Panera Bread 2006 Annual Report Download - page 7

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The following table sets forth certain bakery-cafe data relating to Company-owned and franchise-operated
bakery-cafes:
December 26,
2006
December 27,
2005
December 25,
2004
For the Fiscal Year Ended
Number of bakery-cafes:
Company-owned:
Beginning of period ........................ 311 226 173
Bakery-cafes opened ....................... 70 66 54
Bakery-cafes closed ........................ (3) (2) —
Acquired from franchisees(1) ................. 13 21 1
Transfer to franchisee(2)..................... — — (2)
End of period ........................... 391 311 226
Franchise operated:
Beginning of period ........................ 566 515 429
Bakery-cafes opened ....................... 85 73 89
Bakery-cafes closed ........................ (2) (1) (4)
Sold to Company(1) ........................ (13) (21) (1)
Transfer from Company(2) ................... — — 2
End of period ........................... 636 566 515
System-wide:
Beginning of period ........................ 877 741 602
Bakery-cafes opened ....................... 155 139 143
Bakery-cafes closed ........................ (5) (3) (4)
End of period ........................... 1,027 877 741
(1) In October 2006, we acquired 13 bakery-cafes (one of which was under construction) and the area development
rights from a franchisee in certain markets in Iowa, Nebraska and South Dakota. In September 2006, we
acquired one bakery-cafe in Pennsylvania from a franchisee. In November 2005, we acquired 23 bakery-cafes
(two of which were under construction) and the area development rights from a franchisee in certain markets in
Indiana. In October 2004, we acquired one bakery-cafe in the Dallas, Texas market from a franchisee.
(2) In October 2004, we transferred two bakery-cafes to a new franchisee in connection with the acquisition of the
remaining minority membership interest. See Note 3 of our Consolidated Financial Statements for further
information.
CONCEPT AND STRATEGY
Our restaurant concept focuses on the “Specialty Bread/Bakery-Cafe” category. Our artisan breads, which are
breads made with all natural ingredients, a craftsman’s attention to quality and detail, and overall award-winning
bakery expertise, are at the heart of our menu. The concept is designed to deliver against consumer desire for a more
responsive and more special dining experience than that offered by traditional fast food. Our goal is to maintain
recognition of Panera Bread as a leading brand. Our menu, prototype, operating systems, design, and real estate
strategy allow us to compete successfully in several segments of the restaurant business: breakfast, lunch, PM “chill
out,” dinner, or the evening daypart, and take home bread, through both on-premise sales and Via Panera»catering.
One of our initiatives in 2006 was to increase our traffic and sales during dinner, or the evening daypart, with
Crispani»hand-crafted pizzas being an entree into this daypart initiative. See “Menu” below for additional
description of our evening daypart initiative and our Crispani»hand-crafted pizzas.
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