Little Bay Restaurant lets customers set menu prices
The Little Bay Restaurant in London (UK) opened a new location recently. Instead of launching with a menu of priced entrees, though, it took a different, and to my mind, very enlightened approach. For the month of February, it put no price next to the selections, instead allowing customers to pay what they thought the food was worth. While some cheapskates paid little, most diners reportedly played fair and gave what they felt was reasonable for the food served. And here's the inspired part. The restaurant then took the amount customers were willing to pay and used that to price its menu. Instead of guessing what the market would bear, it allowed the market to tell it what prices were reasonable. The unusual strategy also paid off for the restaurant in free press coverage, exposure they could never have afforded to buy.
Imagine walking into a McDonald's or a Cheesecake Factory or a Smith & Wollensky to find they were doing the same thing. What would you pay for an Egg McMuffin or a white chocolate raspberry truffle or a prime filet? In many cases, I see a huge disconnect between value and cost. (I'm looking at you, Applebee's -- food that tastes like a frozen food dinner isn't worth ten bucks.)
Reader Comments (Page 1 of 1)
4-10-2009 @ 1:37PM
belavucica said...
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4-14-2009 @ 12:00PM
mikeyboy said...
Hmmmmm.
Something about this story and marketing campaign sounds very familiar. Oh yeah it's that the band Radiohead did the same thing last year revolutionizing how music is released when they offered their album to be downloaded at the customers set your own price terms. Oh look at that this restaurant is in the United Kingdom also, sounds like a case of taking advantage of someone else's ideas, research, marketing campaign, expenses, endless hours of brainstorming, etc,etc,etc. I am most surprised that the writer/editor of the story fails to mention that to give some due credit back to Radiohead, instead of giving this restaurant credit for a spin-off idea.
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4-16-2009 @ 1:37AM
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4-17-2009 @ 8:35AM
Joe said...
Well mikeyboy, for your information Radiohead sure wasn't the first to do this either. This "set your own price" has been going on for decades. To use someone elses idea that has been tested and proven to work is a very smart business move period! I don't believe this story is about giving "credit" for this idea but rather just reporting it. This is the first time i've heard of a restaurant using this idea and then actually putting those prices as their main menu prices. Good move on their part on several different levels. I have always believed most people are honest and are glad to pay what something is worth. Makes the people wh hear about this place already feel like they are going to get their moneys worth long before they even show up to eat. Hope they do great and here's hoping the idea will catch on here in the states!
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4-18-2009 @ 2:17AM
Holly said...
They are doing this already, and have been, for a couple of months here in Phoenix at the famous Frank Lloyd Wright restaurant named "Wrights" at the Biltmore. Not sure how the concept is working though.
4-17-2009 @ 6:22PM
DOM said...
YOU GOTTA BE KIDDING
I HAD A RESTAURANT IN THE NASTY YUPPY GUPPY BUPPY TOWN OF MONTCLAIR, NJ AND IF I HAD ALLOWED THAT NASTY BUNCH OF KNOW IT ALL LIBERAL CORPORATE CLOWNS WHO THINK THEY KNOW BUSINESS BECAUSE THEY LOCK STEP BY THEIR COMPANY'S RULE BOOK
I WOULD HAVE LOST MY SHIRT
I FINALLY FOUND SOMEONE TO TAKE IT OFF MY HANDS AND HE LOST EVERYTHING
I OWN ANOTHER RESTAURANT NOW BUT I MAKE THOSE MONTCLAIRIANS PAY THROUGH THE NOSE
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4-18-2009 @ 12:01AM
joey said...
this would never work in america because all the illegal aliens with their anchorbabies would fill their bellies, purses, hats, pockets and strollers with food then walk out. they do this all the time in central florida buffet restaurants. deport the pigs now---no amnesty.
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4-18-2009 @ 12:04AM
jmh118 said...
the real problem is not how customers would price their food. its that the customer doesnt really know what good food is. How many people do you know that say they know good food...and drive right past that small little restaurant that offers house made fare, uses fresh products, shows creatvitiy in their food for that large chain factory food... where when you compare the final bill.. that small trendy looking place will end up with a over all smaller bill.... so how can you let the consumer define the price when they dont know what they are doing
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5-21-2009 @ 6:37PM
Jose Roque said...
Friends in N. W. Pennsylvania, USA. There is an family owned restaurant opened 25 years ago, Eat and pay as you afford., they love to cook and serve the people, The New"s reported that whit rare excption's people pay fair and they break even!
So, what is new is the web, not the way to do business.
A cafeteria at Columbus, Ohio, USA. who has lots of volunteers working, price everything fair for over 35 yrs.
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