I admire Panera Bread (PNRA) for being able to ignore the recession and create consistent sales success with good retailing practices. While some of the world's largest retail restaurant chains were using the economy as the excuse for the decline in sales, customers, and profits, Panera seemed to focus its energy on working a no-excuses retail strategy that continued to draw customers through the front door in even the worst of economic times. For that, I think the Panera Bread restaurant chain deserves a lot of credit and nothing I'm about to say negates Panera's recession success.
Success, however, can threaten a retail company as much as failure when the company stops caring about individual customer service failures that seem to have little effect on the short-term bottom line. Eventually, though, the sum total of those little failures left unaddressed, will equal big negative consequences. My personal Panera experience today provided a concrete example of how Panera's future sales success may be threatened by its present lack of attention to the daily customer experience.
If you visit the Panera Facebook page, you will get the definite impression that the customer experience in its restaurants is important. The specific brand/service promise made by the Facebook page is this...
"There's no detail too small for our attention, because we truly believe that, at Panera, every detail matters."
When you make that kind of a promise, you create some definite customer expectations. But the virtual promises made on Panera's Facebook page have to translate into a Panera restaurant reality.
Whenever I have to work on a Saturday, doing that work in a Panera restaurant makes it less painful. Panera's music, food, and employees are generally positive. Panera also has free WiFi, which is an essential component for a working lunch.
Panera puts a time limit on its WiFi during peak lunch hours, which it has every right to do. Today the WiFi didn't reboot after the forced lunchtime moratorium, so I sought out the manager to request a reboot. After quoting the no-lunchtime WiFi policy to me (which changes according to the manager on duty at this particular location), she looked at her watch, realized that it was well past the forbidden hours and told me she'd take care of it. She then walked to the corner of the restaurant furthest from the office where the WiFi modem is located and proceeded to chat with a customer.
An hour and a half and three promises from two different managers to "handle it" later, I had run out of non-WiFi tasks to do, so I packed up and headed to Panera location #2, where I was also unable to connect to the internet.
The manager at Panera location #2 gave me the phone number of technical support, which turned out to be a corporate technical support number. I was given another number to a company which did, in fact, provide technical WiFi support to every other Panera in the state of Florida except for the Orlando locations in which I couldn't connect to the WiFi. Tech support #2 sent me back to the Panera corporate tech support person, who told me that I wasn't allowed to be talking to them and then asked to speak to their Panera manager on my phone using my minutes. During that conversation, the Panera technical support desk took my time on my phone using my minutes to have a conversation with their Panera manager about WiFi protocol and company policy. Apparently at the end of that corporate "coaching" conversation, the Panera technical support person instructed the manager using my phone and my minutes to tell me that the problem must be with my computer.
I might have considered that to be a plausible conclusion if I hadn't connected to the WiFi at that same Panera location with the same laptop computer about 20 times in the past month. But since I had spent a good number of hours in my satellite booth-by-the-window office using the internet there, my conclusion was that the Panera team was either unwilling or incapable of helping me to solve my problem. Three hours after the WiFi failure began, I gave up, taking my laptop and my Panera food budget elsewhere.
Now, we all know that free internet service at Panera Bread restaurants is an amenity, not their core business. Many people - including the two managers at Panera location #1 - would argue that a customer doesn't have a right to complain about a free service that is offered out of the kindness of the hearts of the Panera corporation.
Here's why I disagree.
Panera advertises free WiFi on its website as one of its "cafe features." There is a Facebook discussion about the free WiFi on the official Panera Facebook page. Free WiFi is advertised on the front door of many of its stores. The company is using its WiFi offering as a unique selling proposition which differentiates it from its competitors. Free WiFi is not a free service offered out of kindness of any hearts that beat in the Panera boardroom. Free WiFi is part of Panera's branding, positioning and customer loyalty marketing and because of that, Panera has adopted WiFi as one of its offerings.
As with any offering, if you won't deliver it willingly and you can't deliver it well, you shouldn't offer it at all. Because when you create customer expectations with an offering, you lose points when you fail to meet those customer expectations.
