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Rabbi Yonah Bookstein

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The Economics of Generosity: A Homeless Man's Advice to Restaurateurs

Posted: 01/18/2012 10:12 am

If you want your restaurant to prosper, give free food to the homeless. This is according to the anecdotal evidence put forward by my homeless friend Yehuda. Yehuda has been on the streets for five years in Los Angeles and can can't shake a heroin addiction. He lives on small change from kind souls ... and restaurants. Yehuda once had a thriving window dressing business and a million friends. Today he depends on people's leftovers and meals from generous restaurants for his fare.

Yehuda taught me this important lesson when a recently opened, kosher-certified, national franchise shut down, much to the surprise of the neighborhood. The story followed an arc that Yehudah had seen before.

Yehudah began approaching the new fast-food sandwich shop that had opened on his regular stretch of road. They were generous with Yehuda, offering him a sandwich as much as once a day. The food went a long way to sustaining him, and a few other homeless Jews who call Pico-Robertson home.

The new gleaming store was packed the first few months. But as time went on, the crowds became thinner. Eventually, the free sandwiches became less and less frequent. The worse business got, the more they resented him. Soon they stopped giving him food. Within months the restaurant had closed its doors. A successful national franchise, on a popular restaurant block, with special kosher certification, was now a thing of memory.

If this were one isolated case, it would not prove anything. But it was not.

Over the course of these five years, Yehudah has seen other restaurants come and go. The same pattern of generosity followed by hostility accompanied the downfall of all those restaurants. There was one place that chased him out with a broom -- they were closed within a month. It didn't matter that Yehudah warned them against treating the homeless this way. He warned them that their tight fist, would be their downfall. But who is going to listen to a junkie homeless man for business advice? Nobody it seems.

One of the businessmen that didn't treat Yehudah well, who subsequently opened a new shop after his latest one failed, began to see that Yehudah had a point. He started giving Yehudah food every day. Whenever Yehudah stopped by, he was sure to walk away with something fresh to eat. Yehuda said the business was booming.

I went to check this out for myself.

Passing by this establishment for the last six months, I can attest that the place is thriving. Customers line up for food. They run out of product all the time. The owner is happy, and the business, even in these times when small restaurants are really hurting, is thriving.

Restaurants often chase the homeless away, instead of inviting them to the backdoor for a warm meal. We, the customers, loathe their pan-handling when we are trying to have a coffee with friends. We resent them for interfering with our plans to go and get something to eat, and for making us feel guilty. Let someone else give them a hand, I have heard said too many times.

Prosperity is not deserved, but is a blessing bestowed by God. The Torah teaches that when a person puts out his or her hand, it is a commandment to fill it. Therefor it is not surprising that the Torah's economic principles can be a lesson to us all. Generosity begets blessing.

Hopefully, someday soon, our MBA students will learn about the economics of generosity, and restaurants that want to have a fighting chance, will adopt Yehuda's simple business plan.

 

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If you want your restaurant to prosper, give free food to the homeless. This is according to the anecdotal evidence put forward by my homeless friend Yehuda. Yehuda has been on the streets for five ye...
If you want your restaurant to prosper, give free food to the homeless. This is according to the anecdotal evidence put forward by my homeless friend Yehuda. Yehuda has been on the streets for five ye...
 
 
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10:57 AM on 01/23/2012
I've had an idea for a long time to spread a meme called 'half for the hungry'. You can order smaller portions in restaurants and they will charge you the same but contribute a couple of bucks to food charities.
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HUFFPOST COMMUNITY MODERATOR
way2sunny
03:22 PM on 01/20/2012
As a restaurant owner I have to point out that there are better and safer ways to help the homeless and heroin-addicted than encouraging them to congregate around your back door. The organized charities that we partner with agree.
10:41 PM on 01/19/2012
When I see a homeless or hungry person...and I give them food...it makes me feel happy that Hashem trusted me to take care of that person.

Thank you, Rabbi Yonah, for this article.
04:38 PM on 01/19/2012
I think the key recommendation in this story was that if you're going to offer something to the homeless, do it from the back door. Generally speaking if there are homeless junkies hanging out in front of an establishment, I'm not too excited about going in.
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03:21 PM on 01/19/2012
This reminds me of a business article I read about women being more likely to work for and shop at businesses that make charitable donations and offer time to do charity work.
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HUFFPOST SUPER USER
NrthrnLord
Prince of a very small part of the universe.
02:34 PM on 01/19/2012
The rabbi is suggesting that good engenders good...kinda karmic.
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ThankGodhesgone
Always Progressive and loving the CONs meltdown.
02:12 AM on 01/19/2012
It sickens me that not only do restaurants throw away food, but supermarkets that trash dinged cans, bruised fruit or food that is approahing its 'sell by date'.

