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“Wi-Fi Can Be Lure for Shops, But at a Price” By Randall Stross New York Times News Service

“Wi-Fi Can Be Lure for Shops, But at a Price” By Randall Stross New York Times News Service. Lauren Gault John Rogers Ian Paul. Wi-Fi: The new Air Conditioning. The article compares Wi-Fi in restaurants to Air Conditioning in theaters back in the 1920’s.

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“Wi-Fi Can Be Lure for Shops, But at a Price” By Randall Stross New York Times News Service

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  1. “Wi-Fi Can Be Lure for Shops, But at a Price”By Randall StrossNew York Times News Service Lauren Gault John Rogers Ian Paul

  2. Wi-Fi: The new Air Conditioning • The article compares Wi-Fi in restaurants to Air Conditioning in theaters back in the 1920’s. • Theaters added Air Conditioning to entice more customers. • Wi-Fi has been added to some restaurants to try and increase patronage.

  3. Starbucks & T-Mobile • Starbucks is the most visible Wi-Fi equipped national chain. • Partnered with T-Mobile. • Started offering Wi-Fi in 2002 • Now has over 5,100 stores equipped. • Charge $6 and hour on a “pay as you go” plan. • “Offers internet from the comfort of your favorite cozy chair.”

  4. McDonald’s • Now offers Wi-Fi in more than 8,000 of its 13,700 restaurants in the United States. • Cheaper than Starbucks. • Only Charge $2.95 for 2 hours of use. • You can’t apply your T-Mobile subscription because McDonald’s uses a different provider.

  5. AC vs Wi-Fi • In 1920’s, to upgrade a theater to include air conditioning, it would cost more than $50,000 (roughly $600,000 today). • Patronage to theaters increased so sharply that even the most expensive upgrades were quickly repaid. • Seasonal patronage increased in the summer. • Today, the additional cost of adding Wi-Fi is trivial, since most places already have Business-Class Broadband Connections. • No increase in seasonal patronage • Increase in patronage due to Wi-Fi is moderate, but not substantial.

  6. To Charge, or not to Charge? • Wi-Fi is intended to encourage customers to come in and stay longer. • “How welcome can one feel when staring at a meter that is running?” • Providing free Wi-Fi gives the customers the feeling that they are welcome to “stay and linger.” • There is a trend of large cities starting to provide free wireless internet in downtown and commercial areas, so charging for Wi-Fi will be pointless soon enough.

  7. Suggestions • Offer free Wi-Fi to your customers. It is cheap and easy to set up. • Free Wi-Fi entices customers to stay longer and potentially buy more food. • Free Wi-Fi increases customer loyalty, even if they never use it, because they know they have the potential to utilize it if they ever wanted or needed. • Free Wi-Fi makes the customers feel like they are being taken care of better than somewhere that charges for it.

  8. Sources • New York Times News Service via The Oregonian.

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