Panera Bread Co. Steak Sandwich and French Onion Soup arranged Tuesday, December 12, 2023 in Queens, New York, USA.
Bing An | Bloomberg | Getty Images
Panera Bread is entering the so-called value war with new “mix-and-match” deals to win back price-sensitive customers.
The chain, known for its soups, salads and sandwiches, is in the early stages of a turnaround, with a focus on reinvesting in the business and reversing years of declining traffic. Panera, once the top fast-casual brand in the U.S., has fallen to third place, ceding the top spot to another brand. Chipotle Mexican Grill And Panda Express.
Technomic estimates that Panera’s sales in 2024 will fall 5% to $6.1 billion.
A key part of Panera’s comeback strategy is to focus on value.
Across the restaurant industry, executives report that consumer spending is down and consumers are trying to save money by cutting back on fast food and eating out less frequently. like a chain mcdonalds And Taco Bell is focusing on valuable services to win back customers.
According to the National Restaurant Association’s annual State of the Restaurant Industry Report, nearly three in four diners say daily specials, discounts, and great promotions are important when choosing a place to dine in or order takeout.
”[Consumers] “We’re looking for value, but we’re also looking for quality. That’s very, very important,” Panera CEO Paul Carbone told CNBC.
Starting Wednesday, Panera customers will be able to choose half a sandwich and salad, as well as a cup of soup, from a “mix and match” menu. The 10 items are priced at $4.99 each, and diners must purchase at least two items. Seasonal menu items also switch with a “mix and match” option.
Each order also comes with a choice of baguette, chips or apple.
Panera considered other value offerings, but the “mix and match” menu test was a success, Carbone said.
“The response from our guests has been very positive,” he said, adding that the menu is expected to increase foot traffic to the restaurant.
And while Panera is introducing this deal, its popular “You Pick Two” service continues.
Mr. Carbone said customer research shows that customers view the option of buying two entrees from a menu as an opportunity to enjoy variety rather than an opportunity to save money. Similar to “Mix & Match,” this offer allows customers to choose half a salad, half a sandwich, or a cup of soup or mac and cheese. However, “You Pick Two” is not limited to 10 items, but instead applies to the entire menu.
