Why Panera is moving away from fresh bread

The changes in Panera's bread-making process appear to be linked to a series of updates introduced by the company, including a significant menu revamp that took effect in April 2024, following the removal of approximately 50 items from certain locations' menus the previous year. Debbie Roberts, Panera's COO, referred to these menu modifications as "Panera's new era" (according to NRN), aiming to bring the brand back to its foundational offerings of salads and sandwiches. These changes are designed to provide customers with a faster and more efficient experience, aligning with Panera's transition to par-baked bread.
Although Panera has utilized par-baked products on a limited basis for years, many bakers began experiencing reduced hours or layoffs after the closure of its FDF in Houston, Texas, in February 2024. In March, Nation's Restaurant News interviewed Panera baker M.J., who explained that numerous bakers were seeing their hours cut to just two to four per day, leading many to resign. M.J. also mentioned that some cafes were being renovated to accommodate larger freezers, expressing concern that frozen items would not match the taste and texture of fresh products.
All of these developments are reportedly part of the company's "Bakery of the Future" initiative, designed to reduce labor costs, eliminate wholesale pricing, and enhance efficiency through the use of pre-baked and partially baked goods. While this strategy may benefit the company's financial performance, it is likely to encounter resistance from customers who appreciate the freshness of Panera's signature sandwiches.
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