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- food
- March 3, 2023
What to know about restaurant subscription models
Hitha Herzog weighs in on the pros and cons for interested diners.
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\"By offering a subscription service of 'make it yourself' meals, condiments, bottled signature cocktails, etc.,\" Herzog said, \"it brings in more potential revenue without focusing 100% on generating revenues via tables and bar.\"
From top tier to fast food, which restaurants are more primed for success with this model?
\"Any restaurant could potentially adapt this concept. For example, a fast casual could do a subscription service for their most popular or most ordered item,\" Herzog said -- much like Panera's subscription program that boasts unlimited coffee and tea for $8.99 per month, which helps get customers in the door with the potential for orders on food or other items beyond the paid subscription. The St. Louis-based brand expanded their subscription in 2021, adding an annual option that comes with free delivery.
![\"PHOTO:](\"http://a.abcnews.com/images/GMA/csa-box-vegetables-gty-jt-230303_1677872835937_hpEmbed_11x16_384.jpg\")
Herzog continued, \"A Michelin star restaurant could do a subscription service for a CSA box or meal kit.\"
Many top-tier restaurants, like Curtis Stone's Gwen in Los Angeles, turned to inventive options like creating consumer product goods and services out of necessity during the pandemic. But the models still hold today.
Along the same vein, New York City Italian hotspot Via Carota recently launched a new line of its iconic cocktails in packaged bottle format for sale online and in a new storefront, helping to further the dining experience and expenses beyond the walls of the restaurant. Plus, it makes the brand more accessible for anyone who either can't snag a reservation or lives out of the area.
![\"PHOTO:](\"http://a.abcnews.com/images/GMA/Via_Carota_Craftcocktails_1677874182029_hpEmbed_13x9_384.jpg\")
\"Restaurants that execute this concept have one thing in common: they are looking for alternate revenue streams,\" she said.
Is this the future of food service or will this fad fizzle?
\"There are several tech solutions like Table 22 that help restaurants deal with the logistical aspect of setting this up,\" Herzog said of the industry that has already adopted the new growth strategy. \"Also you are seeing Pret a Manger have a coffee subscription service as well.\"
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