Panera Bread

Panera Bread
Industry Fast food
Founded 1987 (1987)
Kirkwood, Missouri, US
Founder Ken Rosenthal
Ronald M. Shaich
Louis Kane
Headquarters Sunset Hills, Missouri
Number of locations
2100 stores (November 2017)
Area served
United States and Canada
Key people
Ronald M. Shaich (Founder, Chairman),
Blaine E. Hurst,
President, CEO
Products Fast casual/Bakery-café, including several varieties of bread, such as bagel and baguettes, cold sandwiches, hot panini, salads, soups, coffee and teas
Revenue US$2.795 billion (2016)
US$145 million (2016)
Total assets US$1.301 billion (2016)
Total equity US$288 million (2016)
Number of employees
47,191 including 23,821 who work at least 25 hours/week (December 2015)
Parent JAB Holding Company
Subsidiaries Paradise Bakery & Café
Footnotes / references

Panera Bread Company is a chain store of bakery-café fast casual restaurants in the United States and Canada. Its headquarters is in Sunset Hills, Missouri, a suburb of St. Louis, and the company operates as Saint Louis Bread Company in Greater St. Louis.[2] Offerings include soups, salads, pasta, sandwiches, specialty drinks, and bakery items.

The company, which also owns Au Bon Pain, is owned by JAB Holding Company and has over 2,000 locations.



St. Louis Bread was founded by Ken Rosenthal in 1987 when he opened the first location in Kirkwood, Missouri. In 1993, Au Bon Pain Co. purchased the St. Louis Bread Company. In 1997, Au Bon Pain changed the company name to Panera, a word that has roots meaning "bread basket" in Latin.[3] At the same time, the St. Louis Bread Company was renovating its 20 bakery-cafés in the St. Louis area.[4][3]

In May 1999, to expand Panera Bread into a national restaurant, Au Bon Pain Co. sold its other chains, including Au Bon Pain, which is now owned by Compass Group North America.[5] Panera Bread moved into its new headquarters in Richmond Heights, Missouri in 2000.[6] The company operates or franchises more than 1900 Panera Bread bakery-cafés in 46 states[4] and 20 facilities that deliver fresh dough to the bakery-cafés every day. Panera Bread's CEO is Ron Shaich.[7]

In the St. Louis area where it was founded, Panera Bread still operates under the name St. Louis Bread Company. The St. Louis metropolitan area has over 101 locations.

Growth nationally

In 2005, Panera ranked 37th on BusinessWeek's list of "Hot Growth Companies", earning $38.6 million with a 42.9% increase in profits.[8][9] In 2007, Panera Bread purchased a majority stake in Paradise Bakery & Café, a Phoenix-based concept with over 70 locations in 10 states (predominantly in the west and southwest). The company purchased the balance of Paradise in June 2009.[4] On January 25, 2008, a class action lawsuit was filed against Panera Bread alleging Panera failed to disclose material adverse facts about the company's financial well-being, business relationships, and prospects.[10] Panera settled the lawsuit and agreed to pay $5.75 million to shareholders while admitting no wrongdoing.[11][12] In 2008 Panera Bread expanded into Canada, beginning with Richmond Hill, Thornhill, Oakville, and Mississauga in the Toronto area.[13][14] In 2009 and 2012, the restaurant review service Zagat named Panera one of the most popular restaurants for eating on the go.[15] Panera was also rated No. 1 for Best Healthy Option,[16] Best Salad,[15] and Best Facilities, among restaurants with fewer than 5,000 locations.[16]

Recent events

In November 2010, Panera Bread relocated its headquarters to Sunset Hills while vacating its Richmond Heights headquarters and Brentwood offices.[17] In 2011, revenue was US$2.7 billion,[18] operating income was US$259 million,[18] net income was US$160 million,[18] assets were US$1.5 billion,[19] and equity was US$497.3 million.[19] In mid-2014, Panera unveiled "Panera 2.0," a series of integrated technologies to enhance the guest experience.[20] In 2015, annual revenues were $2,681,580,000 up from $2,529,195,000 the year prior. Net income came to $149,325,000 down from $179,293,000 the year prior. Total assets equaled $1,475,318,000.[21]

In January 2017, many Paradise Bakery & Café locations were rebranded as Panera Bread. In 2017, Panera finished a "decadelong overhaul" of its menu and completed reformulating its food to be free of artificial ingredients.[22] On July 18, 2017, JAB Holding Company acquired the company for $7.16 billion.[22] On November 8, 2017, Panera announced that founder Ron Shaich was stepping down as CEO, with company president Blaine Hurst to take over. Shaich remained chairman.[22] The company also announced it would be acquiring Au Bon Pain, a cafe division which had split off from Panera in 1999 after being created in 1981.[22]

