Will people actually use restaurant "subscription" programs?

AP Photo/Terry Tang

The restaurant business in the United States is clearly doing better than it was under the disastrous, government-imposed lockdowns during the pandemic, but it still hasn’t recovered to pre-2020 levels. Many eateries have closed down, either because of financial difficulties or, in places like California, because they’ve simply been robbed too often. The restaurants that have managed to stay open are looking for new ways to increase revenue and a recent trend in the industry has been drawing attention. An increasing number of places are now offering “subscription” programs where diners can pay for some extra perks if they make regular visits or scheduled food deliveries. But is the food and beverage industry really a good fit for subscriptions? (Associated Press)

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Consumers are willing to pay monthly subscription fees for streaming services, pet food and even toilet paper. And now some restaurants are betting they’ll do the same for their favorite meals.

Large chains like Panera and P.F. Chang’s as well as neighborhood hangouts are increasingly experimenting with the subscription model as a way to ensure steady revenue and customer visits. Some offer unlimited drinks or free delivery for a monthly fee; others will bring out your favorite appetizer each time you visit.

They’re following a trend: The average American juggled 6.7 subscriptions in 2022, up from 4.2 in 2019, according to Rocket Money, a personal finance app.

One example is Gravitas restaurant in Washington. They have started the Gravitas Supper Club which costs $130 per month. In exchange, members receive a three-course takeout meal for two. A bar in San Francisco called El Lopo has a “pay in advance” subscription service. For $89 per month, customers get $100 worth of credit. There are many more examples described in the linked report, some of which have lasted for a time while others were abandoned.

I suppose this might work for some people, but I can’t see myself signing up for it. These restaurant “subscriptions” are being compared to streaming services or orders for things like pet food or toilet paper. But those are very different from dining out and bar-hopping. Streaming services will typically be used often and they deliver a wide variety of content. (Or at least they do if they’re any good.) People with pets know they will be buying a certain amount of pet food each month and it’s usually the same brand. And you’re always going to need toilet paper. So those types of subscriptions might be successful if they save people money.

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But even if you’re the type of person who enjoys dining out on a fairly regular basis and can afford to do so, how many of you go to the same restaurant all or even most of the time? Not many, I would imagine. Even the best meals become boring after a while. People tend to have a number of places they frequent. But if you’re locked into paying a subscription, you may feel pressured to go to or order from the same place all of the time. I’m pretty sure I’d burn out on that pretty quickly.

The same applies to bars. You may have a favorite watering hole that you frequent more often than others, but everybody likes to mix it up a bit sometimes. Or maybe that’s just me and this idea will work out fabulously. It doesn’t sound like it, though. Some niche groups of customers might keep a plan like this afloat at some establishments, but I find it hard to believe that it’s going to become the norm.

 

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Stephen Moore 8:30 AM | December 15, 2024
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