Panera Bread Unveils Multimillion-Dollar Turnaround Plan Amidst Industry Challenges
ST. LOUIS, MO - Panera Bread is launching a multimillion-dollar turnaround strategy as the restaurant industry grapples wiht ongoing supply-chain disruptions, rising labor costs, and sluggish customer traffic. The move positions Panera alongside a growing list of established chains actively working to revitalize their businesses.
The initiative comes as the fast-casual sector faces headwinds despite recent sales figures. U.S. sales for Panera peaked at $6.5 billion in 2023, but unit growth and overall sales haven’t seen significant increases since. This mirrors efforts by competitors like Starbucks,TGI Fridays,and Hooters,all of which have recently undergone or are currently undergoing notable restructuring.
Starbucks CEO brian Niccol initiated a “Back to Starbucks” turnaround program shortly after assuming his role in 2024, focusing on operational improvements, store portfolio optimization, and innovation to drive traffic. TGI Fridays CEO Ray Blanchette announced a menu revamp earlier this year as part of the chain’s recovery from bankruptcy. Hooters, also emerging from bankruptcy this year, is updating its menu and brand image under new ownership.
Dine Brands Global, parent company of IHOP and Applebee’s, is pursuing a dual-branded model, aiming to leverage IHOP’s breakfast strength and Applebee’s dinner focus to capture customers throughout all dayparts, according to CEO john Peyton. He stated the strategy allows the company to serve customers in a way “no other restaurant company can.”