Panera Bread on Tuesday expanded its delivery option to customers nationwide and announced it had already hired more than 13,000 drivers to back the offering since it began testing the service approximately three years ago.
Digital sales, under which delivery revenue fall, now account for more than 30 percent of revenue for the Sunset Hills, Mo.-based restaurant company, which was acquired last year for $7.5 billion by JAB Holdings.
Panera CEO Blaine Hurst said he could see digital sales growing to account for nearly half of Panera's sales, which last year totaled $6 billion. In some markets, such as Charlotte, N.C., where Panera first tested the service, digital orders account for about 45 percent of sales.
"In the world we live in today, digital is becoming more of an ante," he said. "At some point, all restaurants will have (delivery). I'm not sure it's an option anymore _ you must have it."
Panera has steadily invested in its digital offerings _ commonly called Panera 2.0 _ since Hurst, a former Papa John's executive, joined the company in 2011 as senior vice president of technology and transformation.
Hurst said the company continues to invest resources into additional technology, such as voice ordering on smart speakers or through smart cars.
"Voice is part of it," he said. "But it's also finding out and discovering ways to use information to refine menus or refine the guest experience or personalize their experience. That's the next generation."
The number of drivers hired on a per-store basis was not disclosed, though with just less than 2,100 bakery-cafes today, it totals about six drivers per store.
"During lunchtime, we may need eight, 10 or 12 drivers driving constantly" at certain high-volume locations, he said.
The delivery service has been operational in St. Louis, where Panera operates as St. Louis Bread Co., since April 2017.
Panera delivery is available for lunch and dinner orders to homes, offices, hospitals and college campuses in participating markets. The company charges a $3 delivery fee in most areas.
To mark the nationwide expansion, Panera will offer customers a free cup of soup to guests who get delivery on May 9 when using the code "PANERADELIVERS" and adding a cup of soup to their online cart.