This is not about one day of Panera WiFi service failure, management indifference, or technical runaround. This is about the knives which Panera can never manage to get clean, the lemons and napkins that you have to ask for, the temperature extremes, the lack of personnel to wipe off tables during rush hours, the perennially messy restrooms, the food-soiled napkins on every plate, and the sandwiches set on top unsanitary non-food grade thermal paper receipts. All of these things are part of the average Panera customer and service experience lately. Putting up with all of this while paying $4 for half of a peanut butter sandwich or $8 for a not-so-remarkable salad is worth it for one reason - free WiFi. Take that away the WiFi and all the rest of the service failures become more important and more unacceptable.
This is also about the ongoing customer service feedback which is solicited on the cash receipts (buried underneath the food) which solicit customer input, offer prize money that never seems to get awarded for that input, and it's about all of the complaints and suggestions about all of the above which seem be ignored. An offer of management contact is offered at the end of every survey. I requested management contact once. Months later I'm still waiting for the Panera followup to occur.
If you're not going to do something about customer feedback, then you shouldn't ask for it at all. If you won't deliver management follow-up willingly, or you can't deliver it well, you shouldn't offer it at all.
This also isn't about the $10 that Panera didn't collect from me today. It's about the $10 that they collected from me several times a week in the past and the $10 a day that they are less likely to collect from me as often in the future. It's not about a single purchase, it's about the lifetime value of a customer.
It's not about what Panera didn't give me today, it's about what they did give me - a reason to not return. And a reason not to meet clients at Panera and a reason not to treat employees at Panera, and a reason to replace positive Panera word-of-mouth advertising with this blog post.
If any one of the four Panera employees or the one contractor that I dealt with today had stolen $1000 out of the cash register, I can only assume that there would have been consequences. It's an unfortunate daily occurrence in retail companies around the world that the loss of $1000 in revenue from an alienated regular customer will not be met with the same kind of consequences.
The reality is that Panera doesn't really need to be concerned too much about its customer service experience or its customer service failures right now because it has defied recession by opening stores, raising prices, and making profits while the U.S. restaurant industry as a whole has been moving in the opposite direction. In my opinion, the business crowd with laptops and cellphones that Panera was able to continue to attract throughout the recession with its free WiFi and its community rooms gave Panera an edge in the casual dining niche and contributed significantly to its success in the midst of economic downturn.
When business is good, it's easy to get lulled into a false sense of security and ignore the "little things" that chip away at customer trust and loyalty. But things are rarely "little" to the customer. By the time you realize the cumulative effects that the lack of constant attention to the foundational customer aspects of retailing have had on your business over time, it's usually too late to do anything about it. Circuit City, Abercrombie & Fitch (ANF), and ExxonMobil's (XOM) company-owned convenience stores come to mind.
It's never as difficult to keep a loyal customer as it is to win one back.
So, for the three hours that I was unable to research the blog I wanted to write today, this blog was writing itself. The point is not that my personal little complaints and my bad day get aired in public (and probably criticized as petty whining). The point is that antibiotic-free chicken, menus with calorie counts, and "Hot Bread!" aren't everything. Because Panera is not in the food business. Like every other retail company on the planet, Panera is in the people business.
Just like every retail customer experience, we began with a service promise and we will end with one too. This one is from the Panera.com website...
"Our bakery-cafes are an everyday oasis. A place to gather with friends or enjoy a quiet moment alone. Comfortable, friendly, fashionable. Slip into one of our seriously comfy chairs and stay awhile."
As with any offering, if you won't deliver it willingly and you can't deliver it well, you shouldn't offer it at all.
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Comments
You want to pay $10 for a lunch and a few hours worth of office space.. I say dump you as a customer… no problem. bye bye user…
I think you’ve pointed out a very clear and concise case that exemplifies managing the customer expectations. Don’t promise what you are not willing or able to deliver – at all times, any time.
The comment made by Roger above is clearly missing the point. As you said, it’s not about the money you are paying for the food and coffee to accompany the “free office space.” It’s the fact that it is a promoted value added service in addition to the food and atmosphere.
