Behind the Scenes: Paneras Bread Supply and Baguette Shortages

Behind the Scenes: Panera's Bread Supply and Baguette Shortages

Have you ever wondered why Panera often runs out of baguettes despite making them on-site? It might come as a surprise to learn that the process of producing these popular French breads is more complex than it appears. Let's delve into the intricacies of Panera's bread supply and what causes their baguette shortages.

Does Panera Make Their Own Baguettes?

Yes, Panera does indeed make its own baguettes! However, the breads are not made from scratch in every store. A central Fresh Dough Factory (FDF) supplies the dough to each store, ensuring freshness and consistency. The site bakers are then responsible for turning the dough into delicious baguettes. This process is carried out to maintain high standards and efficiency.

How Does the Dough Supply Work?

The dough is shipped to each store from the FDF overnight. Each day, the store manager is allotted a specific amount of baguettes for the day. This allocation is based on projected sales and production capacity. Once the allocated baguettes are sold out, the store faces the challenge of running out, as there is no readily available backup if the dough supply is insufficient. This can be attributed to a combination of factors, including actual sales exceeding projections and baking mistakes leading to suboptimal outcomes.

Finding a Solution

Some stores attempt to bake additional baguettes using the remaining dough in the cooler, but this is not a practical solution for all. Not every manager knows how to bake from the cooler and even if they do, the bakers are not typically present 24/7. Moreover, using dough from the cooler for immediate baking is not always feasible, as the dough needs to be properly proofed and shaped.

The Continuous Struggle for Balancing Bakery Food Cost

Managing the bakery food cost is a delicate balancing act. A food cost manager, often an assistant GM, creates a production plan for baked goods, including breads, sweets, and bagels, based on projected sales. If sales unexpectedly outpace projections, stores can run out of products, leading to disappointed customers and lost sales.

Due to the overnight supply of dough, there is no excess inventory available for immediate baking. The house food options (MOD - House Oven Dishes) can decide to make more from the dough in the cooler, but this is essentially borrowing against the next day's supply and risks running out of products again. This creates a challenging cycle for the bakery operation.

The key to success lies in accurately predicting sales and balancing production efficiently. Any leftovers at the end of the day are typically donated, but poor forecasting can lead to significant financial losses. To mitigate these risks, Panera continuously monitors and refines its production models, collaborates with suppliers, and trains managers to better understand and manage their operations.

Understanding the intricacies of Panera's bread supply and baguette shortages offers insight into the complexities of running a large food service operation. By supporting and adapting to these challenges, Panera strives to provide its customers with high-quality bread and a satisfying dining experience.