Panera Bread founder Ron Shaich says most CEOs end up regretting taking companies public

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Panera Bread founder Ron Shaich’s new book “Know What Matters” looks back on his career and argues companies should rethink IPOs.

The book recounts the highs and lows of his career and offers advice to aspiring entrepreneurs and CEOs, including rethinking IPOs.

More than six years after selling the chain for $7.5 billion, Shaich is looking back on his nearly four decades at the helm of the company he transformed into a fast-casual restaurant giant. Shaich's new book,"Know What Matters," hits stores Tuesday.with his first entrepreneurial endeavors as a college student and ends with Panera's blockbuster sale to JAB Holding.

One of the most unexpected pieces of advice in Shaich's book is his caution about going public. Shaich took Au Bon Pain public through an IPO in 1991. Even as Au Bon Pain bought St. Louis Bread Company, renamed it Panera Bread and then shed Au Bon Pain to focus on Panera's growth, Shaich's company was publicly traded."The reality is for 90% of the CEOs that take a company public, they live to regret it," Shaich told CNBC.

Shaich's lack of appreciation for the typical venture capital model also comes through in his own firm. Act III doesn't have any outside investors, known as limited partners, which allows the firm to focus on the long term, according to Shaich. The firm also provides continuous capital to its investments so founders can focus on the business rather than fundraising, he said.

 

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