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For our Foodie Friday post I want to talk for a second about “all you can eat.” I’m not going to spend any time on a debate about whether it’s a healthy approach or not although I think most of us can agree that there’s an obesity problem in the U.S. Instead, I want to focus on the business approach to it and not just in the food industry.
You might say – oh, I don’t really do the “all you can eat” thing except you do. Your internet access, for example. But unlike unlimited “seconds” on the buffet line, AYCE (I got tired of typing the whole thing out) might not work in your business and, more importantly, can have exactly the opposite effect you intend.
Any promise we make to customers is a bad thing if we can’t fulfill it. In the case of unlimited food offerings, there have been lawsuits over customers being stopped from taking more because they haven’t finished what they took earlier. It’s the equivalent of ordering chicken soup to eat the chicken and tossing the soup or eating unlimited sushi to eat the fish and tossing the rice.
In the case of technology, wireless companies often promise unlimited data plans which users then find to have caps. While it’s rare, ISP’s have also capped some very heavy users despite the AYCE promise. The big difference here is that in the food business, owners expect customers to take a mix of food they’re offered, including a lot of high-margin, very filling dishes such as pasta and salad. I think most of us would acknowledge that we’re not going to get multiple lobsters or porterhouse steaks on a buffet line – there’s no promise being broken. In the case of unlimited movie viewing or data plans, there are no real incremental costs to justify breaking the AYCE offer.
Just as most folks don’t abuse the buffet line, most users of AYCE offers are very pleased with the experience and feel as if they’re getting good value. What happens, however, if you’re Netflix with AYCE streaming but ISP’s change to a consumption model that has users pay as they go?
All you can eat is a tempting way to do business but I think it can cause problems beyond what happens to your customers’ waistlines. What do you think?
Consult Keith 