• Forbes, Friday, March 2, 2012 10:41 AM

Panera Bread has outperformed Starbucks, Nike and Nordstrom over the last 10 years. There are now 1,541 locations, half company-owned and half franchised, in 40 states and Canada, and it earned $139 million on revenues of $1.82 billion last year. Analysts expect continued and steady growth.

Said CEO Ronald Shaich, who bought the brand for $24 million in 1993, “Panera Bread has been successful by betting on food quality, design and people." It found a niche branding itself as something in between fast food and casual dining. Consumers seem willing to pay a few extra dollars for fresh-baked breads, higher-end ingredients and premium coffees, and feel they’re getting better food and a family-friendly environment.

Meanwhile, with large stores and an open layout designed with lounge areas and equipped with free WiFi, customers are encouraged to linger (and continue spending) and use Panera as a meeting space. Shaich says the food and in-store experience “grew out of a belief that, if given the choice, people would treat themselves better.”

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