Imagine that you have a restaurant and you decide you will not have prices. Consumers will go, eat an will pay what they want. What do you think will happen? Will most of them leave and pay you nothing?
No! According to an article published in this month's Harvard Business Review, only 0.5% of patrons have eaten free (on a 2 years observations done at a self-service Pakistani restaurant in Vienna). The average pay per meal has been around €5 (which seems is enough to cover costs) and daily traffic went up more than 50%.
So, is this a viable strategy? Well... we know it covers operational costs, but we have no idea about this strategy's profitability...
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