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  • Date of publication: 31 August 2020
  • 1439
  • businessbuysale.com
  • The Cafe Metro Cafe. How not to lose money by allowing customers to set the price for coffee themselves

    Synopsis

    Coffee Cafe Metro Cafe from California's Santa Monica (one of the most expensive cities in the state) has offered its customers to choose how much they will pay for drinks and meals on the menu. About how the institution managed to maintain the previous r

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Description

Coffee Cafe Metro Cafe from California's Santa Monica (one of the most expensive cities in the state) has offered its customers to choose how much they will pay for drinks and meals on the menu. About how the institution managed to maintain the previous revenue, switching to a new payment model, tells The Guardian.

 

Metro Cafe is not much different from its competitors. Waiting for the order, visitors can sit at a table and use Wi-Fi. Barista institutions prepare espresso, makiato, cappuccino, latte and other drinks. At the same time, coffee prices and confectionery products are not indicated in the coffee shop menu - customers are offered to set the price themselves.

Customers evaluate the value of products differently. Ron Curti, one of Metro Cafe's regular customers, sometimes pays $ 2 for a latte on oat milk. According to him, he once paid $ 20 for an order, but more often he gives $ 5 for a drink. Once a visitor paid $ 104 for coffee, and one homeless often breakfasts at Metro Cafe for $ 1. Coffee shop for the sake of experiment launched this payment scheme in October last year. At Metro Cafe, 30 days were watched to see if wealthy customers could compensate for modest tips from poor or homeless coffee shoppers.

"In 30 days we reached (revenue - Inc.), which we collected earlier. So we continued. Only a small percentage of visitors tried to take advantage of this. We try to treat them with honor and respect. "

According to the owner of Metro Cafe, the revenue of the institution remained at $ 12.5 thousand per month. When the coffee shop only introduced a new payment system, customers asked what prices in the cafe were earlier. About 50% paid as much, about 25% of visitors paid more, and the remaining customers gave less.

Steve Snook is a pastor, and the cafe is part of his church. Community and cooperation, as well as assistance to the homeless, are important for him. In Los Angeles County, 58,000 people have no housing, and the life span of homeless people is only 48 years.

However, not all projects benefit from the pay-as-you-wish (PWYW) pricing model. So, the American restaurant chain Panera Bread transferred five establishments to PWYW, four of which were closed. The New York Metropolitan Museum in March will partially abandon this system and impose a mandatory fee for residents not from the state at $ 25 per entrance.

 

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