1. “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

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.