Panera Cafe: a non-profit pay-what-you-can format

[aGameOfThrones]

Just saw it on a local news channel, found this story while doing a search so it's old.

Video: http://bcove.me/fzo2u2f8

Imagine walking into a Panera Bread and picking out anything you wanted to eat or drink — then, at the end of the line, instead of handing your money to a cashier, you faced a donation box.

A sign at the entrance says: "Take what you need, leave your fair share." Customers who can't pay are asked to donate their time. The cafe opened Sunday and will operate seven days a week from 7 a.m. to 4 p.m.

While the store does have cashiers, they don't collect money. They simply hand each customer a receipt that says what their food would cost at a conventional Panera. The receipt directs customers with cash to donation boxes (there are five in the store). Cashiers do accept credit cards.

http://www.usatoday.com/money/industries/food/2010-05-18-panerabread18_ST_N.htm

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From the story I watched just now they said: 60% donate the normal amount while 20% donate more.

[GunnyFreedom]

+1

Just think how much more charitable Americans would be if half our earnings weren't stolen in taxes!

[angelatc]

From the story I watched just now they said: 60% donate the normal amount while 20% donate more.

Meaning that 20% donate less. Operating on a 20% profit margin is pretty unusual. I can't believe this will last. If I owned a coffee shop around the corner, I'd send my employees there to eat lunch every single day.

[aGameOfThrones]

Meaning that 20% donate less. Operating on a 20% profit margin is pretty unusual. I can't believe this will last. If I owned a coffee shop around the corner, I'd send my employees there to eat lunch every single day.


In the news story(today), they said they were profitable. I'm assuming the 20% who donate more are covering for those who donate less than the 60% and the ones who don't donate at all.

[angelatc]

I assume they'd be closed if they weren't profitable, but I will be really surprised if they can sustain it long term. And I'm pretty sure they wouldn't last nearly as long in Detroit, or even on a college campus. THe Hippie movement of the 60's started out thinking that life should work along these lines. It was fine for a while, then the druggies and the freeloaders showed up and essentially came to define the movement.

[aGameOfThrones]

I assume they'd be closed if they weren't profitable, but I will be really surprised if they can sustain it long term. And I'm pretty sure they wouldn't last nearly as long in Detroit, or even on a college campus. THe Hippie movement of the 60's started out thinking that life should work along these lines. It was fine for a while, then the druggies and the freeloaders showed up and essentially came to define the movement.

Yeah, they said location is key to be successful. At least it's voluntary.

[angelatc]

Looks like there's one in Dearborn MI now too: http://www.associatedcontent.com/article/6051104/panera_breads_new_donationbased_cafe.html

[t0rnado]

I assume they'd be closed if they weren't profitable, but I will be really surprised if they can sustain it long term. And I'm pretty sure they wouldn't last nearly as long in Detroit, or even on a college campus. THe Hippie movement of the 60's started out thinking that life should work along these lines. It was fine for a while, then the druggies and the freeloaders showed up and essentially came to define the movement.

There is one in Highland Park, NJ down the street from Rutgers University called A Better World Cafe and it runs just fine. A friend of mine works at one of the non-profits that help them out. Students from Rutgers have charity events every year to raise money for the cafe as well, so while you are probably right about Detroit, this actually works pretty well on college campuses.

[Fredom101]

+1

Just think how much more charitable Americans would be if half our earnings weren't stolen in taxes!

Absolutely! 0% in taxes and charitable donations would go through the roof!

[angelatc]

There is one in Highland Park, NJ down the street from Rutgers University called A Better World Cafe and it runs just fine. A friend of mine works at one of the non-profits that help them out. Students from Rutgers have charity events every year to raise money for the cafe as well, so while you are probably right about Detroit, this actually works pretty well on college campuses.

But I'm assuming they're a non-profit, right - using at least some volunteers in lieu of paid staff? And I'm betting they're not paying premium rent for their space, plus I'd be surprised if they offer wi-fi. Panera bread isn't having fundraisers to supplement their cash-flow, and they're paying taxes on the income. It's a totally different business model.