Panera Bread will close its remaining Fresh Dough Facilities, which produce bread dough for its restaurants, according to news reports, which the company confirmed in a statement emailed to Restaurant Dive. Restaurant Business reported the closures would impact nine FDFs and happen over the next 24 months.
The company said in an email to Restaurant Dive that shuttering the facilities and sourcing the bread from “expert artisan bakery producers,” would “ensure quality, while allowing us to expand innovation and variety.” Panera has been slowly shuttering its FDFs over the last two years.
Panera did not immediately respond to a request to clarify what firms will prepare dough or how ending in-house production of key ingredients would speed up innovation, increase variety or improve quality.
Last month, the brand hired Paul Carbone, previously its CFO, as permanent CEO and tasked him with overseeing a multi-year turnaround plan.
Under the new model, third-party facilities will make Panera’s bread using its recipes and ingredients. The new model should allow the brand to bake bread throughout the day using par-baked dough, instead of baking fresh dough at cafes in the morning. The brand said its food quality and standards were not changing.
Panera did not clarify how many workers would be laid off as a result of the facility closures, but said “we deeply value our team members and are committed to supporting them through this transition with resources, career opportunities and guidance.”
While other fast casual brands have done well in recent years, Panera has not, despite significant menu updates. Data compiled by Circana estimated the brand’s consumer spending dropped 12% in 2024. The chain faced a cybersecurity breach last year that resulted in a class action lawsuit.
