Success for the Honor System
July 21, 2010 by Andrea Bennett
This just in: People are basically good.
At least according to an experiment conducted by Panera, which operates 1,400 franchised and corporate-owned bakery-cafes across the country. Since we called attention to a New York Times article on June 4th about the first pay-what-you-wish Panera – in suburban St. Louis – the company has decided to expand the honor bar concept to locations around the country based on results from the vanguard café.
Panera CEO and founder and Ron Shaich told USA Today in May that he’s “trying to find out what human nature is all about” with the new format, in which cashiers tell customers the suggested price of their order based on the menu, with the idea that those who could afford it would pay full-price or even extra, and those who couldn’t could get a cheap or free meal – and offer to volunteer if they felt responsible for making up the difference.
The model has had its critics, but according to an Associated Press article, about 60 to 70 percent pay in full for their meals, with 15 percent leaving a little more and another 15 percent paying less, or nothing at all. A handful of patrons so far have left big donations, like $20 for a cup of coffee. Shaich told AP that the restaurant took in $100,000 in revenue its first month – but didn’t identify the restaurant’s margins between costs and revenue. Still, according to the piece, Shaich predicts that the location will be able to cover its costs within months and eventually generate cash for charity.
If a pay-as-you-wish Panera moved to your neighborhood, would you subsidize someone’s lunch…or even volunteer your time?
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4 Comments
What do you think? Leave a comment
July 22, 2010 by joe
I am sure I will pay the suggested money for my main meal. But, if I want a soda or side along with meal, I might pay less for those items since the price for them are always jacked up. Since many local restuarants offer free lunch after the 7th or 8th meal, I might be tempted skip payment on certain meals if I am regular customer.
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July 24, 2010 by Judi
I would try to pay the suggested price, but I agree with Joe that I would pay a little less for soda and sides. I believe that some people would not pay at all though. They would think that it is free food and why not take advantage of it.
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August 31, 2010 by Francesco
I think it's a wonderful idea that can make people think more about their own behavior and decisions. Actually I would pay as usual, and I agree with others, probably I would pay the "right" price for drinks or things that are often too expensive. But also, I think that people who cannot really afford to pay the entire meal, could find it of help.
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February 7, 2012 by kieran
I totaly agree with this concept. this is something that i am setting up at my yoga retreat/training/wellness center in Belize, its pay what you will,pay what you can. i am sure that some people will take advantage of it, then so be it . i believe in Karma. I teach it. but I believe in the honesty of people also. you know what something is worth to YOU!! if you do not wish to pay just because you think you can get something for free then maybe its your time and services are also worthless and should be free! if someone genunialy doesnt have the money to pay for this for whatever reason ie loss of job, single parent with little income. whatever it matters not... leave what you can. AND SAY THANKYOU FROM YOUR HEART! if you wish to volenter and help out in the local community by what ever means, ill help to support that. there will be others who arnt self centered who will donate/pay for what they believe they have received, which in turn will allow for the unjust among us. after all isnt it not only about what we give but what we receive ;-) there is a balance in this world if we open our eyes and heart. the amount of people who have offered there services for free to help me build this dream reafirms that there are many good people on this planet from all walks of life. if we come across a few of the less dessirible ones on our journey, smile with your heart ;-) PAY IT FORWARD>>
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