Recession Beater

I received an email from one of our Maine restaurants that's offering kind of a unique opportunity for regular diners. Here's an excerpt from the email:

In an effort to remain in business and offer recession proof investment opportunities to our clients while at the same time providing cash flow and capital necessary to continue operating, we are starting a "House Account" program.

Simply, you put in funds in increments of $500.00 and we offer you a 10% premium in trade. In other words, put in $1000.00, and you have $1100.00 on the books. If you eat here regularly, it's a great deal over the long run. If you don't, you should start!

You win by getting a 10% premium; we win by getting cash flow, the blood of any business.

What I think is really interesting is that in the old days (you know, when dinosaurs like me roamed the earth), restaurants regularly had in-house credit accounts. The twist to this is it becomes an in-house "debit" account that's paid in advance, and seemingly a win-win. It also, obviously, promotes repeat trade.

I should point out that the restaurant location is fairly remote, meaning you can't generally get there from here.

Has anybody tried this in Louisville?

STeve,

Interesting idea- but very risky for the diner. What happens if the restaurant goes out of business? ( not unlikely with restaurants in general, plus this economy and a restaurant that's already having cash flow problems.) It's bad enough when a restaurant closes and you can't redeem a $50 gift card- in this case you are potentially out $500-$1000 bucks or more....

Deb

[Robin Garr]

Interesting idea- but very risky for the diner. What happens if the restaurant goes out of business? ( not unlikely with restaurants in general, plus this economy and a restaurant that's already having cash flow problems.) It's bad enough when a restaurant closes and you can't redeem a $50 gift card- in this case you are potentially out $500-$1000 bucks or more....

Isn't it sort of like Community Supported Agriculture (CSA), though, wherein the consumer knowingly shares the upfront risk with the farmer?

I can't see this as an idea with broad general appeal, but I would definitely consider doing it - as much in the form of a put-your-money-where-your-mouth-is vote of support as anything else - for a few local indie restaurants that I particularly love.

In other words, maybe it's more for the "regulars," trading a little up-front risk for support and helping with cash flow.

.

I should point out that the restaurant location is fairly remote, meaning you can't generally get there from here.

Wow, I haven't heard that in awhile.... I'm not going to Bah Harbah, I want to get to(insert most any other coastal Maine town)

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I should point out that the restaurant location is fairly remote, meaning you can't generally get there from here.

Wow, I haven't heard that in awhile.... I'm not going to Bah Harbah, I want to get to(insert most any other coastal Maine town)

Bah Hahbah, that's the touristy place we stopped at on our way upta camp in East Gish, chummy.