Terra Bite Lounge was the name of a coffeehouse that opened in Kirkland, Washington in late 2006. When the shop first opened, it was unique in that customers choose what to pay.^[1] After a year, the shop switched over to a normal fixed-prices menu. The owner, Ervin Peretz, stated that the "choose what to pay" model was not sustainable in a neighborhood that is popular with teenagers.^[2][3]

In the voluntary payment system, patrons deposit their cash in a locked box and store employees do not handle cash per transaction.^[4] In fact, employees aren't necessarily aware of how much the patron contributed. However, Terra Bite asked customers who could pay to contribute what they would elsewhere.^[4] The voluntary payment system is a convenience for most customers, who may, for example, choose to pay once a week for their daily coffee.^[5]

In interviews, Peretz has stated that he intends to expand the Terra Bite concept to new stores, in places with demographics that can sustain a new Terra Bite.^[6] His goal is to create a highly efficient operation that can sustainably spread from upper demographics throughout the rest of society, where a non-stigmatizing source of food is needed.

The coffeehouse has since closed.