News

Panera Bread to boost ad spend, cites fast casual competition

March 7, 2012

Panera Bread Co. has announced its plans to increase its media investment in 2012 by 26 percent, according to a story in The Wall Street Journal.

The reason for the increase: executives say they're trying to keep pace with the growing number of fast casual concepts that have entered the segment in recent years.

From the WSJ:

But even with the extra hype, Panera expects the number of customers it serves to remain roughly flat over last year — a testament, the company said, to the increasingly competitive fast casual dining industry.

"A lot of people think, if you do nothing, you will stay at zero. But the reality is, if you do nothing, you'll be at a negative," said Founder and Chairman Ron Shaich in a recent interview.

Based on previous years' spending, analysts estimate Panera Bread will spend about $55 million to $60 million on its media investment in 2012, only about 1.5 percent of its annual sales.

Panera has plans to launch a series of television commercials, one of which shows a baker talking about the fresh bread. The other features Shaich discussing Panera's overall philosophy.

The ads will be 30-second to one-minute spots and will air fairly steadily.

The move comes at a time when Panera Bread competitors also are increasing their media investments. For example, Chipotle ran a television ad during the Super Bowl for the first time in company history.

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