Panera Bread recently became the latest big-name restaurant brand to enter one of the hottest segments of the loyalty market: subscriptions. We’re proud to be part of that launch, as the program is built on our loyalty platform.
At $8.99 per month, the MyPanera Coffee subscription gives customers unlimited coffee or hot tea for the price of about four cups of coffee. This program exemplifies how smart, forward-thinking brands are embracing subscription models.
Subscription programs tend to operate in one of these three ways:
Subscriptions enable brands to drive incremental revenue while letting customers prepurchase their favorite items at a discounted rate. Those who already buy four cups of coffee a week at Panera will find that the coffee program pays for itself. But it’ll also drive them back at times that they may not have normally stopped in, providing opportunities for additional sales. Once consumers have invested in a program, the act of buying another item, like a cookie or a snack, seems less of a burden.
Clients that run subscription programs report high attachment rates and upselling. Panera achieved these results by following the three key steps for implementing a subscription program:
Whether it’s movies from Netflix, pet supplies from BarkBox, or clothes from Stitch Fix, consumers are increasingly receiving goods and services through subscriptions. Restaurants have a great opportunity to capitalize on this trend.