"Philanthropubs" tap into profits for public good.

Drink beer, do good

While much of the time people head to a pub to get away from the world, there is a new kind of drinking establishment bubbling up that makes going to the pub in the first place a way to give back to the world. Some are calling them "philanthropubs," but whatever you call them, the concept is pretty innovative.

Every time you buy a beer or food, the profits go to a charity of your choice. That's the bottom line.

It means that if you stop in and get a burger and a few beers with your boys, that's probably around $20 in profit for the pub. Imagine if rather than that money going into the pockets of the owners of the pub it went into a charity of your choosing?

One pioneer in this revolution is The Oregon Public House. Their slogan? "Have a Pint, Change the World." Sounds deliciously optimistic.

They have taken two industries that both thrive in Portland, non-profits and pubs, and brought them together in a hybrid that redefines what it means to have a bar. As they say:

"Our vision is to leverage these two unique attributes of our city by creating a family-friendly pub environment where our neighbors from the surrounding area can come to enjoy community around good food and craft beer while supporting great causes."

Will it work?

While this kind of link between beer and charity is admirable, the question remains as to whether it will succeed once it is launched. I can see a few potential hurdles.

1. Drinking and good causes don't mix well: Much of the profits I see in the bar world come from happy hour or weekends, when people are doing their best to get out, get away, and forget what is going on in the rest of the world. I'll be interested to see if it resonates with pub-goers.


2. No profit? Why do it?: I admire the folks who are putting so much time and effort into making these spaces happen. From what I know about the restaurant industry, though, it's a tough go. Most restaurants have to close within their first year or two, and the business is brutal on the lives of people trying to get a new one off the ground. If the owners aren't making money off of the venture, will the philanthropic spirit be enough to keep them going through the rigors of competing against profit-driven rivals? I hope so!


3. Do people care? It's a clever idea to bring beer and charity giving together, but in the end, there is nothing specifically tying together the desire to have a beer or a burger with the desire to donate to saving the rainforest or fighting leukemia. I'll be interested to see if a new connection paradigm emerges in cities that have given rise to this new business model.

In Washington DC, a philanthropub called "Cause" is already operating. This one is notable because one of the founders, Raj Ratwani, is a cognitive psychologist, so he's been considering its appeal and chances of success. While statistics show that younger people give less to charity than do older people, Cause supporters say that it's really about creating the right circumstances to motivate young people.

“Everything is competing for their attention, and this is another way for people to combine charitable giving with something they’re doing anyway. They’re going to find time to go out and drink no matter how busy they are,” said Ratwani. Cause will be going after the young professional crowd who, I agree, will find the time to go out and drink!

The Original OKRA Charity Saloon in Houston is a similar saloon where patrons can vote on what charity the monthly profits should be donated to. This saloon grew out of a small but committed group of local owners in the food and beverage industry who wanted to do something to make a difference. This one is notable because it is a side project of people who have strong footholds in the food/beverage industry in Houston, so their understanding of the business challenges involved are much deeper.

In the end, nothing draws a crowd like a pub, a chance to do good and especially novelty, so I look forward to seeing what grows out of these new "philanthropubs."

Cheers to charity, everyone!

 

Image Source: Cause homepage