As restaurants seek creative ways to drive loyalty, a handful have been exploring the potential of subscription commerce. Chinese-inspired casual dining chain P.F. Chang’s, for one, which has more than 300 restaurants across 22 countries, announced Wednesday (Sept. 28) the launch of an in-rewards-program subscription offering.
This program, P.F. Chang’s Platinum Rewards, offers free delivery, expanded rewards-earning opportunities and “VIP-level service,” which includes waitlist priority and improved customer service, for $6.99 a month, a press release stated.
“The new subscription-based program is a continuation of our goal to create differentiated experiences for P.F. Chang’s customers, and we believe P.F. Chang’s Platinum Rewards does that at the highest level,” P.F. Chang’s CEO Damola Adamolekun said in the release. “As the first polished-casual restaurant chain to launch this kind of loyalty program, we are proud to drive innovation in the industry while adding even more value for our guests.”
A range of restaurant brands have been trying out subscription programs this year. Yet most have been focused on offering free food or credits rather than free delivery and rewards opportunities.
Quick-service restaurant (QSR) giant Subway, which has more than 37,000 locations across 100 countries, announced last month that, after launching its Footlong Pass one-month subscription, all 10,000 passes sold out within six hours.
Read more: Subway Footlong Pass Shows Power of Menu-Item Subscriptions
Also last month, BJ’s Restaurants and Brewhouse, which owns and operates 214 casual dining restaurants in 29 states, began selling its Pizookie Pass, offering a free dessert pizza every day throughout September for a one-time $10 payment. The 200 passes sold out within an hour.
Fast-casual brand Sweetgreen tested a program in January, Sweetpass, which offered a $3 credit back on one purchase a day for 30 days for a $10 one-time fee, and the program yielded positive results.
See more: Sweetgreen Rethinks Loyalty With an Eye Toward Subscription Commerce
Also in January, Mexican-inspired QSR chain Taco Bell announced the launch of its limited-time “Taco Lover’s Pass” daily taco subscription nationwide, which the brand announced the return of Thursday (Sept. 29).
Read more: Taco Bell Rolls out ‘Taco Lover’s Pass’ Nationwide as Restaurant Subscriptions See Mixed Results
According to data from the February/March edition of PYMNTS’ Digital Divide study, “Digital Divide: Restaurant Subscribers and Loyalty Programs, which drew from a survey of more than 2,000 U.S. adults, 17% of consumers are “very” or “extremely” interested in being provided a restaurant subscription service, and 25% are neutral to the concept. Meanwhile, the majority of consumers (58%) reported being just slightly interested or not interested at all in participating.
See more: Four in 10 Consumers Open to Restaurant Subscription Services
Yet, those who are open to subscriptions tend to be restaurants’ most loyal customers. Seventy-nine percent of subscribers and 70% of those interested in subscriptions reported being very or extremely loyal toward their preferred restaurants. In contrast, only 47% of those who are uninterested in subscriptions said the same.
Indeed, Sweetgreen Chief Digital Officer Daniel Shlossman explained in an interview with PYMNTS that the Sweetpass test helped boost loyalty.
Read more: Sweetgreen Spins Purchases Into Personal ‘Challenges’ to Drive Mobile Engagement
He noted that the offering not only increased the frequency of customers who already came back to the restaurant often but also of those who had not been active in a while and of new customers.
“We saw that, no matter what type of customer you were, you came back more often in that period,” he said.
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