Panera Bread to Close Fresh Dough Facilities in Major Shift

Panera Bread is set to undergo a significant transformation by ending its long-standing scratch baking operations. The fast-casual restaurant chain will close all remaining fresh dough facilities within the next 18 to 24 months. This change signifies a shift to a par-baked model, where bakery items will arrive partially baked from external suppliers and be finished in-store. The decision concludes a year-long transition away from the company’s traditional fresh dough production.

According to National Restaurant News, this overhaul aims to ensure that baked goods are consistently available throughout the day. Brooke Buchanan, Panera’s Chief Corporate Affairs Officer, highlighted the importance of customer satisfaction, stating, “The hardest thing for our team members is to say, ‘No, we’re out of that product.’” She emphasized that with the new model, customers visiting a bakery-café at 16:00 should be able to find products like the popular Asiago bagel readily available.

Since early 2024, Panera has closed at least eight fresh dough facilities, reducing the number from 24 in 2016 to just nine currently operational sites. This move is part of a comprehensive three-year transformation plan designed to streamline operations while maintaining high product quality. The new par-baked model is expected to facilitate expansion into areas that were previously inaccessible due to the limited reach of delivery trucks from fresh dough facilities.

Buchanan noted, “This new model allows us to develop more stores and grow throughout the United States in cities and towns that we couldn’t expand to previously.” The company aims to enhance its presence in markets that had been out of reach due to logistical constraints.

To mitigate the impact of facility closures on employees, Panera has committed to offering jobs at bakery-cafés or providing support through company-hosted job fairs. Buchanan reassured customers that the quality of the products will remain unchanged, stating, “It’s taken us so long to get to this point because we want to ensure that we have that same high quality and delicious bread with our amazing ingredients.” She affirmed that the bread available after the transition will match the taste and quality of that produced in fresh dough facilities.

While some analysts have speculated that this shift could pave the way for a public offering, Buchanan clarified that the company’s primary focus is on its turnaround efforts. “I think right now, we’re really focused on turning the business around,” she said, emphasizing the work that lies ahead for the organization.

As Panera Bread embarks on this transformative journey, customers and employees alike will be closely watching how these changes unfold and what they will mean for the future of the iconic bakery-café chain.