Business Models

“What’s come to be shocking to us is this continued, sort of premise, that people have the right to be so hateful and the judge and jury of a business model,” she said. “We’re selling hot lemon water for $3.50 and providing a wonderful place where they can consume that lemon water. There’s no part of us that understands why that piece of the conversation is continually being driven forward.”

I see nothing wrong with making lemon water a menu item. Lemons cost money. So does City supplied water. Heating the water also costs money. Same with clearing away and cleaning out the vessel. Same with the rent on the building it is consumed in. Indeed, there are many costs associated with running a business, some of which can be lost on the patron.

Back in 1993, when I started the 99-seat Malcolm Lowry Room ("Sometimes you want to go where nobody knows your name"), my biggest challenge was how to get a largely Vancouver audience to trek out to North Burnaby to drink my liquor and see my shows. What I came up with was a business model that included free admission, paying the talent more than they were making at similar-sized venues, and cheap alcohol. My model was based on the quality of talent and the quantity of beer sales. And it worked. Not super well, but well enough that when people came to see a show and settled into an evening of tap water, they knew enough to tip their server.