![]() Changes in subscription service, he indicated, could include certain “experiences, or be based on specific times of the day,” he said. He doesn’t envision a food subscription service in Panera’s future. And given the high inflationary macro-environment, it is extremely well-timed.” “I think the subscription program is a disruptive way to unlock value for our customers. Hence, people can come to Panera’s for healthy food and save money on their beverages, Chaudhary suggested. What has Panera’s Bread learned from its coffee subscription service that will be incorporated into its new beverage service? Chaudhary replied, “We were able to make beverages completely accessible for a flat price.” It concluded that “If implemented well, paid loyalty programs can be highly profitable.” It also noted that 75% of the increases stemmed from new products that customers had not previously bought. ![]() In fact, an ApHarvard Business Review study on loyalty programs written by Raghuran Ivengar, Young-Hoon Park and Qu Yu, revealed that customers of these subscriptions “spent more than twice as much per month after subscribing to the retailer’s loyalty program.” But it also concluded that “some customers contributed substantially to the increase in revenues, while others did not.” Guests must tap their loyalty cards to activate it and use it, enabling Panera’s to track their purchases. Members are eligible for discounted deals such as free bagels for a month. Its loyalty program has been one of the most successful in the fast-casual restaurant industry and currently numbers 47.7 million member as of first quarter 2022. To become a subscriber, guests must become a MyPanera loyalty member, at no charge. Now we have to make sure the economics of the program works with a broader range of the costs of the beverages.” Why raise the price $2 a month? Chaudhary said, “We’ve realigned the price because the repertoire is much broader. “It has the same logic of why should coffee cost so much to why should beverages cost so much?” Chaudhary cited. The Unlimited Sip Club includes coffee but expands the selections to 26 various beverage products. ![]() Their membership price will increase in 2023 to $10.99 a month. It covered any coffee that was self-served and was restricted to new cups of coffee every two hours.Įxisting coffee subscribers will be grandfathered into the new Unlimited Sip Club for the previous price of $8.99 a month through the end of the year. The Unlimited Sip Club Subscription ('Beverage Subscription') is available for registration and redemption in participating U.S. Subscribers were only eligible for ordering coffee it doesn’t include purchases of cappuccino, café au lait or espresso. The coffee was driving its breakfast business. Moreover, Panera reports that 43% of its coffee subscribers were new customers to the brand. Hence, its coffee club subscribers frequented its eateries at eight times higher visits than in the past and 30% of them added a food item to their check. Recurring revenue has been boosting sales at Panera since many subscribers end up frequenting its restaurants more often and buying more items to accompany the beverage. He pointed to a study he read that said most coffee-drinking Americans spend $1,500 a year on premium coffee annually, and with Panera’s subscription that cost has dwindled to about $130 yearly at the new price. Panera’s has never been known for coffee,” he acknowledged. The reason is the following: coffee for us was an underleveraged product. It’s usually around $10 for us.Asked if Chaudhary was concerned that customers would take advantage of the service, come in for free coffee, not spend money, and Panera’s would lose out, he swats that notion away. If you’re ordering a few items, make sure to check for a discounted treat offer during checkout, too! They often will offer up cookies, cinnamon rolls, or other sweet treats for just 99¢ if you reach a certain minimum order. Many of these offers pop up on Saturdays, so be sure to keep an eye out!Īnd by using your account when you check out, you’ll start earning rewards like free bakery items, discounts on your purchase, and more! When you have an Unlimited Sip Club Subscription, you may also score exclusive offers like savings on lunch, pastries, and more! Be sure to check your account often as sometimes the offers pop up randomly, especially after you have grabbed your free Panera coffee for the day. *Note that charges for select add-ons do apply, but Milk, Skim Milk, Almond Milk, Half & Half, and Sweeteners are included!Īdditional perks of having this subscription… Select your local café ( but know that you can use your subscription at any participating cafe!). ![]()
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