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Contemporary Marketing 16th Edition by Louis Boone,David Kurtz
Edition 16ISBN: 978-1133628460Contemporary Marketing 16th Edition by Louis Boone,David Kurtz
Edition 16ISBN: 978-1133628460 Exercise 24
You may have heard there's no such thing as a free lunch, but at three Panera Bread Co. restaurants in Michigan, Missouri, and Oregon, there is.
After seeing how demoralizing it can be for a person waiting for a handout, Panera's president Ron Shaich converted three stores into a separate nonprofit operation. The menu is the same as elsewhere in the popular salad and sandwich chain, but a donation box and the honor system replace the cash register in what Shaich calls "nonprofit community cafés of shared responsibility." These nonprofit Paneras do not charge for meals. Instead, customers get receipts with their orders that explain what the meal would have cost in a conventional Panera store.
About 60 percent of customers leave the suggested amount; 20 percent leave more; and the remainder pay less or nothing. Customers are requested to come no more than once a day to the pay-what-you-can cafés. Those who come in a few times a week to have a meal are asked to volunteer in the store, in keeping with posted signs reading, "We are not about a handout. We are about a hand up for those who really need it."
The pay-what-you-can cafés are breaking even, and Panera recently announced that it will open at least two more stores.
QUESTIONS FOR CRITICAL THINKING
1. One critic called Panera's pay-what-you-can model "a marketing ploy." Do you agree? Why or why not?
2. Panera donates millions in cash and food each year but feels the cafés allow a direct connection to those in need. Why would that matter?
After seeing how demoralizing it can be for a person waiting for a handout, Panera's president Ron Shaich converted three stores into a separate nonprofit operation. The menu is the same as elsewhere in the popular salad and sandwich chain, but a donation box and the honor system replace the cash register in what Shaich calls "nonprofit community cafés of shared responsibility." These nonprofit Paneras do not charge for meals. Instead, customers get receipts with their orders that explain what the meal would have cost in a conventional Panera store.
About 60 percent of customers leave the suggested amount; 20 percent leave more; and the remainder pay less or nothing. Customers are requested to come no more than once a day to the pay-what-you-can cafés. Those who come in a few times a week to have a meal are asked to volunteer in the store, in keeping with posted signs reading, "We are not about a handout. We are about a hand up for those who really need it."
The pay-what-you-can cafés are breaking even, and Panera recently announced that it will open at least two more stores.
QUESTIONS FOR CRITICAL THINKING
1. One critic called Panera's pay-what-you-can model "a marketing ploy." Do you agree? Why or why not?
2. Panera donates millions in cash and food each year but feels the cafés allow a direct connection to those in need. Why would that matter?
Explanation
Verified
Verified
PAY WHAT YOU CAN
Company P is in the bu...
Contemporary Marketing 16th Edition by Louis Boone,David Kurtz
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