Austin restaurant tests pay-what-you-want night as diners pull back on eating out

AUSTIN, Texas — As Americans pull back on dining out amid rising food costs, one Italian restaurant in Austin is asking its customers to set their own prices once a week — and discovering that many diners are paying close to full freight anyway.

L'Oca d'Oro, a neighborhood Italian restaurant in Austin's Mueller district, launched a pay-what-you-will night in December. Co-owners Adam Orman and Fiore Tedesco III introduced the promotion after a fall season marked by tariff-driven cost increases, persistent labor shortages and menu prices that had drifted higher than they wanted.

The weekly promotion has drawn a mix of regulars and first-time visitors, many of whom found out about it through Instagram. On a recent Tuesday, Zayed Al-Hamad brought a party of four to share focaccia, fresh mozzarella, rigatoni and carbonara — a meal that would typically run roughly $150. He said the promotion lets his family experience the restaurant without committing to a full-price tab.

Armand Daniels and his partner Robin Wiley made it their belated Valentine's Day dinner. Daniels, who works as an actor and brand ambassador, said paid work has become harder to find and that they planned to decide what to pay only after seeing the final bill.

The broader backdrop is a softening restaurant sector. Industry data show Americans are eating out less often as grocery and dining costs continue to outpace wage growth, squeezing independent operators who lack the scale to absorb tariff and labor pressures.

For L'Oca d'Oro, the experiment is partly a marketing tool and partly a stress test of customer goodwill. The owners say enough diners pay at or above suggested prices to keep the night sustainable, while opening the door to those who otherwise would have stayed home.