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David Perry

Panera playbook offers business-boosting clues

Want to make more “dough” with your bedding store? Try the playbook of Panera Bread Co. Yes, the restaurant and bakery chain, which sells plenty of bread, is also making plenty of money in the process. A flattering story on Panera in my favorite weekly business magazine (that would be BusinessWeek) offers our industry some “food for thought,” as it were.

First, a few interesting facts. Panera is outpacing its fast-food rivals with a formula that stresses healthy — and pricey — alternatives for lunch. The average ticket for a fast-food lunch is $4.55, the BusinessWeek story said. Panera soars above that at a hefty $8.51. High tickets like that help Panera generate annual sales per store of $1.85 million. McDonald’s, by contrast, is at $1.79 million, while Denny’s is at $1.42 million.

Those are per-store sales figures that most bedding retailers can only dream about. If you want to live the dream, try these strategies, courtesy of Panera:

Sell the importance of health. No, you aren’t selling mattresses. Get that idea out of your system right now. You are actually selling better health. Panera sells some fattening breads and pastries, but they are baked fresh, and they contain no unhealthy trans fats. Two years ago, the chain switched to chickens free of hormones and antibiotics. Customers paid the higher prices.

Look for new markets. Panera has expanded beyond the typical lunch crowd with some savvy moves in the morning and the afternoons. The chain has always offered mouth-watering options for breakfast, but now soufflés have joined the mix, BusinessWeek said. The chain is targeting the dinner market with flatbread pizza. Lesson: If you want to prevent competitors from eating your lunch, try serving breakfast and dinner!

Sell quality. Yes, Panera sells at higher prices, but consumers believe the quality is worth it. BusinessWeek said the chain gets top marks for quality, cleanliness and order accuracy, which happen to be key reasons why consumers choose restaurants. It’s never a bad idea to sell quality goods.

Improve the retail experience. Panera eschews plastic utensils for stainless steel. Disposable cups are replaced with china. Floors are carpeted and tables and chairs are made of wood. All of that makes for a more comfortable, home-like feel in its restaurants. It’s a good thing to make your customers comfortable.

Be nimble. When Americans were embracing low-carb diets, Panera stressed salads and whole-grain breads. How quickly can you change your promotional strategies?

Serve better bread. Man cannot live by bread alone, but man always appreciates a good slice. What’s in your café? Why don’t you wow your consumers with truly tasty sandwiches? Hey, it’s working for Panera.