Panera Bread 2014 Annual Report Download - page 4

Key Initiatives
Our priority for the next few years is to continue bringing our plans to life, with a focus on:
• Improving Panera’s competitive position;
• Expanding growth opportunities;
• Ensuring we have the capabilities to improve our competitive position and expand growth;
• Maintaining our credibility through our results.
WHERE WE ARE NOW
Panera 2.0
We are continuing to rollout and further iterate our Panera 2.0 initiative. More than 100 Panera 2.0 cafes were
operating by the end of 2014 and we plan to convert approximately 300 company cafes in 2015.
It is clear Panera 2.0 is making a difference. Sales have increased and guest friction has decreased at cafes where
Panera 2.0 is implemented. Further, we have a better understanding of the startup and operating costs for Panera
2.0, so that capital costs are coming down and margins are strengthening with each iteration.
In addition, we are rolling out discrete elements of Panera 2.0 across the system. One example is Rapid Pick Up,
which allows guests to purchase their meals ahead of time online and bypass cafe lines during pickup.
Improved Operations
Improved operations remain central in our efforts to enhance our competitive position. In 2014, we added more
cafe staff and upgraded equipment, such as kitchen display systems, to improve order execution and increase
throughput, especially at lunch. Our increased focus on process disciplines has also improved speed and
accuracy, which is crucial as customization grows. About 70% of all Panera 2.0 orders are already modified in
some way.
And we are helping our managers to better focus on guests by selectively eliminating non-customer facing job
responsibilities. We closely monitor how well we are serving guests through a sophisticated customer satisfaction
assessment process that we launched in 2014. The data indicates that our overall guest experience has improved,
with food quality and speed of service leading the way.
Innovation
Our evolved brand positioning of craveable wellness and an elevated experience is now being incorporated into
all menu items, marketing campaigns and store design initiatives to reinforce Panera’s positioning and excite
Panera’s customers.
The success in 2014 of our line of flatbreads and the debut in January of Broth Bowls—a healthful extension of
our soup offerings directed at the adventurous eater—are examples of how our positioning comes to life in our
foods. Later this year, we plan to introduce improved salads and sandwiches that underscore our commitment to
clean food, or food free of artificial additives, flavorings, colors and preservatives, as promised in the Clean Food
Policy we unveiled in 2014.
A new advertising campaign highlighting our positioning and giving Panera a unified voice across all marketing
channels is expected to debut in June. We also plan to continue to develop our MyPanera loyalty program. With
19 million members, MyPanera is a powerful platform for one-on-one marketing. Nearly half of all company
transactions are linked to MyPanera.
And a more contemporary store design is being incorporated into new cafes while maintaining Panera’s warmth.
Meanwhile, a remodel program for older cafes that incorporates elements of the new design is being tested and
readied for usage.