Panera Bread 2014 Annual Report Download - page 24

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illnesses (such as hepatitis A or trichinosis), and injuries caused by food tampering have in the past, and could in the future, require
us to temporarily close bakery-cafes. The occurrence of food-borne illnesses or food safety issues could also adversely affect the
price and availability of affected ingredients, resulting in higher costs and a decrease in customer traffic to our bakery-cafes.
Loss of senior management could adversely affect our future success.
Our success depends on the services of our senior management, all of whom are “at will” employees. The loss of a member of
senior management could have an adverse impact on our business or the financial market’s perception of our ability to continue
to grow.
Increased labor costs or difficulties in recruiting the right associates could adversely affect our future results.
Our success depends, in part, on our continuing ability to hire, train, motivate, and retain qualified associates in our bakery-cafes,
fresh dough facilities, and support centers in a competitive labor market. Our failure to do so could result in higher associate
turnover and increased labor costs, and could compromise the quality of our service, all of which could adversely affect our
business.
We may be exposed to uncertainties and risks in Canada that could negatively impact our consolidated results of operations.
We expanded our Company-owned and franchise-operated operations into Canadian markets. Our expansion into Canada has
made us subject to Canadian economic conditions, particularly currency exchange rate fluctuations, increased regulations, quotas,
tariffs, and political factors, any of which could have a material adverse effect on our consolidated financial condition and results
of operations as our Canadian operations continue to expand. Further, we may be exposed to new forms of competition not present
in our domestic markets, as well as subject to potentially different demographic tastes and preferences for our products.
If we fail to comply with governmental laws or regulations or if these laws or regulations change, our business could suffer.
In connection with the operation of our business, we are subject to extensive federal, state, local, and foreign laws and regulations
that are complex and vary from location to location, including those related to:
• franchise relationships;
• building construction and zoning requirements;
• nutritional content labeling and disclosure requirements;
• management and protection of the personal data of our employees and customers; and
• environmental matters.
Our bakery-cafes and fresh dough facilities are licensed and subject to regulation under federal, state, local and foreign laws,
including business, health, fire, and safety codes. For example, we are subject to the U.S. Americans with Disabilities Act, or
ADA, and similar state laws that give civil rights protections to individuals with disabilities in the context of employment, public
accommodations and other areas.
In addition, various federal, state, local and foreign labor laws govern our operations and our relationship with our associates,
including prevailing wages, overtime, accommodation and working conditions, benefits, work authorization requirements,
insurance matters, workers’ compensation, disability laws such as the ADA discussed above, child labor laws, and anti-
discrimination laws.
Although we believe that compliance with these laws has not had a material adverse effect on our operations to date, we may
experience material difficulties or failures with respect to compliance with such laws in the future. Our failure to comply with
these laws could result in required renovations to our facilities, litigation, fines, penalties, judgments, or other sanctions including
the temporary suspension of bakery-cafe or fresh dough facility operations or a delay in construction or opening of a bakery-cafe,
any of which could adversely affect our business and our reputation.
In addition, new government initiatives or changes to existing laws, such as the adoption and implementation of national, state,
or local government proposals relating to increases in minimum wage rates, may increase our costs of doing business and adversely
affect our results of operations.