Recently, I enrolled in a monthly Panera coffee subscription because my Keurig coffee maker broke. I was surprised that Panera was even offering a coffee subscription considering that without a subscription model they could charge $2-3 per cup. Even more so, they were offering a free pass of the subscription until next year–I had to jump on it! I was hooked instantly. I walk past the Panera every morning, so it is super simple to just stop in the Panera and grab a coffee while on my way to class in the morning. It makes the perfect way to start the day for me, and it also works out for Panera because now I will be giving $10 a month to their franchise for something that costs them very little.
The ordeal got me thinking about how companies are constantly needing to adapt to the changing world around them. I imagine that since Keurigs came around many people were making single-serve coffees at home and opting to skip out on stopping for coffee on the way to work. By creating a subscription service Panera is able to entice people back into its stores with its cheap coffee and hopefully start making its brand a part of people’s morning routines. I know that because I am now coming into Panera almost every day, I will almost certainly eventually buy a sandwich. The entire situation is a win-win for both myself and Panera, and it was created because Panera needed to change to an everchanging market.
Considering that we are seeing more and more subscription platforms pop-up every single month, I would not be surprised if people were eventually able to subscribe to entire meal plans at restaurants, movie theaters, and even ride services like Uber in the near future. While I am not totally sure how the economics of subscription services works out, it seems like they will serve as a very useful tool in the fight to get consumers to use physical establishments once again.
Hey Luke,
It is interesting how the “subscription” has become the new craze in earning revenue from patrons. $10 is fairly inexpensive for a subscription to daily coffee, and I think you found a bargain. I see subscriptions as a situational cost. They are convenient and simple in the signup process, but their affordability depends on how often you use them. This subscription works very well for you, but not for me since I had never ordered a cup of coffee before.
But this logic could be what companies want us to think.