Sandwich chain quietly changing how they make their famous bread and hundreds of workers are paying the price
A popular sandwich chain known for its fresh-baked bread and Mac and Cheese is gearing up for store and bakery closures as it continues a multi-year streamlining initiative.
Panera Bread , long known for baking its bread fresh daily, is shifting operations from its fresh-dough facilities to a par-baked model.
This model is a system where products arrive half-baked and frozen, then are finished on-site in ovens.
As a result of the transition, Panera is closing all its fresh-dough facilities — prompting hundreds of layoffs.
The idea is to streamline operations while ensuring products are consistently available to customers as the brand continues growing under its three-year transformation plan.
"Our bread is our superstar and the homage to our brand," Panera Chief Corporate Affairs Officer Brooke Buchanan told Nation's Restaurant News .
"We wanted to make sure that the product in store was top quality, using the best ingredients based on our recipes. … The hardest thing for our team members is to say, 'No, we're out of that product,'" Buchanan said.
Earlier this year, the company announced it would continue closing fresh-dough facilities and officially close down any remaining locations as part of its transition, Restaurant Business reported .
When news of the ongoing facility closures emerged, Panera CEO Paul Carbone highlighted the brand's three-year strategic turnaround plan focusing on guest experience, menu and perception of value and profitability.
According to Restaurant Business , Panera has shifted to an "on-demand" bread production model — meaning third-party producers make the chain's breads following the company's recipes.
The model is designed to ensure bread options are available all day while also ensuring consistency and " ease of operations ."
The shift already has affected hundreds of Panera fresh-dough facility employees.
In March, Restaurant News reported Panera had shuttered plants in Kansas, laying off 59 employees, in North Carolina, impacting 80 more employees, and announced plans to shutter two more facilities in California, affecting about 350 more workers.
These closures were in addition to five other facility closures in Texas, Arizona, Georgia and Washington state.
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