Panera Bread to Close Dough Facilities in California, Resulting in 350 Layoffs

Panera Bread has announced plans to shut down two fresh dough facilities in Stockton and Ontario, California, leading to the layoff of approximately 350 employees.

This decision is part of the company's ongoing business transformation strategy, which includes shifting to an on-demand baking process. 

The closures in California follow a series of similar actions by Panera Bread.

Over the past year, the company has closed five fresh dough facilities, including locations in Houston, Chandler (Arizona), Seattle, Denver, and an upcoming closure in Norcross, Georgia, scheduled for November 15, 2024, affecting 86 employees.

Panera's Chief Operating Officer, Debbie Roberts, has indicated that these closures are due to underperformance of the facilities.

The company is transitioning to a new baking model, which involves sending frozen, partially baked dough to stores rather than baking bread fresh in its bakery-cafes.

In addition to the facility closures, Panera Bread has been undergoing corporate restructuring.

In November 2023, the company announced plans to cut approximately 300 of its 1,800 corporate staff, aiming for greater efficiency and a simplified operating model.

These strategic changes reflect Panera Bread's efforts to adapt to evolving market demands and streamline its operations for long-term growth.