Panera Bread has the phrase “bread” proper in its title and the chain’s fresh-baked bagels, sandwich bread, baguettes, and different breads have at all times been a calling card for the chain.
The chain, in truth, was constructed round recent bread and it nonetheless touts that within the historical past part on its web site.
Panera started in 1987 as St. Louis Bread Firm, a humble group bakery based with a sourdough starter from San Francisco and a dream of placing a loaf of bread in each arm. Whereas our enterprise has expanded properly past St. Louis since then, that very same sourdough starter continues to be utilized in our iconic sourdough bread and the craft of baking bread recent every day stays on the coronary heart of Panera Bread. Every day our educated bakers fill our bakery cabinets with scrumptious freshly baked cookies, pastries, bagels, and a variety of breads from focaccia to traditional baguettes.
Panera, which is now owned by personal firm JAB Holding, has been in a multi-year technique of closing its recent bread baking services. The chain will start closing its remaining recent dough services over the subsequent 18 months to 2 years, finishing a transition that began greater than a 12 months in the past.
Panera stops baking recent bread
For many years, Panera has used its recent dough bakeries to provide the dough used for bread, bagels, and pastries every single day in all Panera bakery-cafes nationally. The chain, nonetheless, has been slowly closing these areas and is switching to a par-baked mannequin the place merchandise arrive half-baked and are completed on-site in ovens.
Panera’s Chief Company Affairs Officer, Brooke Buchanan instructed Nation’s Restaurant Information that the shift will streamline operations and guarantee constant, out there merchandise because the model accelerates development beneath a three-year transformation plan.
“Our bread is our celebrity and the homage to our model. We needed to make it possible for the product in retailer was high quality, utilizing one of the best components based mostly on our recipes.…The toughest factor for our workforce members is to say, ‘No, we’re out of that product,” she said.
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So, basically Panera is sacrificing fresh-based bread, which might sell out, for par-baked products which are easier to keep in stock.
“It is one other story about nostalgia as a result of the model itself is predicated on that nostalgia feeling that they make their very own bread. And I do get the concept that being extra environment friendly will help maintain jobs and revenue, however will it nonetheless retain that emotional part of that feeling of that bread for individuals who love the model,” shared RTMNexus CEO Dominick Miserandino instructed TheStreet.
Bread and bagels are Panera’s core product providing.
Picture supply: Shutterstock
Panera recent dough facility closures FAQ
- Why is Panera closing its Contemporary Dough Amenities?: Panera is shifting away from its decades-old mannequin of constructing dough from scratch in centralized “Fresh Dough Facilities” (FDFs). The corporate says that is half of a bigger transformation plan to enhance consistency, broaden extra simply into new areas, and make bakery objects out there all through the day.
- What’s going to exchange the Contemporary Dough Amenities?: As a substitute of scratch dough from FDFs, Panera will transfer to a par-baked mannequin:
- Dough/bread merchandise will probably be partially baked offsite by associate artisan bakeries utilizing Panera’s recipes and components.
- These par-baked objects will then be shipped frozen to Panera cafés.
- In cafés, workers will end the baking so clients nonetheless get fresh-baked bread, bagels, and pastries (type of)
- Will the bread nonetheless style the identical?: Panera says sure. They emphasize that the recipes, components, and high quality requirements stay the identical.
- What’s going to exchange the Contemporary Dough Amenities?: Baking Enterprise shared extra information on how the method works:
Beneath the prevailing mannequin, dough is combined and formed at a commissary after which delivered to cafes, the place it’s reshaped and baked. The on-demand mannequin enlists third-party artisan bakers that — utilizing Panera recipes and components — par-bake and freeze bread for cargo to Panera areas, the place the baking is accomplished as wanted.
Panera has additionally closed shops
Earlier this 12 months, Panera Bread misplaced 15 areas when franchise operator EYM Cafe filed for Chapter 11 Chapter safety. On the time of the submitting, the corporate reported $0-$50,000 in belongings and $1 million to $10 million in liabilities.
“The company is facing substantial tax liabilities, including $550,000 owed to the Internal Revenue Service and over $354,714 in 941 tax obligations. Additionally, the company owes $124,186 to the Texas Comptroller of Public Accounts. The filing shows numerous landlord creditors for different store locations, suggesting the company has been struggling with lease obligations across its restaurant portfolio,” RK Consulting reported.
Previous to the August Chapter 11 submitting, Panera Bread had sued its franchise operator accusing it of repeatedly breaching its franchise agreements by failing to make required funds, preserve meals security requirements, and pay distributors and landlords.
The swimsuit says Panera Bread terminated franchise rights at a number of Houston-area areas earlier this 12 months, however claims the franchisee continued to function the areas, CoveringKaty reported.
The chain has additionally had choose closures for lease-related points and, in some instances, low gross sales.
Panera closures in 2024 and 2025
Standalone Panera closures
- Port Orange, FL: Closed August 2025 as a result of low gross sales and native competitors.
- Beaumont, TX: Closed August 2025 after 15 years.
- Danbury, CT: Panera relocated to a brand new drive-thru location in January 2025; former area now occupied by Petco.
Contemporary Dough Facility (FDF) Closures
- Edison, NJ: Closed in 2025 as a part of Panera’s transition to a par-baked mannequin.
- St. Louis, MO: Closed September 12, 2025; 72 staff impacted. Newsweek
- California, North Carolina, Kansas : A number of FDFs closed in early 2025.
Associated: Restaurant chain closed 50% of areas in Chapter 11 chapter
