Former Intro2Gastro student, James Grill, sent me this link. Basically, Panera Bread is testing out a new concept: you order what you want & then pay what you want. The complete story is in USA Today. My question to you: how does this concept reflect one's philosophy on human nature? What is the larger question regarding necessities and commodities in our culture?
Panera, A company that I have always thought to be overpriced, doesn't seem as expensive anymore. And, something tells me that they know this. Naturally, they must know that such a bold action as running a cafe on a volunteer-pay basis would attract publicity, and, thus higher profits for their other 1400 stores. In fact, even if this cafe wasn't working (apparently it is doing ok thus far)--even if it didn't make a dimen--it would probably be worth the company's while, just based on the notion of branding (picture me with a smile as I purchase my overpriced frou frou sandwich.) So, what they are doing is arguably, and ultimately, self-interested. Consequently, human nature is arguably selfish, right?
ReplyDeleteWell, what about those 1/3 of the people who are paying more than what their meal would cost? That illuminates another side of human nature that shows people to be supportive of a good thing when they see it. Intuition tells me that there are several reasons for this generosity, namely: the clear donation boxes (which enable others to see what they pay), presence of a cashier (peer pressure), and a print out of the actual cost of the meal(concrete evidence of the cost) lead me to believe that all of this hooplah is dependent on another facet of human nature, and that is notably the desire for people to be generous, and, if it benefits the community in which they live and goes towards a good cause and won't be wasted (this time the brand of Panera ensures that the money won't be squandered), then people are even more likely to do so. The fact remains that some people will look at the operation as a chance to take advantage, to score a free meal, but, the other 90 percent are legitimately needy or financially secure. If anything, this concept is an opportunity for commensality between economic groups which would normally not happen. In such a detatched, fragmented and cliquish society, this can be nothing but a good thing.
I have often wondered about the morality and social responsibility in this country. After watching the news it’s not hard to lose faith. However, I do believe that when given the chance, people want to do good; they just need someone to initiate it first. Shaich has taken the necessary actions for this to be a success, he prompts a donation with a receipt and accepts time instead, allowing people to make the right choice and feel good about it at the same time. He is also using day old bread and cutting out the waste that his other businesses produce, smart. Even if day old bread doesn’t bring in a full suggested donation, it will most likely bring in more than it cost. In the end, this is a smart business move, and the best sustainable moves are always the ones that benefit all parties.
ReplyDeleteA person has to be optimistic and believe in the inherent goodness of human nature in order to take on a concept like this. I have actually tried this, in small scale, before in my restaurant. We offered the food for free and just asked that people donate some amount to the Red Cross in return. I am not sure if it was because the money was going to charity but most people donated either what the menu prices were or more than what they would have paid normally.
ReplyDeleteNecessities are things people need to have in order to survive. People need to eat. People do not have to eat at Panera. By offering a pay what you can/want structure you will get more people in the restaurant because the price of, what was once a commodity, is not a restricting factor. I remember reading an article a while ago where a small restaurant changed over to this concept and they actually made more money than before since they cut down their payroll (most of the employees worked there in exchange for food) and they boosted the number of people that came to the restaurant.
rk811879
There's a chapter in Freakonomics about "The Bagel Man", a guy who does this on a much smaller scale. Basically he brings baskets of bagels to office buildings and leaves a collection bowl for payment, and makes more money this way than he would have charging normal prices. I'm not sure this will work for Panera Bread though, because of the larger scale; we treat individuals differently than we treat large corporations. I know personally I would feel bad about stealing from the bagel man, but I'd feel great about free sandwiches from Panera. The charity aspect is unquestionably a good thing, but the legendary salesman Zig Zigler says that people make decisions to buy with their hearts and then justify them with their heads. I'm not sure the whatever percentage going to charity is going to hit close enough to home for people to feel it.
ReplyDeleteI love this idea. If big companies like Panera could reach out to local communities to foster trust and responsibility it would benefit mankind as a whole. It’s obvious that some will always take advantage of the hard work and trust of others. To accept this as an infinite truth is quite depressing. Over the expanse of our existence, society as a whole has become more humane. Most of this expanse has occurred in the last century; we are improving very quickly.
ReplyDeleteCynthia Russ but it beautifully above “when given the chance, people want to do good; they just need someone to initiate it first.” Most people have high respect for proper morals, and universal respect of living things; it’s the basis of most religions. People are inherently drawn to sacrificing their own comforts so that they may help another for whom they can relate to. Some express this sacrifice to a lesser extent than other, but with the help of people like Ron Shaich, maybe we can prove that society still has room for improvement. This idea of a community funded operation will help draw us closer together; at least in the long run.