So much could be given to food banks to relieve hunger.
10:47 PM on 01/18/2012
Yehuda has Selective Recall. Just like gamblers remember their wins, Yehuda remembers the resturants that wouldn't give him food and then went broke.

Rabbi Yonah is twisting the facts to suit his own agenda.

The restaurants cited by Rabbi Yonah did not "stop being profitable after they stopped being charitable". They stopped being as charitable after they stopped being profitable.

If Rabbi Yonah's assertion, that charity kept them profitable, was correct, then they would have never become unprofitable.

Rabbi Yonah truly wants people to believe that "businesse­s stop being profitable when they stop being charitable­". If Rabbi Yonah had his way, businesses would give away food not just to the homeless, but to everyone. Business would not exist for profit, but would exist for the public good. Broke businessmen would have to beg Rabbis and Politicians for alms.

Rabbi Yonah HATES businessmen and woman.
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Cindbird
Using my head for something other than a hat rack.
11:05 PM on 01/18/2012
Since the Rabbi didn't name the restaurants, either you have information not available to the reader or you're just making it up. Cite your sources for the claim that " The restaurant­s cited by Rabbi Yonah did not "stop being profitable after they stopped being charitable­". They stopped being as charitable after they stopped being profitable."

On a side note, I have observed that non-kosher restaurants here in my own hometown DO tend to do better after beginning to show compassion and help the local community in feeding the homeless. Many restaurants even advertise the fact that all left-overs from a buffet will be donated to local soup kitchens or day shelters. Those DO tend to do much better as people want to support their work.
01:12 AM on 01/19/2012
Rabbi Yonah is talking about the kosher Subway, which closed a few months ago.

Here is my source: "The new gleaming store was packed the first few months. But as time went on, the crowds became thinner. Eventually, the free sandwiches became less and less frequent. The worse business got, the more they resented him. Soon they stopped giving him food."

As you can see, business got bad first, then they stopped giving out so much free food.

I also know people who worked at the store.

It's NOT TRUE that "If you want your restaurant to prosper, give free food to the homeless." Want proof? Just pretend to be poor and try get free food from McDonalds, Carls Jr, Burger King or In & Out.

I'm an orthodox Jew. God wants us to do certain things, like give 10% of our income to charity.... but that's not what Rabbi Yonah expects.

Rabbi Yonah thinks profitable business are all evil. The only way they can clean the blood off their hands is by giving their money away. That's why he believes that even if giving charity will make the business shut down, they should do it.
01:14 AM on 01/19/2012
Rabbi Yonah is talking about Subway
03:13 AM on 01/19/2012
Having worked around Rabbi Yonah for eight plus years, I don't believe that he hates or dislikes business people. In fact, business people enable him (and most other religious and non-profit leaders) to do what they do. Given that the majority of his income comes from donors who are also business owners, hating them would be counter productive. In fact, I've seen the opposite to be the case. Rabbi Yonah benefits from the business building skills his donors bring to his organization. He is open and receptive.

It does not surprise me that Rabbi Yonah sees generosity and ethical business practices as indicators of past and future success. He is in the faith business...the business of helping and educating people. But it is still a business. He must constantly raise funds (sell) and share his vision (marketing and PR) and compete (for limited dollars) while developing his product and staying current with trends. Kind of sounds like he is the very business person he is accused of hating. I've never seen it...even though I happen to be a business person.
09:40 PM on 01/19/2012
Rabbi Yonah cleans the blood off their money.

Just look at which businessmen or business woman have been invited to Jewlicious.

Noah Alper (a leftist from San Francisco, who started Noah's Bagels) is the only one I know of.

If Rabbi Yonah did invited businesspeople to Jewilicious, they'd see a HUGELY successful movement and would certainly become larger donors. However Rabbi Yonah's principals are worth more to him than the financial gain he'd derive by inviting business people to Jewlicious, and giving them an audience of impressionable minds.

