Are bottomless drinks good for business?
The Atlantic's Derek Thompson sought to find out whether the popular promotion was effective for the restaurant's bottom line.
"It's clear that bottomless drinks makes sense for us," Thompson said.
But are bottomless drinks really Benefitting restaurants?
The promotion works for restaurants long-term, as long as the drinks are good, Thompson explains.
The real benefit of bottomless drinks are the power of the word "free" over the consumer and marketing — not the money. Restaurants make up for that in what patrons spend on food and future visits.
Bottomless drinks are what economists call a "loss leader" — something a business expects to take a loss on in hopes of bringing customers back. And these work.
It's hard not to have a fun brunch after a couple mimosas, or six, and people will go back to a place they enjoy.
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