Oct. 30, 2003 
Bakery-cafe chain rising in Charlotte area
Panera Bread opening restaurants in Concord, Rock Hill in December
DOUG SMITH

One of the nation's fastest growing restaurant chains has targeted the Charlotte area for a major expansion.

Panera Bread Co., a Richmond Heights, Mo., chain of 531 bakery-cafes, believes the market will support at least 14 restaurants. The first two will open in December in Concord and Rock Hill.

The chain, already operating in the Triangle and Triad, typically expands through franchisees, but the restaurants opening in this thrust will be corporate-owned.

"The market is so dynamic they wanted to take advantage of it, but they weren't able to find a franchisee they considered a good match," said Rianne Bell, president of Bell Moore Group Inc., Panera's real estate representative in Charlotte.

Construction has started on a restaurant off N.C. 51 near the Matthews Target store, and negotiations are under way for sites on U.S. 521 in Ballantyne and in SouthPark, she said.

In addition, Bell said, Panera is seeking sites in the Elizabeth neighborhood, the University City area and Gastonia.

The restaurant chain, which operates in a niche called "quick casual" was the nation's third-fastest growing in 2002 with $755 million in sales, according to Chicago-based Technomic Inc., which tracks the industry.

Panera customers order at a self-service counter from a menu of fresh breads, pastries, sandwiches, soups and salads of slightly higher price and quality than standard fast food.

The soft, earth-tone decor, the aroma of baking bread and cozy conversation areas encourage people to make the bakery-cafe a gathering place.

The average customer check is $6 to $8, and orders typically are ready in about five minutes.

Panera is mentioned along with Starbucks, Cheesecake Factory, Restoration Hardware, Williams-Sonoma and Bed Bath & Beyond in a recent book about changing preferences of middle-income consumers.

"Trading Up: The New American Luxury" by Michael Silverstein and Neil Fiske draws from Boston Consulting Group studies documenting the "new luxury" trend, defined as consumers' willingness to pay more for things that make life more enjoyable.

Panera bakery-cafes average 5,000 square feet, include outdoor dining patios and generally seat slightly more than 100 customers.

Restaurants bake 15 varieties of bread daily. The Charlotte-area locations will adopt a new design that adds another element -- fresh dough making, Bell said.

Panera, which operates in 33 states -- including South Carolina, where it has a Greenville location -- has been opening about 100 bakery-cafes a year. Its goal is to reach 600 this year.

In addition to the corporate expansion, Bell said she also represents a franchisee who plans to open a Panera Bread in a new shopping center at N.C. 150 and Williamson Road in Mooresville.

The Rock Hill restaurant is to open in early December in Manchester Village on John Ross Parkway. The Concord restaurant is to open in mid-December in The Pavilion at Kings Grant on Concord Mills Boulevard.

• Paul Zarbatany, who has been renovating houses in Charlotte for 12 years, has announced his first development project: eight condo units in Plaza-Midwood.

The Cameron will consist of two quadraplexes designed in 1920s style by Pfahl Architects at 1425 and 1429 Pecan Ave., within two blocks of Central Avenue's shops and services.

Four two-bedroom, two-bath flats with single-car attached garages will total 1,036 square feet each and sell for $169,000 apiece.

Four three-bedroom, three-bath units with detached garages will total 1,364 square feet each and sell for $207,000 apiece.

Zarbatany said one unit is under contract. He expects to start construction when at least half the units are sold and complete work by fall 2004.

Features include a private front porch or balcony with French doors, 9-foot ceilings in first- and second-story units, hardwood floors in the kitchen and dining areas, and private storage spaces assigned to each unit.

The project, valued at about $1.5 million, is named for Jack Cameron, who ran a print shop in the house next door, which Zarbatany also owns.