(I've known Rabbi Yonah for longer than you, but it's not the reason that I'm right about this.)
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atexasdem
Pointing out the foolishness of republican voters.
10:36 PM on 01/18/2012
The Buddha too taught the blessings of giving. When we give unto others it is not they who receive benefit, rather it is the giver. When we share, whether it be to a monk or a begger it is we who should be thankful. Thankful that we have the ability and the blessings such that we are able to share.Kharma is very real. The Christians say " As you sow, so shall you reap". I'm sure that Judaism has an equivalent. Always remember, good can only bring good while evil can only bring evil.
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Cindbird
Using my head for something other than a hat rack.
11:35 PM on 01/18/2012
That's the very reason why Theravada monks go on begging rounds. It is to allow the lay people an opportunity to gain merit by the act of giving. Dana (Generosity) is one of the Ten Paramitas or "Heavenly Abodes". It is also one of the attributes of the Bodhisattva and is one of the actions sited by Shantideva in his seminal work, The Way Of Life Of The Bodhisattva. Buddha himself taught that Dana is one of the ways we create the greatest merit, because we give of ourselves, it is a combination of compassion for the person's circumstances and an act of love for a suffering being. It is also a great act of empathy in that we must acknowledge the suffering before us without trying to become blind to it. Buddha said, "Compassion is a trembling of the heart in the face of another's pain." When we give to another, we combine that compassion with love, and bring to life the Teachings of Buddha.
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wbthacker
Can YOU pass the Turing Test?
05:39 PM on 01/18/2012
Where some of us might explain Yehuda's experience by assuming businesses stop being charitable when they stop being profitable, Rabbi Bookstein concludes, "businesses stop being profitable when they stop being charitable." This is the sort of insight I expect from religious thinkers.

"But who is going to listen to a junkie homeless man for business advice? Nobody it seems."

But Rabbi, people aren't reading your column for business advice. We're here to learn about religion. As a person who values the keen observations of homeless junkies, what have you learned from Yehuda about Judaism?
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04:49 PM on 01/18/2012
"If you want your restaurant to prosper, give free food to the homeless. This is according to the anecdotal evidence put forward by my homeless friend Yehuda. "

My friend who owned a restaurant for seventeen years did this every other day.

Not only did he not prosper, the restaurant finally failed.

Another reason to treat anecdotal evidence what it is: not an indicator or predictor of results
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SayBlade
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05:13 PM on 01/18/2012
Seventeen years is a long run for a restaurant.
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07:45 PM on 01/18/2012
Rationalization is not enough to conclude the merits of anecdotal evidence.
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03:30 PM on 01/18/2012
"There But for the Grace of God, go I". Never forget anyone of us could be in the same boat.
Also, the food thrown away by restaurants, fast food chains, and supermarkets could be used for the hungry. There's a lot of good food that can't be sold by stores that they just trash. Why not give it away? Maybe it's a cost to the stores to do so, but there must be a better solution.
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SayBlade
This micro bio intentionally left blank.
04:57 PM on 01/18/2012
Food thrown away by restaurants is used in food banks and free community meals where appropriate. There are organisations who collect such food under strict handling procedures and distribute it appropriately within hours. Grocery stores in my area won't donate food because they fear lawsuits, but have donated other items to food banks such as clean bags when bulk items need to be broken down like cereal and rice.
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RudyHaugeneder
02:19 PM on 01/18/2012
Still begs the question of too many people and the resulting global climate change.
Certainly individuals helping less fortunate individuals is an absolute, but religious leaders must set aside their tenants and preach sanity that will result in us wanting less stuff, share what exists with ALL life forms, and demand that the global population shrinks in the next 50 years as much as it grew (since JFK's assassination) in that time -- and then reduce it another billion in the following two decades.
Then, and only then, will modern religions -- no matter what brand -- deserve credibility.
Unfortunately: Not a chance.
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wbthacker
Can YOU pass the Turing Test?
06:45 PM on 01/18/2012
"demand that the global population shrinks in the next 50 years as much as it grew (since JFK's assassinat­ion) in that time"

http://www.un.org/esa/population/publications/longrange2/WorldPop2300final.pdf should interest you.

I'm sure you don't plan to achieve this through mass murder or by letting disease and famine run unchecked. But how *do* you think this can be done?

The developed nations who might heed your call haven't really grown that much since 1960. Most of Europe has had a negative population growth for decades. The US and Canada would have negative growth were it not for immigration.

The main population growth has been (and still is) in Africa, Latin America and the Caribbean, Asia and Oceania. What measures will they need to take to reach your target, and how likely to do think it is that anyone can convince them to do it?
01:00 PM on 01/18/2012
Almost ablaze still you don't feel the heat
It takes all you got just to stay on the beat.
You say it's a livin, we all gotta eat
But you're here alone, there's no one to compete.
If mercys a busness, I wish it for you
More than just ashes when your dreams come true.
12:34 PM on 01/18/2012
A must read for the new business model, The Diamond Cutter, by Geshe Michael Roach. Success is created from generosity and compassion.