Pay-what-you-like restaurant's recipe to beat the crunch

Peter Ilic, who owns the Little Bay restaurant group, will not present a single food bill to diners, leaving it up to them to decide how much the meal and service is worth.

It comes as a number of Michelin-starred restaurants slash prices to entice credit crunch-hit diners, with lunches for as little as £12.

Mr Ilic, whose "free" dinners are on offer at Little Bay in Farringdon, hopes the deal will lift people's spirits.

He told the Standard: "Even if people don't pay anything I have told my staff to treat them the same as if they pay £50 or £60-a-head.

"It's entirely up to each customer whether they give £100 or a penny. All I'm asking is they pay me what they think the food and service is worth.

"We have seen so many more City boys coming into the restaurant lately, looking for a better value lunch. It just seemed the right thing to do with everyone under the cosh and feeling pretty miserable. This is the ultimate value-for-money meal."

The special recession offer will be available for the whole of February. Wine is not included and tap water will be served.

Mr Ilic worked in Claridge's before opening his first restaurant in Kilburn in 1982. His fourth restaurant, Just Around The Corner, in Finchley Road, opened in 1984, where the "pay what you want" concept was first installed.

The restaurateur said: "Some people will pay more than I would charge, some will pay less.

"In restaurants people don't have to leave a tip but they generally leave 10 per cent. The same applies with this.

"The staff were surprised about how it is going to work but I think we will get more customers through this."

Dishes on offer would not seem out of place in some of the capital's most expensive restaurants.

They include pressed foie gras terrine, paupiette of salmon, smoked haddock brandade, and leek and potato soup with caviar.

Other top chefs have been forced to take similar - albeit slightly less drastic action - after admitting the credit crisis has caused a sharp decline in customers willing to pay for expensive meals. Renowned restaurants including two-starred L'Atelier de Joel Robuchon and single-starred Arbutus offer lunches for less than £20 per head, while the Glasshouse, in Kew, sister restaurant of Chez Bruce, has an £11.75 lunch.

Paul Halliwell, assistant manager of the Glasshouse, said: "The offer started because of the credit crunch. People were worried about the numbers we would get in January, but we're getting twice as many people in because of this."

Mr Robuchon said: "This is the most important economic crisis I've faced in my career. Restaurants will close if they don't adapt."

How much would you pay?

Starters - £3.80

Moules mariniere steamed moules with shallots, parsley, white wine and cream

Smoked haddock brandade

Leek and potato soup with caviar

Crab tartlet with saffron cream dressing and mixed leaf salad

Pressed foie gras terrine with brioche and fig compote

Mains - £8.80

Whole boned poussin paprika potatoes, lentils and peppercorn sauce

Grilled fillet steak with gratin potatoes, spinach and mushroom sauce

Breast of duck with sweet potato, creamed leeks and duck en croute

Paupiette of salmon with avocado and tomato salsa, tomato butter

Puddings - £3.80

Chocolate bavaroise with passionfruit cream and almond biscuit

Pistachio crème brûlée with strawberry ice cream