The Case for Free WiFi? 576
lgreco writes "Recently I was trying to convince a business man who is about to open an Internet Cafe, to provide WiFi at no charge. I argued about increased business and royalty and proposed that the infrastructure cost these days is reasonable and the recurring cost, along with the amortized payoff of the initial investment, can be recovered by adding a few cents to each beverage, etc. In spite of the numerous discussions on the merits of free WiFi v. paid at coffee shops, restaurants, etc, I was interested in hearing what do you think about the issue and if there are solid examples of successful businesses that offered free WiFi." If you were going to argue for or against this issue, what arguments would you use?
"A lot of proprietors seem to be concerned about the maintenance issue. Not so much about the hardware maintenance than software: auditing etc. Some are also concerned about legal ramifications if their customers are caught downloading music or movies illegally.
I am not aware of any Internet cafe or similar business that got hit by our beloved RIAA but what if their lawyers subpoena a small proprietor for download records? If you are running a shoestring infrastructure with a cable modem with an Airport base station what kind of logs could you possibly proviide? If a kid walks in for a lemonade and starts downloading porn what do you tell the parents when they sent their lawyer to pay you a visit?
It would seem that if you let a provider offer the WiFi service at your place of business for a fee, they can deal with liabilities, maintenance etc, so this is one less thing to worry about when setting up the business. Yet expecting your customers to pay $6-$10/hr for WiFi is so ridiculous and such a turn off for them."
Observations at a local Coffeeshop (Score:4, Interesting)
The owner initially set-up a "pay as you go" internet connection, where you could either use his computers, or he'd give you a temporary username/ password to access his wireless router. Initially, this worked well for him, as he was the first Coffeeshop in the area to offer internet access. As time went on and other Coffeeshop's started to offer "free" internet (to draw in people), I noticed the volume of people diminished. At that point he made the decision to offer "free" internet for those with wireless laptops, yet continued to charge if you opted to use his computers. I personally feel with all the free WiFi Access Points you're going to have a hard time finding someone who will pay.
One thing to keep in mind if you decide to offer "free" internet is you're going to get people who campout on their laptops and take up table space for hours at a time. Some people even stay there all damn day like it's their personal office space. This might lend itself to loss of business from patrons just wanting a quick cappuccino or dessert and having no seats available. I'd make sure to designate certain tables with time limits or as "No Internet." Good luck!
$6-$10/hr? (Score:4, Interesting)
If he's concerned with freeloaders, have the cash register print out a code on the receipt that you can enter into a nocat captive portal to authenticate against a RADIUS server. Give them an hour for each purchase, for instance. Tie the code to single MAC address, etc.
But consider the cost of integrating your cash register, running the server, dealing with the tech support, etc. vs. the cost of sticking a WRT54G on a wire and letting a few freeloaders on the 'net.
Excellent example, but a double-edged sword... (Score:4, Interesting)
There's a flipside to this, though. It's no secret that in some cases, coffee shops that offer free wifi end up with nothing more than wifi freeloaders, who go in, power up and sit down to work without ordering a thing. I honestly don't know how the flip comes about, but Tryst doesn't do anything to require that people purchase, it just takes care of itself. Part of it could be the quality of their food and drink...their coffee is just unbelievable. It's Seattle-good, to put it as a couple of my friends from there did.
Re:Observations at a local Coffeeshop (Score:3, Interesting)
A valid concern, to be sure. If one goes as far as giving out temporary usernames/passwords with the purchase of items, you could combat this by having the logons expire after a certain period of time. That way, they'd have to keep buying to stay online (at least until they learn to hijack an open session by cloning the mac address).
Re:If it is going to be an "Internet Cafe"... (Score:2, Interesting)
businesspeople will also not be able to log into their corporate VPNs without their laptops or do most business related tasks.
i'll take free wifi any day over terminals
Liability is a major concern (Score:2, Interesting)
Major hassle. Not to mention that the coffee shop will basically be an ISP. There will be users screwing the local network up with viruses, users who can't figure out how to get on and want help...all of which requires somebody who knows the tech side to keep things running well.
Not worth the trouble. AT ALL.
Re:Panera... (Score:2, Interesting)
The model says if you turn over your seats quicker, you make more money.
Internet nets you customers that are there longer, doing work, checking email... and nursing ONE coffee.
Just what I read... no links to back it up
Re:Arguments Against (Score:5, Interesting)
in my student experience, it was the other way around. i could afford to either have a high speed connection or buy coffee and hang out the coffee shop regularly. with the coffee shops offering free wifi, it was no longer either/or, so i opted to ditch the high-speed at home and just go to the coffee shop.
Re:Would you have to card users? (Score:1, Interesting)
The center has 30PCs all designed for gaming, and you need a username and password to get on them. I have no clue if they plan to bring back the wifi access.
Re:Panera... (Score:5, Interesting)
I think there is a downside to it being free. I'd like to see a simple system where I get 30 minutes free with a drink. Not sure how that would work, but it would keep the free loaders out.
Re:The case against (Score:1, Interesting)
Unfortunately, its not with their customers -- its the folks that live in the apartment complex next door that have all taken to using their free service. Considering the cafe is an upscale place and the apartment complex is a low rent crack den that the neighborhood keeps trying to get rid of, its much more of a problem for their customers than anything else.
A simple solution (Score:5, Interesting)
You'll find this is true at the larger free wifi providers like Panera. You can use their wifi for only as long as your battery holds out at which point you can still sit and stare at a blank screen if you so desire.
