‘They’ll need to carry me out,’ CEO says
Panera being sold; few changes seen
ST. LOUIS - Panera is being acquired by Europe’s JAB Holding Co. for more than $7 billion.
JAB is better known for the growing stable of brands it owns or has a big stake in, including Peet’s Coffee & Tea, Caribou Coffee Co., Stumptown Coffee and Keurig Green Mountain and Krispy Kreme Doughnuts.
For days there have been rumors of a deal for Panera, with one of the companies reportedly interested being Starbucks Corp.
On Wednesday, the St. Louis sandwich and soup chain revealed that it was actually JAB, an investment fund based in Luxembourg that has quietly become a Starbucks rival.
Panera Bread fans shouldn’t see any changes as a result of the chain’s sale, according to its founder and CEO, who is staying on as its leader.
The sale to JAB Holdings for more than $7 billion will allow management to focus on transformational efforts including the expansion of delivery and digital ordering, said CEO Ron Shaich.
Here’s what Shaich had to say Wednesday morning in a phone interview after the deal was announced, lightly edited for length and clarity.
Q. How did this deal come about?
A. “We weren’t looking for this. Panera’s on an extraordinary run. That performance has been because we always operated in the context of longterm strategy. (JAB) are people who share those values. Many of these deals happen when people feel weak. We’re doing this from a position of strength.”
Q. Why is this deal good for customers?
A. “I’ve been a public company CEO for over 20 years — longer than Cal Ripken played baseball. I spent 20% of that time explaining what I just did, and 20% of the time explaining what I’m about to do. This is about competitive advantage. It gives us the ability to focus intensely on our strategic plan.”
Q. What can people expect to change in Panera restaurants as a result of this deal?
A. “JAB has got about 12 people in their holding company. They’re long-term private investors, they’re not operators. I would say you can expect nothing different.”
Q. What’s the biggest challenge for the restaurant industry right now?
A. “I never talk about the industry. My job is building a competitive advantage for Panera, literally getting customers to walk past the competition.”
Q. You also sold Au Bon Pain in 1999. Do you still stop in at Au Bon Pain restaurants and think about what you’d do differently?
A. “The folks that run Au Bon Pain are very old friends. The CEO for many years is the woman who introduced me to my wife. I try to avoid commenting on friends.”
Q. You’re 63. How much longer do you think you’ll stay on as CEO?
A. “I’m here and I’m doing this. They’ll need to carry me out with my boots on.”