Panera’s pay-what-you-want cafe: How’s it doing after a year?
Well, it’s still open for starters.
For every ten customers, Panera says six leave the amount suggested for each food item, two leave more, and two leave less, reports the Associated Press by way of the Washington Post. The most paid for one meal? $500.
Overall, the pay-what-you-want-cafe performs at about 80 percent of a similar retail store, which is enough to generate $3,000-$4,000 a month in “profits” that end up going to a job-training program for at-risk youths.
Only a few take advantage of the system — “lunch on Uncle Ron” as (Panera founder and Chairman Ronald Shaich) calls it. He still fumes over watching three college kids pay $3 for $40 worth of food. Generally, peer pressure prevents that sort of behavior, he said.
“It’s like parking in a handicapped spot,” Shaich said.
Cass Sunstein is currently the Administrator of the White House Office of Information and Regulatory Affairs and has no affiliation with the Nudge blog.
The Nudge blog is edited by John Balz.
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