On the 19th September we are hosting our first “Feature Focus” webinar to showcase the benefits of building subscriptions into your restaurant business.
Over the next few weeks we are going to entice you with some excerpts from our latest subscription report.
The report covers all of the relevant information you need to add subscriptions to your business such as, the Next Level of Loyalty, Top Advantages of Subscriptions, Launching into Subscriptions, Models to Consider, Tailored to Your Needs, Setting up for Success and turning to tech.
This week we are focusing on your launch into subscriptions.
Subscription Services are dominating most if not of all of our day to day habits: The trend of subscription-based services is still on the rise in various industries, from entertainment (streaming services like Netflix, Spotify, Disney+) to software (Adobe Creative Cloud), food (meal kit subscriptions), and even clothing (rental subscriptions). By 2024, it’s possible that even more industries have embraced the subscription model, offering convenience and customisation to consumers.
There’s good reason efforts like these are being launched — they offer a very quick surge in revenue. For instance, Panera’s program garnered over 100,000 signups the first day alone, and then saw between 30,000 and 50,000 signups per day for the first two months. Those subscribers paid off too, leading to a staggering 70% increase in food attachment.
In the below example, Panera Bread shows the impact of a well thought out subscription. Panera Bread is an American chain store of bakery-café fast casual restaurants with over 2,000 locations, all of which are in the United States and Canada.
There are some great examples below of the flexibility you can offer through your subscriptions,
Additional Purchasing: In many cases, subscriptions are a loss leader, but they can still yield major gains. Offering meals and products at deep discounts gets customers in the door, even if that’s a virtual door, and paying full price for other items. It also allows for significant upselling opportunities since customers can feel as if they have “extra money” they saved as a result of discounts, leading to higher spend than they would have shown otherwise.
Repeat Customers: If someone has a subscription to a specific restaurant, store, or service, they will view that option as a default for their food and shopping needs. Since they’ve prepaid, customers want to gain maximum value from their investment and will “zero out” their monthly subscription or meal package — making additional purchases along the way — which drives loyalty higher.
For more examples of the flexibility and the revenue growth that subscription can offer you then click below to download our Subscription report.