I have had my eye on the Panera Cares café concept since its inception three years ago. Would it be more than a cause marketing initiative or CSR campaign? Would it positively impact the communities it serves? Would it be successful? After hearing founder Ron Schaich’s present “Innovating Philanthropy: Panera’s Social Experiment”, I think the answer is yes to all of the above. In his presentation, he described his inspiration for Panera Cares cafes and the process of taking the idea and making it a reality. What I walked away with (other than a good feeling about Panera) is a handful of lessons any nonprofit can use to help them innovate.
Study What Others Are Doing and Develop Your Own Approach
Ron knew he wanted to expand on the company’s philanthropic efforts, he knew he wanted to address hunger or food insecurity, but he didn’t know what he wanted to do until he learned about the SAME Cafe in Denver, Colorado. He visited the SAME Cafe and many similar organizations to observe and learn how they deliver on their mission. The result is the Panera Cares Café a “pay what you can” restaurant. The menu lists suggested donation amounts, but every customer is served regardless of whether they are able to pay or not. Ron took the concept of a community café and modified it to work for Panera.
Focus on the Experience
Ron anonymously visited community cafes around the country as a customer. He observed the total experience from the look and feel of the facilities to how diners hung their heads as they ordered. He was motivated to create an experience in Panera Cares cafes that is “just as good as the one you pay full price for” at the retail store. And, the experience is entirely Panera – as a guest at a Panera Cares Café you order off the same menu as a Panera retail store and the food, service and standards are all the same. This was extremely important in order to create an experience that every customer would want and enable non-paying customers to “dine with dignity”.
Hone Your Skills, Perfect the Plan, Iterate Until It’s Right
When the first café opened in Clayton, Missouri Ron worked 80 hours a week running the café to learn and improve upon the initial concept. He spent hours tweaking the way the café communicated the “take what you need, but leave your share” idea. Initially customers ignored instructions because they didn’t understand the concept. They have since modified their communications (it’s the “pay what you can” model) and added a greeter at the door to help walk customers through the process. He also spent hours creating a custom “point of sale” system. One that utilizes the technology to place the orders with the kitchen, but that totally and anonymously allows customers to give. For any skeptics reading, Ron shared that 60% of the guests donate the suggested amount, 20% donate more and 20% donate less.
Don’t stop innovating!
Today there are 5 Panera Cares Cafes and they are all self-sustaining with money left over. The Panera Cares Foundation is expanding and figuring out ways to do more. In addition to addressing food insecurities, they are developing job training programs and focusing on at-risk youth.
Panera (the for-profit entity) has 1,652 bakery-cafes nationwide and had $2.1 billion in sales in 2012. If you ask their employees, what their most proud of, it’s often Panera Cares.
Want more information on the “Experience” check out the Panera Cares reviews on Yelp.
3.5 Stars in Portland, OR http://www.yelp.com/biz/paneracares-portland
4 Starts in Clayton, MO http://www.yelp.com/biz/paneracares-clayton
3.5 Stars in Dearborn, MI http://www.yelp.com/biz/paneracares-dearborn
3 Stars in Chicago, IL http://www.yelp.com/biz/paneracares-chicago
4.5 Stars in Boston, MA http://www.yelp.com/biz/panera-cares-boston
Patricia Tynan
Sr. Marketing Manager
Have you approached your clients’ issues with design thinking? If so, please share in the comments section below and let me know how it worked for you.
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