Never heard of a restaurant subscription? Let us explain!
1
What’s a restaurant subscription?
A restaurant subscription is where customers agree to regularly pay in advance of receiving food, drink or a discount. Big brands like Tim Hortons, KFC, Burger King, and Starbucks use them to drive customer loyalty.
2
How could you introduce a restaurant subscription?
You could offer free food or drink on every visit...
You could provide a discount or offer on every visit...
3
How do big brands implement restaurant subscriptions?
Burger King offers subscribers a free coffee on every visit for $5 / month
KFC offers subscribers a weekly delivery of chicken wings for $75 / 10 weeks
Korean BBQ offers subscribers buy 1 get 1 free on food for $15 / year
A QSR Restaurant offers subscribers a 40% discount for $7 / year
Loyalty is dead. See how subscriptions are outperforming loyalty programs in the F&B market.
We’ve worked in the loyalty business for over 7 years, and have tested what works, and what doesn’t.
Recently we helped a coffee shop to implement a loyalty program and a subscription program. Compare the results and subscription program was between 4X - 10X more effective at bringing customers back to their store.
So why are loyalty programs so ineffective compared to subscriptions for F&B businesses?
The problem is loyalty programs don’t actually change a customer's behaviour as customers aren’t loyal to points, they’re loyal to great experiences.
While subscriptions are more effective because it is a loyalty driver. By offering a subscription, they are encouraged to maximize the value of their subscriptions by visiting as much as possible.
Loyalty Program - Coffee Shop
Subscription Program - Coffee Shop
How to interpret this data: Easy! On every given week, the coffee shop on-boarded some loyalty members and some subscribers. The columns to the right show the percentage that came back to the store every week thereafter. For example, of the loyalty members that signed up during week-6, only 9.43% returned 4 weeks later, whereas 68.97% of subscribers on week-36 were still returning – roughly 7X more visits.
Our data shows subscribers are more likely to visit, spend, be loyal and be more profitable than non-subscribers.
Increase in profit per customer
Subscribers were on average 250% more profitable than regular customers.
Increase in average bill value
Subscribers’ bill average increase to USD 40 from USD 27 from regular members.
Increase in customer store visits
Subscribers made 2.4x more visits than loyalty members.
Stop customers from switching to rivals
We helped a Korean BBQ introduce a discount subscription. Subscribers came back on average 5x more per quarter than loyalty members.
Cross-sell high margin items
We helped a coffee shop chain introduce an $11/mo free coffee subscription. 2 / 3 subscribers bought food with their coffee!
Get upfront revenue & cashflow
We helped a restaurant chain introduce a subscription and they saw a 16.7% revenue increment increase in the first month of launching!
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Information on our data
Information on this page and in our ads are based on internal TADA data. Results may vary and those shown should not be interpreted as a guarantee of similar success or of similar financial performance
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