Panera Bread is revamping its business strategy to win back customers after experiencing declining foot traffic and revenue loss. CEO Paul Carbone, who took charge this year, announced plans under the “Panera Rise” initiative, aiming to reverse cost-cutting measures that compromised food quality. Once a top fast-casual brand, Panera has dropped to third place, affected by broader industry trends where younger consumers dine out less.
Revenue fell 5% last year to $6.1 billion. Carbone’s plan includes improving menu offerings—such as returning to using exclusively romaine lettuce in salads, which previously had been cut with iceberg to reduce costs. The company also aims to enhance customer experience by increasing ingredient quality and introducing new menu items, while addressing the challenges faced in their energy drink category.
Additionally, Panera plans to adopt a “barbell” menu strategy, offering both low and high-priced items to attract budget-conscious diners. The chain will reinvest in workforce training and update self-ordering kiosks to improve service.
As Panera prepares for a potential IPO, its success hinges on reclaiming lost customer traffic to boost profitability for future growth.
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