Panera Plans to Improve Speed

The St. Louis-based fast casual chain Panera Bread Co. is making changes to improve efficiencies since analysts reported that company comps remain weaker than expectated and below Panera’s historic track record. While same-store sales rose, most of the increase was attributed to higher prices and mix, not increased traffic.

Steps Panera plans to take include extending restaurant workers’ hours, streamlining its menu and upgrading equipment to prevent slow throughput. Panera added thirty-five hours of labor to each at $15 million per year.

Additionally, Panera plans to condense its bakery-café menu “to reduce the complexity and degree of difficulty of operating a high-volume Panera café,” detailed Shaich.

Speed is a primary factor in fast-casual restaurants’ success, especially in such a competitive environment. Co-founder and CEO Ron Shaich recognizes that “when potential customers walk in, see the line and decide to leave, sales growth potential is lost.”