Opinion
Shaich: Public markets force CEOs into short-term cost-cutting over transformative bets
“There's a pervasive sense of short-termism that has invaded our markets. The reality is, when you have such short-term pressure on our CEOs, they react. And what that ends up meaning is cost-cutting. And they avoid the kind of transformative events that drove …”
Assertion Partly supported
Shaich: Au Bon Pain was the first example of fast casual dining
“And for people who were working in white collar jobs increasingly in urban settings, this was the first example of what we later came to call fast casual. This was an attempt to do something that was better But in a quick service mode.”
Insight
Shaich: Public market short-termism forces CEOs into cost-cutting over transformative bets
“There's a pervasive sense of short-termism that has invaded our markets. The reality is, when you have such short-term pressure on our CEOs, they react. And what that ends up meaning is cost-cutting. And they avoid the kind of transformative events that drove …”
Assertion Not publicly verifiable
Shaich won a board battle with two votes against VCs' three
“It was a huge boardroom struggle, because I had two votes, our venture capitalists had three, and all of them had invested in Au Bon Pain.”
Assertion Supported
Shaich: Panera tripled its stock price during the Great Recession
“We said this is the time to build competitive advantage, and ultimately we tripled the stock through the recession.”
Assertion Not checkable as stated
Shaich: Au Bon Pain pioneered the fast-casual restaurant category
“What the bakery cafe was an alternative between down and dirty fast food. And fine dining. And for people who were working in white collar jobs increasingly in urban settings, this was the first example of what we later came to call fast casual.”
Insight
Shaich: 1990s fast food became commoditized 'gasoline stations' for humans
“Post-World War II, fast food was special. You fast forward it to 1990 with 60,000 drive-throughs in America. Fast food had become self-service gasoline stations for the human body, and the reality of it was, That there were many consumers that were holding the…”
Assertion Supported
Shaich: Panera stock surged 100x after selling off Au Bon Pain
“The stock has been up a hundredfold since then.”
Assertion Supported
Panera Bread ultimately sold to JAB Holding for $315 per share
“And ended up selling for 315 a share.”
Assertion Supported
Shaich: Panera tripled its stock price through the Great Recession
“We said this is the time to build competitive advantage, and ultimately we tripled the stock through the recession.”
Insight
Shaich: Business is a political campaign that never ends
“But in so many ways, running a business is no different than a campaign. In fact, a campaign is a business that, that essentially has one day in which it ends. A business is a campaign that goes on and never ends.”
Assertion Supported
Shaich: Took 60% equity to merge Cookie Jar into Au Bon Pain
“I came to them and said, look it, I think I can fix this. You give me 60% of the company. You and your investors keep 40%. I'll put my cookie store, which was making money, in with your three Obonpens, and we'll create a new company.”
Insight
Shaich: 1990s fast food became like gasoline stations for the body
“Post-World War II, fast food was special. You fast forward it to the 1990 with 60,000 drive-throughs in America. Fast food had become self-service gasoline stations for the human body, and the reality of it was, That there were many consumers that were holding…”
Assertion Contradicted
Shaich: VCs controlled 3 of 5 board votes during Au Bon Pain divestment fight
“It was a huge boardroom struggle, because I had two votes, our venture capitalists had three, and all of them had invested in Au Bon Pain.”
Disclosure
Shaich took 60 percent equity in the merger with Au Bon Pain
“You give me 60% of the company. You and your investors keep 40%. I'll put my cookie store, which was making money, in with your three Obonpens, and we'll create a new company.”
Assertion Partly supported
Corporate giants Pepsi and Sara Lee launched failed rival bakery-cafes
“Pepsi came after us. They decided this was going to be the third leg of Pepsi food service, and they created something called La Petite Boulangerie. Sarah Lee came after us. They bought a chain called Michelle's Baguette, and they were going to open 400 stores…”
Disclosure
Au Bon Pain bought 19 St. Louis Bread stores for $23 million
“So, in November of 1993, we bought the St. Louis Bread Company, those 19 stores, for twenty-three million dollars.”
Assertion Supported
Shaich: St. Louis Bread matched Au Bon Pain volume at half cost
“St. Louis Bread Company was generating volumes nearly as high as Au Bon Pain, but doing so in real estate that cost half as much.”
Assertion Partly supported
Shaich: Panera opened a new store every three days around 2009
“Basically every three days.”
Assertion Not publicly verifiable
Shaich owned six times more stock than co-founder Louis Kane
“I owned, you know, six times more stock than him, but most of the community at that point undoubtedly thought the company was Lou's.”
Assertion Partly supported
Shaich: Pepsi and Sara Lee launched major bakery chains to compete with Au Bon Pain
“Pepsi came after us. They decided this was going to be the third leg of Pepsi food service, and they created something called La Petite Boulangerette. Sarah Lee came after us. They bought a chain called Michelle's Baguette, and they were going to open 400 stor…”
Disclosure
Au Bon Pain acquired St. Louis Bread Company for $23M in 1993
“So in November of 1993, we bought the St. Louis Bread Company, those 19 stores, for twenty-three million dollars.”
Assertion Supported
St. Louis Bread matched Au Bon Pain volumes at half real estate cost
“St. Louis Bread Company was generating volumes nearly as high as Au Bon Pain, But doing so in real estate that cost half as much.”
Assertion Supported
Shaich: Panera Bread ultimately sold for $315 per share
“No, and it ended up selling for 315 a share.”
