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Panera Bread opens nonprofit pilot

Original Source: http://www.fastcasual.com
Original Publication Date: May 19, 2010

Panera Bread has opened its first nonprofit location in the St. Louis suburb of Clayton. The new store does not tell customers what to pay for their meals. Rather, it asked them to pay what they’d like to donate, whether it’s the full suggested price, less or more.

According to an Associated Press story in the Cleveland Business Journal, the restaurant is run by a nonprofit foundation and, if it can sustain itself financially, Panera will expand the model around the country within months. The first location bears the name St. Louis Bread Co. Cares.

From the story:
The first location bears the name St. Louis Bread Co. Cares — the chain’s former name and one it still uses in its hometown.

Other similar experiments have worked. The One World Salt Lake City restaurant has operated as a nonprofit with pay-what-you-want prices since 2003, said founder Denise Cerreta. She works for a foundation that helps similar restaurants open around the county. She said the places don’t get swarmed by crowds and emptied, but have managed to stay afloat based on the honor system.
“It somehow stays in balance,” Cerrata said. “I think ultimately people are good. They want to contribute.”

Panera is using its nonprofit foundation 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.

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