The Godfather Of Fast Casual | Ron Shaich (Panera, CAVA)

When you think about a "convenience store manager," you probably don't imagine a future billionaire. But that's exactly the path Ron Shaich took from humble beginners selling Tollhouse cookies to a $7.5 billion restaurant empire. In this episode of Big Shot, Harley Finkelstein and David Segal welcome Shaich, the founder of Panera Bread, who shares his incredible journey from a nonprofit convenience store to his pivotal decision to create Panera Bread. Ron is a master at finding the trends others can't see before becoming popular. He shares the challenges and successes that defined his path, highlighting the power of adaptability and innovation. And breaks down the difference between risk-taking and risk-avoidance, and how leaning into one over the other can lead to incredible success.

The episode is filled with incredible takeaways, including:

• How Ron has the best-performing restaurant stock of all time (44x return compared to the S&P 500)
• Why his first store in college was a spite store
• What he learned from his IPO with Au Bon Pain
• How he created an entirely new category, “Fast Casual”
• And so much more

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In This Episode We Cover:
(02:35) Ron’s early years growing up in New Jersey in a family of left-wing political activists
(07:50) Ron’s gap year working for a congressman
(09:45) How a false accusation of shoplifting prompted Ron to open a convenience store
(14:50) How Ron fell in love with business and his time at Harvard Business School
(19:28) The rewards of entrepreneurship
(20:40) What business has in common with politics
(23:22) How Ron made money selling flea collars in college
(26:00) Why Ron got his inheritance early
(27:35) Ron’s work in DC as President of Targeting Systems
(29:08) How Ron opened The Cookie Jar in Boston
(31:43) Ron’s partnership with Au Bon Pain’s founder Louis Kane
(39:44) Ron and Louis’s exceptional friendship and partnership
(42:25) The importance of empathy and the insights that it brought Ron
(48:35) How Ron created a brand new category, bakery cafe
(51:50) How Ron felt right before Au Bon Pain’s IPO
(53:00) The downsides of going public
(54:50) Ron’s means, ends, and by-products framework
(57:20) What Ron learned from watching his parents face death
(1:00:13) How Ron organized his life
(1:03:35) Ron’s purchase of the St. Louis Bread Company
(1:07:28) How Ron’s trend studying led him to fast casual dining
(1:13:52) The transformation of St. Louis Bread into Panera
(1:15:33) Why Ron decided to sell Au Bon Pain to focus on Panera
(1:20:25) The rapid growth stage of Panera
(1:22:51) Ron’s philanthropy with No Labels and Panera Cares
(1:25:14) The painful journey of transforming Panera
(1:32:09) Thoughts on success, chutzpah, and the Jewish entrepreneurial spirit
(1:34:28) Why entrepreneurs are risk avoiders
(1:35:34) Why Ron sees building organizations as a way to impact the world positively
(1:37:44) Ron’s investment company, Act 3, and the problem with short-termism

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Where to find Ron Shaich:
Website: https://www.ronshaich.com/
LinkedIn:   / ronshaich  
X: https://x.com/shaich
Facebook:   / shaich  

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Where To Find Big Shot:
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Harley Finkelstein: ⁠  / harleyf⁠  
David Segal: ⁠  / tea_maverick⁠  
Production and Marketing: ⁠⁠https://penname.co