Pay what you wish: the restaurant where customers can eat for free – if their conscience lets them | Money | The Guardian
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‘How much? That’s up to you, my friend.’ Photograph: Posed by models; MoMo Productions/Getty Images
‘How much? That’s up to you, my friend.’ Photograph: Posed by models; MoMo Productions/Getty Images
Pay what you wish: the restaurant where customers can eat for free – if their conscience lets them
Ever since the Post Modern Times cafe in Minneapolis ditched its price list, half the customers have chosen not to pay. It’s still making a profit
Wed 10 Jun 2026 12.23 EDT Last modified on Wed 10 Jun 2026 12.53 EDT
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Name: Pay what you wish.
Age: Popular since the 00s, but dating back to at least the 80s.
Appearance: That’s up to you, my friend.
**What do you mean, up to me?**Pay what you wish (PWYW) is a well-known, if not exactly common, pricing strategy whereby the buyer sets the price of a given commodity.
**Every buyer?**That’s right – you can choose to pay any amount, often as low as zero, or as high as …
**I choose zero.**That’s fine. Alternatively, you might select a price based on your assessment of what the commodity is worth, either generally or to you personally.
I don’t care what it’s worth**– I want it for free****!**Always a popular option. However, the underlying idea is to establish trust between a seller eager to provide value or expand market share, and a fair-minded buyer who …
**Zero, please.**OK, but you may change your mind once you’ve sampled the commodity and found it has value beyond …
**I ain’t changing my mind.****Which just shows it’s a flawed strategy for the seller. Can you give me an example of it proving to be anything other than a disaster?**Yes. The Post Modern Times cafe in Minneapolis recently moved from loss to profit after switching to a PWYW model.
**How can that possibly be?**As soon as the struggling cafe became a “free and donation-based” restaurant in January, business began booming.
**I’ll bet it did.**Now 40-50% of customers don’t pay, but the rest do.
**With numbers like that, how do they****manage to stay open?**In part it’s because running on donations means the cafe doesn’t have to pay tax on sales.
**Ah, the old tax angle. Sly.**And the staff are also volunteers working for shared tips and community donations.
**It sounds as if an awful lot of goodwill****is necessary to make this model work.**Well, it is Minneapolis: a friendly, liberal city united in – among other things – its staunch opposition to ICE agents targeting immigrants in the streets.
**Any other examples worth citing?**Museums such as the Met in New York use a PWYW entry fee for residents of the city and students. The fashion retailer Everlane tried a PWYW sale back in 2015. And Radiohead self-released their 2007 album In Rainbows as a PWYW download.
**How did that work out?**Research showed that 62% of fans paid nothing, and the average overall price per download was just $2.26.
**A failure then.**Not at all. It was still more than the share Radiohead would have got by selling at full price through iTunes (about $1.40).
Do say: “When it comes to charitable aims or promotional buzz, the PWYW model has its place.”
Don’t say: “More pie over here!”
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