Panera Bread expands development agreements

ST. LOUIS, Oct. 25 /PRNewswire-FirstCall/-- Panera Bread (NASDAQ:PNRA) today announced new development agreements with several of its existing franchisees. The announcements further solidify the commitment of Panera's franchise community to second and third generation development agreements in their existing markets. Howley Bread Group, LTD, which currently operates 12 bakery-cafes in Rhode Island, eastern Connecticut and southern Massachusetts, originally signed to open 20 bakery-cafes. In addition to those, the group, headed by franchisees Lee and Tom Howley and operations partner Bahjat Shariff, now has signed a development deal for an additional eight bakery-cafes within its existing territory. The new franchise agreement now extends development from 2007 to 2010.

Chicago Bread, LLC, led by June, Sam and Mike Hamra, currently operates 24 Panera Bread bakery-cafes across the Chicagoland area. The group initially signed for 14 bakery-cafes but then extended the development arrangement to 26, 24 of which currently are open. Additional rights for 10 more bakery-cafes in the area have just been finalized. The Hamras also operate 12 Panera Bread bakery-cafes surrounding Boston, Massachusetts. The Candall Group, Inc., headed by Sam Covelli, has signed a development deal that will expand the Panera Bread presence to adjoining markets in West Virginia. The Candall Group, which currently operates 23 bakery-cafes in Pittsburgh, Pennsylvania; and Clarksburg and Morgantown, West Virginia, will add six new bakery-cafes in five adjoining markets in West Virginia. Those locations include Huntington, Parkersburg, Charleston, Beckley and Summersville. Covelli also operates 28 Panera Bread locations in Cleveland and Eastern Ohio. "Panera Bread is honored by the extraordinary commitment and strength of our franchise community," says Mike Kupstas, Chief Franchise Officer. "The commitment to additional development in existing territories speaks to the depth of development potential for the Panera concept. The contributions and vision of partners like the Howleys, the Hamras and the Covellis, along with our entire franchise family, will continue to be key to our long-term growth and success." Panera Bread owns and franchises bakery-cafes under the Panera Bread and Saint Louis Bread Co. names. The company is the leader in the emerging specialty bread/cafe category due to its unique bread combined with a quick, casual dining experience. As released in the August 5, 2004 earnings statement, Panera Bread operates 669 bakery-cafes (197 company-owned and 472 franchised). Additional information is available on the company's website, http://www.panerabread.com/.source:Panera Bread Company