Pay-what-you-want Panera called a success
By Jim Salter, AP
CLAYTON, Mo. — Rashonda Thornton looked up at the menu on the wall, ordered a Caesar salad and dropped a $10 bill in a box. Pretty generous, considering the meal at Panera Bread's cafe in the St. Louis suburb of Clayton sells for less than $7.
It was a year ago that Panera (PNRA) converted the Clayton restaurant into a non-profit pay-what-you-want restaurant with the idea of helping to feed the needy and raising money for charitable work. Panera founder and Chairman Ronald Shaich said the cafe, operated through Panera's charitable foundation, has been a big success, largely because of people like Thornton.
"Sometimes you can give more, and sometimes you can give less," said Thornton, a teacher's assistant. "Today was one of my 'more' days."
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In a 2 paragarph response (a minimum of 5 sentences for each paragraph), answer the following questions. In paragraph # 1, summarize the article in 3 main points. Which one of the main points do you think is the most important to the overall success of the operation? Why? Be specific with your thoughts. In paragraph # 2, provide your thoughts on this unique marketing strategy. What do you like or dislike about it? Why? What would you change, if anything? Be specific with your thoughts.
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In this article by USAtoday, it states that the known café-restaurant, Panera, is converting by having customers pay the regular shown price for their food to just donating their money to their charity when at the cash register. It says that the customer can donate any amount of cash for their food because Panera is now a pay-what-you-want company (in some places) to help charity and the needy. But they’ve also realized that some people will take advantage of that, good and bad. I think that the whole concept of money for Panera now is the biggest point in this article.
ReplyDeleteChanging their regular prices to just having the customer pay whatever they please can be a problem. I personally think this isn’t a good idea because a lot of people, like the article said, would just pay a couple dollars for a $50 lunch for themselves and their friends. People are greedy like that, but then again we have those customers that actually do pay the regular price and maybe then some, so it might be balanced in the end of the day. I think that if we knew people would be more generous daily, I would consider it if I ran a Panera restaurant, but knowing how some people are, I wouldn’t want to loose my sales in food for a charity. The only thing I would make different is keeping the regular prices and then having an extra charity box at the front of the cash registers. They usually have it, but I would make it more known hoping people would leave more then just their extra change.
These are my thoughts on Panera’s marketing strategy.
-April Miller
I think that is a great idea. It helps people save and spend money. It also helps panera get more money, and more people would want to come to panera. I think that the main point is that this idea is helpful to people.Panera is giving a chance for people to decide how much they want to pay.
ReplyDeleteIt's useful to some people so they could save money. And it's also an good idea because people can decide to spend more or less. I like that its giving everyone a choice to decide wheather to pay less or more. It's easier for people and it also gives an opportunity to panera to earn more money. I wouldn't change anything beacause in my opinion this is a great idea for everyone.
-Mah Noor
I found the article on Panera very interesting. The thing that I liked the most was that you could pay however much you wanted. The money that you give as a tip is received for a good cause. People give some good tips but at the same time people take advantage of it. Something else that stood out to me is that someone was willing to give them a $500 for a meal. Panera is showing that they are willing to risk not having a lot of profitable money, so people can see that they really do need help in helping others.
ReplyDeleteI like that you can pay however much you can for a meal. I personally would sometimes give a tip but I would definitely pay for my meal. I don’t like that some people take advantage of it because they can’t afford it then why go. Panera as I said shows that they are willing to risk not making enough and people ripping them off, but they choose to do it because they want people to see that and people are more likely to give them more money because it’s for a good cause. I probably wouldn’t do this because there are a lot of selfish people and you can’t trust anyone.
-Gladys Monroy
The article was about how Panera has started opening new restaurants where you pay what you want. The cost of each meal is up to you, but there is a suggested price listed. Also, all their funds become donated to feed the needy and for charitable work. The most important part is the “suggested price” on the menu/board. It shows how much it usually would cost but it’ll show who the people are that want to help/donate and those who just want a big super cheap meal.
ReplyDeleteI think this is a good idea in a few ways, but also bad. It’s good because Panera already makes a lot and they’re contributing to the needy. Also, it’s giving those who want to help the needy a chance a little at a time. But it’s bad because people can buy a lot of food yet only pay a buck. Some will pay the suggested price, others will donate, and others will underpay… All is fine, as they say, you don’t know their background. I wouldn’t change this idea. Even though there are negative effects, I think the positive outcomes overthrow the negative ones. I’m glad Panera is trying to help those who are in need.
-Brigitte Chavez
This article explained Panera Bread’s new idea of pay what you want. Some customers were a bit confused by the concept because it seemed a bit too good to be true. But when they found out that the money they were paying was going towards the needy they paid more than what they needed to. Panera is doing this because they want to do more for their community. They want people who can’t afford meals to be able to eat. This has made Panera even more popular with the community. Some people spend $10 0n a I dollar meal because they know it’s for a good cause.
