A Concept That Works

Annalakshmi restaurant in Singapore is quite famous for its unique concept. The restaurant is run by a charity organization and their menu card doesn’t carry the usual price list. They let you pay what is appropriate for the quantum of food you have consumed. Since they trust you, they don’t really monitor whether you have paid appropriately. IMHO, their model works because lot of people (affluent clientele) pay more thereby cross-subsidizing the crowd which might pay less. Most of the people who work at the restaurant are volunteers (usually well-qualified) who are associated with the charity organization. The charity also makes some money by selling paintings, arts and crafts which are prominently displayed at the restaurant. A recent Reuters article talks about how they manage to run the show.

Annalakshmi has three outlets in Singapore, and eateries in Malaysia, Australia and India. Staff range from retired civil servants to women from broken homes to executives and doctors who believe serving and preparing food is the ultimate blessing.

The flavorsome food -- and unique concept -- attracts hundreds of tourists, expatriates and Singaporeans every day. The restaurants serve north and south Indian specialities such as tamarind soup, chickpea curry and savory lady's fingers.

Lunch is served buffet-style at the Chinatown bistro or at the stall in the bustling Lau Pa Sat downtown food center. The main restaurant offers the most choice with a dinner menu that changes with the seasons. [Link]

I have found that Annalakshmi’s service is a bit sloppy at times (personal experience based on few visits in the past). If you go to a regular restaurant, you can demand a certain level of service for the kind of money that you pay. By going to a restaurant which is run by volunteers, you are in a way expected to behave in a diplomatic manner. Do you feel that we should tone down our expectations while going to such concept restaurants?

It’s quite strange to note that Annalakshmi has not followed the “Pay As You Wish” concept for their Indian operations. Back in the 90s, a meal at their Chennai outlet (opposite LIC in Mount Road) used to be priced at Rs. 150. I’m sure the price would have gone up now. I have nothing against the restaurant or the charity but I somehow feel that if the restaurant can trust its customers in Singapore, Malaysia and Australia they should also trust the Indian clientele by following the same concept back in India. Do you really think this concept will succeed in India?