Wikipedia

Ron Shaich

Ronald M. Shaich (born December 30, 1953) is an American businessman, entrepreneur, investor, and best-selling author who co-founded and built Au Bon Pain Inc., and later, founded Panera Bread, both of which he served as CEO and chairman.[1] Under Shaich's leadership, from 1997 to 2017, Panera Bread was the best-performing public restaurant stock, performing two times better than Starbucks, six times better than Chipotle, and performing 44 times better than the S&P 500 with 25% annualized returns.[2][3] Shaich sold Panera Bread for $7.5 billion in 2017.[4]

Ron Shaich
Born (1953-12-30) December 30, 1953 (age 70)
Newark, New Jersey, U.S.
Education
  • Clark University (BA) (1976)
  • Harvard Business School (MBA) (1978)
  • Clark University (Doctor of Humane Letters (Hon.) (2014)
Occupation(s)Businessman, entrepreneur, investor, author
Years active1978–present
Known forAu Bon Pain: Co-Chairman 1981–1999; CEO 1984–1999

Panera Bread: Founder, Chairman and CEO 1999–2010 & 2013–2017; Executive chairman 2010–2012; Chairman and Co-CEO 2012–2013

Act III Holdings: CEO and Managing Partner 2018–present (Chairman, Cava; Chairman, Tatte; Chairman, Life Alive; Chairman, Level99)
TitleCEO and Managing Partner (Act III Holdings)
Websiteronshaich.com act3holdings.com

Shaich is credited with helping create the fast-casual segment.[5] As of 2024, the fast-casual segment of the restaurant industry is generating well in excess of $300 billion in sales.[6][7]

He currently serves as CEO and Managing Partner of Act III Holdings, a $1 billion+ evergreen investment firm that he founded in 2018 with approximately $250 million of his and his partners money.[8][9] Shaich is the current chairman and lead investor in Act III's portfolio companies – Cava, Tatte Bakery & Café, Life Alive, and Level99.[10][11]

During his career, Shaich was a public company CEO for 27 years, and was involved in taking three different restaurant brands public—Au Bon Pain, Panera, and Cava.[12]

On October 24, 2023, Shaich released his first book, Know What Matters: Lessons from a Lifetime of Transformations, in which he “provides a roadmap for individuals and organizations to find purpose, make meaningful contributions, and prioritize what truly matters.”[13] It is a Wall Street Journal, USA Today and Porchlight best seller.[1][14]

Early life and education

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Ronald M. Shaich was born on December 30, 1953, to Joseph and Pearl Shaich (née Kalfus) in Newark, New Jersey, to a Jewish family.[15] Joe Shaich was a certified public accountant and Pearl was a homemaker. Shaich has one sister.[16]

Raised in Livingston, New Jersey, Shaich graduated from Livingston High School in 1971. Shaich attended Clark University, graduating with a B.A. in government and politics in 1976.[17] Shaich later graduated with an MBA from Harvard Business School in 1978.[18] He was awarded Clark University's highest honor, an honorary Doctor of Humane Letters degree, on May 18, 2014, when he delivered the 110th Commencement Address.[19]

Career

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Early career

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Shaich began his first business on Clark University's campus, running a convenience store for students.[17] While earning an MBA from Harvard University in 1978, he worked as an assistant to the president of Store 24, Inc. and then as an assistant to the vice president of marketing at CVS Stores.[20] After business school, Shaich served as the Eastern Regional Manager for the Original Cookie Company, helped form the political consulting firm Targeting Systems and launched the Cookie Jar bakery in Boston in 1980.[18][20] Shortly thereafter, Shaich added fresh croissants and baguettes to the Cookie Jar menu to attract the lunch crowd. The breads and croissants came from Au Bon Pain.[21]