ReplyDeleteI think that this idea could definitely catch on. It is a great step to helping out the community. I think that this is going to hopefully spread to other restaurants because it is a successful idea. I wouldn’t change anything about this because it is working very well for Panera. Its helping those who need help in the world and I think it should just stay as it is.
-Erika Nelson
The article was about a company giving back to the community by running a pay-what-you-want business. This store, Panera, let’s you pay whatever price, however they do have suggested amounts for their items. Although most people pay the suggested value or more, they still have many kids that like to come in and pay 3$ for a meal that may cost 40. But those types of people are rare so it is a success for this Panera store.
ReplyDeleteI think this marketing strategy is great. For a business to be able to have that kind pay what you want theme in their store is amazing. I would not change a single thing about it because the success of that store runs off the goodness of the people. It is good to know that many people pay more than they have to and people with bad backgrounds don’t have to pay much. It is a really good thing that company is doing and they are opening up more and more of those stores.
-Daniel Owens
The gist of this article is that Panera Bread’s café has open a new chooses for customers. Instead of paying the actual price for the food, you can pay – what – you – want for the items and it has become a hit. The second point in this was the design for the new idea was formed by Chairman Ronald Shaich to help communities. Families that can’t afford to eat anything else or someone who lost there job either way it helps people in need. Another great point in this article is that it took in kids that typically wouldn't be employable and help them gain work skills with life skills as well. The most important point is the pay – what – you – want, the reason being is because it’s the how they will get their customers.
ReplyDeleteIt a good marketing strategy, it helps people who can’t afford to eat anything else however people will take advections of it. That’s the down side to it, someone might pay for a meal that would cost extremely expensive but pays for it very low. I’m not sure what I would change to it; it seems like a great program as it is. The only thing I would do is to be careful with the customers, their will be many more people who will be cheap. Besides that I have nothing to change about it.
Rod M.
This article is about Panera the restaurant is donating money to charities. It also talks about customers paying a certain amount of money and giving a percentage to the needy. I think that the main point is helping the needy, which is a great idea. It gives money to Panera and it also gives money to the needy. I don’t think that it’s a bad job. It’s actually helping a lot of people out.
ReplyDeleteOne of the things I like about the idea is that it’s not only helping Panera out but it’s also helping out people who actually need help. I appreciate what they are doing. There are a lot of people in need especially because we are in a recession. I don’t think I would change anything big about the idea except for if there is someone that doesn’t want to give any money away I wouldn’t force them. I would let them know what they are missing out on though.
-Karla Sandoval
My thoughts on the Panera feeding the needy are that I think it is a good idea. I know what they’re doing will have a good effect on feeding people and their families. Panera is a well know company and to think that they care about not only their company but the people in their community says that they really do care. I think what Panera is doing is a great think and that they should keep it up. But other than that I thing Panera bread is doing a good job.
ReplyDeleteI would also do this say strategy they are doing to raise money. The reason why I would do that is because one I know it works. Two I think I can make a lot of money doing it that way. If you want to raise money all you need is loyalty customers and a plan. If you have a plan and know how to execute it, it will o always work out to your advantage.
Tenacia Chappell
The store is mostly about charity it doesn’t make u pay the amount u need to pay it just suggests it and with that people can have a great meal for little cost which eventually goes to charity and I think that’s the most important point Panera is trying to make that u can help charity and still not pay that much for a good meal. Another thing is doing is training other kids that have never had a job to be able to maintain a job and keep customers happy.
ReplyDeleteI think that this is a great marketing strategy that can help many people the only thing I think is bad is that the people might take advantage of the stores charity work and not even try to make a good donation and just leave a 1 dolor payment that’s the only thing that bad
- George Polio
The three main points in this article is that Panera is helping their community by letting their customers pay want they want for their meals. By paying what they want for Panera’s meals they are helping Panera, because they are using the money their customers give to them and are putting the money towards charitable work. They also have a suggested price list in which their customers can choose from but they don’t have to if they don’t want to, they can pay any price for their meal. The most somebody has paid has been $500.Panera is doing this community can become closer than they were before .but sometimes they have customers who are taking advantage of what Panera is doing but it all goes to a cause at the end of the day .
ReplyDeleteI think that this a good idea that Panera is offering people to pay want they want on the meals they buy at Panera ,because more people will come to their place of business and be more willing to buy more of their food and be able to get the meal at the a comfy price that they want the meals to cost .it is also a good idea because the money people are willing to pay for their meals is going to a good cause .Panera is donating the money they get form the restaurants and going to feed the needy and to charitable work
-Sulma Cisneros
The article was mainly stating the point that they are doing this for cherity and not profit.
ReplyDeletethe people pay what they want for there food when they visit the eat out spot.some customer some time donate over a hundred dollors.they manage to make enough to pay the bill for the store and donate to people who need it.as the company grow and develop they are also helping thousands of people.
i think the company is doing go to not be a profitable business.the company has good food and pilight customer service.many home less or hungry people will be feed if you order at that food place.the store can suffer a market crash if they dont have customers by them donating money the can go into debt.and then go out of business.
by demarkus jenkins
Panera is doing a very risky change. They are trying to get a profit out of what they sell, but at the same time they are trying to donate some of the “extra “money that some people leave. Their plan is simple; suggest what they think the price of a meal different of what other companies and what the old Panera used to do. Now they are trying to accomplish saving the world by getting extra because of what people believe their food should cost. Some of their customers drop ten dollar bills, when in reality the plate costs about 5 dollars. The idea makes a very positive profit according to the sums that the store in Missouri. The Business is now trying to open more store just like this one.
