Panera Bread just opened a a new restaurant where customers “pay whatever they want.”
From the Associated Press: CLAYTON, Mo. — Panera Bread Co. is asking customers at a new restaurant to pay what they want. The national bakery and restaurant chain launched a new nonprofit store here this week that has the same menu as its other 1,400 locations. But the prices are a little different — there aren’t any. Customers are told to donate what they want for a meal, whether it’s the full suggested price, a penny or $100.
The full story can be found here: http://www.google.com/hostednews/ap/article/ALeqM5g__EQ-OG9DhU1YwC4Fo4s5QREdbgD9FPBIMG0
This bizarre business model has Trophy Wife jumping up and down with excitement as she hopes that Tiffany’s jewelers may adopt a similar pricing policy. Additionally, if Panera succeeds in this approach, it will be bullish for textbook publishers, as it will require a re-write of every college economics textbook!
[Disclosure: Rocky doesn’t own any shares of Panera Bread (PNRA), but if he did, he might be tempted to sell them before he lunches at Panera for a penny.]