Au Bon Pain - Food and Drink - Schofield Media Chicago

In a competitive fast-casual segment, new products are a main driver for Au Bon Pain. The chain is “constantly introducing new menu items,” Senior Vice President of Marketing Ed Frechette says.

“The biggest new category for us is our harvest rice bowls.” The item caters to consumers’ demand for more hot foods.

“We offered hot foods before, but the harvest rice bowls have become an overnight success,” Frechette says. Chef Thomas John created the rice bowl – which is a bed of white or brown rice, with a choice of toppings – and within one year, the item jumped to 2 percent of total sales.

Other new menu items include the baked eggplant and mozzarella sandwich, the prosciutto mozzarella sandwich and the turkey spinach sonoma salad. “We’re coming out with new items all the time,” Frechette says. “Two summers ago, we introduced a smoked salmon and wasabi breakfast sandwich. It was an unusual item, which we thought would be more of a boutique sandwich, but it jumped to 20 percent of all our breakfast sandwich sales. To us, that says people are looking for something different than a traditional egg-and-sausage sandwich.”

Frechette credits John with having “a real art to creating unique compositions of food,” he says.

“Chef John has a real knack for putting flavors together in an interesting way, but still being approachable. The taste and composition of our menu items are terrific, and that really sets us apart.”

In addition to unique items, consumers are trending toward healthier choices. In response, Au Bon Pain has switched to all-natural chicken, and offers many reduced-sodium soups and whole grain breads. All of its menu items are also trans-fat free. “We’ve always been ahead of the trend on healthier food options,” Frechette says. “For us, it’s about incorporating items on our menu that are fresh and naturally healthy.”

Along with posting its menu’s nutritional information online, kiosks are set up at each café so customers can look up information on their food choices to make informed decisions.

New Direction
Au Bon Pain was founded by Louis Kane in 1978, and today the company operates 226 cafes around the world. Most company-owned cafes are concentrated in Boston, Chicago, New York, Philadelphia, Pittsburgh and Washington, D.C., while franchised cafes are in 19 states across the country and locations overseas.

Compass Group acquired Au Bon Pain in 2000, but in 2005, a management buyout gave Au Bon Pain “a bold new direction,” the company says.

“When we regained ownership from Compass Group, we focused initially on strengthening the fundamental business operations in our existing cafes,” Frechette explains. “Once we were seeing strong growth in our existing cafés, we began to look at developing new cafés and expanding internationally.”

This fiscal year, the company plans to open 12 new cafés, and has signed major agreements with a franchisee in Japan and one in the Middle East. “Our first cafés in Kuwait will open in spring, and it’s exciting to see our international development expand,” Frechette says.

Internationally, Au Bon Pain modifies its menu to meet local preferences, such as pork-free products in the Middle East. The company also provides extensive training and support to international franchisees, including IT, marketing, purchasing and management training.

“We’re looking to form real partnerships with our international franchisees,” Frechette says. “The franchisees need to be able to meet our standards and replicate our operations, as well as be tuned in to their local customer base.”

Along with international growth, Au Bon Pain continues to explore new trade channels, including locations in hospitals, universities, airports, office buildings and retail centers. “We’re looking at a variety of options and identifying opportunities,” Frechette says. “The cost of real estate is the biggest barrier, especially in larger cities, but finding the right location is worth the hunt.”

Recently, Au Bon Pain opened a café in Penn Station in New York City. Frechette says working through the various agencies that operate the station can be a challenge, and patience is key. However, the café “has done very well right out of the gate, and sales are already sky high,” he notes.

The Penn Station Au Bon Pain location is about 2,100 square feet. A typical café is about 3,000 to 3,500 square feet, although Frechette says the company can go as small as 500 square feet, such as its location at South Station in Boston.

In Au Bon Pain’s last fiscal year, same-store sales growth was up almost 9 percent, and Frechette says that figure is higher than average for the industry. Customer satisfaction levels are also high, and Au Bon Pain receives multiple compliments about its staff. “We have some incredibly great people here, and our customers really appreciate the service we provide,” he says. “Our concept is structured so there is always a manager on the floor interacting with our guests. Hospitality is a significant priority for us.”

Au Bon Pain plans to continue on its growth trend and has put systems in place to more seamlessly open new cafés. “We’re bringing a discipline to what we do and communicating our processes throughout our group,” Frechette says. “As we celebrate our 30th anniversary in 2008, we’re [seeing a] huge opportunity across the United States and [worldwide].”

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