Panera Bread 2015 Annual Report Download - page 6

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We also are working to attract and retain the café associates and managers with the will, skill and cultural values
necessary to exceed our guests’ expectations, build customer loyalty and drive sustained growth. Given the
competitive marketplace for talent, we are increasing our investment in wages during 2016.
And we are investing in our cafes. Capacity upgrades are crucial to our strategy of enhancing Panera’s
competitive position and capturing the sales and profit potential of our initiatives.
Maintaining Credibility
We recognize that our strategic investments have been significant and that our ability to pursue our long-term
goals depends on our ability to maintain confidence in our plan in the short term. We are focused on continuing
to drive leading indicators that give us and our investors confidence in our plan. As well, we have found and are
continuing to search for economies and value-enhancements to help fund our investments. Such intensive margin
improvement efforts are intended to mitigate the trough associated with transformation even as we invest in
improving the guest experience – all with the goal of delivering long-term shareholder value.
Closing Thoughts
I liken where we are in our journey of transformation to running the Boston Marathon. It’s long and it’s hard.
Taking that metaphor further, I’d suggest we are now on Heartbreak Hill, the ultimate test of endurance. We are
feeling good because we are running ahead of the race plan we set at the beginning of the journey. Yet we remain
on guard as we are cognizant that potential challenges can still emerge along the way. Most importantly, we are
fueled by the knowledge that our efforts will ultimately be worth it. Indeed, we know that as we continue to
change the sales trajectory of our business and our investments crest, we are moving closer and closer to our
objective – sustained earnings expansion.
As ever, I want to thank our investors for their support as we execute our long-term strategic vision; our board of
directors for their wise counsel along the way; our franchise partners for their continued confidence in us; and
our operators and support team members for powering us through an ambitious transformation effort. Each of
you should know that I speak for the entire leadership team when I tell you we will honor your commitment by
doing all in our power to create a future for Panera that leaves us all proud.
Sincerely,
Ron Shaich
Founder, Chairman and Chief Executive Officer