The Little Bay Farringdon restaurant in London's Clerkenwell, famed for its ‘pay-what-you-think-it's-worth' promotion, will be closing on 25 September.
Back in 2009, the group ran the promotion throughout February with the average customer spending 30% more than usual.
The group said that within five days of its launch the restaurant was fully booked, with almost 10,000 diners having visited the restaurant during the four weeks of the promotion.
James Ditchfield, a spokesman for Little Bay Restaurants, told The Caterer: "Whilst we are incredibly sad to be losing one of our flagship Little Bay restaurants, our restaurants in Kilburn and South Croydon will continue to carry the Little Bay flame.
"However, despite Peter Ilic's [the owner] sadness at losing a piece of his Little Bay group, he is looking forward to developing his exciting Foodilic brand of healthy vegetarian and raw food eateries across London in the coming years."
The group currently runs a Foodilic restaurant on Pentonville Road in King's Cross, London and a further two Foodilic sites in Brighton on Western Road and North Street.
The Little Bay Brighton restaurant closed earlier this year and its Battersea restaurant is listed as temporarily closed on the group's website. A message reads: "Little Bay Battersea is currently closed until further notice."
However, The Caterer understands the restaurant is planning to reopen in the future with a slightly modified concept.