Coffee Subscriptions Can Yield Double-Digit Transaction Growth for QSRs

Coffee shop chains are increasingly implementing beverage subscriptions to boost traffic and customer frequency. A recent report from Manchester, UK publication Mancunian Matters, citing data from the National Office of Statistics, shows that Pret a Manger stores in the city saw a 36% increase in transactions following the launch of the Club Pret coffee subscription service. The program provides up to five free barista-made drinks a day for 30 pounds a month (or $40 a month in the U.S.). Subscriptions to the program make purchases from the coffee shop chain 28 times a month, on average, compared to the average non-subscribing customer, who transacts twice a month.

Coffee subscriptions are also gaining popularity for café chains. New York-based coffee shop chain Blank Street Coffee has gained 5,000 paid subscribers since its Blank Street Regulars program launched over the summer, charging $8.99 or $17.99 a week for up to 14 free coffee or tea drinks. The chain’s co-founder Vinay Menda expects the program to grow to include 30% to 40% of the brand’s customers.

One of the largest players in the coffee shop subscription space is Panera Bread, which has its “Unlimited Sip Club” program, offering a free drink every two hours for $11.99 a month or $119.99 a year. The subscription has helped the brand convert casual or totally new customers to frequent purchasers.

A PYMNTS Intelligence study from 2022 revealed that 17% of consumers are “very” or “extremely” interested in being provided a restaurant subscription service. Additionally, 78% of restaurant subscribers and 73% of those interested in subscriptions reported being very or extremely loyal toward their preferred quick-service restaurants (QSRs).

The success of programs like Club Pret, Blank Street Regulars, and Panera Bread’s Unlimited Sip Club demonstrates the potential for increased customer frequency and loyalty.

Read More @ PYMNTS

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