Two news stories caught my attention last week.
The first was the report that Panera had opened a “Community Cafe” that encourages customers to “take what they need and give all they can.”
The cafe is like any other Panera except there are no prices. Customers pay what they want and what’s raised –minus expenses– goes to charity. Or something like that.
It doesn’t really matter. Three things are clear to me. It’s great marketing. A terrible business idea. And the philanthropic impact will be minimal.
It’s great marketing because as Edward Boches notes, it’s well, everywhere, and the program is a great calling card for Panera when folks ask “what have you done in the community lately?”
It’s a terrible business idea because when the bloom is off the venture the cafe won’t be able to sustain itself from customer donations, much less give back to causes. The cafe may become a venue for community programs, as Panera envisions, but a fully functioning Panera sustained on the goodwill of customer donations, with money left over to give back to causes?… Keep reading
