Article
Fast casual driving growth of 'The American Bakery'
Bakeries are stepping up their menu offerings, decor and overall customer experience.
April 23, 2014 by Cherryh Cansler — Editor, FastCasual.com
Bakeries have been an American staple for generations, but old-fashioned outlets run the risk of being outdated in this digital age run by Millennials with smartphones and tablets. To stay relevant, brands, including Panera Bread and la Madeleine, are stepping up their menu offerings, décor and overall customer experience.
Panera, for example, recently launched an entire digital makeover offering customers mobile and kiosk ordering, while la Madeleine is concentrating on staying ahead of trends when it comes to innovative flavor profiles and has designed new stores to allow customers to watch chefs create their food.
"Our guests see their meals prepared right in front of them. They love seeing this — it reminds them of how fresh it is, the quality of our ingredients, and that it is made to order," said Paul Carolan, la Madeleine's COO. "Blend that with dish preparation at a pace that our guests prefer, service that is second to none, as well as design, décor and a seamless flow throughout the experience, and we have a recipe for success."
The chain, owned by Le Duff, also has a new focus on non-traditional venues, including airports and campuses.
"The most essential thing is to listen to the consumers — see how they're using the store and how their lives are changing," Carolan said. "We provide solutions within the brands and concepts and meet the consumer where they need us. It's important to stay true to who you are as a brand — it's not necessary to play into every fad."
Bakeries by the numbers
These upgrades are helping to keep bakeries on trend, said Darren Tristano of Technomic, which reported that revenue from limited-service bakeries increased 9 percent from 2012 to 2013, to $7,257 million from $6,658 million. Unit growth over that same period was up 3.3 percent.
The other part of the segment's growth, Carolan said, is that fast casual bakery cafes provide high-quality meals based on consumers' time constraints.
"They can decide how they spend their time. We view ourselves as polished fast casual which is set apart from your general soup-and-sandwich-based lunch spots because of our great emphasis on the culinary aspect of all that we do," he said.
The competition
Despite the fact that QSRs, including McDonald's, Taco Bell and Dunkin Donuts, have been pushing into bakery turf by offering more coffee and breakfast options, Carolan doesn't see them as a real threat.
"QSR consumers are in a hurry, we don't really see them as a competitor," he said. "They are using us differently. The fast casual bakery category says 'Come and stay,' a QSR says 'Keep moving.'"
The dinner daypart is another way bakeries can gain traction over their competitors, Carolan said. La Madeleine, which sees 27 percent of its sales at night, provides a specific dinner menu in the evenings.
"We aren't trying to coach you into believing that you can eat the same thing for lunch as dinner," he said. "We provide wines and good, hearty meal options like pasta, salmon and beef. We are enjoying our growth, enjoying our environment and looking forward to a great new year of steady managed growth."
Cover photo: la Madeleine's new design includes long community tables.
About Cherryh Cansler
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