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Panera Targets The Employed And Keeps Prices High

Other chain restaurants may be offering value meals and free eats for kiddies, as we re-reported yesterday, but Panera wants to have its bread and have its customers pay a premium, too. Julie Jargon says that Panera has been bucking conventional industry wisdom during the economic drought by testing such gilded-age delicacies as a $16.99 lobster sandwich in 50 New England outlets.

If the lobster flies, the $8.50 that the average Panera customer spends for lunch is sure to go up. Panera CEO Ron Shaich says that the 1,400-outlet chain has been focused on improving the quality of its food for the overwhelming majority of Americans who are still employed.

"Every chain is cutting something -- portion size, quality, hours of labor," says Shaich. "The result is that ultimately the customer feels it."

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