Au Bon Pain

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In 1981, Shaich merged his Cookie Jar with three Au Bon Pain bakeries, which were led by Louis I. Kane, a Boston-area venture capitalist, and together they created Au Bon Pain Co. Inc. Shaich then led Au Bon Pain's conversion from bakeries to bakery cafés and the business took off.[22]

Au Bon Pain grew rapidly as Shaich and Kane took it public in 1991 and by 1993, the company had grown to 250 stores, primarily in high density urban markets in the Northeast.[22]

Later in 1993, Shaich led an acquisition in which Au Bon Pain acquired the St. Louis Bread Company, a chain of 20 bakery cafes located in St. Louis for $24 million.[23] Shaich used St. Louis Bread Co. to develop the Panera Bread concept.[24] All subsequent bakery cafes outside of the St. Louis market opened were called Panera Bread while those in St. Louis retained the St. Louis Bread Company moniker.[23]

In 1997, Shaich realized he couldn't access sufficient financial and human capital to revitalize Au Bon Pain and simultaneously grow his new concept, Panera Bread, so "he bet the house on Panera."[25] By May 1999, Au Boin Pain Manufacturing was sold to Bunge Foods, and Au Bon Pain USA and Au Bon Pain International were sold to private-equity firm Bruckmann, Rosser, Sherrill & Co.[26][27] After the sale, the sole remaining division of Au Bon Pain Co. Inc. was the Panera division and the public company name was changed from Au Bon Pain Co. Inc. to Panera Bread with the public stock symbol becoming PNRA.[28]

Panera Bread

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In 1999, in addition to the 20 St. Louis Bread Company stores, Shaich's Panera Bread had more than 150 cafes.[24][27]

By 2000, Panera Bread, under Shaich's leadership, had 227 stores open across 27 states and $202 million in sales. Its stock went from $6 per share in 1999 to $19 per share in 2000 about a year later.[27] It posted profits of $21.8 million in 2002.[29]

As consumers sought healthier options, Shaich evolved Panera's menu to include antibiotic-free and trans fat-free ingredients, as well as whole-grain breads with fewer grams of carbohydrates per slice.[30][31] Panera was also the first national restaurant chain to post full calorie information for consumers.[32]

In early 2004, the stock was trading at $40 per share.[33]

By 2005, Shaich grew total sales of Panera Bread to $2 billion with profits of $81.1 million and a stock price of $73.56.[34]

In November 2009, Shaich announced that he would step down as CEO of Panera Bread in 2010 as he hoped to take what he learned at Panera and make contributions to civic society while retaining his role as the company's Executive Chairman. Bill Moreton, who had been serving as Chief Operating Officer, would take over as CEO.[35]

The day after Shaich stepped down as CEO of Panera, he opened the first of five Panera Cares community cafes, which were operated as "pay it forward" cafes without set prices.[36] Shaich's goal was to substantially contribute to the community at the height of the recession by supporting those who were struggling with food insecurity and financial hardships.[37][38]

In November 2010, Ron wrote a memo on how he would compete with Panera if he weren't invested in Panera.[39] Upon reading the memo, Bill Moreton asked Ron to work on bringing the initiatives described in the thought piece to life, and Ron returned in 2011 to drive Panera's next wave of transformation.[40] He became Co-CEO with Bill Moreton in March 2012 and officially reclaimed the role as sole CEO at Panera in August 2013. Bill Moreton stayed with the company as Executive Vice Chairman.[41]

In 2014, Shaich pioneered the integration of technology at restaurants by unveiling Panera 2.0, "a series of integrated technologies to enhance the guest experience for all consumers no matter how they choose to use Panera." The plan included the following key elements:[42]

  1. A better way to order, pick up and pay: Ordering ahead, ordering from your table, ordering kiosks, customized ordering, as well as online payment processing. Delivery to the table for customers ordering inside, as well as an area for rapid pick-up to-go orders was also added. An enhanced customer experience, including a customer-facing display to verify the correct order.[42]
  2. Improved production and accuracy systems.[42]

