This is a bad way to greet every person who walks through your door. A good customer experience is in the details.
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I do think they could have been helpful and pointed people *to* a public restroom, but make sure that you don't just say some message is bad before thinking about it from the perspective of the sender.
I also really appreciate Andrew's suggestion to suggest other places to, er, go. Every interaction should have the user's goals in mind.
On a similar vein, I am completely mystified why businesses in busy locations insist on giving "NO CHANGE FOR PARKING" with signs taped onto their cash registers. If someone with the disposable income to drive a car and park it wanted to come into my business, I would think that it would be worth hitting the bank every few days, keeping $100 in quarters around, and posting a tasteful sign, "We make change for parking."
You would not believe the amount of people that just walk through the door, walk straight towards the restrooms, do their thing and then walk out like they own the place.
I kid you not. My buddy went nuts about this. His snackbar is located pretty well, so he gets a lot of traffic. During the weekends it was like there was a sign on his door saying 'Come pee in here, you might win something.'
Anyway he had no choice but to place a pretty aggressive sign on his door, saying 'You leave something you buy something'.
Bad for business? Maybe, maybe not. We'll talk again when you own a business and people start using it as their public restroom.

