Panera Bread releases first-ever value menu with 'Mix & Match' deals

A steak sandwich and French onion soup from Panera Bread Co. arranged in the Queens borough of New York, US, on Tuesday, Dec. 12, 2023.

Bing Guan | Bloomberg | Getty Images

Panera Bread is entering the so-called value wars with its new “Mix & Match” deals in a bid to win back price-conscious diners.

The chain, known for its soups, salads and sandwiches, is in the early stages of a turnaround, with a focus on reinvesting in its business and reversing years of traffic declines. Once the top fast-casual brand in the U.S., Panera has fallen to No. 3, ceding the top spots to Chipotle Mexican Grill and Panda Express.

In 2024, Panera’s sales fell 5% to $6.1 billion, according to Technomic estimates.

A key part of Panera’s comeback strategy is focusing on value.

Across the restaurant industry, executives have reported weaker spending among consumers, who are trying to save money by trading down to fast food or dining out less frequently. Chains like McDonald’s and Taco Bell have leaned into value offerings to try to win back customers.

About 3 out of every 4 diners said that daily specials, discounts or value promotions matter when choosing where to dine or order takeout, according to the National Restaurant Association’s annual State of the Restaurant Industry report.

“[Consumers] are seeking value, and they’re also seeking quality,” Panera CEO Paul Carbone told CNBC. “That’s so, so important.”

Starting Wednesday, Panera customers can choose halved portions of sandwiches and salads, as well as cups of soup, from the “Mix & Match” menu. Each of the 10 items is priced at $4.99, and diners have to buy at least two items. Seasonal menu items will also rotate through the “Mix & Match” options.

Each order also comes with the choice of a baguette, chips or an apple.

Panera explored other value offerings, but the “Mix & Match” menu tested successfully, Carbone said.

“The guest has really, really reacted well to it,” he said, adding the menu is expected to drive incremental visits to the restaurant.

And while Panera is introducing the deal, its popular “You Pick Two” offering is sticking around.

Carbone said that customer research showed that diners view the option to buy two entrees from the menu as an opportunity for variety, rather than a chance to save money. Like “Mix & Match,” the offer allows customers to choose a half salad, half sandwich or cup of soup or mac and cheese. However, “You Pick Two” spans the menu, rather than being restricted to just 10 items.