A restaurant in a club that I am member of, is mostly empty. Why? Because they charge Rs 25/- for a plate of idlis. I was quite tempted to tell the sole employee in the restaurant, you do not have a hope in hell of getting this place full. Well… I did not… and maybe they do get it full. When? They have hotel like rooms and conference halls, and those who use it, have no choice but to go the restaurant.
Economics as I understand it – make the “value for money” proposition more effective, and you can make a lot of profit, but does the club understand this?
If not, why? What is the price of exclusivity?
Maybe, the place is kept as is to show losses that help offset profits elsewhere. In business, economics is not the sole factor!