Panera Bread Testing The 'Pay What You Want' Model
from the trying-it-all-out dept
Popular restaurant chain Panera Bread has long been interested in experimenting with smart new business models. It was one of the first restaurants out there to push free WiFi in all its locations -- at a time when many thought fee-based WiFi was the future -- noting how much it helped bring in more business for the food. A bunch of folks are now submitting the news that Panera is testing out a pay what you want model in one of its new restaurants. There are "recommended" prices -- but you can pay more or less than those numbers. This seems to be a take on the trend that became popular last year of restaurants offering certain days or nights where you could get free meals, which some restaurants found actually resulted in much more revenue (along with more loyal customers).While I'm intrigued with how this will work out, I'm not convinced it's going to be a success (though I'd be pleasantly surprised to find out I'm wrong). The whole thing is actually set up separate from Panera, via a non-profit foundation, which Panera is supporting. The restaurant won't use the Panera name, but St. Louis Bread Co. Cares, which apparently was the company's original name. I would guess that many people will feel guilty enough to pay the list price, though some will obviously pay less. I doubt very many (if any) people will really pay much extra, which puts the operation in a tricky position. Since we're talking about food and salaries, there are real scarcities to deal with in terms of expenses, so a "pay what you want" model seems like it would have difficulty scaling.
Still, as business models go, it's one worth watching.
Filed Under: food, pay what you want
Companies: panera
Reader Comments
Subscribe: RSS
View by: Time | Thread
[ link to this | view in chronology ]
Re: BizTard!
[ link to this | view in chronology ]
Re: Re: BizTard!
[ link to this | view in chronology ]
Re: Re: Re: BizTard!
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
"has converted one of its St. Louis Bread Co. stores into a nonprofit operation aimed at raising funds for community groups."
It is a non-profit operation. Are you seriously going to encourage people to speculate on whether a food bank donation box "business-model" will work, when the stated goal of the operation is to not make a profit, seriously?
[ link to this | view in chronology ]
Re:
Non-profits still need to make enough money to survive.
Are you seriously going to encourage people to speculate on whether a food bank donation box "business-model" will work, when the stated goal of the operation is to not make a profit, seriously?
Yes. There's actually quite a lot of discussion around non-profit "business models." Just because you're a non-profit it does not mean you are not running a business. It's just that the goals of the business are different. I see nothing wrong with discussing the business model of a non-profit operation.
[ link to this | view in chronology ]
Re: Re:
[ link to this | view in chronology ]
Re: Re: Re:
What is supposedly so different? And please speak from your experience.
[ link to this | view in chronology ]
Re: Re: Re: Re:
[ link to this | view in chronology ]
Re: Re: Re: Re: Re:
But good, you have experience with a volunteer non-profit, not the example given here. Now it's clear why you don't understand, because your experience doesn't apply to the store in St. Louis.
Also, it's fairly disingenuous for you to say that one set of motivations are pure and others aren't. Even individuals in volunteer organizations are driven by motivations and incentives that aren't necessarily explicit or pure. So stop peeing on others from on high, as you like to say.
[ link to this | view in chronology ]
Re: Re: Re: Re: Re: Re:
[ link to this | view in chronology ]
Re: Re: Re: Re: Re: Re:
And how many times, on this very website, have we seen someone make this exact same comment in regard to the "purity" of motivations between professional and amateur content creators?
Hell, I wouldn't be the least bit surprised if YOU were one of the innumerable proprietors of that incredibly common freetard maxim.
[ link to this | view in chronology ]
Re: Re: Re: Re: Re: Re: Re:
Happy now?
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
St Louis Bread Co
[ link to this | view in chronology ]
um physical objects versus digital
but with physical it is no so.
won't work
[ link to this | view in chronology ]
Customers are already use to paying extra in the restaurant business. 10-20% extra in the form of tips. I have never eaten at Panera, but if it is an average or below average restaurant, then I would agree with you that they won't see many people paying extra. However if their food is really good with great service, great atmosphere and a real fan base, I wouldn't be surprised if a lot of people paid extra.
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
Peer pressure
[ link to this | view in chronology ]
Re: Peer pressure
[ link to this | view in chronology ]
Sounds fun, but...
Why aren't the employees volunteers? How will local governments respond to lost taxes? What about after people acclimate psychologically? Will they pay full price for a time, but then start skewing downward? The only example has been staying "afloat" since 2003.
[ link to this | view in chronology ]
How dull would the discussion be about the business model of the restaurant in the Ronald Mcdonald House.....but they give all their food away for free, and sodas!
[ link to this | view in chronology ]
lucky
[ link to this | view in chronology ]
Re: lucky
[ link to this | view in chronology ]
Yea that's nice but...
- honey mustard
- salt bagels
- chicken bacon dijon
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Been there.
First off what people won't say or don't realize is that this particular store is in a very wealthily neighborhood and a very rich business district. You have lots of lawyers and dignitaries eating there daily. These people normally would pay extra in the form of tips, but since Bread Co. is not a place to take tips, this is a way of generating more "donations" (it's a non-profit, for charity store)(just because it has the name "Panara" doesn't make it a "for-profit". Yes there will be some people who will pay below the value, but can you honestly say if the cashier says your food costs $12 bucks, you hand her a $10 and say thank you.
The people that work their are very friendly, it's clean, it's safe, its a great place! So to walk in and pay less than the value comes down to moral ethics and not revue and money.
They don't just hand you your food and say thanks, like at a food bank, they tell you "this cost X amount, and donations are appreciated"
(have you ever taken beads from the breast cancer survivors outside the baseball stadium, or do you take them and "donate" a buck or two because it's the right thing to do!)
As far as this being a "non-profit" it's because in order to "donate" food and accept donations on that food, the profits go to charities. So technically after the store pays its over head, the rest goes out the door. Another reason to "pay your fair share"
[ link to this | view in chronology ]