You knew the subscription to streaming platforms, to the gym or for transportation, this economic model is now gaining the retail sector and even the restaurant sector. In this article, we take a closer look at this subscription program and help you understand this phenomenon that will undoubtedly become one of the pillars of the business models adopted by the restaurants of the future.
The restaurant subscription in a few words
According to a Harris Poll study conducted for Zuara, in 2019, 71% of French people used at least one subscription service, all areas combined (streaming, delivery, mobility...), while they were only 51% in 2016. As in all other industries where the subscription system has taken hold, in the restaurant industry, customers sign up for a loyalty program to receive certain benefits in return. These benefits can take various forms, but all have a common goal: reward regular customers to build long-term loyalty and push others to take the plunge.
Among the most common benefits:
- A discount on your signature dish like the Lyon-based restaurant chain UNI does. For €5.90 per month, customers get a 40% discount on the menu.
- 1 bought, 1 offered on a selection of products.
- Free coffee or tea after each meal.
- Credits accumulated after each purchase to be spent on site.
- One free meal or drink on a selection of products.
- A selection of exclusive dishes, only available to subscribers.
- Events where only customers with a subscription are invited.
- Home delivery of meals or boxes like the restaurant Shanti or the brand Hello Fresh.
As you can probably imagine, this food subscription system comes from across the Atlantic.
In the U.S., the first chain to popularize this trend was the coffee and bakery chain Panera Bread by offering an all-you-can-eat coffee pass for 8.99＄per month. Other chains like Taco Bell quickly followed suit by offering a monthly pass for $9.99 for a taco a day.
Little by little, this concept has spread to Europe.
Did you know that for €25 a month you can enjoy five drinks a day, every day at Prêt-à-Manger? This is the concept of the "Café Prêt" offer proposed by this British brand.
This economic model is also used in the restaurant sector and the best example is undoubtedly the Italian company Pizza Del Arte. The latter gives you the possibility to eat once a day in one of its restaurants for 35€ per month. Subscribing customers do not have access to the whole menu, but the offer remains extremely attractive for the restaurant owner as well as for the customers who will tend to become spokespersons of your establishment (social networks, word of mouth, etc.) and to make other customers want to subscribe to your service.
Monoprix has also succumbed to this trend and offers its customers a subscription at 9.90€ per month in exchange for a 20% discount all year round on their food shopping.
👉To go further: customer loyalty: 6 ideas for your restaurant
4 reasons to implement a subscription in the restaurant industry
Rewarding your customers is very generous on your part, but of course you have to make it work financially. So what are the advantages of such a model?
1. To attract and retain consumers
Getting a customer to walk through the door of your restaurant rather than your competitor's is one of the biggest challenges of being a restaurant owner.
Just like an effective communication, a quality gastronomy or an irreproachable service, the subscription system can help you attract consumers and make them come back.
Put yourself in the shoes of a customer for a few seconds. 👇
Thursday lunchtime is coming up and you have a choice between 2 restaurants located at equal distance from your workplace. You have a subscription at one and not at the other. The decision is quickly made, right? You choose the one with which you are connected. First of all, because you are sure to benefit from an advantage, not to be disappointed and above all, you must make the most of your subscription. That's why it's important to make it profitable, otherwise the customer won't want to make it profitable. You will have one more consumer than your competitor at lunchtime, but not only. Who says that he won't have convinced the group of colleagues with whom he shares his lunch break?
Back in restorer mode.
Think of it as a differentiating offer, an effective way to get consumers to choose your establishment over the neighbor's. When presented with a choice, the scales will tend to tip in your favor. And because you've managed to create a real connection with them, your restaurant will simply come to mind when they go out to lunch or dinner.
2. To ensure a recurrent turnover
Preparing food and selling it is a daring gamble, since there is always the risk that the customers will not show up for each service. In this case, your daily turnover is disappointing and you are forced to throw away some of the prepared food.
The subscription allows you to reduce this double risk by ensuring, on the one hand, a stable and regular income each month and, on the other hand, a better visibility on the attendance of your establishment.
In exchange for a subscription fee of 10€ per month for one year, you commit to offering various benefits. But multiply this figure by the number of customers who have subscribed to this loyalty program, and you have a guaranteed monthly turnover in addition to your current income.
This means that you are less subject to fluctuations in the number of visitors to your establishment and more reliant on sales paid for by customers in advance. This naturally translates into greater economic security.
The number of subscriptions is valuable information because it allows you toestimate your regular customer base, those who frequent your restaurant every week. This gives you an idea of the minimum amount of products (food or beverage) to order and/or prepare each day and allows you to reduce food waste.
3. To increase your turnover
That's it, the customer has crossed the threshold of your restaurant, the hardest part is done. They will first turn to the products and dishes covered by the subscription offer, but not only. In fact, many customers are tempted to expand their order. At Pizza Del Arte, for example, customers don't just come for the 2 courses and 5 pizzas they are entitled to. It's not uncommon for them to splurge on an appetizer, dessert, drink or even a coffee. These additional sales are to be taken into account in the calculation of your profitability.
4. To collect customer data
Another advantage of this loyalty system is the collection of data. The monthly or yearly pass is an excellent pretext to ask customers for their contact information, preferences and other information that could facilitate the management of your restaurant. In exchange for this data, you give them their card, symbol of their subscription. And that's it, you've got a lot of useful information without seeming too intrusive.
Loyal customers are generally more willing to respond to satisfaction surveys. They are accustomed to your restaurant and provide relevant feedback quality of products and service, timeliness, cleanliness, etc. So take this opportunity to improve your weaknesses!
You can even go beyond a simple survey. Subscribing to a restaurant shows a real attachment to a brand and proves the level of commitment of the customers, so don't hesitate to involve them more and show them your trust by letting them test your new products on the menu for example.
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Keys to food subscription success
Before proposing this innovative and disruptive solution, it is important to carry out a market study to know the preferences and habits of your regular customers. The goal is to offer them a subscription that they like and that concerns the products they are most fond of. It should also focus on those with a low production cost, to preserve your margins.
Also, take the time to experiment with the system. If you are the head of a franchise chain, launch a test phase in one of your establishments. If you only have one outlet, make a limited time offer to evaluate the impact on your turnover, but especially on your profitability.
These loyalty programs require some investment on the part of restaurant owners. You need strong appealing products with solid benefits to keep consumers coming back. You also need to develop an impactful multi-channel communication strategy and get involved at the operational level.
In view of the enthusiasm of customers for this type of offer and the advantages it represents, everything leads us to believe that this is not just a fad, but a concept that will last.
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Innovorder does not yet offer a subscription system for restaurants. However, we do offer our own customer loyalty program, which can be easily configured thanks to our ergonomic and powerful CRM. Contact an expert to learn more!
