December 23, 2004

Panera Bread: Some History and Commentary (UPDATED)

By Kevin

I have written before that I spend much time at Panera Bread, drinking coffee as I write my dissertation.

Naturally, this is leading to an extensive side research project on Panera itself. PNRA's stock price has not been a stellar performer--peaking in late 2003. Buy ratings have been mixed.

Nevertheless, expansion continues, and the company is looking for managers and assistant managers all over the country. Regions opening for franchise rights include:

• Four Boroughs, New York (excluding Manhattan)
• Santa Barbara/Ventura, California
• San Bernardino/Riverside, California
• San Francisco/Marin, California
• Phoenix, Arizona
• Austin, Texas
• San Antonio, Texas

Many other people agree that Panera is a good place to spend time and money: it has 4 1/2 stars on Epinions:

Panera started as St. Louis Bread , was bought by Au Bon Pain, which renamed St. Louis to Panera outside of the Midwest, then sold Au Bon Pain and other units, and renamed itself Panera. St. Loius' history is here. Got it?

Also, as Glenn Reynolds noted--er, twice--the SonicWall firewall really sucks, and prevents users from accessing even the most educational sites:

sonic_fark.gif

More importantly, Panera's internet provider forbids the sending of email to SMTP servers, for "safety" reasons. Whatever. This has led to much grumbling from me and others, to no avail.

However, if you think the free Wi-Fi at Panera is a big deal, just wait until all McDonalds joints have it...

UPDATE 1/8/05: T&B is now the #1 google search hit for "Panera Bread Sucks". See also Tintopia, failing to blog from Reston Town Center a few dozen miles away because Panera's internet connection failed:

This is the problem with ‘free’ goods. That I’m not directly and overtly paying for the service means that Panera doesn’t expend a lot of effort to make sure that I’m satisfied with my non-purchase. On Panera’s regular public website, there appears to be no mention at all — aside from notations in the location-finder — of their wireless network service. I actually approve of this, because they don’t mention that they have air conditioning and electric lighting either, and I think the network in a place like this should be a basic utility.

UPDATE 1/11/05: Melanie Williams looks at what capitalism lets her take for granted:
Actually, I think about just how much we Americans take for granted. I mean really. Panera Bread? Plentiful coffee and overstuffed muffins in a warmly lit atmosphere? What is there to complain about? The most disturbing part of this scenario is when the automatic paper towel dispenser doesn't detect my first wave.
Also, Scott McGerick shows how Panera's employees discriminate against men:
Kat and I are eating at Panera Bread Co, located on the corner of University Ave NE and Hennepin Ave E in NE Minneapolis. A 20-/30-ish guy walks up to the sandwich/soup ordering counter. However, all of the employees for that counter were engaged in a chat session at the other end of the counter. I see that they see the guy, but none of them wants to break away...

A few minutes later, two attractive women walk up to the the vacant soup/sandwich ordering counter. Immediately, a male employee breaks from the power chat to take the order...

Posted at December 23, 2004 05:58 PM

Comments

Panera is a wonderful place with great pastries, rich coffee, good music, wireless net, etc.. There's only one problem: the bread. That instant puff-up rising technique they use--the bread goes from water and flour to the final baking in under 30 mins, and the first rise takes only a few minutes--just can't compared to the real thing. You can taste it. The bread strikes me as wet and gummy and lacking in anything resembling a genuine home made quality. And yet it probably beats most commercial varieties. In any case, you are certainly right that it is a great place. It came to Auburn and immediately four competing coffee shops installed wi-fi.

Comment by Jeffrey at December 24, 2004 08:00 AM | Permalink

I live outside of St. Louis and work for a virtual company, so I spend a lot of time at the St. Louis Bread company as well. And I used to work in Northern Virginia and I spend a lot of time at Panera. Lunch 2-3 times a week.

A couple thoughts:

(1) I have to assume they have management issues. This may sound like a "little" thing, but I applied for a job as their director of marketing and it took them almost six months to send me a postcard saying they had received my resume. It makes you wonder if they run their other departments like HR.

