Photo Credit: Fresh Baked Bread by surlygirl

Photo Credit: Fresh Baked Bread by surlygirl

Is this a new trend that will catch on? Some Panera Bread cafes in the St. Louis area are letting costumers set their own price. Other businesses that are trying this are:

  • One World Everybody Eats (Salt Lake City)
  • Cafe Gratitude (California)
  • Humble Bumble – buyers download video games and pay what they want

CEO and founder of the Panera Chain, Ron Shaich, explains “if customers pay more than the chili costs Panera to make, the profit subsidizes meals for customers who cannot afford to pay as much.” Diners are informed of the model upfront before paying. Source: ‘Pay-What-You-Want’ Pricing Trend by Alan Farnham (ABC News blog).

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