Panera Bread Unveils Multimillion-Dollar Turnaround Plan Amidstโข Industryโ Challenges
ST. LOUIS, MO โ-โ Panera Bread is launching a multimillion-dollar โturnaround strategy as the restaurant industry grapples wiht ongoing supply-chain disruptions, โขrising laborโ costs, and sluggish customer traffic. The move positions Panera alongside aโข growing list of established chains actively working to revitalize their businesses.
Theโฃ initiative comes as the fast-casual sector faces โheadwindsโค despite recent sales figures. U.S. sales for Panera peaked at โฃ$6.5 billionโ in 2023, but unit growth and overall sales haven’t โseen significant increasesโ since. This โฃmirrorsโฃ efforts by competitors like โStarbucks,TGI โFridays,and Hooters,all of which have recently undergone or are currently undergoing notable โrestructuring.
Starbucks CEO brian Niccol initiated a “Back to Starbucks” turnaround program shortly after assuming his role in 2024, focusing on operational improvements, store portfolio โoptimization, andโ innovationโฃ 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 fromโ bankruptcy thisโ year, is updating its โฃmenu and brand image under new ownership.
Dine Brands โคGlobal, parent company of โIHOP and Applebee’s, โis pursuing a dual-branded model, aiming to leverage IHOP’s โฃbreakfast strength and Applebee’s dinner focus to capture customers throughout all dayparts, accordingโ to CEO โjohn โคPeyton. He stated the strategy allows the companyโ to serve customers in a way “no other restaurant company can.”