YS801643
I am glad to see this on the blog because this is exactly what I plan to do. I believe that people want to do the right thing. I also believe that it is my duty as a chef to help those who can not help themselves. Most people scoff at this notion which shows that they believe people want to rip others off. I think the greater question is are we in the business to become rich and gain celebrity status or are we in this to help as many people as we can sustain themselves?
ReplyDeleteI think this is a great idea. However, being familiar with this area, I think one important factor needs to be looked at and reviewed. The Clayton area in St. Louis "is well known for housing a wealthy and educated young professional, often dual-income population" according to Wikipedia (http://en.wikipedia.org/wiki/Clayton,_Missouri). I think the restaurant will succeed due to its location, median household incomes and low poverty population. I believe most people will give more than their actual bill. I believe most people want to do good things and help those less fortunate than themselves. We want to give people jobs and help when someone has fallen on hard times. My question is if this concept would work in a more economically diverse community?
ReplyDeleteAlso, I tend to believe many people don't realize the needs of the community in which they live. Most move along each day in their routine without question or inquiry of others unless it is put in front of them. It takes a major story such as this, a food bank depleting their food supply, or hungry/malnourished children during summer months (due to skipping breakfast and lunch that schools provide) to catch some attention. The need is there. The commodities to fill those needs are lacking. It's absolutely wonderful to see a larger company, a chain restaurant, step up and answer these needs with the help of the community.
hs847123
It seems like an idea that may work for a handful of companies, but it is hard to say what percentage of the companies doing this would actually be "as" successful.
ReplyDeleteWhen going to the Metropolitan Museum of Art in NYC, there is a "suggested" admissions fee. Some people pay a few dollars, others way more. I guess it balances out, but without the help of supporters, it is hard to see the museum stay well funded as it is now. On the other hand there are other places like the MOMA that charges over $20 for admission and it is required. Yet, people still go.
It seems like an amazing idea. And it may not be a matter of the money after all. But, at this point in time, going 100% with this idea everyday of the week seems quite risky to me - especially if it were to be launched in NYC.
sh813956
I think this benefit is a great idea for a week at a time but I doubt any establishment could make a profit off of it. It's nice to think that people will put a little extra in the donation bucket if they know it's going to the greater good, but is that a realistic expectation? It's obvious that some people who wouldn't be able to afford the meal on a normal day would show up for a reduced price but we can't be sure that there will always be people around to chip in more than what they owe for the meal. It really says a lot about the owners view on human nature because he clearly thinks the majority of society will step up and do what's best for others. Hopefully, when the realize it's going to help a charity rather than just fund the paychecks, customers will gladly pitch in.
ReplyDeleteThe larger question has to do with what we need versus what we value. Everyone needs food but millions of people thoughtlessly spend their money elsewhere. Only the homeless/financially troubled start to truly value the money they spend on necessities. If everyone had to live on a budget for even just a week to understand the hardships they would definitely go back to the panera and double their contribution.
ss769285
Panera Bread's concept is great. This is a really good way to get people to volunteer and help others. Most people want to contribute when they see a good cause. Any donation that is given will give to someone who has nothing, and that is what matters most.
ReplyDeleteThis idea is a very trendy and upcoming response to the economic crisis in our country. It seems that people would be required to question their own conscious, rather than being told how much to pay. It is by nature of someone to want free items and within that nature, Panera has opened its doors to that access. Being a Panera employee for the past 3 years it is very hard for me to imagine that this would be a long time success. Between their high priced pastries and super rich soups, Panera tends to cater the more upper middle class. It always baffled me when two people would walk into the store for lunch and spend over $25 on lunch. Yet, following back to the idea of human nature, Panera puts the idea that you are paying what is fair but at the same time is suggesting what you should pay. In my opinion, I think that is very contradictory to the idea of fair payment. It institutes a base price for people to judge themselves by; Such as if I pay the suggested amount then I’m a good person, although if pay below it I am a bad person. In reflection to the overall concept of "Panera" it seems more of a commodity than a necessity. If someone needed to support their family, they wouldn't take them to a $9 sandwich type of place. They would buy a loaf of bread from the store and make sandwiches at home for the same price as one suggested price of a "Panera" sandwich. Overall this idea would be more popularized by the same consumers of Panera, rather than new ones. In turn though it will give Panera a summary of how their consumers feel about their prices.
ReplyDeleteI feel like this is one of those ideas that look real good on paper and then never really seems to work out in the long run. They are working now but soon people will think "well that chicken sandwich wasent as good as the last one so i should payless.or well i payed last time so i will just pay the next time." thats when profit will start to decrese till the point were you cant make profit any more and the buiness goes under.
ReplyDeletealso what do the employes think? are they fine with some guy comeing in off the street and doing the job they had to get certified and trained to do? how do the employs get paid? i dont think you can just pay them in food. also the same thing will more than likely happpen to the volnteers as what will happen witht the people paying. the number of vonteers will drop off slowly over time.