Panera Bread sets the expectation for you to receive something, you can’t get it, and you as the customer are frustrated. As soon as customers experience frustrations with your processes, the potential to lose them increases exponentially.
I personally use Panera Bread as a “virtual office” in both my hometown and when I am traveling for client/business reasons. I’ve come to depend on their consistency and happily pay for the food and coffee while I am there for a few hours using their free wi-fi which they promise. If I experienced the same issues you’ve encounted, I would feel exactly the same way.
One problem I noticed that Panera Bread has is that Managers complain that people come into Panera and sit there all day and just purchase something small such as a beverage. My suggestion is that the staff should come by and ask if they would like something else to eat. I know I do, I just dont want to leave my $600 computer and to risk someone stealing my computer. It would improve sales for them and it would be great for us computer users.
We ate at cafe 1292 9/19/2010 service was bad they all appeared to have just started. They tried but were clueless, no management in site. Slow slow slow. Wife asked for a suggestion on soft bread no one knew the answear . flies at service counter were thick, i filled out complaint form on line, at the end of form notice said it was out of service, try again. Customer care is just a slogan.
I also think that Roger misses the point. I’ve also stopped going to Panera but not because of the Wi-fi situation. The food was tasty but the unsanitary conditions and the dirty restrooms completely turned me off.
As to the comment on free office space, it reminded me of years past when I would marvel how people sat for hours over a cup of Demi-Tasse in a Paris outdoor cafe. Nobody bothered them and the cafes survived year after year.
Let’s face it, these are smart people and if they want to recast themselves as a “quick turn” restaurant, they could do it easily. The fact that they offer free Wi-Fi and a “homey” decor are just a couple of the many indications that they want people to stay there and work, talk, or simply hang out. If their managers have missed that point, shame on them and shame on their operations team for not explaining it to them.
My beef with Panera is also simple. I prefer to drink water with my meal and I prefer a large (soda size) cup so that I am not going back multiple times. When I ask for a large cup for water, you’d think that I was asking for a free lunch. I promise that I won’t try to sneak free soda and the cost for a big cup versus a small cup can’t be that great. Nonetheless, it has been enough of a disincentive that I have stopped going back.
I also tried to use wifi at a Panera last week, on Tuesday the 14th and it didn’t work for me either. Also, while I was trying to connect a few other people came over to me (seeing that I had a computer) and asked me if I could connect, to which I told them that I wasn’t able to.
You took it a lot farther than I did by taking the time to talk to management, etc., whereas I just packed up my computer and left and drove to a local library where it is free and I don’t have to buy anything. I just thought it would have been fun to drink a coffee and have a cinnamon roll while working. Oh well.
You’re right, the internet should be completely hassle free at these places or what’s the point? If it doesn’t work for a few minutes and I have to talk to someone, it’s already taken up more time than I want to spend for them to try to get it to work. I don’t think this will harm Panera or their stock price or whatever – as they are well run and will continue to grow, but I agree that it is highly frustrating.
I agree with you about the way they advertise and use free wifi as a way to get customers in the door and therefore should follow though with the offer. Nothing makes people more upset than an offer that comes with 20 stipulations. It is at that point that people feel like the company is trying to pull a fast one. I really like your quote “It’s never as difficult to keep a loyal customer as it is to win one back.” I know personally if I am slighted by a business that am a regular at I start to question that relationship.
Panera’s focus on growth and profit, has come at the expense of QUALITY/CUST. Service>#1, their treatment of employees is not acceptable. Little or no FREE TRADE goods used to make goods. No Organic breads/coffee~Insurance for emplyees not worth paper its printed on. People think their tipping, but PANERA says its theirs for CHARITY. What about your charity to those who MAKE YOUR BUSINESS WORK! Panera illustrates alot of CORPORATE GREED< care less for little /young slaves, I mean workers. DONT BUY THE STOCK, it will drop hard eventually-KARMA!
