Would you call this a good business decision for a small, independent cafe?

IMHO, the codes stuff is more trouble than it’s worth. My solutions is (similar to what others have said):
Put up an unobtrusive sign that says “Internet access is for customers only. Please, no outside food or drink.” and, maybe if appropriate something along the lines of “During busy periods, we ask that customers allow others to use their table within a reasonable period of time”.

Then, the cafe staff needs to monitor the room, and if the tables are getting all full (or if there are predictable busy times, right before the busy time), gently remind people of that policy “Excuse me, other people are waiting for a turn at this table. Thanks!” Of course if gentle reminders don’t work, that’s not a customer they want. And if the staff is incapable of doing this, well, good luck dealing with the complaints about the WiFi codes.

I mean, if there’s always still an open table, who cares about the moochers? They’re giving the cafe a valuable busy atmosphere, and it’s not like their using the WiFi costs the cafe anything at the margin. (I’m assuming the moochers are presentable and quiet. Raving lunatics are obviously asked to leave ASAP, and unwashed bums are a slightly different issue).

What businesses are next door? Do they have free public WiFi? It won’t matter what Amy and Maxie do to limit their WiFi if people can sit in the cafe, using some other WiFi.

The real problem here is that the two owners can’t agree. It’s pretty silly to start making changes when what they really need to do is decide how much of a business they’re running, and how much of a charity. Then they can figure out the best way to meet those goals.

If they decide that there are certain people they’d like to dissuade from staying there and taking up space, there’s still no reason to seek a technical solution. It’s not at all hard to tell who a moocher is in a cafe. Just go and ask them if they want to order something. Most of them will at that point. If they don’t, and the place is full, tell them it’s time to move along, that the seating is reserved for customers.

If they still want to help out people who can’t afford to be customers, they can discreetly let those people know when it’s not so busy and they’ll be welcome to use the wifi.

All the other suggestions (posting passive-agressive signs, wifi passwords, no electricity) might alienate actual customers who are making you money, and might not really affect the people who aren’t. You won’t know until you try them, but trying them carries some risk, and you don’t need to know if they’ll work, since there’s a simple solution to kick out the bums. Just tell them politely that they need to order something or move on.

This illustrates the danger of trying a quick technological change that you maybe haven’t thought all the way through.

What happens if I buy a cup of coffee ten minutes before the password change? I lose my internet connection, don’t understand why, and have to go up to the front, only to be told that they did it on purpose? I’m probably not coming back.

There’s a pizza place and some proper restaurants where nobody lingers and some place which I suspect is a front for selling pot. None have WiFi.

Oh, there’s a church with WiFi, but it’s halfway down the block and its signal is so weak at that distance that it’s not worthwhile even for moochers.

What about having a counter/bar/single seats/“Captain’s Table” for those wanting to hang out on the WiFi all day? Those there to only surf the web and nurse a coffee can sit at the bar as long as they want. Post a sign requesting that tables are reserved for those customers who are eating (or for groups, or whatever, but word it better than that!)

I’ve been to coffee shops that had this set-up and it worked quite well.

I’ll agree with Maxie on this one and also agree with Amy somewhat. First, outside food and drink should never be allowed. WiFi access should be available without having to use a password/code but its use should be limited to paying customers and should have time limits as well. If someone buys only a small cup of coffee and nothing more then maybe limit WiFi time to 2 hours or so. Key thing is that customers should be allowed to hang out as long as they want. As long as they’re paying customers. The moochers who buy nothing have got to go.

A cafe/coffee house does need to a place for hanging out/socializing but are moochers really doing that sort of thing? Also, does M&A cafe get a lot of take out business? Usually that would often make up for those who hang out.

When I was in grad school, I would sometimes do my studying at a coffee shop. It made a chance of pace from my grungy student apartment and it was an easy way to meet up with friends for informal study groups. On the whole, I am certain the cafe made a net profit off of being my cohort’s favorite off-campus study spot. But I am certain some individuals were more profitable than others. On a weekend you might have four of us ordering full meals, four ordering drinks, and two hanging out.

For me, I had no problem paying, but sometimes I would try to stretch it out. Why? In all honesty, there is only so much coffee and pastries I can handle in a day. I didn’t want to pay three bucks for a scone that would just be calories I didn’t need. I would have loved a way to purchase legit seat space without having to buy things I honestly didn’t want or going through the whole charade of pretending to nurse a cappuccino for an hour.

I could see some kind of good karma donation where five bucks would get me drip coffee and free wifi, and maybe 10% of the total profits from that being donated to a local access or education organization, or maybe being put towards free events put on by the cafe. Make it seem like a fun, positive, communal thing rather than a punishment or a donation straight to the owner’s bank accounts.

I was also very aware of the space I was taking up, and I really appreciated having access to low-profile bar spaces where I could set my laptop and not feel like I was taking up a valuable table. You can cram a lot of people onto a small window bar, and I liked that I could sit there and get my work done without feeling like other customers or staff were giving me dirty looks. I was also a fan of large communal tables where you could take just one seat rather than claiming the whole thing. If you don’t have these kinds of low-profile workspaces, I’d strongly consider creating one.

Anyway, it’s a a balance. If, in trying to manage a few people, you alienate an entire group, it could be disastrous. My undergrad had a cafe with this problem, and they implemented a “no study during rush hours” policy. The student population saw this as a student vs. townie thing, it blew up in the student papers, and there was an immediate student boycott. The cafe never recovered their popularity. Likewise, it’s better for the cafe to be busy than empty, but you obviously want space for customers to sit. Whatever policy you have needs to keep this balance, even if it’s not the “fairest” policy.

The issue is that cafes really don’t have many ways to distinguish themselves. Coffee is coffee, and the food is rarely special enough to make the cafe a destination on it’s own right. Cafes are selling their unique atmosphere and community, and you don’t want to disrupt the illusion. Instead, you have to make it like Disneyland, and make the purchases seem like they are part of the atmosphere and community, not something that takes you out of it. Whatever you do, keep it cheerful, and don’t make explicit references to revenues and profits. Make it an opportunity for people to feel a part of the cool vibe of the cafe, rather than a way to snap people out of it.