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Restaurant owner removes prices from menu to combat economic pressures

Created at 12 Jul · 8:10 AM1 source↑ Market-relevant
IN SHORT

Dylan Alverson, owner of Post Modern Times in Minneapolis, removed prices from his restaurant's menu in response to rising costs and a desire to support his community. The pay-what-you-can model has led to increased donations and a more sustainable financial position.

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Key Numbers

$1.3 millionprevious annual sales
155meals served daily
90%meals without donation
$500,000donations received
$50,000owner's annual salary
$25/hourcurrent employee wage
$30/hourtarget employee wage

Who's Involved

Dylan Alverson
owner of Post Modern Times restaurant
Post Modern Times
pay-what-you-can restaurant in Minneapolis
Alex Pretti
neighbor killed during an immigration operation
Restaurant owner removes prices from menu to combat economic pressures

↳ Why This Matters

This story highlights a potential shift in the traditional restaurant business model, demonstrating an alternative approach to financial sustainability and community support in the face of economic challenges. It suggests that prioritizing community needs and worker welfare can lead to unexpected financial viability and broader support.

Key facts

  • Post Modern Times restaurant in Minneapolis removed prices from its menu.
  • The pay-what-you-can model was implemented in response to economic pressures and community needs.
  • The restaurant now serves approximately 155 meals daily, with about 90% of customers not making a donation.
  • Supporters donated around $500,000 to the restaurant.
  • The restaurant is now in a better financial position, paying employees $25/hour and the owner $50,000 annually.

Dylan Alverson, owner of the Post Modern Times restaurant in Minneapolis, has removed prices from the menu, shifting to a pay-what-you-can model. Alverson, who has a long history in the restaurant industry, aimed to create a community-focused establishment. However, rising costs due to the pandemic, inflation, and labor expenses made it difficult to maintain profitability, even with annual sales reaching $1.3 million.

Following federal immigration raids in the neighborhood and the death of a neighbor, Alverson decided to remove menu prices as a form of tax strike and to provide comfort to the community. The restaurant now offers meals on a pay-what-you-can basis, or for free if customers cannot afford to pay. This change has been met with significant support, with donors contributing about $500,000 over the winter.

Currently, the restaurant serves approximately 155 meals daily, with about 90% of these meals not accompanied by a donation. Alverson stated that the restaurant is no longer focused on maximizing profits but on building a sustainable business that pays staff a living wage and ensures access to food for anyone in the neighborhood. The restaurant is now in a better financial position, with Alverson paying himself $50,000 annually and employees earning $25 per hour, with a goal of reaching $30 per hour.

Frequently asked questions

Alverson removed prices in response to economic pressures like inflation and rising labor costs, and as a form of protest and community support following immigration raids and the death of a neighbor.

The restaurant is in a better financial position than before, receiving significant donations and operating on a pay-what-you-can model that allows it to pay staff a living wage and the owner a salary.

Post Modern Times serves approximately 155 meals per day.

The current employee wage is $25 per hour, with a goal to reach $30 per hour.

What Happens Next

01Alverson plans to continue adjusting meal distribution to serve as many people as possible.
02The restaurant aims to reach a $30/hour wage for employees.

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Cadence

How It Developed

Dylan Alverson worked in restaurants from a young age and gained business experience at a worker-owned establishment.
Alverson opened a café in Seattle at 24, later selling it after becoming a father.
He later turned around a struggling bicycle shop in Minneapolis and sold it for a profit.
Alverson opened Post Modern Times in Minneapolis, focusing on local sourcing and community.
The restaurant achieved annual sales of approximately $1.3 million before facing economic challenges.
The pandemic, inflation, and rising labor costs made it difficult to maintain profitability.
Following federal immigration raids and the death of a neighbor, Alverson removed prices from the menu as a tax strike and community support measure.
The restaurant now operates on a pay-what-you-can basis, serving about 155 meals daily.

Sources

T1
I couldn't make my restaurant's numbers work. So I took prices off the menu.Business Insider

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