As a medical student, I can spend upwards of 3 days per week in Panera studying. It is true that the 30 minute limit during peak times is annoying, but I will usually focus on tasks that don’t require Wi-Fi. I have never had a problem with the internet beyond that, so it seems like your area may be flukey. In terms of customer service, I cannot complain. For someone like me to walk in at 10 am and study till almost I truly think I have seen it all. Sure there have been times when my salad was done incorrectly or the jazz music was too loud, but I’m more than satisfied if I can refill my iced tea 10 times in a day for the price of 1. Furthermore, if you register a complain through their website, they are completely responsive. One night I had gotten take out and when I got home realized that they had not put any chicken in the salad (big mistake). I sent a complain in via email and had a personal (not mass generated response) in less than 12 hours. They requested my home address so they could mail me 4 coupons for completely free meals. That was completely worth it! All in all, I don’t think a single bad customer experience is enough for one to give up entirely on a restaurant. Besides, Panera is providing a service and while they shouldn’t advertise on something they can’t deliver– they generally do! From the droves of people who eat there each day to the numerous regulars I see while making my daily visit, people are satisfied.
I worked at Panera for over 5 years as a GM. The problem is they gave us 15% labor to work with and expected managers to not work in positions. If you overspent your labor by 10 hours a week (80.00 mind you) you were told to cut 20 hours the following week. It is a great concept run by people who want to milk as much as possible from the company while looking like they care about the business. Worst place I ever worked.
I just stumbled across your soapbox rant completely by accident and am forced to comment. Their “future sales success” (as your headline states) is threatened because YOU had a flaky wireless experience? There are way too many variables for a company like Panera to deal with the one person who has issues – like you, when thousands of people use it daily with no issues. You sound like a whiny self entitled brat. Give me a break and if you’re going to present yourself as an informed writer, start acting like one.
To: (12) DS…
Actually, I thought it was a very well article… and informed inasmuch as he had experience–a specific experience that he did not enjoy. I can say that I have high expectations, also, when preparing to study/work…that IS part of their business model and a main reason why I so often see many people working/meeting their for business… Otherwise, they wouldn’t dine there!
Aside, I think you’d be a bit ticked off if this happened to you… even if you don’t that’s how he felt and you should not tell him he has no right to feel how he does…
I think, according to his story, that the staff was completely wrong and I would have the very same reaction… I would never go back.
At this point when you say: “There are way too many variables for a company like Panera to deal with the one person who has issues – like you, when thousands of people use it daily with no issues.” … is when people say the company comes first and the customer second… If thousands of people need/want coffee and wifi, and large corporations who you think would rather swat people like this guy cannot hold up to high paying customer’s expectations…then it would be better to have many smaller cafes (not franchises or corporations) serving many thousands of people daily…maybe then a single cafe would value a single customer.
Then again, you’re probably satisfied with the service at Wal-Mart. Remember, you’re entitled to nothing as a high paying customer–well you wouldn’t pay much at Wal-Mart.
Wow, the bonds between the writer and Panera are as close as a marriage.
I do hope she finds it in her heart to stick with Panera. I know they really want to do the right thing.
Obviously that GM “Just me says” who worked for Panera for over 5 years was not qualified to continue to work there….as that person no longer does. Also….#13 – “No one says”….please understand the English language and how to write it before you announce that you….”thought it was a very well article”…….not to mention that you stated that the writer was a “he” when it was clearly a “she”. How do you expect any of us to listen to you when you show no credibility?! I don’t think anyone has the right to complain about anything this writer has to blog about. Guess what….If you choose not to address any unhappiness or dissatisfaction that you encounter anywhere….then you’re just part of the problem! How about asking to speak to a manager to see what he or she can do to make things right. Oh…and if you’re the type who is too embarrased to say anything at that moment because you know what a “whiny” little &#*% you are; but you still go back over and over again! Then PLEASE….don’t go back! Do yourself and the restaurant’s staff a favor!
Guess what folks? My library in illinois has started allowing covered drinks in the library! Dun-dun-DUNNN! Bring your coffee and laptop in and stay as long as you damn well please! Heck, bring the kids and work in the children’s room while they play! For free yet! You can’t bring drinks in the computer room though, which I understand. Just check your library and bring your own computer!
The last two times I have gone to Panera Bread, they had no bread bowls! The last time, after I complained that this was the second time they were out of bread bowls for their soup, I was told, “Well, we have a baguette,” in a very sarcastic tone. This is unacceptable and I will think VERY long and hard before visiting a Panera Bread again.
