Why do many bars charge customers for water but give them peanuts for free?
Almost everybody has had some situation where they received a full bowl of peanuts for free but had to pay for water which we know is less expensive. Shouldn't it be the other way around?
Not exactly, because someone who has eaten salted peanuts usually will need something to drink, and their decision will be between water and alcoholic fluids, which are more expensive. By making the price of water higher it is more likely for the customer to choose alcohol, which means that the bar will earn more.
Why will they have more ears?
ReplyDeletewhat????ears???
ReplyDeletethey've never given me peanuts for free :(
ReplyDelete'Ears' has now been changed.
ReplyDeleteI am not sure what 'alcoholic fruids' are...
http://www.google.co.uk/support/forum/p/blogger/thread?tid=500736515ed93157&hl=en
sory for mistakes
ReplyDeleteAt first glance it indeed sounds logical that restaurants would offer free (salty) peanuts and then charge for water.
ReplyDeleteBut what about the negative externalities arising when people buy too much alcoholic beverages? Doesn't that incur more costs than the benefits arising from this business idea? (e.g. Think about people bothering others while eating or maybe someone throwing up in the toilet incurring extra cleaning costs)
Also: Doesn't it affect the image of the restaurant when they charge such a high price for something everyone knows is very cheap, thus implying very high margins on their food?
Some bars sell milk - then you can drink more!
ReplyDeletePubs care little about negative externalities - on the way to getting drunk people are loud, don't count their change - and drink short measures without realising it!
Also you can take cash for drinks and 'forget' to ring it up - and no-one notices!