top of page
Search

Can a Subscription Model Work in QSR?

  • benmoore126
  • May 29
  • 4 min read

In the world of Quick Service Restaurants (QSR), margins are tight, competition is fierce, and customer loyalty can be fleeting. That’s why when Pret A Manger—the British sandwich and coffee chain known for its organic coffee and fast-paced city locations—announced a subscription model for drinks, the industry watched with cautious curiosity.


A subscription? For coffee? In a QSR environment?


Turns out, it wasn’t just a gimmick. It was a strategic move that helped Pret not only survive during a rough patch but evolve in a way that could inspire others across the industry.

So, can a subscription model really work in QSR? Let’s take a deep dive into what Pret did, why it worked (and where it struggled), and what lessons other QSR brands can learn.



ree

The Pret Experiment: Coffee on Subscription


In September 2020, as office foot traffic had all but vanished due to the pandemic, Pret launched its “YourPret Barista” subscription in the UK. For £20 a month, customers could get up to five barista-made drinks a day, including coffee, teas, hot chocolate, and smoothies.

Yes, five drinks a day.


The offer was bold, nearly unheard of in the QSR world, and a clear bid to lure back repeat customers during a time of massive disruption. But it wasn’t just about coffee—it was about behavior. Pret wanted to recreate habitual visits, giving people a reason to make Pret part of their daily routine again.


And here’s the thing: it worked.


Why It Worked: The Psychology Behind Subscriptions


Pret's subscription model tapped into a few powerful psychological and economic dynamics:


  1. Commitment and Habit: Once a customer pays upfront, they feel compelled to “get their money’s worth.” That turns into frequent visits—often daily—which is exactly what QSRs crave.

  2. Perceived Value: Five drinks a day for £20/month feels like a steal. Even if the average user grabs one or two coffees daily, they still feel like they’re winning.

  3. Upsell Potential: Coffee may be free, but what about that croissant or sandwich? Pret saw basket sizes increase because once customers came in for the drink, they often bought food as well.

  4. Data and Loyalty: Subscriptions required registration, which gave Pret access to first-party customer data—something gold-standard in a post-cookie world. This helped refine offers, personalize marketing, and forecast demand more accurately.


The Results: Growth, Learnings, and Adjustments


After launching, Pret reported significant upticks in store visits and customer engagement. At one point, over 16,500 people signed up in a single day.


But it wasn’t all smooth sailing.


Some users abused the system by ordering multiple drinks and sharing with friends. Others simply didn’t visit enough to justify the cost and churned quickly. Operationally, baristas faced long queues from subscribers ordering multiple drinks back-to-back.


Pret adjusted the model—adding a wait time between drink redemptions and slightly increasing the subscription fee. In 2023, they rebranded the offer to “Club Pret”, expanding benefits to include 10% off all food and drink alongside the original five-drinks-a-day perk, but increasing the monthly fee to £30.


And guess what? Subscriptions remained popular.


The brand later rolled out similar programs in the U.S. and France. It wasn’t just a pandemic stopgap—it became part of Pret’s new identity.


What This Means for the QSR Industry


So, can a subscription model work in QSR?


The answer is a qualified yes—but only if it’s implemented strategically and with your specific brand, audience, and product mix in mind.


Here are some takeaways for other QSRs considering the model:


1. Start with a Hero Product

Pret centered its subscription around coffee—a high-margin, low-cost item that people consume daily. If you’re in QSR, identify your “habit-forming” product. It could be a daily smoothie, a lunchtime wrap, or even fountain drinks.


2. Understand Frequency

Subscriptions only work if customers use them often enough to feel value, but not so often that it becomes unprofitable. Finding that balance is key. Start with tiered pricing or limited access (e.g., 10 meals a month instead of unlimited).


3. Make It Digital

Pret’s entire program ran through its app—making it easy to manage, track, and reward customers. If you’re still running punch cards, it’s time to upgrade.


4. Upsell With Purpose

Your free item is the foot in the door. The real opportunity lies in increasing the overall spend per visit. Highlight combos, LTOs (limited-time offers), and personalized discounts.


5. Be Ready to Iterate

Pret didn’t get everything right on day one. You probably won’t either. Monitor usage patterns, fraud, operational strain, and customer feedback closely, and don’t be afraid to tweak.


Who Could Be Next?


Subscription models may not suit every QSR, but there’s clear potential. Here are a few examples of how this could play out:


  • Smoothie chains: Offer 10 smoothies/month for a flat rate.

  • Burger joints: “Fries Club” where members get free fries daily.

  • Mexican QSRs: A taco-a-day subscription for $15/month.

  • Bakery cafés: Monthly pastry or breakfast club for morning commuters.


Even pizza chains could offer a “family night” bundle each week for a subscription fee—ideal for budget-conscious parents.


Final Thoughts


Pret A Manger proved that a subscription model in QSR is not only possible but profitable—if designed with care. The key is anchoring the offer in customer behavior, not just product price.


Subscriptions in QSR aren’t just about saving money. They’re about creating membership, routine, and stickiness. And in an industry where every extra visit counts, that could make all the difference.

 
 
 

Comments


bottom of page