Panera Bread Is Rising: Best in Class

NEW YORK (TheStreet) -- For Panera Bread (PNRA), the recession has been more feast than famine -- and that's because CEO Ronald Shaich decided from the first sign of a downturn that he, and his company, would adopt a contrarian approach.

"We saw the recession as an opportunity for us," says Shaich, who has been at the helm of Panera Bread for two decades. "We never wavered from our core philosophy."

That philosophy includes providing customers with high-quality product and top-notch customer service -- the Great Recession be damned.

Indeed, across all industries, but even more predominantly among restaurants, companies are cutting back: slashing labor, closing stores, reducing advertising. But not so Panera Bread, which is actually adding more to its plate: rolling out new products, opening locations, doling out bonuses to employees and beefing up its marketing.

Case in point: this summer Panera upgraded the lettuce it uses in salads, and as a result saw a 30% spike in salad sales year-over-year. It also revamped its chicken salad and coffee and introduced a new power breakfast sandwich. The company will even add a more efficient Panini grill that allows sandwiches to be made-to-order, making these items fresher.

"People are willing to pay a little extra for a healthier option with natural ingredients," Stifel Nicolaus analyst Steve West, says. West names Panera his top stock in the sector.

But Shaich says it is just as important to be good to your employees as it is to your customers -- and this is why he continues to maintain labor levels and is still offering bonuses and raises to high-performing workers.