera has traditionally served pastries baked in house from dough made in its network of facilities. Now, external artisan bakery producers will half-bake the products, and they’ll be shipped to the cafes to be fully baked.
So far, the fast-casual brand has closed at least eight fresh dough facilities. Nine remain.
Brooke Buchanan, chief corporate affairs officer, said the three-year transformation plan will streamline operations and make sure products are reaily available.
“The hardest thing for our team members is to say, ‘No, we’re out of that product,’ she says. “If you walk into a bakery-cafe at 4 p.m. and you want an Asiago bagel, you should be able to have that, and you will through this model.”
Shifting models will also allow Panera to expand across the U.S. into areas that were too far for the dough facilities delivery trucks to get to.
This transition comes on the heels of a slow decline in the quality of Panera’s products and its reputation. Customers have been suspect of problems since Panera’s 2017 sale to JAB Holding Company. The chain’s CEO unexpectedly stepped down six months later, and it was involved in several safety issues.
In 2022, Panera failed to make clear that its Charged Lemonade contained nearly the same amount of caffeine as coffee. A college student named Sarah Katz, who had a heart condition, went into cardiac arrest after drinking it and died. Another death and multiple injuries followed.
Beyond an oversight in safety precautions, customers noticed a general decline in food products.
“It’s very sad,” one Reddit user says. “Quality has gone down while prices skyrocketed. It’s all about corporate greed.”
In 2024, Panera’s sales reportedly declined more than five percent to $6.1 billion. Buchanan says the par-baked bread tastes the same as it does coming from the fresh dough facilities.
When asked about the timing of an IPO, she acknowledged that while the first quarter numbers were encouraging, the team is focused on turning the business around.
“We’ve got a lot of work ahead of us,” she says.
Ava Levinson
Source link
