ST. LOUIS — Panera Bread has confirmed plans to shut a pair of fresh dough manufacturing facilities in Stockon and Ontario, Calif.

The St. Louis-based bakery cafe chain said the closings come as California becomes its latest market to test an “on-demand” model that enlists third-party bakeries to par-bake and freeze bread to company specifications for shipment to Panera locations, where the baking is finished as needed. Overall, Panera operates nearly 200 cafes in the state.

“As part of the California transition, we had to make the difficult decision to close our Ontario and Stockton commissary facilities,” Panera said in a Feb. 24 email statement. “Any decision that impacts our teams is never made lightly, and we are deeply grateful for the contributions of all impacted team members. To support them, we are providing comprehensive packages that include separation pay, assistance with COBRA health insurance premiums, outplacement services, and support finding roles both within and outside of Panera.”

California marks the sixth market where the on-demand model is being introduced, Panera said. The company explained that, depending on the market, it uses one of two bread-making models.

“The first model is when dough is mixed and shaped from commissary then delivered to cafes, where it is reshaped and baked,” Panera said. “The second model is what’s being expanded to the California market. We partner with expert artisan bakery producers who follow Panera’s time-honored recipes and use our high-quality ingredients to craft bread that is finished baking in our cafes throughout the day. We are continuing to explore and test this model and are now expanding it to California market.”

Including the Stockton and Ontario sites, Panera said it has closed 7 fresh dough facilities thus far and currently has 11 open facilities operating nationwide. The company didn’t provide a timetable for the closure of the two California locations.

“This on-demand model is in five markets, where we have seen notable improvements in availability, quality and guest experience,” Panera said. “Along with improving the availability and consistency of our breads and baked goods, we have found that the on-demand baking model has allowed us to simplify operations, unlock innovation, and explore new breads and unique varieties.”

In 2024, Panera closed fresh dough facilities in Atlanta, Denver, Seattle, Houston and Chandler, Ariz.