On April 2, 2018, the security website KrebsOnSecurity reported that the Panera Bread website had leaked between 7 million and 37 million customer records — including names, email and physical addresses, customer loyalty account numbers, birthdays and the last four digits of the customer’s credit card number — for at least eight months before the site was taken offline. Panera was notified privately about the vulnerability in August 2017, but failed to fix it until after it was disclosed publicly eight months later.[23][24]

As of the May 8th 2018 delivery services had been introduced to 897 cities in 43 states. According to Panera this has created 13,000 jobs across the US to assist with delivery.[25]

Restaurants and services

In 2015, there were 1,972 Panera outlets and stores, up from 1,880 the year before. 901 of those stores were company owned, while 1,071 were franchised.[21] Panera opened its 2000th location in Elyria, Ohio on March 23, 2016.[26]

In 2006 and 2007, Panera was the largest provider of free Wi-Fi in the United States.[27][28] Many locations restrict the duration of free Wi-Fi to 30 or 60 minutes during peak hours.[29]

In mid-2014, Panera unveiled "Panera 2.0," a series of integrated technologies to enhance the guest experience for all consumers no matter how they choose to use Panera. Panera 2.0 brings together new capabilities for digital ordering, payment, operations and, ultimately, consumption to create an enhanced guest experience for "to go" and "eat in" customers. A notable feature of Panera 2.0 involves interactive tablet kiosks, which the company calls Fast Lane, where customers may place an order and pay without approaching the counter.[20][30] The kiosks consist of iPads.[31] In addition to the kiosks, customers could also place orders and pay via an app on their own smartphone or tablet.[32]


In a 2008 Health magazine study, Panera Bread was judged North America's healthiest fast casual restaurant.[33]

In June 2014, Panera unveiled its official Food Policy which detailed commitments to clean ingredients, transparency and a positive impact on the food system.[34] This policy outlines the company's values and sets a course for continuous improvement. Panera also made a commitment to remove artificial additives (colors, flavors, sweeteners, and preservatives) on its 'No No List' from the food in its US bakery-cafes by the end of 2016.[35] In January 2017, it announced its US food menu was free of artificial colors, flavors, sweeteners, and preservatives.[36]

Panera stylizes themselves as a peaceful "Bakery-Cafe" and offers a wide array of pastries and baked goods, such as croissants, bagels, cookies, scones, muffins and brownies. These, along with Panera's artisan breads, are typically baked before dawn by an on-staff baker. Some locations also participate in a program that donates their unsold baked goods to local charities after closing hours.[37] Aside from the bakery section, Panera has a regular menu for dine-in or takeout that is broken down into the following categories:[38]

  • Sandwiches
  • Panini
  • Pastas
  • Soups & more
  • Flatbreads
  • Salads
  • Side choices
  • Panera Kids
  • Fruit smoothies
  • Frozen drinks
  • Iced drinks
  • Coffee, tea, and lemonade
  • Espresso drinks
  • Lattes/Hot chocolate

Panera also has a selection of seasonal offerings, such as the Strawberry Poppy Seed Chicken salad offered during the summer season and the Roasted Turkey Cranberry Flatbread in the winter.

Panera announced the addition of more plant-based proteins, such as edamame and organic quinoa, to its menu on November 5, 2015. Being one of the first fast-casual restaurants to discuss plant-based proteins caused Fortune reporter Beth Kowitt to speculate that "other restaurants will likely follow the soup-and-sandwich chain's lead."[39]

Peanut butter lawsuits

In 2016, a lawsuit was filed after an employee at a Natick, Massachusetts store knowingly put peanut butter on a sandwich, despite being informed that the person receiving the sandwich was allergic to peanuts. It was alleged that the restaurant chain acted negligently, and charged those involved with intentional or reckless infliction of emotional distress as well as assault and battery,[40] which resulted in the recipient of the sandwich being hospitalized briefly.[41] Less than one month after the incident involved in this case, another restaurant reportedly had a nearly identical incident with another person who had a severe allergy to peanuts.[40]

Social responsibility

In 2009, the company's nonprofit foundation created Panera Cares, a "Pay what you can" restaurant in its home market of St. Louis. CEO Ron Shaich based the idea on an NBC profile of the SAME Cafe in Denver, Colorado.[42][43] It has since expanded the concept to Dearborn, Michigan; Portland, Oregon; Chicago; and Boston.[44][45][46] Each site serves approximately 3,500 people every week.[47][48][49] The Panera Cares in Chicago shut down at the end of January 2015.[50] The Panera Cares in Portland, Oregon shut down at the end of June 2016, leaving just three locations.[51]

