Panera Bread is a favorite of many from its delicious soups to freshly baked bread and cookies but, why is Panera Bread so expensive?
Panera Bread may be more expensive than a quick fast-food burger but, you are getting what you pay for. Panera used more expensive fresh higher-quality ingredients, bakes goods in-store on a daily basis, and pays its employees more among many other reasons.
Table of Contents
Why Is Panera Bread So Expensive
Panera Bread is more expensive when compared to fast-food restaurants but, not more expensive than many fast-casual and sit-down restaurants that they are often compared.
There are various reasons why Panera Bread has set their prices as they have, from using fresh ingredients to high packaging costs.
13 Reasons Why Panera Bread Is Expensive
There are a variety of reasons why Panera Bread is more expensive than other restaurants.
- Panera uses high-quality/less processed ingredients
- Fresh produce is always needed in stock
- Panera Bread has a lot of waste
- They change their menu often
- Panera Bread is a very popular and competitive restaurant
- The food packaging at Panera Bread is expensive
- Panera pays its employees more than other restaurants
- Opening a Panera Bread franchise is expensive
- Prime locations mean high rents
- Panera Bread spends a lot of money on marketing
- Panera Bread branding is expensive
- Panera offers its own private-label products
- Panera Bread manages their own in-house deliveries
Is Panera Bread Fast Food (Explained)
Panera Bread Uses High-Quality Ingredients
Panera Bread prides itself on offering its customers higher quality, less processed, and healthier meals.
Higher quality ingredients often come with a higher price tag to purchase for the restaurant which then gets passed on to the customer.
Even if the higher quality product doesn’t cost more for the vendor “healthy food” is perceived as more expensive and customers are willing to pay more for food that is healthy.
Panera Bread Uses Fresh Produce
Fresh produce is often more expensive when compared to frozen previously prepared foods.
Panera Bread includes an abundance of fresh produce in its menu options making it more expensive for Panera to maintain and stock.
These costs are passed on to the customers to ensure a profitable business.
What Kind Of Apples Are At Panera Bread (Quick Facts)
Panera Bread Has A Lot Of Waste
Beyond just stocking and painting a large variety of perishable produce, Panera Bread is a bakery.
Bakeries often have a lot of waste because it can be hard to determine what will be sold during the day.
Due to the very short shelf life of baked goods what isn’t sold at the end of the day will be wasted.
Why Is Panera Bread So Hard (Quick Facts)
Panera Bread Changes Their Menu Often
Panera Bread is often refreshing its menu offering a variety of seasonal and new products for its customers.
Adding new menu items is expensive to do.
Panera needs a team to develop, test, implement and advertise these new products.
How Big Is A Bowl Of Soup At Panera Bread
Panera Bread Is A Popular Restaurant
Panera Bread is extremely popular and is often compared to more expensive sit-down restaurant chains.
Often the customer base that enjoys Panera Bread has higher income levels than the average fast food customer.
Those with higher incomes are more accepting of paying higher prices.
The popularity allows Panera to charge more for its food if they so desire.
Panera Bread Food Packaging Is Expensive
The food packaging at Panera Bread is beautifully branded and perfect for the wide variety of foods that they off but, but it is very costly.
When I place a to got order I often end up with a large brown bag, soup holder, soup bowls and lids, salad bowls, bakery container, and bread sleeve.
Panera Bread Cup Sizes (Explained)
Panera Bread Pays Its Employees More Compared To Fast Food Restaurants
Panera Bread is a “higher end” brand and restaurant when compared to a traditional fast food restaurant like McDonald’s or Burger King.
Panera can attract higher qualified employees and will pay them more in order to offer customers a better experience overall.
Panera Bread also requires a variety of employees with various skills like cashiers, bakers, and line cooks.
Opening A Panera Bread Franchise Is Expensive
Opening a Panera Bread franchise is very expensive although those that wish to open a restaurant must already be wealthy with a net worth of over 7 million.
The cash investment is between 1.5 and 3.5 million to open a Panera Bread.
These investors are savvy business people and will want to make money on their investments.
Panera Bread Locations Require High Rent
Panera Bread is always located in an ideal location for its customers.
These prime locations do come with high price tags on a monthly basis that will need to be paid.
Panera Bread Spends A Lot On Marketing
Panera Bread has a large marketing budget that is used to keep them in the limelight.
Between updating their menu often and needing to market those items to make sure they always have a presence, marketing for Panera is a priority and is expensive.
Panera Bread Branding Is Expensive
Panera Bread has fantastic branding that we can all recognize, branding at this level does come with a lot of expense.
Panera prides itself on offering customers the perfect environment to get cozy and enjoy a meal.
Panera Bread Offers Private Label Products
You may have noticed that your local grocery store has Panera Bread soups and salad dressings.
It’s wonderful to be able to grab your favorite Panera products at the grocery store but, developing, implementing, and marketing these products is costly.
Panera Bread Manages Its In-House Deliveries
Panera Bread offers its own delivery service which comes with wonderful service but, it is more expensive to maintain.
Is Panera Bread Overpriced
In comparison to what you will pay are other fast food or fast-casual restaurants, I don’t feel as if Panera Bread is overpriced.
At this point, food is expensive overall and if we are purchasing food at a restaurant that is being prepared for us by someone else and is requiring a restaurant to maintain its business, employees, and inventory we should expect to pay more.
Final Thoughts
Panera Bread is a favorite in our household, there is something for everyone including sweets treats.
There are various reasons why someone may feel as if Panera Bread is expensive.
From the high-quality ingredients, freshly baked bread, comforting ambiance, and perfectly packaged meals to go.
Panera Bread is more expensive than some fast food restaurants but, you are getting what you pay for.