Re:Panera... (Score:1, Interesting)
The great thing about Goose Island is that a really good antenna can get you a connection in Sam's Wine & Spirits [samswine.com] right behind them. When I come across an new small batch Rye or single barrel Bourbon, I can do some quick googling and find out that whether it is just another re-branded big distillery batch, like Rowan's Creek (yeah, sure, a "new" micro-distillery suddenly has 12-year-old on the shelves...), or something actually worth paying for.
Re:Panera... (Score:5, Interesting)
Re:Panera... (Score:3, Interesting)
Re:Many smaller cafe's are removing WiFi (Score:3, Interesting)
Other cafes are cutting access only at high-traffic times. When you can fill your seats without it - say, Saturdays, why not? But when you can fill otherwise empty seats with it, why not? People partly come to see other people - the hard core coffee drinkers have espresso machines at home after all. So if wifi gets people there to be watched, even if there's no direct profit from them there's profit from maintaining a space where the people watchers - and those who just like the background of humanity for their own reveries - can be fulfilled. And they are your profit center.
Re:I argued about increased business and royalty (Score:5, Interesting)
-Very good points on the need to look at the hard business "benefits" Very on target.
-No Cafe owner has ever been sued by the RIAA. The RIAA uses lawsuits for marketing; they want to cut off end users, ie reformed 12 year olds in pepsi ads, not cafe owners. There's not alot of "marketing payoff" in expending legal resources on cafe owner ip lawsuits.
-Costs are the $40 a month for a dsl line from the phone co. Modem/Routers rarely wear out under heavy use.
-From my vantage point here in San Francisco working @ a free wireless cafe, prior points aside,I'd say wifi is a mixed bag for cafe owners.
In the spirit of this thread, my favorite cafe discontinued free wifi a few months back because customers "stayed too long." Often these customers stayed w/o continuously buying drinks and food.
Sooo, if you run a cafe that, w/o free wifi, already has hordes of loyal impassioned customers and quick turnover, your business already does what a successful cafe should do (coffee sales being a great driver of profits--$1.50 on 4 cents of supplies). --Don't take the chance that freeloaders like me (I tip very generously) will crowd up those seats for hours.
The ideal application for free wifi is to turn it on only during otherwise slow hours and post those hours prominently. This way you can use it as necc to hopefully drive business.
-Paid wifi: kind of dumb business model. Great if you need it and mainly work at the same place, but #'s of users are usually pretty few. Won't drive revenues for an otherwise flailing cafe.
Hope this helps!
Re:Panera... (Score:5, Interesting)
I agree with the downside, especially in some locations. My local coffee/tea shop gives you 30 minutes of time with each drink you order. It's only $2 an hour after that. And they even have about a half dozen repurposed laptops with Ubuntu loaded on them available.
There are a few people that work from there for an hour or two (or more) during the day. They just had a going-away party for a regular who was leaving the country.
freezepeach.org [freezepeach.org]
different business model? (Score:2, Interesting)
obviously, you dont' understand the reason why people go to 'coffee shops'
If all you want is a quick cup of really good overpriced joe, just go to Starbucks or make your own at home for pennies. Locally owned coffee shops usually go for the tradition coffee shop crowd: freegans, beatnicks, hippies, students, artists, punks, emo kids...in general the 'hip' people. The kind of people who would be ashamed if their friends saw them going into evil starbucks.
Having free WiFi attracts these types b/c by definiton, living outside the mainstream usually means being poor in relation to the hyper consumer mainstream.
Now, by going for the 'hip' kids, it attracts all those who are curious, intrigued, bemused, etc. in the company of said 'hip' kids.
If you're looking for big black lines of profit from a traditional coffee shop, just move on, b/c that's not what it's about...it's about establishing a place that artists and whatnot can be artists, nurse one coffee for hours, and get free internet, adn THEN profiting off of all the WANNABE 'hip' people. It won't ever go public, but it will last, and be loved by it's patrons
So, to have a good, true 'coffee shop' you have to be willing to sacrifice some profit, but not a fatal sacrifice. And in return you get hours of amusement from your patrons, and they love you for it.
Maybe there's a way to just charge the wannabe's like you for wifi, while letting us punk beatnicks get our wifi for free.
Re:I argued about increased business and royalty (Score:5, Interesting)
I know this technically goes against the "free" part of it all, but it is a way for the system to work and free up the tables of people nursing one drink every 3-4 hours. It would also keep others on the outside of the shop from leeching on the connection as well.
trustafarians (Score:1, Interesting)
THAT YOU KNOW OF!!!!!!!!
Your point is completely moot b/c you don't even KNOW any of these people personally, so you therefore have absolutely no grounds to claim anything about their work (or whether it exists). The truth is, you would be nervous and self conscious talking to these people, especially the chicks
you're just another one of those no-job, lives-in-mom's-basement, no-talent losers.
I'm not, I am a high school social studies teacher, p/t newspaper writer, p/t grad. student, snowboarding instructor, and i live alone. I loathe these kinds of kids as much as you do...pretending to be poor artists whilst chowing on mom's meatloaf at 6 every night...those people are not poor, not artists, and do not need free wifi...they need to move out of the damned house and get a job.
we have a name for these kids...trustafarians...and they are the ones who make the coffee shops profitable enough, spending their parent's money, so they are kind of a necessary evil
still think you're right??? a good friend of mine wrote her book (which has been picked up by an agent and will be printed next year) entirely at "Penny Lane" coffee shop on Pearl Street in Boulder, Colorado...why "Penny Lane"???
free...internet (and she lives alone too, w/o major parental funding)
Re:I argued about increased business and royalty (Score:2, Interesting)