Panera Tries Pay-It-Forward Model for Free Lunch

APCO manager Andrea Shatzman is the resident “foodie” in our CR practice.  This recent news caught her eye and I asked her to share her thoughts about it.

Corporate executives trying encore careers in the nonprofit sector isn’t new. (In fact, APCO client Microsoft is probably responsible for dozens of them – most famously Bill Gates, but also social entrepreneur great John Wood, founder of Room to Read.)

But what former Panera Bread CEO Ron Shaich is attempting through his new venture is something unique. According to USA Today, Shaich is opening a Panera Bread restaurant where you don’t have to pay.

Free lunch? I love it already. The former Panera-owned restaurant in St. Louis is re-opening as a nonprofit called Saint Louis Bread Company Cares Café. And instead of paying for your sandwich, you make a donation – whatever you can afford to give. If you can’t afford to give money, you’re encouraged to give your time. If this nonprofit restaurant is successful, Shaich is already planning new locations to be called “Panera Cares Cafes.”

This “pay-it-forward” model has succeeded before at the grassroots level. Karma Kitchen (a similar get-a-meal, make-a-donation model), held at several restaurants each Sunday in Washington, D.C., is immensely popular, particularly among young people who frequent it for food and for volunteer opportunities. And it’s only a little over a year old.

Can this kind of effort inspire the same local embrace when backed by a major restaurant chain? How will it impact Panera’s business model? Developing a mirror-image chain of nonprofit restaurants is an interesting concept. I’m looking forward to seeing how the experiment plays out and, if it works, what other companies might follow.

Posted on Friday, May 21st, 2010 By Tara Greco
Catogories  Business Alignment/Integration, Community Engagement, CR in North America, Nonprofit Operations and Communications, Philanthropy, Volunteerism & Service, What's Next for CR and tagged , , , , , , ,
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2 Comments

  1. Jeri Birnbaum
    Posted Wednesday, April 6th, 2011 at 3:25 pm | Permalink

    This is beautiful. Just other day I was thinking about the Hull House founded in Chicago by Jane Adams. This endeavor takes us back to times when we depended on the charity of our fellow man for inspiration and encouragement. Thanks for this model of giving and shairing that, hopefully, will spread across the country.
    Rev. Jeri T. Birnbaum

  2. Posted Friday, January 13th, 2012 at 12:43 am | Permalink

    We are a group of volunteers and starting a new scheme in our community. Your web site provided us with valuable information to work on. You have done an impressive job and our entire community will be thankful to you.My ICQ:917811229

3 Trackbacks

  1. By Panera’s Nonprofit Restaurant – So Far So Good on Wednesday, June 30th, 2010 at 10:50 am

    [...] a quick addendum to my previous post on Panera’s experiment with a nonprofit version of their restaurants. We’re now a month [...]

  2. By Corporate Philanthropy = R&D on Friday, September 2nd, 2011 at 12:04 pm

    [...] We saw glimpses of this with Panera’s “free” bakery. [...]

  3. By 8 Must-See Examples of the “Power of We” on Monday, October 15th, 2012 at 4:29 pm

    [...] Cares: We’ve put a spotlight on Panera Cares Community Cafes on this blog before. But the success of the Cafes’ pay-it-forward [...]

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