2004 Consumers' Choice in Chains | Sandwich/Bread: Panera Bread

By Staff -- Restaurants & Institutions, 9/1/2004

2004 Consumers’ Choice in Chains
SANDWICH/BREAD > PANERA BREAD

Ron Shaich often is asked what’s new and different at Panera Bread. “My answer, honestly, is ‘Nothing,’” says the chain’s chairman and CEO.

It’s hardly that he wants Panera to be boring; rather, Shaich says his primary concern is that each unit continually and consistently strives to meet the concept’s vision. That mission, he says, is to prepare “authentic” food that is served in an atmosphere with which people can connect, he says.

“People get it,” Shaich says of that mission and the chain’s commitment to it. Consumers’ Choice in Chains findings suggest he is right: Panera logged the top scores in the category for food quality, service, atmosphere, cleanliness and reputation.

$1.85 million
Average per-unit sales for Panera Bread in 2003.

Daily in-store preparation of fresh dough from all-natural ingredients and centralized training of every Panera baker are central to its vision and vital for keeping customers’ trust in the brand, Shaich says.

Of course, that doesn’t mean Panera’s menu doesn’t change with the seasons or with customers’ tastes. In June it added a line of Carb-Crafted breads and bagels in response to demand for lower-carb baked goods. The three new breads (Golden Original, Rosemary Walnut and Italian Herb) can be ordered as the basis for any sandwich.

The impact of low-crab diets was “relatively modest,” Shaich says. Same-store sales growth—but not new-unit openings—was slowed but has rebounded. “We try to be respectful of our customers’ desires,” Shaich says. “We believe people want to have options.”

The looming battle facing foodservice is not about carbs or calories but about “the industrialization of food” through use of additives and non-natural ingredients. Panera is well positioned to win that battle, he believes. “We work very hard to deliver food people can feel good about and can trust,” he says.

Headquarters	Richmond Heights, Mo.
CEO	Ron Shaich
Units	669
Check average	$6.61
Respondents aware of chain¹	32%
Respondents who visited in previous 12 months¹	13%
Guests who would go back²	90%
Average loyalty (would go back) for chains in this segment	86%
Key region	Midwest
Widest attribute lead	Atmosphere
(1) Base is all respondents; (2) base is 12-month patrons.

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Chain	Overall Score	Food Quality	Menu Variety	Value	Good Reputation	Service	Atmosphere	Cleanliness	Convenience
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Note: Overall Score is an index; percentages represent respondents who rated the chain "above average" on the given attribute.
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