This is the most retarded article I’ve ever read. What does one poor manager say about a whole company…not to much. If your really that concerned go somewhere else. The fact that you would take the time to log such a small complaint is pathetic. I’m not a fan of Panera, but WTF…it’s fast food. Set a realistic expectation, enjoy the quality food and shut the F up.
interesteing to see a wide array of responses. While the writer makes some good points, I am a little more aligned with Roger and Mark.
I do agree that if you are ‘branding’ your service as including wifi, you should deliver. that is part of the bargain.
but holy heck, you isolated on one day from one place among, I suspect, thousands.
and although, you write well…. (or is it very good?
), it was inappropriately long.
I don’t like the half hour restrictions, but I use it a lot for ‘office space’, the workers always treat me nice, the food is good, the place is very estchtically pleasing, with a fire place and all, and I have found the whole place clean, bathrooms included.
sit back and enjoy. I think it is the best game in town.
I am more aligned with Roger and Mark.
Although the writer brings out a good point that free wifi is part of their branding, she isolated on one place for one day. although she is well spoken, the article was inappropriately long.
sit back and enjoy.
for those wanting free office space, it is the best game in town.
Like most American businesses and specifically mentioning the restaurant or food industry, this is yet another example of low paid poorly trained people NOT giving a darn about customer services. I get carry out frequently and they just can’t get it right. The last time, the nearly $12 soup for a group was leaking all the way home. Reason? Poor packaging, lack of attention to employee details. And besides this, I had to ask AGAIN for soup bowls and soup spoons. And then, Panera was out of Sierra Turkey but had turkey meat to make turkey sandwiches. This place is so consistently sporadic in their service. I like their quality of taste but soon I will not return. And, paneralistens.com is a joke. No one has offered an explanation on my concerns yet.
I was in the new bakery, and it was a ZOO in the kitchen area where I waited for my “to go” salad. No one was wearing hair nets or hats, and a salad came back with the owner from finding 2 hairs in it. The young man looked at her when she told him, very dumbfounded, never saying a word, took the salad walked away, and had them make her another one. She didn’t want that, and they still looked at her like “huh”? He never once apologized and asked what she would like him to do!!
While I waited I also noted the “hair issue” and all the talking and one yelling “who took her garbage can”……..not professional at all. I know they over hire, and this being a new store, I’m sure half will go. But I have been in the food business for many years, working at high end restaurants, and this was a very unprofessional look at what we have to look forward to in our eating places, at least in this town. They are there for ONLY the money.
After reading your article, I can completely understand how you would be frustrated about the wifi problem (especially taking your phone and using your minutes- completely unacceptable), but as someone above me mentioned this might have something to do with your area, as well. Or it was just a bad, glitchy day for the internet company; I don’t know- I wasn’t there.
However I’m an employee at Panera Bread and the quality of service definitely depends on the manager and location.
I work at a Panera in Ohio in the dining room (which if you ask me is one of the MOST stressful jobs- especially when you’re working the lunch shift on your own!). We have to make sure everything is fully stocked at all times, change the coffee every hour, clean off tables, vacuum/sweep, take out the garbage,wash and put away dishes, bus, pre-bus, wipe off and sanitize tables, check the bathrooms, etc. all AT ONCE. At times Panera gets so packed you can barely maneuver through the crowds of people and keep up with everything.
Basically what I’m trying to get at in my long-winded approach is that sometimes we cannot possibly get every table cleaned during the busy hours and we do fall behind. I bust my ass at work everyday, not sitting down once- but then again, my manager has huge expectations of me and our store is very clean and well-run.
Some locations don’t have that, which is really a poor reflection on the company. At the end of the day, Panera IS still a fast-food restaurant chain and a COMPANY so of course all they really care about at the end of the day is profits. Their food can be a little pricey, but it’s good food accompanied by a generally clean (especially in comparison to other fast food chains) atmosphere and friendly people.
Panera is a really unique establishment and I wouldn’t give up on it so soon, if I were you c: