Panera CEO pivots from cost-cutting to reclaiming customer loyalty

The lettuce reversal, finalized in June 2025, marks the beginning of a broader transformation strategy dubbed RISE. The initiative aims to reverse years of declining same-store transactions by prioritizing the guest experience over aggressive cost-cutting. Carbone acknowledges that while sales figures were previously bolstered by price hikes, the actual volume of customers visiting the chain had been shrinking. To combat this, Panera is introducing new menu items like shrimp-topped bowls and fruit-forward beverages, while hiring Guest Experience Champions to improve service in its cafes.

Data from Placer.ai underscores the urgency of this shift, showing consistent year-over-year declines in foot traffic through May. Beyond menu changes, Carbone is recalibrating the company’s identity, explicitly moving away from the internal narrative that Panera is a "technology company that sells food." Instead, he is repositioning the chain as a restaurant-first business where digital tools serve the diner rather than replace the human touch. By focusing on transactions first, followed by sales and profits, the executive hopes to win back consumers who have increasingly turned away from the brand due to rising prices and lackluster service.