A Deeper Dive

Ron Shaich on why Cava deserved to be a public company

Oct 11, 2023

Ron Shaich, Chairman of Cava and former CEO of Panera Bread, talks about why Panera thrived, the decision to sell Au Bon Pain, other chains Act III Holdings has invested in, public companies and activist investing, and taking Cava public. A fascinating conversation with an innovative industry figure.

37:14

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Episode guests

Ron Shaich

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Episode notes

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Quick takeaways

Panera Bread's success can be attributed to its understanding of the bakery cafe niche and the ability to dominate that category.

Despite being critical of public markets and activist investors, Ron Shaich believes that being a public company can be beneficial for certain companies at specific stages of their development, as it provides credibility and awareness that supports growth.

Deep dives

How Panera Bread became a nationally dominant brand

Panera Bread's success can be attributed to its understanding of the bakery cafe niche and the ability to dominate that category. The company focused on delivering real food that respected the customers and made them feel good about their choices. By offering a better alternative to fast food, Panera positioned itself as a powerful and unique brand. The company went through multiple transformations, evolving from a croissant shop to a bakery cafe and ultimately becoming the poster child for the fast casual industry. With a strong focus on long-term growth, Panera maintained its dominance and delivered exceptional returns to its shareholders.

Introduction

2min

Changing the Name to Panera

5min

Finding the Concept Essence at the Wheat Store

2min

Panera's Success and Maintaining Dominance in the Bakery Cafe Niche

13min

Taking Kava Public

5min

Navigating Activist Investors and Investment Strategy

10min

Why are the public markets good for Cava and not Panera Bread?

This week’s episode of the Restaurant Business podcast “A Deeper Dive” features Ron Shaich, the chairman of Cava and former CEO of Panera Bread.

Shaich has turned his attention to investing in and building brands since Panera was sold to JAB Holdings in 2017. He recently wrote a book, “Know What Matters, Lessons from a Lifetime of Transformation.”

We took the opportunity to talk with Shaich about a wide range of issues, including why Panera Bread thrived while many other players in the bakery-café segment could not. We also talk about the decision in the 1990s to sell Au Bon Pain and focus on Panera.

We also talk about some of the other chains Shaich’s Act III Holdings has invested in, including an upscale bakery-café concept, a plant-forward concept and an eatertainment brand.

But we also talk about public companies and activist investing. After the sale of Panera, Shaich has been highly critical of the public markets and their focus on short-termism, particularly that of activist investors. We asked why he would then take Cava public in the face of that criticism.

It’s a fascinating conversation with one of the industry’s more innovative figures, so check it out.

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A Deeper Dive

Ron Shaich on why Cava deserved to be a public company

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

How Panera Bread became a nationally dominant brand

Ron Shake's decision to sell Au Bon Pain and focus on Panera Bread

The key factors that contributed to Panera Bread's success

Ron Shake's thoughts on being a public company

Remember Everything You Learn from Podcasts