Coffee subscription programs provide retailers with recurring revenue by offering customers convenient access to drinks through monthly programs.
PYMNTS.com reports that quick-serve restaurants (QSRs) and coffee chains are seeing a promising uptick in coffee consumption. McDonald’s and Starbucks are both looking to focus on satisfying customers’ caffeine fixes on a daily basis heading into 2023.
Coffee Subscription Programs Deliver Strong Results
U.S. coffee and bakery chain, Fresh Baguette, recently launched a monthly coffee subscription program to its’ Washington D.C-area customers for $9.95 per month.
“Our new Coffee Subscription is a game changer for us and our fans,” says Florent de Felcourt Founder and CEO of Fresh Baguette. “We are thrilled to offer this opportunity for our guests to enjoy this amazing deal. In addition, we understand it’s often hard to stop at just one cup, so with our coffee subscription, our guests can indulge multiple times a day at a really great price. Plus, our coffees are the perfect pairing to our deliciously crafted and freshly prepared bakery selections.”
Increase Store Visit Frequency With Beverage and Coffee Subscription Programs
Beverage subscriptions for fountain drinks are popular in the United States with convenience chains like Circle K and Sheetz offering daily fills of fountain, coffee, and frozen drinks to their menu in the past few years. Both have seen extraordinary uptick in their foodservice bottom line as a result.
In a recent PYMNTS report, “Digital “Digital Divide Technology: Customer Service and Innovation in the Restaurant Industry,” found that 32% of diners visit restaurants once or twice a month, based on a survey of 2,400 individuals. QSRs, coffee chains and convenience stores are increasing trip frequency by rolling out monthly beverage subscriptions.
Subscription Programs are a surefire way to guarantee revenue and provide ample opportunities to upsell products to loyal customers. As customers redeem their daily coffee, a pastry or roll is a perfect addition to satisfy the morning meal. As the day goes on, coffee subscribers will add a dessert or ice cream treat to end their day or evening.
Subscriptions Convert Customers Into Automatic Shoppers
Subscription programs take the thinking out of the customer’s daily journey. For instance, a drink subscriber would already want to use their paid subscription and might plan an entire trip around that store. While notifications and marketing are a great nudge, a subscription program is a guaranteed conversion of members to automatic customers who will be in the store and a good indicator that they’re going to buy even more once there.
Subscription programs for drinks and snacks are a win for both retailers and customers. Retailers can count on recurring revenue through automatic customers and increased basket sizes. Customers can feel that they are saving money with a subscription and it also takes the thinking out of where to stop.
About Liquid Barcodes
Liquid Barcodes is a leading global loyalty and digital marketing technology company specializing in the convenience and foodservice industries. The proprietary, cloud-based technology platform allows retailers to create and manage their digital marketing campaigns with a process called the “customer connection cycle’ to engage, promote and reward customers’ activities in real-time across digital and media channels.
Liquid Barcodes loyalty platform is powering loyalty programs for industry leaders across several global markets, by offering unique subscription, mobile payment, machine learning, personalization, gamification, loyalty, and other capabilities.
About the Author
Carolyn Schnare, Chief Content Officer, Liquid Barcodes
Carolyn Schnare has been involved with the convenience retailing industry for two decades with extensive knowledge of customer engagement and marketing, sustainability, and community outreach. Prior to Liquid Barcodes, Schnare worked at NACS (National Association of Convenience Stores) in a variety of roles from event production to membership and most recently as Director of Strategic Initiatives and host and producer of the popular industry podcast, Convenience Matters. Schnare currently anchors the popular Shop Talk LIVE! video series produced by Global Convenience Store Focus media group.