Subscription models, in which customers pay regular fees for ongoing access to a product or service, have become increasingly popular in recent years. For restaurants, subscription programs can be an effective way to drive recurring revenue and build lasting customer relationships. By offering discounted monthly membership fees, you provide value to your subscribers while securing predictable income for your business.
Panera Bread launched its unlimited coffee subscription in February 2019, charging $8.99 per month for unlimited hot coffee, iced coffee, and tea. The program was an instant success, attracting over 200,000 subscribers in the first three months. Panera’s coffee subscription provides a prime example of how restaurants can leverage subscription models. Their program offers clear value to customers through discounted pricing while driving steady revenue and fostering brand loyalty for Panera.
To implement an effective subscription program, first determine what product or service you want to offer on a subscription basis. Popular options for restaurants include:
Next, set a competitive monthly price that balances value for your customers and profitability for your business. The Per Diem app enables you to start offering your own Panera-like subscriptions, making it easier to manage and grow your program. Promote your new subscription program through social media, email marketing, and in-store displays. Measure key metrics like subscriber growth, retention rates, and revenue to optimize your program over time.
With the right strategy and execution, subscription programs can be a powerful tool for enhancing customer loyalty and driving sustainable growth. By following the examples of brands like Panera Bread, your restaurant can reap the many benefits of recurring revenue models.
.svg)