Bakery Cafes on a RollBakery Cafes on a Roll

CHICAGODespite the lagging economy and overall poor performance of the restaurant category, bakery cafes have 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: 30.7% in 2008.

The consumer trade-down from full-service to limited-service formats that solidified through 2008 and into 2009 allowed fast-casual bakery cafes to truly shine, says Darren Tristano, EVP foodservice industry consultant, Technomic. The appeal of moderately priced, high-quality menu offerings served in contemporary ambiance, as well as consumer perception of value for this format, has more than likely strengthened over the past year.