will cut labor cost by replacing high paid labor with out of work replacement labor,yet factors which they have no control over such as fuel cost rising ingredient cost a shrinking economy and customer base will take a toll over time.most concepts have a 20 -25 year life ,before a decline and leveling off
Although Panera Bread Company reported a 43% growth in net income and 2.3% increase in same-store sales for 4Q2008, transactions actually fell by 3.2%. This means that all growth came from price increases. As the recession deepens, consumers will look to save money by eating out less. Panera's price increases may have helped the bottom line temporarily, but they will not work in the long term.