Newsletter Pro - November 2021

Why Is Panera Bread So Good at Branding?

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Their Pandemic Strategy and 2021 Upgrade

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Second, Panera began to try new things that no other chain had. Most brands wouldn’t dare attempt a brand extension during COVID-19, but Panera launched Panera Grocery in April 2020 so people ordering delivery could also order basics like fresh milk, bread, pasta, and more. During a time when grocery stores were constantly sold out, the service helped many people.

From the industry-wide hiring scarcity to the supply chain breakdown, running a restaurant during COVID-19 hasn’t been easy. However, despite the odds stacked against it, Panera Bread, the bakery-cafe chain, has been a category leader during the pandemic. Here’s how its quick decision-making has made a difference. Quick Delivery and Even Quicker Strategies Panera’s quick but fresh food isn’t the only thing great about it — its business also thinks and acts fast. When the pandemic broke out, the corporation responded within a couple weeks with a strategy. First, it knew to take care of its employees. Panera offered its teams nationwide multiple perks, including two weeks of paid sick leave, free family meals once a week, an Emergency Relief Fund, and a hiring partnership with CVS and Walmart for over 35,000 furloughed Panera workers. Staff were also given access to Oprah Winfrey’s virtual wellness program to encourage mental and physical wellness.

Last but certainly not least, Panera also launched its now-famous $8.99 coffee subscription in February 2020. Despite coffee sales accounting for only 3% of Panera’s total revenue up until that point, affordable coffee is enough to bring in more customers all day long, even during the pandemic. Panera’s New Feat: Upgrading in Style Panera has recently announced it is redesigning its restaurants to inject “a little more character” into both its restaurants and digital experiences. “We are offering the best of both worlds with convenience via off-premise and digital channels while doubling down on dine-in,” says Eduardo Luz, chief brand and concept officer. The Next-Gen café will move bakery ovens to the front, allowing customers to get a full view and even chat with Panera bakers. They’ll also be able to see and smell the trademark bread just as it comes out of the oven. Of course, not all customers order inside the store nowadays — during the pandemic, over 85% of sales were made off-premise. That also brought a lot of new customers to the brand. To serve them as effectively as possible, the café adds a double drive-thru lane, with one lane just for picking up digital orders. “As states begin to open up, we are seeing those new customers stick with us via off-premise while existing Panera guests return to dine-in,” Luz says. “The Next-Gen café redesign allows us to meet the needs of all our guests with a warm dine-in environment, an enhanced digital experience, and more drive- through access for an increasingly off-premise world.” The Next-Gen drive-thru menu is fully digitized and identifies MyPanera Loyalty members, recalling past orders and birthdays, and it makes unique offers based on order history. Combining its loyalty program and personalization is intended to make the experience “uniquely Panera.” The very first Next-Gen café is opening this year in Ballwin, Missouri, and going forward, all new restaurants and remodels will follow the same design. Overall, Panera’s ability to brand itself ahead of the curve has been constantly impressive — and as much as we love the food, we’re even more excited to see what the company has coming in 2022. It’s certainly taught everyone to look forward to what Panera will do next.

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