Panera CEO Takes Omni-channel Steps To Safeguard Chain's Future

By Hannah Ash, contributing writer

Panera 2.0 Breaks Down Barriers, Engages Customers

Last week, Panera laid out a strategy to extend its reach through adopting a focused omni-channel strategy. During its most recent investor day, CEO Ron Shaich warned, “If Panera isn’t able to make the step and really figure out how to use technology to enable a better and different guest experience, Panera won't be the success it has been in the past.” To safeguard Panera’s future for investors, Shaich rolled out a plan to upgrade its current sales model by introducing multiple channels of sales to catch customers where they are.

Panera 2.0 plans to automate food ordering and in doing so, create a more seamless consumer experience. Along with ordering innovations, Panera 2.0 signals the introduction of table-delivery to its cafes. In a video released to highlight plans for Panera 2.0, Shaich states, “We want to provide a seamless system. We can imagine a world where you can order via mobile. You can order over the Web. You can order from a kiosk in store: all you have to do is sit down, and we bring the food to our guests.” Plans for Panera 2.0 are threefold: in-store kiosks, mobile, and web. Customers will be able to order via mobile devices, the Web, or by punching orders in to an in-store kiosk. Depending upon the customer’s preference, food will be delivered to tables or will be available to-go.

Panera plans to complete one aspect of Panera 2.0, Rapid Pickup (mobile ordering) within the next 12 months; over the next 36 months, the chain is focused on completing Panera 2.0. At a projected cost of $42 million, Panera clearly is staking its future on integrated retail and this move. Shaich indicated that though he realizes the initial expenditure may margins in earnings in 2014 and 2015, he is focused on the bigger picture:"we believe these initiatives will enable us to better meet our customers’ ever-evolving needs and provide the platform for significant growth and expanded earnings.” Following last Wednesday’s announcement of Panera 2.0, Wedbush analyst Nick Setyan upgraded Panera from neutral to outperform.