40-year-old fast casual restaurant chain lays off 100s amid closures

Panera Bread, a renowned American fast casual restaurant chain known primarily for its soups and breads, is rebuilding its brand as a “fresh-baked” leader.

As part of rebranding and as it rolls out new bakery operating models across its cafes, Panera Bread is also closing several locations, resulting in hundreds of job losses.

According to recent Worker Adjustment and Retraining Notification (WARN) filings this month, Panera Bread is shuttering its regional Fresh Dough Facilities in Maryland and Ohio, resulting in 188 layoffs.

Panera RISE and fresh exit

The move to permanently close some locations is part of its recently unveiled transformation strategy called “Panera RISE.”

The company, which came to be known for its dough and later developed into everyone’s go-to place for soups, salads, and breads, has decided to reclaim industry leadership and drive growth.

The aggressive restructuring comes as internal reports indicate Panera’s long-anticipated IPO has been placed on hold indefinitely, as the company prioritizes a lean, franchise-heavy model aimed at improving profitability, Seeking Alpha reported.

The company currently has over 2,200 bakery-cafes in 48 states and Washington, DC, and is working on a turnaround plan to increase its sales from $6 billion in 2024 to over $7 billion by 2028.

More Layoffs:

Major grocery store supplier delivers harsh message to workers4 signs your company is quietly planning layoffsLuxury retail giant cuts more than 1,200 jobs after bankruptcy filing

The transition marks the end of Panera’s nearly 40-year-old model of shipping raw dough to cafes daily. 

Under its Panera RISE framework, the company is partnering with third-party artisan bakers who will par-bake bread using Panera’s “recipes and high-quality ingredients”, which the cafe bakers will “finish in the cafe.”

Panera Bread to close its Fresh Dough Facilities amid restructuring.

Jonathan Weiss/Shutterstock.com

“Panera RISE is a momentum driver, grounded in the areas of differentiation that have made Panera an iconic brand for nearly 40 years,” said Oaul Carbone, CEO of Panera Bread.

Adding that this business transformation stands on four strategic pillars that put the “guest at the very center of everything we do.”

Refreshing the menuIgniting value through a variety of price pointsServing guests with excellenceExpanding network

This, however, comes at the cost of employees, which is detailed in two recent WARN notices filed in March, adding to its January and February closures filed in Massachusetts and Illinois, respectively.

Maryland (Jessup): Panera confirmed the closure of its 7801 Dorsey Run, Jessup Fresh Dough Facility, effective May 22, impacting 118 employees.Ohio (West Chester): The 4434 Muhlhauser Road facility will cease operations on May 22, impacting 70 employees.Illinois: closing 1490 Chase Ave, Elk Grove Village, impacting 119 employees, dated Feb 13.Massachusetts: closing the 290, Beaver St. facility in Franklin, MA, effective between March 25 and March 27, impacting 92 employees.

Total layoff: 399

Impacted roles include positions such as divider operations, certified baking training specialist, tractor drivers, packers, and sanitors, among others.

However, the company is providing assistance to impacted employees in forms of severance packages and assistance in finding employment with Panera. The company is also holding a job fair on April 20, 2026.

Last year, Panera closed over 8 Fresh Dough Facilities (FDFs) and intends to close the rest within 2 years. In 2016, it had 24 operational FDFs, according to National Restaurant News.

New leadership era paves way for Panera

To lead the next phase, Panera has brought in an experienced executive from the fast-food chain sector. 

On March 13, Panera announced the appointment of Patrick Coelho as Chief Development Officer, effective early April. Coelho previously worked at Papa Johns and has previously worked on the expansion of renowned brand names like Scooter’s Coffee and Burger King.

“As we advance our RISE transformation strategy, Patrick is a proven leader who will play a key role in Expanding our Network as we focus on evolving our bakery-cafe of the future, new unit growth, and driving profitability,” said Paul Carbone, CEO, Panera Bread.

Panera’s pivot, which is leading to store closings, mirrors the broader trend highlighted in February’s 2026 Challenger Report, where closings were the leading cause of job losses nationally.

By offloading dough production to third-party bakers, Panera Bread is trading manual and legacy labor for a more streamlined supply chain.

Related: Walmart closes key operation, lays off 111 workers

#40yearold #fast #casual #restaurant #chain #lays #100s #closures