Internet Access for the Cost of a Cup of Coffee
[Free Registration at NY Times Required]
By KATIE HAFNER
AUSTIN, Tex. -- AS the Wi-Fi trend sweeps through the air, one question appears to be cropping up with increasing frequency: to charge or not to charge?
...
John C. Wooley, the chief executive of Schlotzsky's, said he briefly considered charging customers for Wi-Fi access but quickly changed his mind.
Mr. Wooley said each restaurant spent about $2,000 to get its Wi-Fi up and running, and another $300 to $500 a month for the high-speed communications line that provides the wireless access network to the Internet. His reasoning is similar to Ms. Griffith's, but on a larger scale. Schlotzsky's surveys over the past few months have shown that 6 percent of customers go to Schlotzsky's for the free Wi-Fi. That translates to 15,000 customers per store per year. If each pays, on average, $7 for a sandwich and drink, that adds up to about $100,000 in sales per year.
"That's a really good return on investment," Mr. Wooley said.
...
But whatever the arrangement, Starbucks maintains its resolve to charge. "We think people will pay," said Nick Davis, a Starbucks spokesman. "They get a great customer experience and really high access speed."
[Free Registration at NY Times Required]
By KATIE HAFNER
AUSTIN, Tex. -- AS the Wi-Fi trend sweeps through the air, one question appears to be cropping up with increasing frequency: to charge or not to charge?
...
John C. Wooley, the chief executive of Schlotzsky's, said he briefly considered charging customers for Wi-Fi access but quickly changed his mind.
Mr. Wooley said each restaurant spent about $2,000 to get its Wi-Fi up and running, and another $300 to $500 a month for the high-speed communications line that provides the wireless access network to the Internet. His reasoning is similar to Ms. Griffith's, but on a larger scale. Schlotzsky's surveys over the past few months have shown that 6 percent of customers go to Schlotzsky's for the free Wi-Fi. That translates to 15,000 customers per store per year. If each pays, on average, $7 for a sandwich and drink, that adds up to about $100,000 in sales per year.
"That's a really good return on investment," Mr. Wooley said.
...
But whatever the arrangement, Starbucks maintains its resolve to charge. "We think people will pay," said Nick Davis, a Starbucks spokesman. "They get a great customer experience and really high access speed."
<< Home