Restaurants Explore Subscription Programs

Restaurants are starting to explore subscription systems as more customers are willing to pay monthly subscription fees for streaming services.

Food chains like Panera, P.F. Chang, and neighborhood hangouts are experimenting with the subscription model to ensure steady revenue and customer visits. Some restaurants offer unlimited drinks or free delivery for a monthly fee, while others will bring out your favorite appetizer each time you visit.

According to the personal finance app Rocket Money, there is a trend with the average American juggling 6.7 subscriptions in 2022, compared to its 4.2 records in 2019.

“This is just another way for customers to provide a level of support and joy and love for our offerings,” said Matt Baker, the chef at Gravitas, a Michelin-starred restaurant in Washington.

Baker said Gravitas Supper Club offers subscribers $130 monthly for a three-course takeout meal for two. Gravitas shifted to takeout during the pandemic but saw demand dwindle once dine-ins were allowed again. The Supper Club subscription keeps the revenue flowing with about 60 diners per month.

Meanwhile, Chinese chain P.F. Chang also saw an opportunity to increase to-go orders with its subscription plan launched in September. For $6.99 per month, subscribers get free delivery with other perks.

Meanwhile, other restaurants are experimenting with memberships that let diners pay their bills in advance.

According to Rick Camac, executive director of Industry Relations at the Institute of Culinary Education, more restaurants are predicted to offer subscriptions in the coming years. Consumers would get used to it and help restaurants manage their cash flow with regular monthly income.

Although, not all subscription programs have been successful. In 2021, Border Mexican Grill introduced its Queso Club, which offered free cheese dip for a year for $1. The program stopped having new subscribers a year later.

Edithann Ramey, On the Border’s chief marketing officer, said more than 150,000 people signed up for the Queso Club, and members visited seven times more often than the average guest. But the restaurant wasn’t making enough to cover the cost of the dip.

On the Border is now revising the program to be reintroduced later this year. Ramey said it may charge more or move to a monthly model but will maintain its subscription model.

“It’s becoming kind of a hot trend and we want to stay as a leading brand,” Ramey said.

Other restaurants also said they have dropped subscriptions since they have their hands full just running the kitchen.

Subscription programs are currently a huge source of revenue for food businesses. On the other hand, consumers say it saves them a few dollars in the average month which is good enough for them.

Source: Philstar