Panera has long offered guests the option of adding a bread bowl to soup. So the chain asked why not one for salads? Early this month, the company added the option for guests to make any salad into a sandwich through its latest menu innovation: Salad Stuffers.
Panera has been working on its new menu pipeline for over a year, and new products are an important element of its RISE transformation plan, which also includes a focus on value, improved hospitality and store growth. Panera is also in the process of testing its updated reward program, MyPanera 2.0, in multiple markets.
Menu innovation has become a key tenet of turnaround plans at other chains, including Wendy’s, Papa Johns and Noodles and Company, because it helps bring in new and lapsed guests.
Stuffers were identified early on in development as “an incredibly distinct Panera innovation, inspired by our iconic bread bowl,” Panera Chief Marketing Officer Mark Shambura said. Oftentimes customers already paired their salads with a free side of baguette, so marrying the two made sense.
Testing helped refine bread and value
Panera’s artisan baker team spent months testing at least 20 iterations of bread to create the proprietary Italian Stuffer Roll, he said.
“It had to be fluffy and soft inside, but it needed to have a slightly thin crunch on the inside,” Shambura said. “It had to… hold a very well-dressed salad that didn't make the salad go soggy.”
Panera tested the Italian Stuffer Roll in Norfolk, Virginia, and Charlotte, North Carolina, in October, Shambura said. These markets had a good balance of company- and franchised-owned stores. The media markets in those regions weren’t too expensive and allowed Panera to reach different audiences.
The pilot phase allowed the brand to gauge consumer interest and impact on operations. The chain wanted to make sure that the Stuffer would drive transactions and be a meaningful new product without creating additional operational complexity, he added.
“We saw incredible transaction growth, great feedback on the quality of the product, but importantly, on our associate side and our employee side, they are equally as excited about this product,” he said. Operators said Salad Stuffers were easy to execute and bring high quality innovation to the market, he added.
Stuffers add an extra element to customization, alongside Panera’s You Pick Two and Mix and Match Value menu. Customers can upgrade any salad to a Stuffer for $1.99, a similar upcharge for adding a bread bowl to soup, he said.
Priced between $8 to $13, Stuffers hit on several elements of the chain’s RISE transformation plan, including high-quality food products “anchored in moments of distinction … that deliver an incredible value to guests,” Shambura said.
The chain added two new salads to its menu as part of this launch. The new Steakhouse Salad is more on the premium side of the menu, while the new Santa Fe Chicken Salad is somewhat cheaper. The Chicken Caesar Salad Stuffer is on the low-priced end of the Stuffers but in the middle of the chain’s overall pricing barbell, he added.
“I think it was important to us that we're meeting guests where they are and providing meaningful opportunities within the menu,” Shambura said.
More menu innovation ahead
Stuffers aren’t the only new items Panera has brought to market this year. In March, it expanded its beverage menu with Energy Refreshers and two new frescas, which have so far exceeded national benchmarks, Shambura said.
“We’re highly encouraged about our push into beverage,” Shambura said. “Look for more beverage innovation coming later this year as we continue to expand our footprint in beverage. We think it’s a meaningful opportunity to drive in new guests.”
Panera has also dropped several new bakery items this year, including Asiago Croissant Twists, Little Lemon Bundt Cake and Dubai Style Chocolate Pistachio Cookies, he said, adding that the Asiago Croissant Twists have “performed really well.”
The brand also updated its value proposition with a Mix and Match menu that allows guests to pick at least two items out of a menu of roughly 10 for $4.99 each. That lineup incorporates some of the chain’s best performing dishes and distinct, signature items.
“We love the beauty of Mix and Match because it sits adjacent to the classic way that people experience our menu, which is You pick Two,” Schambura said. “People love to pair things together, and so the ability for customers to mix and match these specific items is perfectly complementary to You Pick Two, [and] provided a compelling value story against very high quality products.”
