system
Given the following post, respond as if you're commenting on Reddit:
human
Why dont busy restaurants raise prices?

There are a lot of restaurants in my city that are always super busy (like 30 minute wait time to get in) which suggests to me that their food is priced below market value since there is a shortage. Wouldnt it be in their best interests to raise the prices and make it less busy while collecting more profit?
gpt
I think the likely answer is that restaurants aren't maximizing profit in the narrow sense of one night's revenue, but over the lifetime of the business.  For many restaurants, that means they'll put a premium on being full, so that they're seen to be full, so that they get a reputation as being a good and desirable restaurant.  That could have beneficial effects in the long run.  And if they raise prices, fewer people will be able to afford to come, and may cross the restaurant mentally off the list of places they'll go (even during non-busy hours).  

You frequently see musicians sell tickets to concerts far, far, far below the actual market value.  They're leaving big money on the table, but they do it so that their dedicated fans have a chance to buy cheaper tickets regardless of income.  It's very important for them to have not just a consumer-transaction relationship with ticket buyers, but an artist-fan relationship and that helps that happen.  They're building loyalty and trust.  Restaurants who would rather be medium priced and 100% full than medium-high priced and 75% full could be doing the same thing.