Friday, June 25, 2010

Panera “Pay What You Want” Finishes First Month

Hmmmm… remember the Panera experiment?

Its cashiers tell customers their orders’ “suggested” price based on the menu. About 60 to 70 percent pay in full, Shaich said. About 15 percent leave a little more and another 15 percent pay less, or nothing at all. A handful have left big donations, like $20 for a cup of coffee.

The restaurant took in $100,000 in revenue its first month. He declined to say what kind of margin this left between total costs and revenue, but he predicted the restaurant will be able to cover its costs within months and eventually generate extra cash for charitable programs.

So far, so good, I guess.  It is obvious that they are currently losing money, so we’ll still have to wait to see if they can ever turn a profit in this model. 

On a side note, when did restaurants become “eateries?”  I hate that.

(9) Comments
Posted by Owen at 1248 hrs
Culture + Economy

  1. Panera is over-priced and under quality.  A turkey melt from a George Foreman grill, small bag of stale chips, and a soda is NOT worth $9. 

    Sorry Panera, I’ll take my “eatery” money elsewhere.

    Posted by .(JavaScript must be enabled to view this email address) on June 25, 2010 at 1340 hrs


  2. Eatery = Used by people who can’t spell restaurant cool smile

    Posted by .(JavaScript must be enabled to view this email address) on June 25, 2010 at 1420 hrs


  3. Seems the original link has gone down the memory hole.

    Posted by .(JavaScript must be enabled to view this email address) on June 25, 2010 at 1424 hrs


  4. The same day bars became drinkeries.

    Posted by .(JavaScript must be enabled to view this email address) on June 25, 2010 at 1429 hrs


  5. Have you guys ever had one of their breakfast sandwiches?  Superb.  Although I will admit their cuban sandwich is a monstrosity, with it’s sweet pickle.  Shudder.  Mostly I find their bread to be at least two notches above anything you can find in a grocery store, however.  Trying getting a loaf of that to serve with your stew this fall.  It’s worth every penny.

    Posted by scott on June 25, 2010 at 1723 hrs


  6. “It’s worth every penny”

    And with their new policy, that’s all I’ll have to spend!

    Posted by .(JavaScript must be enabled to view this email address) on June 25, 2010 at 1946 hrs


  7. I consider a eatery somewhere you place your order at a counter.

    Posted by .(JavaScript must be enabled to view this email address) on June 26, 2010 at 0822 hrs


  8. How’s that old joke go?  “You’re losing 10 cents on every order.  How are you going to make money?” “Volume!”

    If you’re losing money now, it seems a little naive to expect to make money in a couple months unless you’re planning for something to change. 

    It’s a nice publicity stunt while it lasts, which won’t be long.

    Posted by Brian J. Noggle on June 26, 2010 at 1039 hrs


  9. They became eateries when they became generic chains selling swill fit for a trough.

    Posted by James Wigderson on June 27, 2010 at 0216 hrs


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