The Logic of Long Lines

The Atlantic: 

Earlier this week, Chipotle had a one-day buy-one-get-one-free special to promote their new-ish (and hugely unpopular) tofu tacos. Critics have been taking down the “free”-ness of this promotion in two ways: One, claiming the free burrito requires saving the receipt and—much like a coupon—many will inevitably get lost in bags, eaten by dogs, or thrown away accidentally. Secondly, critics say, the crowds during free-food promotions will make waiting in line not worth it simply due to opportunity cost.

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But long lines aren’t always unproductive: Some waits increase the appeal of a product. Behavioral science professor Ayelet Fishbach’s research found that waiting for something increases its value, and that these increases can cause people to be more patient. In other words, it makes something “worth waiting for.” Restaurants that don’t take reservations have made “waiting culture” a signal of quality, and patrons end up valuing their food more than their leisure time. This value, one of reputation, is very important to some businesses. Otherwise, they’d just raise their prices. But hiking prices, and killing the flashing “we’re popular” sign, can reduce the customer base.

Read the whole story: The Atlantic