Bakery-Cafés Rising Despite Economy

CHICAGO—Despite the lagging economy and current overall poor restaurant performance, the bakery-café segment has emerged as a rising star in the restaurant industry, according to “The 2009 Technomic Top 25 Bakery Cafe Chains Restaurant Report.” Sales for the bakery cafe industry grew by 12%, more than $4.5 billion in 2008. Panera Bread, Einstein Bros. Bagels and Au Bon Pain were responsible for the majority of the business, with $2.6 billion, $393 million and $307 million, respectively. Paradise Bakery & Cafe posted the fastest rate of growth, up 30.7% in 2008.

Technomic notes that part of the reason for this growth is consumers trading down from full-service restaurants to limited-service formats with high-quality menu offerings.