Panera’s new nonprofit restaurant: pay what you want
- Thu, June 03 2010
- Filed under: Cause-related marketing
I can’t wait to see how this one plays out:
At Panera’s new nonprofit restaurant in St. Louis, they’re asking customers to pay what they can afford: “Take what you need, leave your fair share.”
According to the Damn, I Wish I’d Thought of That blog:
Their cashiers provide receipts that include suggested donations based on what customers have ordered and then direct them to donation boxes throughout the restaurant. And for those who can’t pay, they’re invited to volunteer their time. While still early in the experiment, the location’s revenues were up 20 percent on opening day. The lesson: If you give your customers the chance to show their altruistic side, they’re likely to thank you with surprising generosity.
I think this is fascinating - implementing social norms in a market norms setting.
Here’s why I think people will pay:
Social norms — values of sharing, community and altruism — are enormously powerful motivators. Market norms — emphasizing calculated self-interest, individualism and equal exchange — have a place when you’re selling sandwiches. But social norms work best to inspire generosity. And that’s what Panera is seeking to put into play. They apparently have plans to open a couple more as well. Good for them.
Comments
We actually have a cafe based on this concept here in Denver - http://www.soallmayeat.org/
It works well - looking forward to seeing how Panera’s implementation is done.
Elisa, I’d love to hear how it’s working in more detail. I’m sure the blog readers would too. Please share your wisdom!
We at SAME Cafe love that Panera is jumping into the ring of pay-what -you-can inspired restaurants. SAME Cafe is living proof that people are good and fair and want to be treated with dignity. We have been open for 3.5 years and operate about 75% on what comes in to the donation box daily. The other 25% comes from individual donors, businesses and grants. We cook with local, organic ingredients and keep our overhead low by utilizing volunteers for most of the kitchen work. This exchange of work for food helps to train individuals in the food industry as well as helping them eat for the day. If you are ever in Denver, you should stop in and check it out.
Churches have always offered “food for the soul” on a give-what-you-can basis. What a beautiful concept to offer food for the body based on the same heart principle. And, training volunteers so that they can use their new skills to eventually find work in the food industry is icing on an already life-enriching cake! Surprisingly, there doesn’t appear to be anything like that here in California yet.
Lentil as Anything in Melbourne Australia has been operating on this concept for about 5 years.
http://www.lentilasanything.com/ and also providing catering skills to new immigrants. It is much loved as a “different” business model and well supported.
This is such an interesting concept. Being involved with trying to revive an economically depressed rural California location I’m always looking for good ideas, I’d love to see if this concept would work here.
I would love to hear an update on this. This is a great idea and I didn’t even know they were doing it. If it worked, this could be a whole new format of business that promotes charity and integrity.