The Panera Pandemic Pivot
Every blue ocean has waves and every surfer has to be ready to change direction. In 2020, Panera Bread, like every business, faced the COVID-19 wave. Panera changed direction. They transformed their 2,000 cafes into grocery stores in just two weeks.
Mark Cuban reminds JJ Redick that “innovators, leaders and basketball players are always adding something new to their game.” Redick, one of the greatest three-point shooters in basketball history, doesn’t need much reminding. He’s been called the N.B.A.’s most meticulous player. Every Sunday during his off-season, he forces himself to make 342 shots — no more, no less. Redick has always been drawn to order. As a child, he sorted his toys by color and shape. As an adult, he organizes his closet with military-like precision. “My closet is my happy place,” he says.
Panera’s Noel Nitecki created a data closet that he calls the Panera data pantry. He and his team meticulously organize data from all of Panera’s systems: ordering systems, kitchen systems, menu data, food cost, inventory. But unlike Redick, who organizes himself, Nitecki organizes Panera’s data for use by 50,000 employees and 2,000 stores. And each store can be unique: each cafe can customize its hours, ingredients, and menu items. Lobster rolls, for example, are served in Boston but not in Saint Louis. Panera’s customer-centricity makes its data management challenge infinitely complex.
Nitecki, thanks to his team’s meticulous use of master data management technology, added a new move to Panera’s game in just two weeks.
Panera Grocery now delivers fresh bread and ingredients from their 2,000 stores in 40 minutes through their network of drivers, contactless payment systems, drive-thru locations, and on Grubhub. While the business results are difficult to measure in a Pandemic, the boldness of their move is remarkable. In two weeks, they pivoted their business from a restaurant-only business to a Fresh Direct, Instacart, and Amazon competitor.
Is Panera Pantry a new blue ocean strategy? Time will tell. But Panera’s pandemic pivot shows how innovators can quickly add a new move to their game through meticulous data management, teamwork, and focus.
This article was inspired by the amazing photography of Tim McKenna from Tahiti.
This post is part of a series of entrepreneurial lessons from Panera Bread. Subscribe below for updates as each is released.
