Panera Bread releases first-ever value menu with ‘Mix & Match’ deals
Steak sandwich and French onion soup from Panera Bread Co., held on Tuesday, December 12, 2023, in the Queens borough of New York, USA.
BingGuan | Bloomberg | Getty Images
Panera Bread is engaging in so-called value wars with new “Mix and Match” deals in an effort to win back price-conscious customers.
The chain known for its soups, salads and sandwiches is in the early stages of a transformation, focusing on reinvesting in its business and reversing years of traffic decline. Panera, once the best fast-casual brand in the USA, left the top ranks behind and fell to 3rd place. Chipotle Mexican Grill and Panda Express.
According to Technomic estimates, Panera’s sales in 2024 will decrease by 5% to $6.1 billion.
A key part of Panera’s turnaround strategy is focusing on value.
Restaurant industry executives reported weaker spending among consumers trying to save money by turning to fast food or eating out less frequently. like chains McDonald’s and Taco Bell turned to value propositions to win back customers.
Nearly 3 in 4 customers said daily specials, discounts or value promotions are important when choosing where to dine or order takeout, according to the National Restaurant Association’s annual State of the Restaurant Industry report.
“[Consumers] “They’re looking for both value and quality. That’s very, very important,” Panera CEO Paul Carbone told CNBC.
Starting Wednesday, Panera customers will be able to choose soup cups along with halved sandwiches and salads from the Mix & Match menu. Each of the 10 products costs $4.99 and customers must purchase at least two items. Seasonal menu items will also rotate through Mix and Match options.
Each order also comes with a choice of baguette, chips or apple.
Carbone said Panera is exploring other value propositions, but the Mix and Match menu has been tested successfully.
“The guest responded really well to it,” he said, adding that the menu is expected to bring more visits to the restaurant.
While Panera is promoting the deal, its popular “Pick Two” offer remains.
Carbone said customer research shows that customers view the option of purchasing two entrees from the menu as an opportunity for variety rather than a chance to save money. Like Mix & Match, this offering allows customers to choose half a salad, half a sandwich or a cup of soup or macaroni and cheese. But instead of being limited to just 10 items, You Pick Two covers the menu.
