economy
Pay what you wish: the restaurant where customers can eat for free
Ever since the Post Modern Times cafe in Minneapolis ditched its price list, half the customers have chosen not to pay. It’s still making a profit
TL;DR
- Pay What You Wish (PWYW) is a pricing strategy where the buyer determines the price.
- Post Modern Times cafe in Minneapolis became profitable after switching to a PWYW model.
- The cafe operates with volunteer staff and donations, avoiding sales tax.
- Approximately 40-50% of customers choose not to pay, but the rest contribute.
- Other examples of PWYW include museums (Met), retailers (Everlane), and music releases (Radiohead).