The limit does not exist... Panera is launching an $8.99/month coffee subscription for members of its (creatively-named) rewards program, MyPanera — which reportedly has 38M members. Starting Thursday, you'll be able to endlessly fill your cup with hot (or iced) Panera coffee and tea. Panera's CEO said it's the 1st brand to do it, but Burger King launched a similar $5/month subscription last year. Here's the idea:
- $1,100: Americans' average yearly coffee spend, according to Acorns (probably double for nitro cold brew fiends) — Panera's subscription costs $108/year.
- $2.20: The price of a Panera coffee — if you have 5 or more per month, the subscription saves you $$$.
Too good to be brew?... Exactly what Panera wants you to think. It's betting that you'll be a better customer if you're a subscriber:
- Frequency: Subscribers' monthly visits increased from 4 to over 10 in markets where the program was tested, according to Panera's CEO. Plus, 90% of subscribers renewed their subscriptions.
- New Business: Almost 25% of subscribers were new members to the loyalty program.
- Food Sales: Panera thinks you'll stop in for the unlimited coffee, then probably grab a bagel, croissant, or huge kale salad on your way out.
A powerful combo of loyalty + cross-selling... Owning habits means owning wallets. Panera is offering an attractively priced subscription to lure you (and your coffee ritual) into its ecosystem. The more coffee you have, the more money you'll feel like you're saving with that subscription — and the rewards-driven cycle repeats. Once there, you'll probably get more than a drink (aka extra sales for Panera that wouldn't have happened otherwise).