Panera: A Lesson in the Failure of Socialism

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There's no such thing as a free lunch anymore at Panera.

The sandwich chain will close its last pay-what-you-can location next week after determining the model wasn't sustainable. It's already shut the other free-meals cafes around the country, including locations in Chicago; Clayton, Mo.; Portland, Ore.; and Dearborn, Mich., and its Boston concept will close its doors Feb. 15 after a six-year run.

The original idea was to allow customers to give a suggested donation for their food in a bid to raise awareness about hunger across the U.S. The funds collected were supposed to cover the store's operating costs while also paying for those who couldn't afford their food.

"Despite our commitment to this mission, it's become clear that continued operation of the Boston Panera Cares is no longer viable," Panera Bread said in an emailed statement.

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At its peak, Panera Cares operated five locations, including ones in Dearborn, Michigan; Portland, Oregon; Boston, and Chicago. Each restaurant was designed to sustain itself, but the restaurants weren’t financially viable. The Portland-based Panera Cares was reportedly only recouping between 60 and 70 percent of its total costs. The losses were attributed students who “mobbed” the restaurant and ate without paying, as well as homeless patrons who visited the restaurant for every meal of the week. The location eventually limited the homeless to “a few meals a week.”

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