Panera
- After 26 years of leading Panera, Ron Shaich stepped down as CEO in late 2017.
- Shaich's strategy of setting Panera apart by emphasizing a clean menu - and, at times, by pointing out the competition's flaws - seems set to continue into the new era.
- On Monday, Panera launched the Clean Consultant, a group intended to work with other brands on clean food initiatives.
After 26 years at the helm of Panera, Ron Shaich stepped down as CEO at the end of 2017.
But the vocal ex-CEO is set to continue exerting a strong influence over Panera - and the rest of the restaurant business - in years to come.
On Monday, Panera announced the formation of Clean Consultant, a group of experts that other brands can hire for guidance on how to utilize more all-natural ingredients and get involved in more food policy issues.
"We're friends with everybody, and they call us," Shaich said. "They ask for our advice. We try to be helpful, but we're trying to formalize it. It's an invitation to take advantage of what we've learned."
Panera/David Elmes
Former Panera CEO Ron Shaich.
He continued: "My friends who are all running these companies, they get it. How do you think they want to eat?"
Shaich, who is known for his blunt advocacy against artificial ingredients, has long led Panera's push towards a "clean" menu. It has been a successful strategy, with Shaich citing a 86-fold increase in shareholder value from July 1997 to when the chain announced plans to go private in July 2017.
With the Clean Consultant and the chain's most recent menu roll-out, it seems that the chain's focus on clean ingredients as its ultimate differentiator is set to continue under new CEO Blaine Hurst.
As Panera rolls out its marketing for its revamped breakfast sandwich, the chain is also petitioning the US Food and Drug Administration to establish a clear definition of the term "egg." In typical Panera fashion, the chain isn't pulling any punches and is specifically naming rivals, such as Chick-fil-A and Starbucks, that serve egg sandwiches made with additives.
Panera
Panera has called out some of its competitors for using fake, "hockey puck" eggs.
"We will continue to bang that drum, if you will, because we think it's important," Hurst told Business Insider. "At the end of the day, we're all consumers, we all eat food, and we think that it's important that we do our small part. And because of who we are, we have the opportunity to perhaps play a larger part."
"We're not perfect either, and we're not suggesting we're perfect," Hurst continued, pointing to the Diet Mountain Dew he was sipping at 9 a.m. "What we're suggesting is that everyone should be on this journey to transparency and clean, and making sure the consumer knows what they're eating."
As Panera enters a new era under new leadership, the messaging has stayed consistent: it's clean food that you can't find anywhere else. The biggest change, according to Shaich, has less to do with the leadership and more to do with the freedom that comes with going private following a 2017 acquisition by JAB Holdings.
"I'm still doing a bunch of the outreach work for Panera," Shaich said, estimating that he spends 20-30% of his time on Panera-related projects. "I'm still chairman, I'm one of the largest investors. We have a new CEO - he's running the company. I'm willing to do anything that helps him."
Hurst similarly said that Shaich's influence - and presence - continues at Panera. Shaich is cleaning out his office, Hurst said, a process that has been taking countless hours, and the pair continues to meet on a regular basis.
"It's not that he's there all the time, which wouldn't work," Hurst said. "On the other hand, getting his insight and thoughts - that's invaluable."
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