Panera Bread CEO Addresses Past Cost-Cutting, Launches Revitalization Strategy
Panera Bread CEO Paul Carbone is leading the company's new "RISE" initiative, aimed at reversing slumping sales and rebuilding customer loyalty. This strategy focuses on menu improvements, enhanced in-store service, and expanding the network, directly addressing customer complaints about food value and overall experience. Carbone expressed regret over a past decision, made while he was CFO, to swap out 100% romaine lettuce for a mix with iceberg, a cost-cutting measure that he now views as detrimental to customer perception. The company has since reversed the lettuce change and is rolling out a new summer menu featuring items like shrimp-topped bowls and upgraded salads. The "RISE" strategy, developed over months of customer engagement, seeks to reignite interest and drive customer visits after years of negative same-store transactions.
Panera Bread is implementing a new strategy, dubbed "RISE," to revitalize its brand and address declining customer visits. The initiative, led by CEO Paul Carbone, focuses on improving food value, enhancing in-store service, and refreshing its menu offerings.
Carbone, who previously served as the company's chief financial officer, expressed regret over a cost-cutting decision made in the summer of 2024. This involved changing the salad base from 100% romaine lettuce to a mix including iceberg lettuce to save money. This change, which was reversed in June 2025 shortly after Carbone became CEO, is now seen by him as emblematic of a broader issue where small cost-cutting measures detracted from the customer experience.
The "RISE" strategy, an acronym for "refresh the menu," “ignite value," "serve guests with excellence," and "expand the network," aims to correct these issues. The company's recent summer menu launch includes new shrimp-topped bowls, upgraded salads, bacon-and-cheese breakfast frittatas, frozen coffees, and various fruit-forward beverages, such as the Carnitas Elote bowl.
Panera began developing this strategy last year after experiencing multiple years of negative same-store transactions, with sales growth primarily driven by pricing rather than an increase in customer numbers. Customer feedback highlighted concerns about food value, a lack of affordable options, and declining in-store service. Many customers, despite having positive past feelings toward Panera, had reduced their visits due to perceived expense, removal of favorite menu items, or simply falling out of routine.
In response to service complaints, Panera has introduced a new front-of-house role, the Guest Experience Champion, to assist customers and maintain dining room quality, following earlier labor cuts. The company is also re-evaluating the role of technology within its operations.
Foot traffic data from Placer.ai indicates a year-over-year decline every month from January through May of this year for Panera. R.J. Hottovy, head of analytical research at Placer.ai, noted that sandwich chains, in particular, have seen fewer visits as consumers react to menu price increases and adopt healthier eating habits.
According to Business Insider, the broader restaurant market shows consumers becoming more selective, with lower-income households cutting back while wealthier consumers continue to spend.
