Panera Bread 2013 Annual Report Download - page 5

efforts – known collectively as “Panera-to-You™”– to meet the needs of our guests wherever they are and
whenever they want Panera. Core to this strategy is the rollout of delivery hubs (formerly known as catering
hubs). By the end of 2014, we expect to have delivery hubs in place serving more than 10% of our company
cafes.
Necessary Capabilities
Everything I’ve described so far requires the necessary capabilities if we’re to deliver on the promise of these
initiatives. For instance, we used to view IT as a cost center; we now view our IT function as a potentially
powerful competitive advantage that can have a critical impact on the business and serve as a barrier to entry
against those concepts lacking the scale to offer guests technology-enabled solutions. By the end of 2014, we
expect to have spent roughly $42 million on the technology and infrastructure required to live into our digital
future.
Moreover, we continue to invest in our people. We added a net of 35 hours per week to our cafe labor chart last
year, increasing annual labor expense by roughly $15 million to do so. To drive our many growth initiatives, we
also continue to build out our executive ranks, with key additions to leadership roles overseeing our IT, Panera-
to-You, Strategy, and Development teams.
Deliver Our 2014 Financial Plan
Those who are familiar with Panera understand by now that we are focused on delivering sustained earnings
growth over the long term. And we recognize that our credibility rests on our capacity to do what we say we are
going to do.
I’ll be the first to admit that the sum of our initiatives can at times seem quite daunting, but we believe that if
Panera can show real traction on our four most important strategies, then we will be successful in extending the
arc of Panera’s cafe sales growth and unit growth.
Indeed, we know that if we can successfully roll out Panera 2.0, we will be on our way to creating an enhanced
guest experience that fully captures the opportunities enabled by technology; if we can drive operational
excellence in all of our cafes, we will improve throughput and create a frictionless experience for all of our
guests; if we can sharpen how we compete, we will engage both our existing and new customers, and drive the
desire that impels our guests to choose Panera over other concepts; and if we can build out our “Panera-to-You”
business, we will have created a substantial platform that propels new growth for Panera for years to come.
I want to take this opportunity to thank our stockholders for your ongoing commitment and belief in both our
company and the vision of our management team. Your support has made possible Panera’s efforts to pursue a
long-term strategy that, over many years, has allowed us to re-define our industry and create inflection points that
have been followed by years of outsized earnings growth. Your support is critical as we seek to do just that yet
again.
I would also like to take this opportunity to thank our Board of Directors, whose wise counsel and tough
questions continue to shape our strategy and frame the initiatives we pursue today.
Finally, I want to thank our franchisees, our operators, and our support center teams, whose commitment, every
day, define the Panera experience and cement the ongoing loyalty of our customers.
I want all of you to know that you can count on us. We will do everything in our power to fulfill the promise and
deliver on the potential of Panera.
All my best,
Ronald Shaich
founder, Chairman, and Chief Executive Officer