at Panera. - Menus of Change

Panera’s Journey:
What We’ve Learned about Helping to
Fix Our Food System
Ron Shaich
Menus of Change │ June, 17 2015
Opening Keynote Presentation
Panera Today
• Nearly 2,000 BakeryCafes
• 45 States & Canada
• 10M Customers/Week
• 80,000 Employees
• $4.5B System Sales
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Panera’s stock performance has
led the industry the last 15 years.
PNRA
BWLD
CMG
SBUX
DRI
EAT
S&P
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Why has Panera succeeded?
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Panera has a history of
making a difference in the
lives of its guests.
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Making a Difference in the Community
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Engaging Environments
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Associates with Self-Respect
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Food You Respect
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We’ve been on a journey to
offer “better for you food”
for almost two decades.
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Eleven years ago, we went in
search of antibiotic-free chicken.
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People said we were crazy because it
would cost significantly more money.
They were right.
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Yet guests supported our ABFchicken initiative with their wallets.
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Success bred followers.
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Costs came down.
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Today, the largest companies in the industry
have come to realize ABF chicken is the ante.
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Along the way, we came to
understand the degree to which
our food system is not fully
serving us.
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One in four American children are
living in households without
enough food.
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And America is unquestionably getting
sicker.
Obesity (BMI ≥30 kg/m2)
1994
No Data
2010
2000
<14.0%
14.0-17.9%
18.0-21.9%
22.0-25.9%
Diabetes
1994
No Data
2010
2000
<4.5%
4.5-5.9%
6.0-7.4%
>26.0%
7.5-8.9%
>9.0%
CDC’s Division of Diabetes Translation. National Diabetes Surveillance System available at http://www.cdc.gov/diabetes/statistics
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And for the first time in our history,
our children are expected to live
shorter lives than us.
As a parent of two, I am humbled by
these statistics.
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Many people recognize our heavily
processed, standard diet is part of
the problem.
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Yet consumers find themselves overwhelmed with
information and increasingly conflicted about what
they should eat, versus what they want to eat.
Robert Lustig, M.D.
Still Believe 'A Calorie Is a Calorie'?
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Certainly, no one can deny that we
are at a point in time when our
relationship with food needs to be
addressed.
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And as a leader of an organization that
feeds 10 million Americans each week, I
want Panera to be part of the solution, not
part of the problem.
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That understanding, and our success
with ABF chicken, energized us to
tackle other initiatives.
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Over time we expanded the range of our
ABF proteins.
Now, we offer:
• ABF Roasted Turkey
• ABF Ham
• ABF Breakfast Sausage
• ABF Bacon
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In 2007, we voluntarily removed non-naturally
occurring trans fats from our food.
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Now, the food industry must
comply with a new federal ban
on trans fats.
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In 2010, we voluntarily posted
calories on our menus nationwide.
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All restaurant chains with 20 or more
locations will be required to post
calories by Dec. 1, 2015.
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In 2010, we developed an innovative
approach to food insecurity.
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Today, we have four Panera Cares
cafes open and will feed upwards
of 1 million people through them.
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Something else important
happened along the way….
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Fixing our food system
became personal.
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I have been on my own food
journey.
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More importantly my children eat at
Panera 5 to 10 times a week.
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My question to everyone in our industry is this:
Do we not want to feed our guests the same
food we want for ourselves and our children?
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In 2014, we announced our food policy.
We shared publicly what we had
always believed “food should be”:
• Food should be clean
• Menus should be transparent with
real nutritional options
• Food should be good and “good
for you”
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Last month, we shared the changes we
were making to ensure guests would
receive “clean food” at Panera.
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Clean Food at Panera begins with our
“No No” list:
• NO artificial colors
• NO artificial flavors
• NO artificial preservatives
• NO artificial sweeteners
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To develop our “No No” List, we
consulted experts from….
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So, why is a “No No” List a positive
addition to Panera?
• It’s a transparent, comprehensive “line
in the sand” commitment that you can
trust the food you eat at Panera.
• Indeed, it’s our promise that you can
be confident in your choice of Panera.
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Simply put, all reasonable observers
agree….
• Simple and less-processed foods are
better.
• A pantry as close to the one you have
at home is a good thing.
• Clean tastes better.
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And yet here is the part of this journey that I find most
interesting… As soon as we announced our “No No” List,
many others in the industry followed.
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So, where does this journey take
Panera in the future?
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We believe the consumer continues to
evolve and will reward those in the
industry who offer food that is both good
and “good for you.”
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Panera will roll out new products
with an eye toward nutrition.
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We believe Panera Bread must lead
the “good bread” movement in
America.
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Soon, all of our flatbreads will
feature 15 grams of whole grains.
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We believe our guests deserve real
dietary options and technology can
help us offer that to them.
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Panera will support our guests dietary
preferences with curated menus.
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For us, there has been much
learning on this journey.
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Here is what we have learned.
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If you can generate demand, leading-edge
retailers will evolve to meet it.
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As the marketplace evolves, the economics
will change, and this, in turn, will attract more
retailers and broaden adaptation.
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Here is my point….
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The marketplace may be the
best means to affect change.
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Celebrate and patronize those retailers
that seek to be part of the solution.
Ultimately, the marketplace will respond,
and you will have helped to bring about
the change you desire.
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Celebrate food and the joy of food.
It’s about what you should be eating, not
about what you shouldn’t be eating.
Indeed, it’s about food as part of a
positive lifestyle.
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Keep it personal — because it is.
It’s about our health, our children’s
health and the health of our country.
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