Monday, October 3, 2011

Panera

Things Panera did well:
- Free bagels and coffee for "bike to work day" participants
- Donating all leftover bakery products at the end of each day
- Susan G Komen "pink ribbon" bagel during the fall
- the "low-carb bagel" and "low-carb bread" attempt (which failed, but was worth a try)
- People like to hang out

Things they didn't:

1. When everyone started wanting whole wheat, Panera dragged their heels. As far as I know, they still don't offer a true whole wheat bread, instead offering a "whole grain" that's still made with unbleached enriched wheat flour. I know that unbleached enriched wheat is an industry standard, and that most consumers either don't care or don't know about the difference, but for a place founded on baking artisan bread, couldn't this be regarded as a sort of "perfect storm" opportunity to be an industry front-runner in change? I think so.

2. Panera markets itself to moms with young kids - they position themselves near Starbucks and Coldwater Creek - and yet it took them years to offer any kids menus, or even sell half sandwiches. And for a place that charges $6 or $7 per sandwich, this became an issue for parents. When I worked there, I would get moms all the time, with the double stroller and another kid toddling alongside, sighing with exasperation at finding out that, no thanks, we simply don't want to help you out. "Of course," we consoled them, you can buy one big sandwich and split it between them" ... and good luck, since they all have a different favorite and we're going to charge you for the "adult quality" just so they can pick it apart and drop it on the floor as they pout.

3. Their salads all include chicken as the "default" menu item - and charge accordingly. Of course they're willing to remove the chicken and make your salad without it - but they won't alter the price to reflect it, so you're forced to pay the "chicken" price. True vegetarian options include soup and PB&J. Word on the street is that some vegetarians have appetites - and most have tastes beyond toddlers.

4. It took them years to respond to the demand for hot breakfast items. The first thing they rolled out? Souffles - not sandwiches - with more pastry than substance. Calorie count ranged from 480 to 570, which isn't necessarily healthy. (Starbucks perpetually sells out of their spinach feta wrap - a breakfast item made with veggies, eggs whites, and whole wheat - that comes in at just under 300 calories.)

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When I walk into Panera (a place I worked for three years from high school to college and, incidentally, a place that became like a second home to me), I no longer feel that cozy feeling. When I study the menu, I feel like Panera is treating me and the rest of its customers like we're idiots - like we don't know the difference between whole wheat and whole grain; like we'll never read the nutritional information on the website; like we'll never figure out that the cinnamon crunch bagel has almost 500 calories. The truth is, many people won't. But here's the thing, Panera: some will. And those few rarely have an issue telling others what the deal is.

Panera has developed an image of being "wholesome" and "healthy" (and many consumers, thankfully for them, are willing to blindly agree) and yet they fail to deliver healthy food. Just for example, every single one of Panera's panini's have more calories - and fat - than a Big Mac. (The "Steak and White Cheddar" has almost twice as many.) On what level do you think serving food that high in calories is acceptable? It's irresponsible and frankly, because it's misleading to a consumer who believes he's eating something "healthy," it's immoral.

Panera has done an amazing job of trying to foster a "neighborhood" environment. Many people visit the bakery-cafe as regulars, and they've been really successful in being involved in the community in meaningful ways.

But, Panera, the truth is: your core business isn't "lounge," nor is it "non-profit." It's "bakery-cafe," and if you fail to deliver on that core service, your customers are going to go elsewhere. Icing only delights us if there's still cake underneath and, for me, there no longer is. 

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