Terra Bite Lounge was the name of a coffeehouse that opened in Kirkland, Washington in late 2006. When the shop first opened, it was unique in that customers choose what to pay.[1] After a year, the shop switched over to a normal fixed-prices menu. The owner, Ervin Peretz, stated that the "choose what to pay" model was not sustainable in a neighborhood that is popular with teenagers.[2][3]
Terra Bite café poster, July 2007
In the voluntary payment system, patrons deposit their cash in a locked box and store employees do not handle cash per transaction.[4] In fact, employees aren't necessarily aware of how much the patron contributed. However, Terra Bite asked customers who could pay to contribute what they would elsewhere.[4] The voluntary payment system is a convenience for most customers, who may, for example, choose to pay once a week for their daily coffee.[5]
In interviews, Peretz has stated that he intends to expand the Terra Bite concept to new stores, in places with demographics that can sustain a new Terra Bite.[6] His goal is to create a highly efficient operation that can sustainably spread from upper demographics throughout the rest of society, where a non-stigmatizing source of food is needed.
^"A Kirkland cafe with no prices". The Seattle Times. 2007-02-06. Retrieved 2016-06-03.
^"Pay What You Want: Could It Actually Work?". Inc.com. 2013-03-28. Retrieved 2016-06-03.
^Strom, Stephanie; Gay, Malcolm (20 May 2010). "Another Restaurant Tries Pay-What-You-Want". The New York TimesSeptember 14, 2017.
^ abFlandez, Raymund (2007-08-28). "Voluntary Pricing Lets Small Eateries Give -- and Get Back". Wall Street Journal. ISSN 0099-9660. Retrieved 2016-06-03.
^"Pay what you want (or not!) cafe in Washington". Gadling. 2008-04-07. Retrieved 2016-06-03.
^"Terra Bite Lounge: Pay What You Want Cafe". hbr.org. Retrieved 2016-06-03.
September 01, 2023
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