ReplyDeleteI believe that this idea is very caring even though it’s insane. Now people will pay more then what they are getting, but there are more that are cheap then charitable. What I mean by this is that there are more people that will give 2,3 dollars for their meals instead of 10. To make such a sudden move to give the company an even better face in the people’s eyes means that the owner understands what he’s going to do and he has great trust in his customers that 99.1 % have not met him. Yes, its good to help those in need, everyone would like too, and I admit to run a good company you need to sometimes make risky decisions but we would also want to do it while making a great profit.
The article we got is about the popular café and restaurant Panera. Panera is doing this new thing where customers don’t have to pay for their food but instead donate to the charity they are sponsoring. When at the register you don’t have to pay how much you purchased into the charity box but any amount you want because Panera is becoming a pay-what-you-want company to help the less fortunate. The issue I see with this is that people are going to become greedy or take advantage of this. In a positive and a negative way, it just depends on the person.
ReplyDeleteI believe that this idea that they are trying could take a turn for the worst. Having people pay what they want rather than a set amount is going to lead to people ordering mass orders and giving hardly anything. I don’t think it is a good idea because the fact of the matter is, people are greedy and selfish. However I am not going to over look the generous people that do donate and help out. If I ran Panera I doubt if I would do this because you can’t foresee people’s actions and there is no way to guarantee that they will donate. I wouldn’t do this also because it would decline in sales for the charity and it could possible take the company under if it gets severe. The only thing I would do is keep the prices at their regular price and have a charity box next to the register.
Katilyn Gaskins
The article is basically talking about how the Penera is giving to the needy. How they share with others. Which I think is the most generous thing a restaurant would do! That’s very nice f them. The most important thing to me is them giving charity & etc. the food left over, because I always feel bad for people in that situation so I think it’s a wonderful idea and every RESTAURANT should do it.
ReplyDeleteThat’s actually a very unique strategy for a restaurant, out of all places to do that. They should pass it on to the next Penera and the ones before that or other restaurants also there is a lot of people that can do for the needy but they just don’t try to.
The main point of the article is that you can buy any products from Panera for less than 7 Dollars. Another main point of the article is that Panera Bread’s Café you can buy anything and pay how much you want to since Panera is trying to help feed the needy. They are raising money for charitable work. According to the founder of Panera, Ronald Shaich he inform us that through the charitable work it been a big success because of people like Thornton. Also the article talks how a year ago that Panera converted the Clayton restaurant into a non-profit pay-what-you-want restaurant. Also what they trying to say is you can give more or you can give less said by the customer Thornton.
ReplyDeleteI think this marketing strategy is a good idea because they doing it for a good thing. And people should put in tips like that because the people working there are doing their best to make you happy and come back again. I wouldn’t change this idea but I would make it better like do something to attract more people attention. Also I would do like ads to get more people to come to Panera and buy food and help us make more money for charity. This is all my thoughts on the article.
-Rene Romero
This article is about how Panera Bread in Missouri has a new promotion for charity called Pay What You Want. You can order any meal at your price. If you want to pay one dollar for a ten dollar meal, you can. They have donation boxes set up in the stores so that you can make your donation. They still have regular cashiers that take your cash and credit also. Their reason is to help their communities out and making a difference. The most important part of the article is that they are selling food at any price you want it to be.
ReplyDeleteI think that it’s a great idea to help charities and all but offering people to pay what they want is a bit too risky for me if it were my business. They have to have the trust for people. What if someone comes in everyday and orders something $50 worth and only gives up five bucks. It wouldn’t seem fair to the company’s profit. I just don’t like how people can pay what they want. Even though it seems great on the consumer’s side. I would have a minimum for how much they would have to pay to at least have a projected sales income.
Saprea Ray
The three main points in the article are how Panera came up with a way to get customers to think about other people in the scence of them eating there in a place where it's calm and relaxing music playing with the smell of coffe where there's also cumffy seats to sit in and they also have Wi-Fi. Aother main point is how Clavton let Panera do it and give bread to charity. another main point is how it says "Panera, based in suburban St. Louis, has long been involved in charitable giving, donating millions of dollars and giving away leftover food to the needy. But Shaich sought more direct involvement." (Jim Salter, Associated Press) blackboard.com
ReplyDeleteI think this is a good way to get customers because people are pursaded by charity, always. When a resturant such as, Panera Bread is giving Clavton bread people will always see and give. I wouldn't change anything about it, because it's a good idea, it's a good name for them and the company, the bread is good, looks clean, so it's a pretty good idea i'd say i'd do it, too.
-Jamie B. Rojas