Under the chain’s nonprofit arm, the stores operated on a pay-what-you-can-model. A “pay-what-you-can-model” confuses many honest customers and encourages freeloaders and the dishonest.
Customers could pay as much or as little as they wanted for sandwiches, soups, and other menu items, which carried only suggested prices. The hope was that enough of them would “pay it forward” for those who were less well off.
Panera Cares cafe embarked on pay-what-you-can-model which is in contrast to a typical transaction in a store—one pays for something, one gets what one paid for—a “pay-what-you-can-model” is a lot more hazy transaction between buyer and seller, since it mixes the market with charity.
Therefore, the fact that, other businesses along the supply chain (i.g. framers, ranchers, veterinarians, etc.) are not run on charity, the pay-what-you-can-model cannot be used by profit oriented businesses.
Pay-what-you-can-model is a non-profit or for-profit business model which does not depend on set prices for its goods, but instead asks customers to pay what they feel the product or service is worth to them. It is often used as a promotional tactic, but can also be the regular method of doing business.
Therefore, the correct answer is as given above. That is, other businesses which are profit oriented cannot use pay-what-you-can-model since they are not charity establishment.
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