Showing posts with label Panera Bread. Show all posts
Showing posts with label Panera Bread. Show all posts

Thursday, February 21, 2013

Secret Menus Give Restaurants A Not-So-Secret Boost

In-N-Out Burger has long been known for it's secret menu, featuring options such as animal-style fries, 3x3 burgers, and Neapolitan milkshakes. Enlarge image i

In-N-Out Burger has long been known for it's secret menu, featuring options such as animal-style fries, 3x3 burgers, and Neapolitan milkshakes.

In-N-Out Burger has long been known for it's secret menu, featuring options such as animal-style fries, 3x3 burgers, and Neapolitan milkshakes.

In-N-Out Burger has long been known for it's secret menu, featuring options such as animal-style fries, 3x3 burgers, and Neapolitan milkshakes.

When you're trying to decide where to eat, knowing what's on the menu is important. But for restaurants trying to bring customers through the door, what's not on the menu is just as important.

Secret menus aren't new. In-N-Out Burger has had one for years. But experts say that more companies are now adding secret menu items, and they're even catching on overseas in places like the United Kingdom and Singapore.

Especially in this economy, restaurants want to set themselves apart. And in order to do so, they have to connect with customers.

"If you have a secret menu or if customers know the secret menu, they feel like they're insiders," says Bret Thorn, senior food editor of Nation's Restaurant News, a trade publication. "They feel kind of a personal connection to the restaurant; they feel they know something that maybe not everybody else does. And everyone loves that."

Nowadays, secret menus pretty much have the same items you'd find on a regular menu, just mixed up in a different way. But the menus make people feel like they're in on something. It's like they've become restaurant insiders, or like they've cracked some big code.

The latest player to jump into the secret menu game is Panera Bread. Last month, the company rolled out six new items.

One thing you won't see on Panera Bread's secret menu? Bread.

As Scott Davis, who oversees menus for Panera Bread, explains, "This is probably the most extreme anti-kind of Panera diet you can have, right? It doesn't include bread and flour and that sort of stuff."

Davis says that the company had been missing out on a whole group of diners: diabetics and people who were cutting carbs or avoiding gluten. This menu lets the company tap into that growing health-conscious market.

"If someone never considered Panera before because the name 'bread' is in it ... this is a way of opening that door," says Davis.

So at its 1,800 stores around the country, Panera trained its employees to either pull out the secret menu card or scan a code that'll put the menu on a customer's mobile device.

But only if someone asks for it.

Davis says the reason they're doing it this way is because it saves money. According to him, "It's a lot easier to execute, not having to go through the printing of all the collateral materials, and ultimately cluttering up the cafe with too many messages."

There are no brochures or huge ad campaigns. And because it's a pretty low-risk experiment, it's no big deal if Panera decides later that it doesn't want to make these items anymore.

Panera is getting the word out through its customer loyalty program and through social media sites like Facebook and Twitter. It's not uncommon for restaurants launching secret menus to use word of mouth in this way.

But that doesn't always cut it. I found that out when I went through two different McDonald's drive-throughs recently looking for a Monster Mac that's a Big Mac with eight patties and left empty-handed.

Oh well. I'm probably better off without it anyway.


Friday, September 7, 2012

Panera Sandwich Chain Explores 'Pay What You Want' Concept

This Panera Cares store in Chicago switched from for-profit to nonprofit this summer, and it started asking customers to pay whatever they want.

This Panera Cares store in Chicago switched from for-profit to nonprofit this summer, and it started asking customers to pay whatever they want.

This Panera Cares store in Chicago switched from for-profit to nonprofit this summer, and it started asking customers to pay whatever they want.

The concept of "pay what you want" for goods and services is a nostalgic throwback to the days when people trusted one another just a little bit more, and it's something you expect to see at the occasional farm stand or at a hip, independent coffee shop.

But recently, the sandwich and coffee giant Panera decided to get into the business with Panera Cares, a nonprofit version of the national chain. The company takes existing stores and donates the entire setup to the foundation. The money the store makes pays for the operations. Any additional profits go to local charities.

"They feel like every other Panera Cafe in America; they don't feel the least bit different," says Ron Shaich, co-founder and co-CEO of Panera Bread Co. Well, there is one difference customers will see: There's a donation box where the cash registers were.

Shaich is also president of the Panera Foundation, which runs the Panera Cares that recently replaced the Panera that had been a fixture of the Lakeview area of Chicago. He sees the cafes as a way for the company to help the community and raise awareness about middle-class food insecurity.

Lakeview is the fourth Panera Cares in the country, and Chicago is its biggest market yet. Panera does not track the numbers exactly, but it says roughly 20 percent of Panera Cares customers give more than they're asked. An additional 60 percent donate the suggested amount. The rest pay less or nothing.

While some customers were a bit confused by the donation boxes when earlier stores opened a couple of years ago, Chicago resident Laura Lamar says when the Lakeside Panera became a Panera Cares, it didn't really change her routine: Her coffee used to cost $1.79 a cup. Now, she just gives them $2, and tells them to keep the change.

"It's just, what, 21 cents," Lamar says. "It's not going to make a difference in my life, but it might help somebody else, and if everybody just gave an extra quarter or 50 cents it would make a difference."

But does it make sense for a business?

Robert Gertner, deputy dean of the University of Chicago's Booth School of Business, says it's a fairly unusual model for a for-profit company. "It's very rare where you see companies where their charitable activities are a nonprofit version, if you like, of what they do," he says.

Gertner says it's hard to replicate this model well. He points to Ben & Jerry's, which has had a similar effort for decades. The ice cream company created "partner shops" where they waived the franchise fee, which was then run by local nonprofits.

The results, he says, were mixed, but in the long run, it did not really work out: Ben & Jerry's at one time had more than a dozen partner shops. Today, it has only three.

"I think it's something of a challenge to make it work well," Gertner says. "We'll see if it works well for Panera Cares."

Gertner thinks Panera has a chance. The nonprofit stores may even inspire more loyalty from customers and employees, who feel like they're making a difference. He says people are always more likely to give toward an immediate, easy-to-understand need like providing a meal, rather than for something abstract.

So far, Panera says this cafe, like the other locations, is paying for itself.


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