
Pay as You Wish at Terra Bite Cafe
Submitted by willow on Thu, 2007-02-15 00:40.
Terra Bite Lounge is an upscale voluntary payment cafe/deli in Kirkland, Washington, I discovered by way of Reveries.
At Terra Bite:
- There are no prices on the menu.
- Patrons choose what to pay, and are encouraged to pay what they would elsewhere.
- They "cheerfully serve those who cannot pay, in a non-stigmatizing setting, with no political or religious message."
The real-world experiment stemmed from a debate in a Saigon bar between former Google programmer (now cafe owner) Ervin Peretz and a colleague: Peretz argued that people are inherently good, but can be influenced by their environment. His theory: If people see good, they'll be good.
The Seattle Times characterizes Peretz as "the Robin Hood of the Starbucks set" as the cafe must attract enough paying customers from the high-end economy to cover the cost of those who pay less or nothing.
To at least break even, Peretz estimates he'll need a steady flow of 100 customers per day. As of the Times' article, Terra Bite had served up to 80 customers per day, averaging about $3 per transaction.
Check out this related conversation thread, or place your bets on Terra Bite's future in this poll.
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