Panera Bread CEO Ron Shaich outlined his vision
for creating a platform for growth moving forward. The vision is filled with contemporary
consumer relevance. His approach is a macro Omni-Channel strategy with micro
customer grouping tactics, leveraging technology, and big data.
Panera is on track with Non-traditional avenues
of fresh food distribution including Ready-2-Eat and Heat-N-Eat aka Grocerant
Niche food according to Foodservice Solutions® Grocerant Guru™ Steven Johnson.
The goal in the plan dubbed Panera 2.0 is being
rollout to “reduce ordering friction” for customers by implementing a variety
of ways to order more quickly thus driving top line growth.
Shaich said that Panera had secured a 5-year,
$100M term loan to support the Panera 2.0. Shaich went on to say the digital
investment is necessary and that it will take time in fact it may be more
costly than anticipated as he asked investors to patient through an expected slowing in
earnings growth.
Shaich stated “We need to figure out where the world
is going and make sure we’re prepared for it. We have a big ship to move. It
can take several years before we get traction,” he said. “We must expand our
vehicles for growth.”
There is a lot to look at in Omni-Channel
retail today including mobile/online ordering, kiosk ordering and large-scale
catering, another “vehicle for growth” In addition “Panera is looking at is
small check delivery, which it is already doing in some locations. Shaich said
the company began understanding the power of large and small order delivery in
2013, when it began building a “world-class IT function.”…
“I work from home sometimes and there is a
Panera two blocks away in every direction. I often ask, do I really want to get
in a car, get in line, order and wait? It’s a long process, so I usually end up
in the fridge scrounging around for leftovers,” he said. “There are millions of
people out there who want Panera but why aren’t we serving them? Shouldn’t we
be in the delivery business?” Shaich stated.
Panera 2.0, he added, is a vision to offer more
than one service because every customer wants to interact with the brand
differently.
“Our goal is to improve Panera’s competitive
positioning,” he said. “We are trying to figure out how to bring Panera to you;
trying to figure out this small order delivery.”
Panera has developed hubs in its larger markets
to help facilitate delivery on both a large (catering) and small-ticket scale.
Shaich said the team has to “get the physical aspects” down before they can
move forward with the service.
In addition to its no-line 2.0 features and
delivery tests, Panera is also “working on” new footprints and opening in
hospitals, universities, urban areas and small towns. Non-traditional avenues
of fresh food distribution for Ready-2-Eat and Heat-N-Eat aka Grocerant Niche
food is driving growth in every sector of food retail today.
Can outside eyes help your company?
Foodservcie Solutions® excels with Ready-2-Eat and Heat-N-Eat fresh food for
QSR’s, Full Service restaurants, C-stores and Deli’s with a focused on Build,
Measure, Learn, and Repeat steps to success program? Visit: www.FoodserviceSolutions.us or Call: 253-759-7869 Success Does
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