On November 5, 2015, Panera announced that it will use cage-free eggs in all of its stores by 2020.[52] At the time of the announcement, the company said it was 21% cage-free in the roughly 70 million eggs it used in 2015.[53] In December 2016, it published its third animal welfare progress report, announcing new efforts to improve broiler chicken welfare.[54]

Community outreach

The Day-End Dough-Nation program provides unsold bread and baked goods to local area hunger relief agencies and charities. In 2014, Panera Bread bakery-cafes donated a retail value around $100 million worth of unsold bread and baked goods to local organizations in need. Panera also supports events held by nonprofit organizations serving those in need by donating a certificate or fresh bakery products.

Employment lawsuits

In 2003, a lawsuit was filed by a former employee who claimed he was fired after allegedly refusing to carry out discriminatory policies set forth by his superiors.[55] In 2009 and 2011, class action lawsuits were filed by former workers alleging that the company violated the California Labor Code, failed to pay overtime, failed to provide meal and rest periods, failed to pay employees upon termination, and violated California's Unfair Competition Law. Panera set aside $5 million for the payment of claims and denied any wrongdoing.[56]

In 2011, a former employee filed a racial discrimination lawsuit alleging that he was eventually fired after repeatedly having a black man work the cash register instead of putting him in a less visible location and having "pretty young girls" be the cashiers, as requested by supervisors.[57] The plaintiff also said he was fired after requesting another month off after returning from three months of medical leave.[57] Panera said it "does not discriminate based on national origin, race or sex," and that the plaintiff "was terminated because he had used all of his medical leave and was unable to return to work."[57] The plaintiff worked in a store owned by franchisee Sam Covelli,[58] who also owns the stores that were involved in the 2003 racial discrimination lawsuit.[59][60] Covelli Enterprises is the single largest franchisee of Panera Bread with nearly 200 stores in northeast Ohio, western Pennsylvania, West Virginia, and Florida.[61]

Key people

  • Ronald M. Shaich - founder and chairman[62][63]
  • Blaine E. Hurst - CEO and president[62] (2017–present)[64]
  • Charles Chapman, II - executive VP and COO[62]
  • Kenneth Koziol - executive VP[62]
  • Sue Morelli - president of Au Bon Pain[62]

See also


  1. "Panera Bread Company 2016 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. "Panera tests $16.99 lobster sandwich". American City Business Journals. August 18, 2009.
  3. 1 2 Kowitt, Beth (July 18, 2012). "A founder's bold gamble on Panera". CNN. Archived from the original on 2012-07-30.
  4. 1 2 3 "Our History". Panera Bread. Archived from the original on February 20, 2012. Retrieved 2009-01-21.
  5. "Au Bon Pain: bakery-cafe weighs in on diet fads, offers more healthful fare to concerned customers". Nation's Restaurant News. January 31, 2005. Archived from the original on April 25, 2005 via FindArticles.
  6. Brown, Lisa (January 24, 2010). "Panera Bread finalizing headquarters search". St. Louis Business Journal. Retrieved 2014-07-30.
  7. "Panera Bread Announces Bill Moreton, Ron Shaich to Become Co-CEOs" (Press release). Yahoo! Finance. March 15, 2012. Archived from the original on January 18, 2017.
  8. "St. Louis Firms Make BusinessWeek's Hot Growth List". St. Louis Commerce Magazine. September 1, 2005. Archived from the original on January 15, 2013 via FindArticles.
  9. "Giving Quick Food A Run For Its Money". Bloomberg BusinessWeek. April 17, 2006. Archived from the original on May 13, 2006.
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  12. Fenske, Sarah (February 24, 2011). "Panera Bread Settles Class Action Suit Alleging Stock Fraud". River Front Times. Retrieved 5 April 2017.
  13. Walkup, Carylyn (June 19, 2006). "Panera Bread to launch dinner menu, push toward 1,000 units". Nation's Restaurant News. Archived from the original on May 11, 2007. Retrieved 2008-03-03 via FindArticles.
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  15. 1 2 "The 2009 Zagat Survey". Zagat Survey. 2009. Archived from the original on 2009-07-07. Retrieved 2009-07-07.
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  18. 1 2 3 Panera Bread Company (PNRA) annual SEC income statement filing via Wikinvest
  19. 1 2 Panera Bread Company (PNRA) annual SEC balance sheet filing via Wikinvest
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