In my opinion, this can be regarded as a social experiment, determining whether people revert back to their 'pre-society tendencies' or abide within a community. The unique transaction of a patron selecting what to pay within a ‘community’ eatery can illustrate if today, after thousands of years of the civilized human, we would/wouldn’t have our animalistic selves lean towards self gratification without much regard for those around us. If complete anonymity was part of this system, I believe that the majority of the population would not be too concerned with supporting the system by paying more than or equal to the amount printed on that receipt, we are after all a species that survived because of or ability to take advantage of exploitable scenarios. Community, however, changes things, now we are bound by a newer set of survival guidelines in which people must take into consideration those around them by ‘doing there part’ to support this system. If a sizeable percentage of the patrons are socially conscious then this will be a success, only time will tell if it is sustainable.
ReplyDeleteAnother question that arises here involves the current perception people have on the available commodities. An assumption can be made on how much consumers value the food they get, by showing them the suggested retail value, a base line is set and anything under/over that will signify consumer opinion on the product. The level of significance that we place on our food can come to light through this experiment, and I think this could shape the future of commodities.
I believe in a perfect world this is an amazing idea.
ReplyDeleteIt could really help to get people involved more in charities and donations, however there are many ignorant people who will take advantage of it.
If they can make this work though, it will be very amazing. It is very inspirational, and hopefully will help others to try to do the same thing and to give more back to their communities.
i think this is a great idea and a very interesting way to raise money for charities.
ReplyDeletethis shows that people are willing to help the less fortunate by going to a establishment like this. the way people are donating more then the expected shows us that we as Americans realize that everyone has necessities that must be fulfilled to survive.
ai791498
it is a very good idea to open a restaurant like this. the only problem is where? because in US there are places you can try to open a restaurant like that and people actually pay lot of money in order to help somebody else. But i can imagine this restaurant in a Mediterranean country. every single person would go to eat in this restaurant will enjoy his meal, and when it is time to give something, he will take the money from the charity than to give some.
ReplyDeleteGV849338
Im not sure about this idea, on whether its going to work out or not, but I heard a similar story in one of the articles in Korea, that a bakery opened in Japan, where every thing is free. but If you like a certain type of bread, you can buy them and bring them home. there were many controversies on whether its going to work out or not, but apparently, they are making enough profit to run the bakery.
ReplyDeletePanera recently opened another non-profit store in MI about a half an hour drive from my house and I have visited the store. I must say that this isn't just a publicity stunt. People ARE showing up to the location and when they cant afford to pay they wipe tables or sweep or help collect trash. It is quite inspiring.
ReplyDeleteI think more companies who have the bottom line to have these sort of facilities in their respective chains should be REQUIRED to give back to the communities in a way like Panera Bread Co. has done. It's not only a nice thing to do, but the RIGHT thing as a human being to help others.
I think that what Panera did was such a great why to fund-raise. I also think that other chains should start doing things just like that. It really brings communities together, its also making people aware of whats going on around them in there town. They thought they were just getting a you pick two and paying for it but got faced with a donation box instead of paying. I think that's really cool if you were going to spend the money on food you could definitely give it to people that just need help also spending it to help others its a very uplifting feeling and just doing something small like what Panere can really make an impact on the rest of the worlds mentality.
ReplyDeletejt861679
I kind of like this idea. It makes me as a customer have more control and that the restaurant actually cares what I think. Doing this though as a owner puts alot of trust in the customers. I mean there probably will be some people who would pay less then the food deserved. So essentially the establishment will lose money but I am not a person to pay so little.
ReplyDeleteThis article is fascinating. It is very odd that a large chain restaurant would opt to do something like this. I have worked for big corporate chains and 9 times out of 10 numbers come first. So to see a chain attempt something like this as a permanent venture instead of a promotion to gain positive corporate responsibility ratings is simply wonderful. I have eaten a panera and the food is good I would hope people would pay at least what was asked and maybe panera could include the total if a 10% add on donation would be to give people an idea of what it would take to make a difference.
ReplyDeleteLodgically speaking no establishment could last very long if this idea was actually put into motion. It sounds more than pleasing as a customer/fan of this establishment, however, having experience in the food industry I've noticed customers not only under estimating the earning of tips but also underestimate the actual cost of a meal and all of the elements involved. Observing the numerous customers that bicker about the price of a meal and how expensive it is leaves me feeling that personal choice of pay would not be a good consistant idea nor be suffice for any establishment to survive. The idea is great for a promotional event for a few days or weeks but nothing more. Whether in theory or in action this thought is only benefital to the customer however the customer can't always be right if there is no establishment to correct or be in the right about.
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