Panera Bread Co. is taking significant steps to reclaim its competitive edge in the fast-casual dining sector by launching new “Mix & Match” deals aimed at attracting price-sensitive customers. This initiative represents an important part of Panera’s strategy to revitalize its brand and address a notable decline in customer traffic that the company has faced in recent years.
Once hailed as the leading fast-casual chain in the United States, Panera has recently dropped to third place, overtaken by rivals Chipotle Mexican Grill and Panda Express. In 2024, the chain’s sales are projected to drop 5% to approximately $6.1 billion, according to estimates from Technomic, indicating a pressing need for reinvention amidst fierce competition.
The restaurant industry as a whole is witnessing a trend of decreased consumer spending. Many diners are opting for less costly dining options or reducing their frequency of eating out. Major chains like McDonald’s and Taco Bell have responded by enhancing their value offerings, making it crucial for Panera to follow suit.
A recent survey by the National Restaurant Association revealed that nearly 75% of diners consider daily specials, discounts, or value promotions as pivotal factors when deciding where to eat or order takeout. In this context, Panera CEO Paul Carbone emphasized the dual importance of quality and value in attracting today’s consumers.
Starting Wednesday, customers can select from halved portions of sandwiches, salads, and cups of soup through the new “Mix & Match” menu. Each of the 10 items is priced at $4.99, and diners are required to purchase a minimum of two items. The menu will feature seasonal items that will rotate regularly, and each order comes with a choice of a baguette, chips, or an apple.
The decision to implement the “Mix & Match” offering follows successful testing, with Carbone stating that customer feedback has been overwhelmingly positive. This new menu component is anticipated to drive additional visits to Panera locations, providing a fresh twist to its dining experience.
Despite the introduction of the “Mix & Match” deals, Panera’s well-loved “You Pick Two” offering will continue to be available. Research indicates that many diners appreciate this option not just for cost savings but for the variety it allows. Unlike the restricted “Mix & Match” menu, “You Pick Two” enables guests to choose from a broader selection, with the flexibility to pair a half salad, half sandwich, cup of soup, or mac and cheese.
This strategic pivot towards value offerings signals Panera’s commitment to meeting the evolving preferences of consumers while aiming to restore its place as a leader in the fast-casual dining market.
