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This math doesn't work out. Smaller, cheaper restaurants can't be in the business of "limiting" customers right now. Price has to go up if the quantity is limit
by gkoberger 6y ago
This math doesn't work out. Smaller, cheaper restaurants can't be in the business of "limiting" customers right now. Price has to go up if the quantity is limited. $25 * 30 = only $750/day. After cost of food, that's not worth it. $800 * 20 becomes more worth it.
That being said, lots of higher-end restaurants are already doing this. In SF, they're using "reservations" that are limited to ~30 meals a day (for example: https://www.exploretock.com/benu https://www.exploretock.com/benu), and that seems to be working well. But these meals are all ~$100+/person.
- exolymph 6y agoSame concept, just don't limit the quantity that much? Perhaps marketing a complete meal rather than a la carte choices would still work for lower-end restaurants. Takes away the decision fatigue / makes it more compatible with impulse buying? I'm just spitballing here but it seems possible. Would love to hear from anyone with restaurant experience.
- gkoberger 6y agoI definitely think there's things restaurants can do during a pandemic to stand out. Limit the menu (less work/waste), offer to-go alcohol, team up with other restaurants, offer a free [something] with every meal, etc. The idea in this article just wouldn't work, though.
- thelandofrandom 6y agoSome kind of affordable price point for a lower end restaurant could definitely play into impulse buying. Why not buy a complete meal?
- kevin_thibedeau 6y agoYou can view it as a $350 meal discounted to $200. This is all Veblen territory so the target customers are price insensitive.
- thelandofrandom 6y agoGood point. Limiting meals for smaller restaurants wouldn't make any sense.