Case 10: You Decide How Much Meals Are Worth, Restaurants Tell Customers 283 Mr. Coutts, 36,...

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Case 10: You Decide How Much Meals Are Worth, Restaurants Tell Customers 283 Mr. Coutts, 36, a carpenter from west London, said, "If you can order a glass of Coke or champagne and still give a reasonable amount at the end of the evening why not go for the champagne." Mrs. Coutts, a chef visiting her son from Sydney, Australia, said, "Being able to choose your own price does put you under a little added pressure because you really have to think about what you've eaten; in a way you have to become a food critic. How- ever, it's very clever because no one could ever complain." Kevin O'Connor, who co-owns Sweet Melinda's seafood restaurant, was taken aback by the pay-what-you-like policy and "pinched" the idea for Tuesday nights. His business partner, Karen McLean, said, "People are normally bang on with their prices. They can be wary about the lack of prices, but it tends to be because they're worried that they haven't paid enough. The Brits being what they are, don't want to offend. "It's very rare that we get people who take advantage. It does happen, and when it does you just have to smile at them and hope that they come back on another night. "There were two boys who had a beer each and three courses each and left 50p for all the food-25p each. We are leaving ourselves open to exposure, so it serves us right when people take advantage, but generally people are nice and don't." Mju, which offers contemporary European cuisine with an Asian twist also realized the potential of the pay-what-you-like policy after one member of staff visited Mr. Vasos's bistro. Last year the restaurant decided to try the strategy out for the month of February and it proved so successful at bringing in new clientele that it is running it again for the next two weeks. Jeremy Payne, Mju's sales director, said, "Our policy is slightly different as it is just on the food element of your bill, not for drinks." Discussion Questions 1. How much of a change in script does setting your own price constitute? 2. Would this be seen as a competitive advantage in the restaurant industry? 3. How dependent on the U.K. culture is the idea? Would it work in the US? Case 10: You Decide How Much Meals Are Worth, Restaurants Tell Customers 283 Mr. Coutts, 36, a carpenter from west London, said, "If you can order a glass of Coke or champagne and still give a reasonable amount at the end of the evening why not go for the champagne." Mrs. Coutts, a chef visiting her son from Sydney, Australia, said, "Being able to choose your own price does put you under a little added pressure because you really have to think about what you've eaten; in a way you have to become a food critic. How- ever, it's very clever because no one could ever complain." Kevin O'Connor, who co-owns Sweet Melinda's seafood restaurant, was taken aback by the pay-what-you-like policy and "pinched" the idea for Tuesday nights. His business partner, Karen McLean, said, "People are normally bang on with their prices. They can be wary about the lack of prices, but it tends to be because they're worried that they haven't paid enough. The Brits being what they are, don't want to offend. "It's very rare that we get people who take advantage. It does happen, and when it does you just have to smile at them and hope that they come back on another night. "There were two boys who had a beer each and three courses each and left 50p for all the food-25p each. We are leaving ourselves open to exposure, so it serves us right when people take advantage, but generally people are nice and don't." Mju, which offers contemporary European cuisine with an Asian twist also realized the potential of the pay-what-you-like policy after one member of staff visited Mr. Vasos's bistro. Last year the restaurant decided to try the strategy out for the month of February and it proved so successful at bringing in new clientele that it is running it again for the next two weeks. Jeremy Payne, Mju's sales director, said, "Our policy is slightly different as it is just on the food element of your bill, not for drinks." Discussion Questions 1. How much of a change in script does setting your own price constitute? 2. Would this be seen as a competitive advantage in the restaurant industry? 3. How dependent on the U.K. culture is the idea? Would it work in the US?