Panera Bread to Close Franklin Facility, Lay Off 92 Employees

The bakery chain is outsourcing its baking operations, leading to the permanent closure of its Franklin, MA site.

Published on Feb. 9, 2026

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Panera Bread is shutting down its bakery facility in Franklin, Massachusetts, resulting in the layoff of all 92 employees at the site. The closure is part of the company's decision to outsource its baking operations to third-party providers, with Panera staff handling the final in-house finishing of baked goods. The permanent layoffs will impact workers across 23 different positions, with the largest group being tractor-trailer drivers.

Why it matters

The closure of Panera's Franklin facility reflects broader industry trends of food manufacturers and retailers outsourcing production to cut costs. While Panera is offering severance and job placement assistance, the layoffs will still have a significant impact on the local workforce in the Worcester area.

The details

Panera's facility at 290 Beaver St. in Franklin will close its doors on March 27, according to a Worker Adjustment and Retraining Notification letter sent to the state. The company is shifting part of its operating model to utilize third-party bakers for its baked goods, with Panera staff handling the final in-house finishing. As a result, all 92 employees at the Franklin site will be permanently laid off between March 25-27, affecting workers across 23 different positions, with the largest group being tractor-trailer drivers.

  • Panera's Franklin facility will close on March 27, 2026.
  • The 92 employees at the site will be permanently laid off between March 25-27, 2026.

The players

Panera Bread

A fast casual restaurant chain that specializes in bakery-cafe items such as sandwiches, salads, and soups. Panera operates 64 locations in Massachusetts, including 12 in the Central Massachusetts region.

Ron Shaich

The co-founder of Panera Bread, who recently gifted $20 million to his alma mater, Clark University, in Worcester.

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What’s next

Panera is hosting a job fair on February 23, 2026 to assist the 92 laid-off employees from the Franklin facility in finding new positions.

The takeaway

The closure of Panera's Franklin bakery facility is part of a broader industry trend of food manufacturers and retailers outsourcing production to cut costs. While Panera is offering severance and job placement help, the layoffs will still have a significant impact on the local Worcester-area workforce.