It was only a matter of time. Everything these days seems to be offered as a monthly subscription. According to Rocket Money, the average American had 6.7 subscriptions in 2022 up from 4.2 in 2019.
Now restaurants are testing whether they can adopt this business model.
It has started with some of America’s largest chains – Panera and P.F. Chang’s – where customers can get unlimited drinks, free appetizers or free delivery for a monthly subscription fee. But the idea has spread beyond America, the UK’s Pret-A-Manger offers a coffee subscription to customers.
As much as customers may hate the idea of another subscription, it does make commercial sense. Restaurants are highly substitutable and it is difficult to build loyalty (customers are constantly looking for variety and to try new places). A monthly subscription is an opportunity to change the customers’ mindset – it may convince them to return to the same restaurant over and over again to feel like they’re getting their money’s worth.
It is early days for the restaurant subscription. But don’t be surprised if in the coming years a few of your favourite restaurants are enticing you with unlimited drink refills or priority delivery to sign up.
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