(2) When a Panera's opened a store in Northern Virginia, it was right next to Starbucks, the lines went out the door during lunch. You didn't have a problem getting a table at Starbucks. This begs the question if Panera has a strategy of opening shop next to Starbucks. I've done a lot of research on Starbucks, I admire what they've done. And the reason Starbucks cooks no food on-site is that the branding experience is all about coffee, including the smell. A burnt bagel would harm said experience. Because Starbucks food is average at best (and way to expensive) I have to feel Panera would have an advantage in being next to Starbuck stores.

(3) Where is Panera's advertising? I think a lot of people don't know what Panera's has to offer. My father was over a few weeks ago helping me w/ some stuff around the house. I suggested we grab a sandwich, he suggested Quiznos. I suggested Panera. He was amazed by the quality of the food.

(4) I also don't feel like Panera's has differentited themselves from the competition. Heck, if you can stomach it go to Hardee's. I mean they are actually promoting that they have a "Six Dollar" burger. Lunch at Panera's is about the same price. Which you would rather have? Panera's food is better, their coffee is above average, it is a "cozy" environment, and it is clean. I think they need to tell people this stuff.

Ok, that is all I got. I guess I agree w/ you. He seems the company should have a higher stock price.

Comment by Tommy at December 24, 2004 09:05 PM | Permalink

Jeffrey,

The bread at the Duke St., Alexandria VA location is moist not wet... must be something with the water in AL :). My wife's homemade beats it hands down, though.

Tommy,

I don't know about HQ, but my local store had personnel problems--frankly, they employed slow uncaring idiots. But they've just hired a new team (and paid a premium in their labor segment), which shows promise.

I have not seen ANY advertising anywhere for Panera. But all the Paneras near me are jammed between 12 and 2, seven days a week, with literally no room to sit. Paneras in the busiest spots are packed until 3...


Comment by Kevin Brancato at December 28, 2004 02:26 PM | Permalink

I work at a Panera in the Midwest.

Jeffrey,

I can definately tell you it doesn't take 30 minutes to do. I close a lot, and I've been around when the people who actually bake the breads and pastires come in (and yes, all the breads and pastries are made in the store, every day; along with all the meat being sliced in the back. It takes more than 30 minutes to make bagels, so it definately takes more time to do bread. As a worker, I'm kinda sick of it, but hey, its good and free.


Tommy, I'll respond to your quotes as such:

1. Sorry, that is way up there. I just work at a store.

2. Are you sure Starbucks doesn't cook foods on site? It isn't like they have a huge selection, but I have seen some of the big ovens/heaters there before.

But I see your point. IT is true, Starbucks are often located close to a sandwhich, soup place. Elsewhere in the state, where I see a Starbucks, I see a shop called Atlanta Bread Co. I've never been there, but it looked like a Panera.

3. Panera is just now starting to advertise. We had a full page ad in USA Today...well, at least 6 months ago. It was the back of the front page section.

At our training, we were told Panera just stopped advertising years ago because it wasn't worth it. I'm starting to see some billboards, etc...around my town, but thats about it.

4. BUT Hardees is fast food. Go read Fast Food Nation by Eric Shloser (not sure if I spelled his last name correctly). Basically, the food is shipped there frozen and heated up. That isn't the case at Panera.


Kevin,

At my store (and all the stores the owner of the Franchise runs), we aren't allowed to take breaks from 11-1, because those are our expected busiest hours. However, I've sat in there on Fridays and Saturdays before with practically no one coming. The Monday after Christmas, for example, the place was deserted.

Comment by Matt at January 8, 2005 08:58 AM | Permalink

I work at a Panera in Texas.

First off: Panera puts Starbucks to shame in everyway imaginable. Service is faster, taste is richer, aroma is stronger, & quality is all-around superior to that of Starbucks any given day of the week.

Second: Panera has very little use for advertising(in my opinion). This is because "word of mouth" spreads far faster among people than, say, the amount of people who are actually going to develop interest in a bakery-cafe because they may have happened across a billboard on the side of the highway. When people have an enjoyable experience @ Panera, they go out, come back w/ a friend, who in turn brings someone else. Another point I might add is that if a guest is satisfied on their return-visit, they stand the potential chance of becoming "a regular".

Comment by David at February 11, 2005 03:01 PM | Permalink

Hello. The sourdough bread is allowed to rise for about three hours in a proof box -- warm humid little closet -- then it is baked.

Comment by Daybaker at June 27, 2005 09:59 AM | Permalink

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