Could Subscription Models Help Restaurants Bring In More Revenue?

In recent years the subscription model has become an increasingly popular way for businesses to bring in consistent revenue. From streaming services, to even social media platforms, subscription models not only incentivize customers, but also offer special advantages that benefit both. Looking to join in on the trend, large restaurant chains have begun experimenting with the model. But are customers hungry enough to sign up?

According to PBS, Panera and P.F. Chang’s are two examples. For a monthly fee, some ways they’re attracting customers to the idea of a subscription service is with unlimited drinks and free delivery. While others even offer guests their favorite appetizer for free with each visit. Rocket Money, a personal finance app, reports that the average American now has nearly 7 subscriptions, growing from 4 in 2019.  

Larger chain P.F. Chang’s launched a $6.99 subscription plan in September that offers members free delivery, along with other benefits. Other models are experimenting with a pre-pay option for members.

San Francisco-based bar El Lopo has attracted 26 members to its Take-Care-Of-Me-Club. Members are rewarded with $100 in dining credits at an $89 per month cost, and $200 in credits for $175. With each visit, guests are given their favorite dishes along with the option of gifting a free drink to anyone in the bar. “What it really achieves is getting them in more often,” El Lopo owner Daniel Azarkman said. 

Despite the growing trend, not every restaurant has experienced success with subscription models. On The Border Mexican Grill introduced the Queso Club in 2021, and while members visited seven times more than non-members, it wasn’t enough for the chain to cover the additional costs. They’re now restructuring the model with plans to relaunch it later this year. Edithann Ramey, On The Border’s chief marketing officer said, “It’s becoming kind of a hot trend and we want to stay as a leading brand,” Ramey said.

Major fast food chain Taco Bell is even experimenting with its $10 Taco Lover’s Pass. The pass was introduced in January 2022 and again in October, granting you a free taco every day for a month. Although it’s generated some buzz, the company is looking for ways to make it more attractive to its customer base; possibly by promising faster service or unlocking unique menu items. In other words, the subscription model isn’t without its challenges.

While some restaurants are experiencing success, others struggle with the subscription model. As of now, it’s clear that subscription services aren’t a guaranteed way to increase revenue. Time will tell whether it will become a mainstay within the restaurant industry, or simply an alternative for a lucky few.