Wednesday, May 5, 2010

Prepaid Reservation

Pete Wells explains the differential pricing strategy of Next restaurant.

Anyone wishing to eat at Next after its scheduled opening in the fall will pay in advance on its Web site. Like airlines, Next will offer cheaper tickets for off-peak hours. A table at 9:30 on a Tuesday night, say, would cost less than one for Saturday at 8. Ticket prices will also vary based on the menu, but will run from $45 to $75 for a five- or six-course meal.

Mix that with the service charge / tip strategy and you have the ingredients for a grand experiment

But the plan would also have value for Mr. Achatz and his main partner in Next and Alinea, Nick Kokonas. By law, restaurants may distribute tips only to those employees who work in service. But the service charge included in the ticket price “gives him control over the money,” said Bill Guilfoyle, an associate professor of business management at the Culinary Institute of America in Hyde Park, N.Y. “He can give it to whomever he sees fit.”