Panera Bread Unveils RISE Strategy to Reverse Slumping Sales and Win Back Customers
Text
Panera Bread CEO Paul Carbone is leading a strategic overhaul of the restaurant chain, reversing past cost-cutting decisions and prioritizing customer experience to address declining sales and foot traffic. The initiative, called RISE, focuses on refreshing menus, improving value perception, and enhancing in-store service, according to Carbone, who acknowledged past missteps that alienated customers.
Text
The RISE strategy, an acronym for “refresh the menu,” “ignite value,” “serve guests with excellence,” and “expand the network,” emerged after years of negative same-store sales trends. Carbone, who previously approved a 2024 decision to replace 100% romaine lettuce with a mix of romaine and iceberg in salads, now calls the move a mistake. “No one really likes iceberg lettuce,” he told Business Insider. “No one looks at that white salad and says, ‘Now that’s worth it.'” The change, reversed in June 2025, symbolizes a broader shift in Panera’s approach to balancing cost management with customer expectations.
Text
Customer complaints about food value and service quality have driven the RISE initiative. Panera’s latest menu updates, including shrimp-topped bowls, upgraded salads, and breakfast frittatas, aim to “remind customers why they fell in love with Panera in the first place,” as stated by the company. The chain also introduced fruit-forward beverages and a Carnitas Elote bowl, emphasizing fresh ingredients and variety. These changes follow a year-long effort to identify pain points through customer feedback, according to Carbone.
Text
Panera’s traffic decline underscores the urgency of the turnaround. Foot traffic at the chain has fallen year over year for each month from January through May 2026, according to Placer.ai data. R.J. Hottovy, head of analytical research at Placer.ai, noted that sandwich chains like Panera face particular challenges as consumers prioritize health and affordability. “Sandwich chains in particular have seen fewer visits than other concepts as consumers push back on menu price increases and embrace healthier eating habits,” Hottovy said.
Text
The RISE strategy also addresses operational changes that may have eroded customer loyalty. Carbone acknowledged that Panera cut labor at cafés to reduce costs, a move that affected service quality. The chain has since reintroduced roles like the “Guest Experience Champion,” tasked with greeting customers and maintaining dining rooms. Additionally, Panera is redefining its relationship with technology. “We’re not a technology company,” Carbone emphasized. “We’re a restaurant company that uses technology to enhance the guest experience.”
Text
Despite the focus on in-store service, digital ordering and kiosks remain integral to Panera’s operations. Carbone noted that about a quarter of sales now occur in cafés, while two-thirds involve customers picking up orders or dining in. This hybrid model highlights the importance of optimizing both physical and digital touchpoints. “The in-store experience still matters,” he said, adding that the chain’s priorities are now “transactions, sales, profits — in that order.”
Text
Panera’s challenges reflect broader trends in the restaurant industry. Diners are increasingly segmented by income, with lower-income consumers cutting back on dining out while wealthier households maintain spending. To counter this, chains are experimenting with discounts and limited-time offers, though analysts caution that “value alone is not always enough to bring customers back,” as reported by Business Insider. Panera’s RISE strategy seeks to differentiate itself by combining menu innovation with improved service, rather than relying on price cuts.
Text
The CEO’s personal reflection on past decisions adds a human element to the strategy. Carbone admitted that his earlier focus on spreadsheet-driven cost savings overlooked customer sentiment. “Years of small cost-cutting moves… chipped away at the experience customers remembered loving,” he said. This acknowledgment aligns with Panera’s broader effort to rebuild trust, as the chain competes with fast-casual rivals like Chipotle and Sweetgreen.
Text
Industry observers are watching whether RISE can reverse Panera’s trajectory. The chain’s success will depend on its ability to balance affordability with quality, a challenge shared by many in the sector. For now, Carbone’s emphasis on “transactions” as the “lifeblood of a restaurant company” signals a return to fundamentals. “Getting more customers through the door again will take something simpler: giving them a reason to come back,” he said.
Quoted text
“No one really likes iceberg lettuce,” Carbone told Business Insider. “No one looks at that white salad and says, ‘Now that’s worth it.'”
Source
Business Insider
Quoted text
“The lifeblood of a restaurant company is transactions,” Carbone said. “So that’s where we started to develop Panera RISE.”
Source
Business Insider
Quoted text
“We’re not a technology company,” Carbone emphasized. “We’re a restaurant company that uses technology to enhance the guest experience.”
Source
Business Insider
Quoted text
“Sandwich chains in particular have seen fewer visits than other concepts as consumers push back on menu price increases and embrace healthier eating habits,” Hottovy said.
Source
Placer.ai
Quoted text
“Value alone is not always enough to bring customers back,” as reported by Business Insider.
Source
Business Insider