or exchange them for a charity donation. The scheme is currently being piloted in 10 restaurants in the North of England, with the aim to roll out nationally later this year. Costa’s Costa Club reflects the traditional loyalty card model, allowing its customers to ‘buy eight drinks, get one free’, alongside a range of personalised benefits including ‘free cake on your birthday’ and extra points for using a reusable cup. Similarly, UK-based French restaurant chain Bistrot Pierre is offering a point-based scheme which includes seasonal wine offers, monthly prize draws and exclusive events. Subscription foodservice offerings are
now offering customers an alternative to the traditional rewards or points-based scheme. Pret a Manger is running a fixed-fee monthly coffee subscription. According to the company’s website, coffee fans can enjoy up to five barista-made drinks a day for £25 a month. Launched in September 2021, the program has been described as the UK’s first ever in-shop coffee subscription. Leon has also offered a similar coffee subscription services. Customers are primed for these kinds
of offerings. A recent Celtra survey found that 52% of consumers had downloaded a new restaurant app in the last six months, and 32% said that loyalty programs would increase their spending.
Chris Stern FCSI of Stern Consultancy in the UK
Loyalty is key
Stamp or points-based schemes such as McDonald’s and Costa’s reward loyalty directly with free items and offers. Subscriptions represent a monthly sunk cost, motivating customers to come into the shop to get their money’s worth. First and foremost, these schemes are designed to attract customers and keep them coming back. “Loyalty is absolutely critical,” says
Dempsey. “All foodservice models, from the smallest independent to the largest global chain, are built on knowing that you can sustain the model and bring in new customers.” For coffee shops, this is particularly
crucial. According to GlobalData research, the coffee and tea shop sector shrank 18% to £5.4 bn by the end of 2021. Customers
“Human nature dictates that if you pay for something, you want to use it… Coffee is a perfect item for this”
who have become used to working from home need new motivation to frequent the coffee shop. Not only this, but the likes of Starbucks, Costa, Pret and Caffé Nero face a saturated market, particularly in city centers. While it may be difficult to differentiate themselves in terms of their offering, something new like a subscription model or innovative rewards scheme presents a novel draw for customers. “Human nature dictates that if you
pay for something, you want to use it,” says Chris Stern FCSI, managing director of Stern Consultancy. “You then will probably bring your friends along with you. Coffee is a perfect item for this as it’s something that takes repeat purchasing really well.” The apps that these schemes operate on also open new avenues for data collection for foodservice companies. Today, data is more commercially important than ever, but data protection and cookie laws are becoming ever more stringent. By having customers sign into apps and tracking their preferences, companies can access a wealth of first-party data. Customers can then be offered more personalised suggestions and rewards, and companies can access valuable insight into their client base. Tracking these trends can also be used for financial planning, budgeting and resource management, as well as menu management to cut down waste. Subscription models also provide a guaranteed revenue stream, by requiring a longer commitment from the customer. This is invaluable for companies at a time when
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