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Panera runs profit under a pay-what-you-can system

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Panera runs profit under a pay-what-you-can system

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Autolykos replied on Thu, Jun 21 2012 10:28 AM

The line between "for-profit" and "non-profit" is blurrier than you might think. cheeky

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Non parit potestas ipsius auctoritatem.

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xahrx replied on Thu, Jun 21 2012 11:14 AM

You mean price discrimination works and people are generally honest and giving as opposed to blood thirsty lunatics who would cut each other's throats for a sandwich?  Wow, who would have thunk it...

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Aristophanes replied on Thu, Jun 21 2012 12:26 PM

During the recession, Panera profited from a contrarian approach: focusing on the Americans who were still at work, focusing on quality and not slashing prices. Since then, it has posted industry leading sales growth. In 2011, Panera sales rose 18 percent, to $1.8 billion, while net income grew 22 percent, to $136 million.

What places "slashed prices" when all of their costs started rising?  Far as I can tell food has gotten more expensive.  Shouldn't that read something like "raising prices"?

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Autolykos replied on Thu, Jun 21 2012 1:12 PM

I think it's meant to be understood in terms of focusing on quality instead of slashing prices. Both can be used to (hopefully) obtain more revenue than previously.

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