As part of this transformation, Shaich also spearheaded:

  1. A revised concept essence (go-to-market strategy): Redefining the customer experience to focus on craveable wellness and more clean options for customers.[43]
  2. The launch of a loyalty program: Among the first in the restaurant industry.[43]
  3. The development of omnichannel growth levers: Catering, delivery, and consumer packaged goods businesses.[43]

By June 2017, Shaich's transformed Panera delivered annualized digital sales of over $1 billion and sales from mobile, web and kiosk orders made up 26% of the company's total sales. Panera estimated that 1.2 million digital orders were placed per week.[44]

Shaich led the sale of Panera to JAB Holdings for approximately $7.5 billion ($315 per share) in a deal approved by Panera's shareholders on July 11, 2017. The deal was the largest U.S. restaurant deal ever done up until that point in time at among the highest multiples – 18x EBITDA – on record.[45] Once the acquisition was final, JAB Holdings took the company private.[46]

In November 2017, Shaich led Panera's acquisition of Au Bon Pain. That same day, Shaich announced that he was stepping down as CEO, effective Jan. 1, 2018.[47][48] Olivier Goudet took over as chairman in 2018.[49]

Act III Holdings

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In 2018, Shaich founded Act III Holdings LLC, an evergreen investment vehicle, with $250 million of his and his partners money. As of 2023, Act III has a portfolio valued in excess of $1 billion and invests in consumer-facing restaurant and entertainment concepts that can dominate a niche in the marketplace.[9] Shaich serves as Act III's Managing Partner & CEO.[50]

Shaich's first major investment with Act III was as a lead investor in Cava. Shaich believed in people's desire for Mediterranean fast-casual cuisine and the potential of the Cava brand. Shaich conceptualized and led Cava's acquisition of public company Zoe's Kitchen, which was five times larger than Cava and allowed Cava to hyper scale into a category-dominant brand company with 250 locations as of October 2023.[9][51]

As part of the acquisition, Shaich became chair of the combined company and Act III is among Cava's lead investors with 10% of the equity.[52][53][54]

As chairman, Shaich assisted with Cava Group's initial public offering (IPO) in June 2023.[8]

Other notable investments from Shaich's Act III portfolio include Tatte Bakery & Café, Life Alive—a place to eat positive, and Level99—live-action, challenge-based entertainment, craft beverages and farm-to-table dining.[55][56][57]

Author

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Shaich has written one book, Know What Matters: Lessons from a Lifetime of Transformations, released October 2023. The book was positively received, becoming a USA Today, Wall Street Journal and Porchlight best seller.[1][14]

