Austin diners are adjusting their habits, with many opting to stay home rather than eat out. In response to this trend, L’Oca d’Oro, an Italian restaurant in the city, has implemented a novel pay-what-you-want promotion that allows patrons to decide how much they wish to pay for their meals.
On a Tuesday evening in February, Zayed Al-Hamad and his party of four were excited to order a variety of dishes, including rosemary sourdough focaccia, fresh mozzarella, and smoked olive carbonara spaghetti. The unique pricing model meant that the total bill was not a concern, as guests could pay any amount they chose.
Al-Hamad shared that his family often finds it difficult to enjoy fine dining due to budget constraints. “This is an opportunity to actually experience something a little better without having to shell out $150 for the four of us,” he explained.
Another couple, Armand Daniels and Robin Wiley, discovered the pay-what-you-want initiative through social media. They found it an ideal setting for a Valentine’s date after a disappointing celebration earlier that year. They savored a spinach salad and planned to determine their payment based on the final bill, considering their current financial situation.
L’Oca d’Oro, located in Austin’s Mueller neighborhood, launched its pay-what-you-want night in December after co-owners Adam Orman and Fiore Tedesco III faced challenges from tariffs, rising food costs, and a labor shortage. They aimed to create an environment where dining out could be accessible to everyone, regardless of financial circumstances.
“Sitting down, being treated with hospitality, being a guest is a thing that everybody should be experiencing regularly,” Orman stated. The restaurant still charges full price for drinks, but diners can select any dish from the menu and choose their price, with a 20% service charge applied to their total to support staff wages and benefits.
Despite potential skepticism about the business viability of such a model, Tedesco expressed optimism. He believes that during times of economic uncertainty, restaurants can adopt alternative strategies to remain inclusive and supportive of their communities.
Research indicates that many Americans are dining out less frequently due to rising costs and a desire to save money. A report from YouGov noted that 37% of U.S. diners are eating out less than they did a year ago, with takeout orders accounting for nearly three-quarters of meals served by restaurants.
Princeton University anthropology professor Hanna Garth highlighted the role of restaurants as social spaces that provide a break from routine and foster community connections. “Those incidental social exchanges… are a really big deal for making us feel like we belong to a community,” she remarked.
At L’Oca d’Oro, patrons like Erin Weber and Michelle Valencia, who visited for a girls’ night out, embraced the pay-what-you-want concept. They appreciated the opportunity for diverse individuals to enjoy quality food together. Upon receiving their bill, they decided to contribute $100 on a $117 tab as a form of their own happiness budget.
Although the restaurant typically earns less than full price on these nights, Orman noted an overall increase in traffic and revenue since the promotion began, with plans to potentially expand the initiative in the summer.
As Al-Hamad prepared to place his order, he expressed a mix of excitement and guilt about taking advantage of the promotion. He hopes to support such businesses more generously in the future as his financial situation improves, demonstrating a commitment to fostering community support.
