Panera Bread is undergoing a significant transformation in 2025, focusing on expanding into urban markets with innovative store formats. The company has introduced smaller, digitally driven locations such as the “Panera To Go” model, designed for rapid pickup and delivery without dine-in service. These formats are targeted for high-density areas and non-traditional settings like hospitals and university campuses, where convenience and digital access drive customer behavior. As consumer preferences shift toward mobile ordering and grab-and-go dining, Panera’s strategy positions it to capture a larger share of that evolving market.
In tandem with this growth, Panera is phasing out its traditional fresh dough facilities and moving toward a par-baked model, with all remaining in-house baking operations set to close within two years. The goal is to improve operational efficiency and product consistency across its more than 2,300 locations. While some loyal customers have voiced concerns about the change, Panera insists that quality will remain high through carefully selected third-party artisan bakeries. For net lease investors, the brand’s transition signals a streamlined and scalable future. Properties near transit centers, medical hubs, or urban cores are likely to benefit most from Panera’s updated store strategy. Investors should seek newer, smaller-footprint units with long-term leases that reflect the brand’s evolving direction.