Diners are staying home, so this restaurant lets patrons pay what they want

Diners are staying home, so this restaurant lets patrons pay what they want

Zayed Al-Hamad's group of four is poised to place their order. They plan to share a selection of items, including the rosemary sourdough focaccia, fresh mozzarella, polpette, rigatoni alla n'duja, and smoked olive carbonara spaghetti.

The total for their meal? It is largely inconsequential tonight, as restaurant patrons at L'Oca d'Oro in Austin, Texas, can pay any amount they choose.

"My family doesn’t always have the financial means to dine out at nice places," Al-Hamad remarked during a Tuesday evening in February. "This promotion allows us to enjoy a better dining experience without spending $150 for the four of us."

Armand Daniels and Robin Wiley discovered the pay-what-you-will initiative through Instagram.

"Our Valentine's Day was not very special," Daniels shared. "It was decent, but nothing remarkable, so we decided to make this our Valentine's date."

The couple ordered a spinach salad topped with pickled pineapple oranges and candied almonds—"It was fantastic," Wiley noted—and opted for additional items. Daniels mentioned that they would evaluate what to contribute once they reviewed the bill, contemplating the idea of selecting an amount below the standard price.

"Finances are a bit constrained," commented Daniels, who is employed as an actor and brand ambassador. "Job opportunities are becoming increasingly scarce."

L'Oca d'Oro, located in Austin's Mueller neighborhood, launched the pay-what-you-will night in December. During the fall, co-owners Adam Orman and Fiore Tedesco III faced challenges stemming from disruptive tariffs, escalating food costs, labor shortages, and rising menu prices.

Orman emphasized their desire to respond to the diminishing number of individuals who can afford to dine out.

"Utilizing a drive-thru doesn't equate to dining out. Experiencing hospitality and being treated as a guest should be a common experience for everyone, as it brings joy," he stated. "This initiative aims to ensure that dining is accessible to all."

On Tuesday nights at L'Oca d'Oro, patrons still pay the full price for beverages but can make their selections from the regular food menu and determine their payment amount. A 20% service charge is applied to the chosen total. Orman clarified that this charge, which is applied pre-tax to all patrons, helps support the living wages, benefits, and paid time off for staff.

The partners recognize that adopting a pay-what-you-will model might not align with traditional business strategies. However, Tedesco, who has attributed the restaurant's drop in customer volume over the past two years to political and economic instability, prefers to challenge that conventional perspective.

"It may seem logical to increase prices given the overall rise in costs," Tedesco articulated.

"I feel optimistic and lighter while embracing a more generous spirit, leaning towards inclusivity," he continued. "The lesson here is that this experience should be available to everyone. It's truly a time to break free from the constraints of dining out."

Restaurant food, hold the restaurant

A growing number of Americans are opting to forgo dining out. A report by YouGov from October indicated that 37% of U.S. diners are eating out less frequently than they did a year ago, while only 8% reported an increase in their dining frequency.

Soaring menu prices and a growing desire to save money are cited as primary reasons for staying home, according to the research group.

When patrons do choose to dine out, takeout is often the preferred option. Data from the National Restaurant Association revealed that nearly three-quarters of meals served by U.S. restaurants are now takeout orders.

While restaurants inherently rely on patrons for business, they also play a pivotal role in providing social interaction and an escape from domestic life. Princeton University anthropology professor Hanna Garth, who studies food access in Los Angeles, stated,

"For many individuals, dining out serves as a means to break away from the routine of home-cooked meals. For numerous women, it alleviates the burden associated with meal preparation and the subsequent cleanup. Additionally, for many, it's a socially enriching experience."

Restaurants serve as what is referred to as a "third space," allowing individuals to engage with others outside their home or workplace. Garth noted that when such venues become less accessible, the incidental social interactions they facilitate also diminish—such as chatting with the hostess or waitstaff, or inquiring about the meal at the next table.

"Even the smallest connections may appear insignificant, but they are vital for fostering a sense of community and connectedness," Garth explained.

Orman and Tedesco assert that L'Oca d'Oro's pay-what-you-will initiative, a concept embraced in the food service industry for some time, can address the pressing issues of affordability and social engagement currently confronting Americans.

'It just doesn't feel like it should be possible'

Erin Weber and Michelle Valencia visited L'Oca d'Oro for a "girls night," as noted by Valencia, who works for the city's public health department, while Weber is an editor pursuing a graduate degree in clinical social work.

They had previously dined at the restaurant and expressed excitement upon discovering this unique promotion.

"This initiative is a great opportunity for individuals from diverse backgrounds to enjoy exceptional food," Weber remarked.

When their bill arrived around 8 p.m., Weber and Valencia decided to remit $100 for their $117 meal, splitting the cost. "We're viewing it as our happy hour total," Weber commented, "a slight discount."

Later, Orman noted that the restaurant lost $70 compared to what it would have charged at full price. On average, diners on Tuesday nights typically contribute about two-thirds of their food bill, with a few customers opting for significantly lower contributions while many pay around the full amount.

Chris Ortiz and Rickyann Ramos, celebrating two years of marriage, indicated their intention to cover the entirety of their bill. "We feel it's important to take care of it ourselves, as we’re in a position to support the initiative," Ortiz explained, emphasizing the desire to assist others.

According to Orman, the restaurant generally earns less than the standard menu price during pay-what-you-will nights but has occasionally exceeded that amount. He expressed satisfaction with this model, highlighting an increase in traffic and revenue on typically slower weekdays since the promotion's inception. L'Oca d'Oro is even contemplating expanding the pay-what-you-will concept as it introduces new menu items over the summer.

As Zayed Al-Hamad's table prepared to finalize their order, he expressed amazement at the offer available to them.

"I will admit, there’s a certain guilt that accompanies this experience," he noted. "As I approach ordering, I grapple with the feeling of, 'Am I permitted to do this?'" He assured, however, that his payment would not be as low as $10. Yet he felt, "It just doesn’t seem like this should be feasible."

Al-Hamad, who works as a menu planner connecting businesses with caterers, stated that he relies on rental assistance to afford his apartment near the restaurant. Although he plans to pay what he can tonight at L'Oca d'Oro, he aspires to contribute more in the future as his financial situation improves.

"As I continue to live in this city, I hope to support businesses like this in greater capacity, being a part of the reason they can sustain such initiatives," he concluded.