While many other fast casual chains have been discounting their food, Panera Bread has been targeting those customers who can still afford to shell out an average of about $8.50 for lunch, according to a story in the Wall Street Journal.
Panera has been able to persuade customers to pay premiums because it has been improving the quality of its food, the company said.
From the Wall Street Journal:
| "Most of the world seems to be focused on the Americans who are unemployed," says Panera chief executive Ron Shaich. "We're focused on the 90 percent that are still employed." Among its initiatives to emphasize freshness, Panera is baking bread later in the day. While second-quarter sales at stores open at least one year were flat, same-store sales at company-owned stores rose 2.8% in the first 27 days of the current third quarter. Panera is projecting growth this quarter in its operating profit, average customer check and number of transactions. Panera's results contrast with those of many other casual-dining chains, which have been posting negative same-store sales, due partly to declining traffic and lower-priced food. Some have found that discounting has not only hurt margins, but failed to lure as many customers as hoped. |
