UK Edition
Surge-pricing revolution to hit London restaurants as high-end Soho eatery launches cut-price weekday caviar deal
High-end British restaurants may cut their food prices during less busy times after luxurious Soho eatery Bob Bob Ricard announced it would be implementing "airline pricing".
The restaurant, famous for its "press for champagne" buttons on every table, will implement price cuts on its à la carte menu by around 25 per cent on Mondays, and also from Tuesday to Thursday at lunchtime.
Those who come at "mid peak" times such as lunch on Friday to Sunday and dinner on Tuesday and Sunday will enjoy a 15 per cent cut. The offer has begun immediately.
Bob Bob Ricard said its customers do not want a set lunch menu of less expensive foods, and said it wants to offer the luxurious experience of dining there at a lower price for people willing to go in off-peak times.
He said diners coming for a caviar and champagne experience do not want a "prix fixe" menu, explaining: "If people are coming in for the full opulent restaurant experience with caviar and Beef Wellington and all the bells and whistles they don’t want some little snack."
This "surge pricing" approach may be implemented across the U.K. as the chief executive of 40 of Britain's most lavish restaurants showed an interest in the idea.
Des Gunewardena, chairman and chief executive of D&D London, which runs restaurants including Bluebird in Chelsea as well as Paternoster chop house, the First Dates restaurant, has said he will watch Bob Bob Ricard to see if their pilot is a success.
Comparing the restaurant industry to airlines and hotels he told Bloomberg: "We’ve never done it because we have worried our customers might think it is a bit gimmicky.
"It will be interesting to see what their experience is. We might give it a go."
At Bob Bob Ricard, diners could make serious savings on off-peak times. For example, their Chateaubriand steak with truffle gravy priced at £39.50 on a Saturday night will be £29.50 on the Monday night menu.
Additionally, Poached sole with lobster champagne sauce is £28.50 at the busiest sittings will have an off-peak price of £22.50, and a 20g serving of white sturgeon caviar will come down from £29 to £21.
Owner Leonard Shutov said it is a struggle to convince visitors to come at off-peak times.
He told the Standard his new idea may revolutionise eating out: “For restaurants to pretend they are outside the laws of supply and demand and basic economics is silly.
“Many industries have long embraced off-peak pricing and managed to achieve consistent occupancy, but for restaurants occupancy jumps around massively.
“On a Saturday they might have 800 covers, then at lunch on Monday they can barely scrape together 40. So they have all the costs but very little income."