Book

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References

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  1. ^ a b c "Best-selling Booklist". USA TODAY. Retrieved 2023-12-08.
  2. ^ Ron Shaich, Founder of Panera Bread | Conscious Corporate Finance | 2017 CEO Summit, retrieved 2023-12-08
  3. ^ "FactSet, Relative stock price performance indexed from 1/1/97 to 3/28/17". Factset.
  4. ^ Staff (February 14, 2018). "Restaurant Business names Panera Bread's Ron Shaich 2018 Restaurant Leader of the Year". Restaurant Business. Retrieved 2023-12-08.
  5. ^ Horovitz, Bruce (2019-07-05). "Panera Founder Ron Shaich Bakes A Tasty Third Act". Investor's Business Daily. Retrieved 2023-12-08.
  6. ^ "Father of Fast Casual on a Lifetime of Lessons Learned – Bloomberg". www.bloomberg.com. Retrieved 2023-12-08.
  7. ^ "Panera Bread's Ron Shaich: The father of fast-casual dining". Yahoo Finance. 2024-01-11. Retrieved 2024-01-19.
  8. ^ a b Primack, Dan (June 20, 2023). "Cava is Panera founder Ron Shaich's next act". Axios. Retrieved December 8, 2023.
  9. ^ a b c Escobar, Sabrina. "Panera's Founder Backed an IPO Smash. What He's Investing in Now". barrons. Retrieved 2023-12-08.
  10. ^ "Author Talks: Ron Shaich on leadership lessons | McKinsey". www.mckinsey.com. Retrieved 2023-12-08.
  11. ^ "Panera Founder Has Quietly Launched a Fast-Casual Empire from Boston". www.yahoo.com. 2018-10-17. Retrieved 2023-12-08.
  12. ^ Alsever, Jennifer (October 24, 2023). "Ron Shaich's Panera changed how America eats. Now he wants to transform your life". Fast Company. Retrieved December 8, 2023.
  13. ^ Predin, Josipa Majic. "5 Leadership Lessons For CEOs From Ron Shaich's Book 'Know What Matters'". Forbes. Retrieved 2023-12-08.
  14. ^ a b "Bestselling Books Week Ended October 28". WSJ. Retrieved 2023-12-08.
  15. ^ Knight, Rebecca (7 September 2014). "An MBA that served up a big slice of the snack market". Financial Times. Retrieved 8 December 2023.
  16. ^ "Ron Shaich, Clark University: Profile and Biography". Bloomberg.com. Retrieved 2023-12-08.
  17. ^ a b Staff Writer. "An interview with Clark U. grad Ron Shaich, founder of Panera Bread". The Worcester Telegram & Gazette. Retrieved 2023-12-08.
  18. ^ a b "How Did I Get Here? Ron Shaich". Bloomberg.com. Retrieved 2023-12-08.
  19. ^ "Panera founder Ron Shaich '76 tells Clark University graduates, 'Do the work that matters'". Clark Now | Clark University. Retrieved 2023-12-08.
  20. ^ a b Machan, Dyan. "Panera Bread's Ron Shaich: "Flour on His Shoes"". barrons. Retrieved 2023-12-08.
  21. ^ "Ron Shaich's Café Society". Harvard Business School Alumni. 2004-03-01. Retrieved 2023-12-08.
  22. ^ a b Hymowitz, Carol (2003-06-10). "Panera CEO's Recipe: Learn From Past, Anticipate Trends". Wall Street Journal. ISSN 0099-9660. Retrieved 2023-12-08.
  23. ^ a b "COMPANY NEWS; AU BON PAIN TO ACQUIRE SAINT LOUIS BREAD COMPANY". The New York Times. Associated Press. 1993-11-12. ISSN 0362-4331. Retrieved 2023-12-08.
  24. ^ a b Kowitt, Beth; writer. "A founder's bold gamble on Panera". Fortune. Retrieved 2023-12-08.
  25. ^ "The conversation that shook the life of Panera Bread founder Ron Shaich". Big Think. 2023-10-27. Retrieved 2023-12-08.
  26. ^ "St. Louis Bread parent selling Missouri dough plant". www.bizjournals.com. Retrieved 2023-12-08.
  27. ^ a b c "Second Rising". Forbes. Retrieved 2023-12-08.
  28. ^ "Our History". 2015-09-26. Archived from the original on 2015-09-26. Retrieved 2023-12-08.
  29. ^ Magazine, Q. S. R. (2003-02-25). "Panera Bread Fourth Quarter Earnings Per Share Increased 56%". QSR Magazine. Retrieved 2023-12-08.
