Will P.F. Chang’s members upgrade to its new subscription plan?
P.F. Chang’s has launched a paid subscription program that offers its members special perks in exchange for a $6.99 monthly fee.
Platinum Rewards members receive all the benefits of the restaurant’s free rewards program (renamed Gold Rewards), plus:
- Upgraded earning opportunities: Platinum members earn 15 points for every $1 spent on dine-in, takeout and delivery orders versus 10 points per $1 spent under Gold Rewards. Under the program, 2,000 points earns a $15 food credit.
- Unlimited free delivery: With the subscription, there are no order minimums or delivery fees with orders placed through pfchangs.com or on the P.F. Chang’s mobile app.
- Priority reservations: Platinum members get the VIP treatment with waitlist priority. As the program is integrated with the restaurant’s host stand and reservation system, staff are able to greet members accordingly and seat them at their favorite table.
- VIP concierge: Concierges are exclusively available (phone and email) to help Platinum members with questions or comments.
Both Gold and Platinum members receive a complimentary birthday dessert or appetizer.
The company expects that most Platinum subscribers will be members who upgrade from Gold, which has five million members, although they see the program also attracting new members.
P.F. Chang found customers were willing to pay more than $6.99 for Platinum’s enhanced benefits, but set the low monthly price to drive adoption. Mr. Adamolekun told Restaurant Business, “If you sign up for this, it suddenly becomes a much better deal than anywhere else you can possibly go.”
A few other chains have introduced subscription programs in the restaurant space. Taco Bell’s $10 monthly subscription offers one free taco every day, while Panera offers unlimited beverages for $10.99 per month.
In January, Sweetgreen experimented with a $10 monthly subscription providing a $3 discount once each day for 30 days. In August, a Subway subscription program offering half-off footlongs throughout the month of September to 10,000 customers sold out in six hours.
Gregory Francfort, a restaurant analyst at Guggenheim, told CNN that driving loyalty is critical for casual, sit-down restaurants since diners typically visit only two or three times a year and “increasing that even by just one visit can be very meaningful to revenue.”
- P.F. Chang’s Launches New Subscription-Based Loyalty Rewards – P.F. Chang’s
- P.F. Chang’s Launches $6.99 Monthly Subscription Program – Restaurant Business
- Will unlimited free drinks pay off for Panera? – RetailWire
- Will Taco Bell lovers sign up for a taco a day? – RetailWire
- P.F. Chang’s is launching a subscription program – CNN
- Subway Introduces Footlong Pass Subscription Service for $15 – QSR Magazine
- Sweetgreen rolls out a subscription program, as consumers kick off New Year’s resolutions – CNBC
- Taco Bell Brings Back Subscription Pass to Boost Loyalty Signups – Pymnts.com
DISCUSSION QUESTIONS: Do you see more potential revenue drivers than margin eroders in P.F. Chang’s Platinum Rewards paid-subscription program? What are the best perks?