Pay-What-You-Want: The Way of the Future

Is it possible that all retail stores will one day become non-for-profit charitable institutions, offering products for a suggested donation without insisting on payment? Who knows what the future may hold!

Not only are very few people willing to take free money being handed out on the street (too suspicious), many are willing to overpay for meals when they aren't required to pay anything at all.

One year after Panera Bread Co. launched its St. Louis pay-what-you-want restaurant (one of three of its kind in their nationwide chain of 1500), they are finding that it actually works.

Contrary to suggested predictions of this NY Times article, posted around the time of the store's launch, Panera seems to have figured it out. The article lists other such establishments that have found it rather challenging to keep their doors open, particularly in communities with many teens and others looking to take advantage.

However, statistics provided by Panera indicate that roughly 60 percent of customers leave the suggested amount; 20 percent leave more; and 20 percent less. One person paid $500 for a meal, the largest single payment.

It appears that offering food for a suggested donation brings in about the same amount of revenue as charging for it, and you get the benefit of doing good. The poor get to pay what they can for meal they couldn't ordinarily afford, allowing them to dine with the rich while saving them the disgrace of openly being on the receiving end of charity. It also gives customers the ability to help the poor when buying their own food. A true win-win situation.

If this is a glimpse into the future, there is hope for mankind after all.