  30. ^ admin (2003-11-07). "Breadmakers losing dough as dieters' pass up carbohydrates". Maryland Daily Record. Retrieved 2023-12-08.
  31. ^ "Panera's Ronald Shaich: From Bread Making To Policymaking". Institutional Investor. 2010-04-22. Retrieved 2023-12-08.
  32. ^ Gustafson, Krystina (2010-03-10). "Panera Is First National Chain to Post Calorie Counts". CNBC. Retrieved 2023-12-08.
  33. ^ "Panera Bread Company – 26 Year Stock Price History | PNRA". Macrotrends.net. Retrieved December 8, 2023.
  34. ^ "Giving Fast Food A Run For Its Money". Bloomberg.com. Retrieved 2023-12-08.
  35. ^ "Panera's CEO, Ron Shaich, to step down". Nation's Restaurant News. 2009-11-18. Retrieved 2023-12-08.
  36. ^ Gregory, Sean (2010-08-02). "Sandwich Philanthropy". Time. ISSN 0040-781X. Retrieved 2023-12-08.
  37. ^ "Pay-what-you-want a success at Panera". The Florida Times-Union. Retrieved 2023-12-08.
  38. ^ Gonzalez, Sarah (January 24, 2019). "What Happened When Panera Launched A 'Pay What You Can' Experiment". NPR.org.
  39. ^ Sozzi, Brian (2016-04-30). "Panera CEO's plan to transform the company gains traction". TheStreet. Retrieved 2023-12-08.
  40. ^ Whitten, Sarah (2017-11-08). "Panera's Ron Shaich is stepping down as CEO, but first he's repurchasing Au Bon Pain". CNBC. Retrieved 2023-12-08.
  41. ^ Sozzi, Brian (2017-11-08). "Panera Bread Founder Is Stepping Aside and Going to War With Activist Investors". TheStreet. Retrieved 2023-12-08.
  42. ^ a b c "Panera Unveils Panera 2.0". Yahoo Finance. 2014-04-10. Retrieved 2023-12-08.
  43. ^ a b c "Panera CEO: We've got to reduce friction with customers". www.fastcasual.com. 2014-05-05. Retrieved 2023-12-08.
  44. ^ Meyer, Zlati. "Panera Bread says it is scoring big on digital sales". USA TODAY. Retrieved 2023-12-08.
  45. ^ "Wednesdays with WashU: A Conversation with Ron Shaich". Happenings at WashU. Retrieved 2023-12-08.
  46. ^ Lam, Bourree (2017-04-05). "What Panera Gets From Its $7.5 Billion Sale". The Atlantic. Retrieved 2023-12-08.
  47. ^ "Panera Bread Founder Ron Shaich to Step Down as CEO". Fortune. Retrieved 2023-12-08.
  48. ^ "Ron Shaich stepping down as Panera CEO". Nation's Restaurant News. 2017-11-08. Retrieved 2023-12-08.
  49. ^ "Panera Bread Co : Shareholders Board Members Managers and Company Profile | US69840W1080 | MarketScreener". www.marketscreener.com. Retrieved 2023-12-08.
  50. ^ "Panera Founder Takes 'Buffett Approach' for New Restaurant Fund". Bloomberg.com. 2018-09-24. Retrieved 2023-12-08.
  51. ^ Tyko, Kelly (October 12, 2023). "Why Ron Shaich thinks Cava is prepared to be a public company". Axios. Retrieved December 8, 2023.
  52. ^ "The Cava IPO had a secret ingredient". Yahoo Finance. 2023-06-16. Retrieved 2023-12-08.
  53. ^ Magazine, Q. S. R. (2018-08-17). "Cava Buys Zoes Kitchen in $300 Million Deal". QSR Magazine. Retrieved 2023-12-08.
  54. ^ Whitten, Sarah (2018-08-17). "Here's why you need to pay attention to Cava's acquisition of Zoes Kitchen". CNBC. Retrieved 2023-12-08.
  55. ^ Lalley, Heather (September 5, 2019). "How Life Alive is working to become a wellness brand". Restaurant Business. Retrieved 2023-12-08.
  56. ^ "Shaich's Stake in Tatte: Ex-Panera CEO's Value-Based Investing Paradigm | Arts | The Harvard Crimson". www.thecrimson.com. Retrieved 2023-12-08.
  57. ^ Bonner, Michael (2021-06-15). "This old Sears was converted into a new entertainment space with Aztec temples, samurai training". masslive. Retrieved 2023-12-08.
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