May 28, 2023 Supporting Manhattan-area entrepreneurs, businesses, events

After Only 1 Year, Panera on Poyntz Closes

One year ago, Panera Bread opened Manhattan’s second location. Today, the doors are closed for business, the manager confirmed this morning without stating any reasons why.

Employees are not happy with management after little to no warning of the store closing at 325 E Poyntz. MHK Business News received notice of this location closing yesterday.

About the same time as this Panera opened, Raising Cane’s Chicken opened nearby along with Cowboy Chicken on the West side of Manhattan. Earlier this year, Cowboy Chicken announced their closing.

As to what leads to franchises closing, thebalancesmb.com states, “Where the majority of franchisee-owned units are doing well, the failure of any particular franchise is likely due to the management of the business at the unit level. The failure to properly manage and operate any business is the leading cause of business failure, and in franchising, where the franchisor does not have control of the day-to-day management of the franchisee’s business, there is often little the franchisor can do to prevent it.”

“When you examine the cause of many business failures, the seed of their destruction may also be found in the decisions made before the business even opened. Poor site selection, inadequate working capital and financial resources, and excessive debt service obligations are just a few pre-opening reasons for failure.​”

According to PaneraBread.com, Panera Bread does not sell single-unit franchises, so it is not possible to open just one bakery-cafe. Rather, we have chosen to develop by selling market areas which require the franchise developer to open a number of units, typically 15 bakery-cafes in a period of 6 years. The applicant owner must have a net worth of $7.5 million and $3 million in liquid assets.

Pan American Group owns and operates Manhattan’s locations. With 130 bakery cafes in Washington, California, Pennsylvania, West Virginia, Kansas, and Missouri, Pan American Group LLC is the second largest Panera Bread Bakery-Cafe franchisee in the US. PAG is a wholly-owned subsidiary of Flynn Restaurant Group LP along with Apple American Group LLC (450 + Applebees locations) and Bell American Group LLC (250+ Taco Bell locations). Flynn Restaurant Group operates over 900+ restaurants and directly employs more than 42,000 people in 30+ states across the US, earning more than $1.9 Billion annually. More information is available at http://www.panamericangroup.com.

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