A steak sandwich and French onion soup from Panera Bread Co. organized within the Queens borough of New York, US, on Tuesday, Dec. 12, 2023.
Bing Guan | Bloomberg | Getty Photographs
Panera Bread is coming into the so-called worth wars with its new “Combine & Match” offers in a bid to win again price-conscious diners.
The chain, recognized for its soups, salads and sandwiches, is within the early phases of a turnaround, with a deal with reinvesting in its enterprise and reversing years of visitors declines. As soon as the highest fast-casual model within the U.S., Panera has fallen to No. 3, ceding the highest spots to Chipotle Mexican Grill and Panda Categorical.
In 2024, Panera’s gross sales dropped 5% to $6.1 billion, in response to Technomic estimates.
A key a part of Panera’s comeback technique is specializing in worth.
Throughout the restaurant trade, executives have reported weaker spending amongst customers, who’re making an attempt to save cash by buying and selling all the way down to quick meals or eating out much less regularly. Chains like McDonald’s and Taco Bell have leaned into worth choices to attempt to win again clients.
About 3 out of each 4 diners mentioned that each day specials, reductions or worth promotions matter when selecting the place to dine or order takeout, in response to the Nationwide Restaurant Affiliation’s annual State of the Restaurant Trade report.
“[Consumers] are in search of worth, and so they’re additionally in search of high quality,” Panera CEO Paul Carbone advised CNBC. “That is so, so necessary.”
Beginning Wednesday, Panera clients can select halved parts of sandwiches and salads, in addition to cups of soup, from the Combine & Match menu. Every of the ten objects is priced at $4.99, and diners have to purchase at the very least two objects. Seasonal menu objects may also rotate by means of the Combine & Match choices.
Every order additionally comes with the selection of a baguette, chips or an apple.
Panera explored different worth choices, however the Combine & Match menu examined efficiently, Carbone mentioned.
“The visitor has actually, actually reacted effectively to it,” he mentioned, including the menu is predicted to drive incremental visits to the restaurant.
And whereas Panera is introducing the deal, its well-liked “You Choose Two” providing is sticking round.
Carbone mentioned that buyer analysis confirmed that diners view the choice to purchase two entrees from the menu as a possibility for selection, moderately than an opportunity to save cash. Like Combine & Match, the supply permits clients to decide on a half salad, half sandwich or cup of soup or mac and cheese. Nevertheless, You Choose Two spans the menu, moderately than being restricted to only 10 objects.
