Panera Bread on Tuesday said it would lay off an unspecified number of workers at the bakery-cafe chain's support centers in St. Louis and Newton, Massachusetts.
Panera CEO José Dueñas sent a memo to the fast-casual’s chain’s support center and management staff describing the layoffs as part of the next step in an ongoing strategic transformation, according to sources familiar with the move. Restaurant Business obtained a copy of the memo.
Dueñas said in the memo that the company’s support centers would be reshaped, including reducing and reassigning some roles, in an effort to streamline operations. He did not say how many positions might be impacted, but they included staffers at both the St. Louis and Newton offices.
“As we evolve and grow, so must our ways of working,” Dueñas wrote. “We need to be simpler, nimbler, and faster than ever before, operating with even more efficiency, and empowering our teams to win. We must change how we operate to remove silos and simplify leadership reporting lines to make faster decisions and drive more consistent execution.
“And finally, we must ensure our corporate teams are closer to our cafes, and well positioned to support and empower our General Managers, who are at the heart of our culture,” the memo said.
Those impacted by the cuts were to be notified directly on Tuesday, and will be offered a comprehensive package that includes severance pay, healthcare support and other benefits. The cuts did not impact workers in the cafes or in franchised units.
Panera has been working on a restructuring plan that goes back to May 2023, when the leadership team was reworked in what was described at the time as preparation for an initial public offering—though the IPO has yet to happen. The bakery-café chain was acquired by European investment firm JAB Holding Co. in 2017. JAB joined Panera with Einstein Bagels and Caribou Coffee under the Panera Brands umbrella.
Earlier this year, Panera rolled out a comprehensive menu overhaul designed to streamline and simplify café operations. The new menu, which has continued to take shape, puts the focus back on core offerings of sandwiches, soups, salads and mac and cheese.
The chain has also been testing the use of third-party bakeries and shipping par-baked dough, rather than proofing and baking bread in all units. At least two fresh dough manufacturing facilities were closed earlier this year. Panera COO Debbie Roberts said those facilities were underperforming.
Another dough facility in Atlanta is scheduled to close Nov. 15, which is expected to result in the layoff of 86 workers there, according to a Worker Adjustment and Retraining Notification, or WARN, notice filed by the company last month with the Georgia Department of Labor.
In his memo, Dueñas said the strategic plan is designed to set the 2,182-unit Panera up for long-term growth.
“We have already made significant progress on our transformation strategy by simplifying our operating model and delivering an improved guest experience,” he wrote. “We have seen positive results from our efforts with a more craveable menu, industry-leading retention rates in our cafes, and faster, more accurate guest service—which has generated some of the highest guest satisfaction scores in our history.”
Panera declined to comment on the memo or offer more details.
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