Panera Bread looking to be the Netflix of fast casual restaurants
Panera's coffee subscription service has chain eyeing program expansion
A cinnamon cruch bagel at your doorstep weekly or a chipotle chicken avocado melt on demand. That could be the future of Panera Bread based on the success of its recently introduced coffee plan.
“You just turn on Netflix and it’s there. And what’s our version of that? What kind of services or categories would be of interest?" asks Panera's chief brand and concept officer Eduardo Luz.
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In a recent interview with AdWeek disucssing the possibility of recurring revenue models, Luz said becoming the Netflix of fast casual eateries "makes a lot of sense" for Panera's business.
Panera launched a coffee subscription service back in March, which offers unlimited hot and iced coffee as well as hot tea for $8.99 per month. A new summer promotion is offering a free coffee subscription for anyone who signs up during the summer, and will extend the offer through Labor Day if customers can get 5 of their friends to also sign up.
More than 800,000 people have opted into Panera's coffee subscription as of the week ending July 18. According to Panera, more than 50 percent of its transactions come from the MyPanera loyalty program, which has 40 million members.
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The restaurant chian is also reportedly looking into new services to help its customers whose lives have been upended by the coronavirus, including a subscription service tied to lunchtime to help parents feed their children in preparation for potential school cancellations in the fall due to the pandemic.
“When fall comes, schools will be disrupted with this crisis. In some cases, school will not be back,” Luz said.
In addition, Panera is adding new items to its menu, such as a teriyaki chicken sandwich, and has simplified and streamlined its menu with 40 percent fewer items, according to Luz.
A spokesperson for Panera did not immediately return FOX Business' request for comment on the report.