That Whole Free Food Trend…

Predictions

from the interesting,-but... dept

Over the past few months there have been a variety of stories about restaurant chains offering special “free” promotions and people keep submitting them — such as this one about Denny’s recent experiences with free food promotions. I haven’t been posting such stories, because the economics of free food is very different than the economics of free content — and I’m not sure there’s really that much to learn from the restaurant examples. For the chains that have done this, it’s been somewhat successful (Denny’s especially, for leading the way). The free food has ended up bringing in more paying customers in addition to the “free riders,” so it’s paid off. However, it does seem a bit riskier than using “free content” in a business model. The marginal cost of offering up free content is nothing. The marginal cost of free food, however, can be substantial. So, while it’s an interesting model to look at — and the success of the experiments so far shows how “free” can absolutely work as a promotion — I’m not sure the free food promotions really teach us all that much about the use of free in the digital realm.

Filed Under: business models, food, free, restaurants

Even Restaurant Critics Are Recognizing How Trademark Is Being Abused

Say That Again

from the forge-this dept

Reader Glenn points us to a blog post by NY Times restaurant critic Frank Bruni, where he points out just how ridiculous it is that a restaurant in NY is being forced to change its name over a trademark dispute. The restaurant was originally called Forge, shortened from owner Marc Forgione’s last name. However, a restaurant in Miami called The Forge sued Forge claiming a trademark violation, saying: “You can’t open a restaurant on somebody’s coattails. It’s just not legal.”

Well, first of all, it’s actually perfectly legal to open a restaurant on somebody’s coattails. See all those different pizza places or fast food joints? They all started somewhere, and others copied the idea — and we all think that’s a good thing, because it’s called competition. But, more importantly, there’s no indication whatsoever that Forge was even remotely riding on The Forge’s coattails, or that any diner in New York would somehow be confused that Forge was somehow connected to the (very different style) Miami restaurant. As Bruni writes:

How likely is it, really, that a patron of the Miami Beach restaurant The Forge is going to be looking for an offshoot of it in New York, when the Miami Beach restaurant hasn’t advertised or promoted such an offshoot?

How likely is it that, among the gazillion restaurants in New York, this patron will find his or her way to Mr. Forgione’s Forge and, after looking at its rustic, brick-walled setting, mistake it as a sibling to a place in Miami Beach whose waiters apparently wear bow ties?

How many diners are really going to be lining Mr. Forgione’s pockets with money that rightfully belongs near the Everglades, or making assumptions about The Forge in Miami Beach based on meals at Forge in TriBeCa? Especially in an Internet era when diners are better informed than ever?

When trademark disputes are even getting angry rants from food critics, you have to think something is seriously wrong with the way trademark law is working these days.

Filed Under: restaurants, trademark

Ordering Your Meal Via A Computers: A Gimmick Or Useful?

(Mis)Uses of Technology

from the may-depend-on-your-mood dept

I recently flew on Richard Branson’s new Virgin America airline, and one of the nice features was the fact that you could order food or drinks via the touchscreen on the back of the seat in front of you. It made the process a lot more efficient. Apparently, a number of restaurants are starting to feel the same way, as these electronic menus are becoming more popular in restaurants. What’s interesting, though, is that people seem to have widely divergent views on the things. Some people love them, and find them more useful, while others think they’re an annoying gimmick. The restaurants have found that people tend to spend more, and restaurants probably save even more money on needing a smaller wait staff. The article notes some other innovations that are being tested, including the idea of allowing people to order in a restaurant using their own laptops or mobile phones connected to the restaurant WiFi network (which may run into some problems concerning an Apple patent on the concept). Of course, those restaurants still need waiters to deliver the food — unless they follow the path of the restaurant we described last summer that had built a somewhat complex set of metal rails.

Filed Under: e-menu, restaurants, technology

German Restaurant Ditches Waiters, Sends Food To Diners On Metal Slide Rails

(Mis)Uses of Technology

from the do-you-tip-the-rails? dept

We’ve definitely seen restaurants embrace technology and automation to bizarre ends before, but apparently a new restaurant in Germany is taking that to extremes. The Nuremberg-based ‘s Blaggers has completely replaced waiters with an automated system (via The Raw Feed). While there have certainly been fast food restaurants that have let patrons order themselves, in this case, it’s a sit-down restaurant. Diners order their meals via a touchscreen, which is relayed to the kitchen which (and this turns out to be important) is upstairs from the dining area. Then, using a special hotpot that connects to a bunch of spiral steel rails your food is delivered by gravity power. The touchscreen actually keeps you up to date, as well, telling you how long it’ll be until your food is delivered. The terminals also accept payment. Of course, the article doesn’t explain how the cleanup process works… Perhaps diners can send the finished dishes down to a dishwasher in the basement? The guy behind it is hoping to license the offering to other restaurants (including McDonald’s), but from the early reviews of his own restaurant, it sounds like people have been coming for the novelty, but some are a bit turned off by the mechanical nature of everything (and one person even compared it to the machinery used to feed pigs on large farms).

Filed Under: automation, restaurants