I don't think this idea is that terrible, however, there should be some sort of preface. Traditional interviews (i.e. go to an office, talk to 1-3 people, etc.) just don't cut it. What's more is that their terribly unrepresentative of how most people actually behave on the job. If anything, a get-together in the evening should be held and everyone can meet up. Even better, if there's some sort of community event, it could be suggested to invite the potential hire and introduce them to your network (that way their more familiar with who you're actually working with). I can definitely say, though, that there is hardly a one-size fits all solution for finding new employees. Each business should determine what type of employee they'd like to work with and then develop a scenario/situation in which they can impress the company (whether that be temporary/contract work, a meetup, whatever).