I've been hearing about a few restaurants here and there that are fighting dangerously slow sales by letting their customers pay what they think their meal is worth. It turns out that for some this works. One success case is the gastropub at the Hilton in San Francisco.
They ran the promotion for a week, and discovered that diners, 600 of them, actually paid $1 more than the cost of the tab if prices were set. And yes, they still tipped.
Only two walked out without paying a penny.
Of course, this idea is not new. If you're working on a business plan or new product offering, this might be a great way to discover what your customers want to pay.
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3 comments:
we're getting ready to launch a new restaurant, and we're kicking around ideas to build buzz. I'm adding this to the list!
Hey, excellent, John. I'm a foodie. If your restaurant is in the SF Bay Area, leave a link here - maybe I'll have a chance to eat there! - patrice
Not to dampen anybody's enthusiasm, but I think this is a recipe for disaster outside of the food business. People wouldn't have an idea how to price a product or service, specially if they have no experience with it yet.
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