Using philanthropy to market your premium food can increase customer numbers and loyalty.
“Today 65 percent of Americans are willing to switch to a brand associated with a good cause if price and quality are relatively equal.” — Saving the World at Work by Tim Sanders
Panera Bread Co. is taking the philanthropic approach one stop further by launching a new nonprofit store located in St. Louis that allows customers to pay based on the honor system.
Offering the same menu as its other 1,400 locations, customers are told to donate what they want for a meal. If the new model works and can sustain the cost of running the business, Panera will expand the concept around the country with the hope of having a similar location in every community where it operates.
Panera is using its nonprofit foundation (Operation Dough-Nation) to support the restaurant and any future locations. The foundation will pay the new restaurant’s bills, including staff salaries, rent and food costs. At the end of each month, the foundation will tally donations to see if they cover food costs. The Panera parent company won’t bear losses if the experiment fails. – AP
Do you think Panera’s approach is too bold or will they appeal to customers who wouldn’t typically consider the chain? Would you pay full price, donate more to pay for those in need or take advantage of the pay-what-you-can offering?
Labels: marketing premium food, Panera, philanthropy, Premium Food, Stephan & Brady
