Panera’s Mix & Match menu brings a roughly $10 price point to those looking for value. | Photo courtesy of Panera Bread.
Panera Bread is jumping into the discount wars with its first-ever dedicated value menu, launching Wednesday.
The new Mix & Match menu is a twist on the existing (and ongoing) You Pick Two, in which guests can choose two half-portion options to pair as a bundled meal, with varying prices.
The Mix & Match menu includes 10 popular dishes across the soup, salad and sandwich categories that are $4.99 each for half portions—a price point that will be advertised nationally, though prices could vary at franchised locations. About half of the 2,250-unit chain’s restaurants are franchised.
The move is part of Panera’s ongoing transformation plan called Panera RISE, outlined last year by CEO Paul Carbone, which also includes menu upgrades, and efforts to improve service and the customer experience.
Carbone noted that Panera has been working on its menu for some time, but he said the chain hadn’t “cracked the nut” on it, as of last year. He believes the Mix & Match deal will do it.
“I really believe we’re redefining value with a deal that’s actually a meal with the launch of Mix & Match,” he said. “What I love about this is we’re offering our guests real value with a menu that’s made up of delicious, craveable, high-quality food—soup, salad, sandwiches—exactly what we’re known for across all three [categories]. They’re chef-crafted and they’re made with great ingredients.”
Among the Mix & Match offerings are some of the most popular dishes, like the Toasted Italiano (Carbone’s favorite), as well as the Fuji Apple Chicken salad, and the cream tomato soup. Guests can choose two to up to 10 half-portion dishes at the $4.99 price.
It’s a significant savings, compared with other items on the You Pick Two menu.
A half Italiano sandwich with a half Caesar salad on the Mix & Match menu would total about $10, for example, and it comes with the offer of a free apple, chips or slice of baguette as a side.
For comparison, a cup of creamy tomato soup ($6.99) and a half Toasted Italian ($9.49) on the You Pick Two menu at a unit in Los Angeles before the Mix & Match rollout would total about $16.48 (the deal also comes with a side apple or chips, or baguette).
Value menus are common in the quick-service segment, but less so at fast-casual chains, which traditionally rely on limited-time offers, bundled meals and buy one-get one deals as value plays.
McDonald’s, however, in the fourth quarter reported its best quarterly domestic same-store sales in two years earlier this month, which was attributed in part to its lower priced Extra Value Meals and McValue Menu.
Carbone described Panera’s menu positioning as a barbell strategy, with Mix & Match offering a lower entry point. This year, the chain also brought back two Asiago Bagel Stack breakfast sandwiches as permanent menu items at a $7.99 “everyday value” price, he said.
Other potential traffic drivers are coming.
Carbone said Panera this year plans to rework its loyalty program, which is also part of the RISE transformation effort to ignite sales.
A number of restaurant chains are introducing smaller-portion options at a lower price, which some say will appeal to the growing number of Americans on GLP-1 drugs. But that’s not a motivation at Panera, which has long offered half portions across most of its menu for those looking for a lighter meal.
Carbone said consumers are looking for value, but they also want variety.
“I know customers have a lot of choice today on where they want to eat, where they want to spend, and I know they’re considering value. And the important thing is that value is both quality and price,” he said. “I don’t believe you can just have low prices, because the guest is smart and they know what they want.”
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