A steak sandwich and French onion soup from Panera Bread Co. arranged in the Queens borough of New York, U.S., on Tuesday, December 12, 2023.
Bing Guan | Bloomberg | Getty Images
Panera Bread is entering the value war with its new “Mix & Match” offerings 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 turnaround, focusing on reinvesting in its business and reversing years of declining traffic. Once the leading fast-casual brand in the United States, Panera has fallen to third place, ceding the top spots to Chipotle Mexican Grill and Panda Express.
In 2024, Panera’s sales fell 5% to $6.1 billion, according to Technomic estimates.
A key part of Panera’s comeback strategy is a focus on value.
Across the restaurant industry, executives have reported a drop in spending by consumers, who are trying to save money by turning to fast food or dining out less often. Channels like McDonald’s and Taco Bell have relied on value offerings to try to win back their customers.
According to the National Restaurant Association’s annual State of the Restaurant Industry Report, about three in four diners said daily specials, discounts or promotions are important when choosing a place to dine or order takeout.
“[Consumers] “It’s so important.”
Starting Wednesday, Panera customers can choose halved portions of sandwiches and salads, as well as cups of soup, from the Mix & Match menu. Each of the 10 items costs $4.99 and diners must purchase at least two items. Seasonal menu items will also alternate via Mix & Match options.
Each order also comes with your choice of a baguette, chips or an apple.
Panera has explored other value offerings, but the Mix & Match menu has been tested successfully, Carbone said.
“The customer has responded really, really well,” he said, adding that the menu should generate additional visits to the restaurant.
And while Panera introduces the offer, its popular “You Pick Two” offer remains.
Carbone said customer research has shown that diners 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, the offer allows customers to choose half a salad, half a sandwich or a cup of soup or mac and cheese. However, You Pick Two expands on the menu, rather than being limited to just 10 items.