OG
octavio galli
Sep 25, 2025
Let me tell you, I used to be a 20-year Starbucks drinker. I worshipped the line, the ritual, the name scrawled on the cup. But lately? Walking into a Starbucks feels dead: 90% takeout, minimal people sitting, minimal chatter, that third-place energy gone. Meanwhile, Panera is doing something smart. Really smart. It’s not just food, it’s strategy.
Paul Carbone (yes, the CFO now steering Panera Brands) isn’t tinkering around. He’s helping reinvent Panera into what Starbucks used to be: a place you go to stay, to work, to mix with others, to linger over a cup. With over 57% of Panera’s sales now from ecommerce and the Unlimited Sip Club subscription model drawing in folks who used to drop $4–5 per drink elsewhere, Panera has pulled ahead.
Let’s talk about that Sip Club: for about $10.99/month (now bumped to ~$14.99 in many places) you get nearly everything: hot or iced coffee, teas, fountain drinks, Charged Lemonades, free refills while you’re in the café, drink every two hours. This isn’t just value for someone who wants a drink here and there — this is a power move to lock in daily habit. Students, freelancers, people with laptops — they show up more, they stay longer, they spend more.
Contrast that with Starbucks under Brian Niccol. He walked in, saw what’s happening: falling same-store sales, stores with dwindling in-person crowd. He’s trying with his “Back to Starbucks” turnaround: store closures, job cuts, simplifying the menu, re-investing in the café experience. But he’s got a steep hill. The cracks are there. The momentum is with value and habit, and when customers can get more for less and an environment that invites them to stay, that’s a powerful one-two punch.
So yes — Panera has won me over. If you asked me six months ago: I’m Starbucks all the way. Now? I hit Panera every day. Sip Club is unbeatable. Quantity. Quality. Ambiance. And people are flocking back in. Starbucks might still dominate in brand recognition, but Panera is quietly taking back territory: the territory of the lingering, the working, the connecting.
If you're a coffee drinker, if you're someone who wants more than just “grab and go,” Panera is the new Starbucks you wished Starbucks still was — and seeing more and more places follow that model