Edible subscriptions are debatably the best kind, proving a tasty menu item throughout the pandemic. And just as there’s always room for dessert, there’s untapped subscription potential waiting out there for restaurants.
For the latest edition of this study series, “Digital Divide: Restaurant Subscribers and Loyalty Programs,” a PYMNTS and Paytronix collaboration, PYMNTS surveyed more than 2,000 U.S. consumers to find what consumers most value about these programs to spur innovation.
Food may top the list of driving factors in restaurant loyalty, but research revealed that familiarity, convenience, customer service and everyday prices make appetizing subscriptions.
Per the study, “Subscribers appreciate several of these factors — their nature as subscribers means they likely have more familiarity with the restaurants to which they subscribe than the average consumer,” with restaurant subscribers showing profound appreciation for all of it.
What restaurants need to understand is the true impact of recurring revenue. It’s big.
“Restaurant subscribers are loyalty program superfans who participate in the initiatives at more than double the average rate,” the study found. “While 58% of consumers are just slightly interested or not interested at all in participating in a restaurant subscription service, a significant opportunity exists for restaurants to reach the untapped audience between those two extremes.”
Get the study: Restaurant Subscribers and Loyalty Programs
Subscribers Motivated by Love
Digging deeper into the restaurant superfan mindset and behaviors, the study quantified how far that connection goes.
For example, the data found a close correlation between loyalty program members and those either in or more likely to accept a subscription offering from a favorite eatery.
“Just one-quarter of those not interested in subscriptions use loyalty programs, and just 10% consider them important to restaurant choice,” the study stated. “Subscribers may be so highly motivated to use loyalty programs because they already engage with convenience-focused digital tools and are active curators of their dining experiences using restaurant subscriptions. Loyalty programs enhance the value subscribers gain by rewarding them for staying engaged online or in-store — an easier leap for patrons already highly loyal to the restaurants they frequent.”
Subscriptions Pay off in Many Ways
More businesses every day are using data to identify their best customers and reward them. In this restaurant sector, senses are heightened, and so are loyalties — if it’s done right.
The latest Digital Divide found that loyal restaurant goers — and ideal subscription candidates — tend to be millennials (39%) or bridge millennials (31%), have a college degree (24%) or earn more than $100,000 per year (21%).
Additionally, we found that 79% of subscribers are loyal to their favorite table-service restaurant and 78% are loyal to their preferred quick-service restaurant (QSR). It all points in one basic direction: A restaurant’s loyalty program data can give it plenty of intel for a subscription plan.
“Restaurateurs may find subscribers to be among their most valuable consumers,” the study added. “They are willing to pay for simplified access to their favorite restaurants, and they feel a particular sense of loyalty to their chosen restaurant brands. PYMNTS’ data finds that nearly 80% describe that brand affinity as intense and identify as ‘very’ or ‘extremely’ loyal.”
Get the study: Restaurant Subscribers and Loyalty Programs
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