Home » Lifestyle » Panera Bread’s new Unlimited Sip Club subscription foreshadows return to public markets
Panera Bread’s new Unlimited Sip Club subscription foreshadows return to public markets
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Panera Bread is expanding its unlimited drink offerings in an effort to increase existing and new customers' visit frequency and spending.
Last year, the company launched its $8.99 Coffee Club subscription for MyPanera members, which has successfully driven strong transaction momentum during breakfast. The subscription offers unlimited refills of hot coffee, iced coffee, or hot tea. As of the end of 2021, Panera has approximately 600,000 Coffee Club subscribers, with new customers accounting for about 43% of the total. Compared to non-My Panera members, coffee subscribers spent up to 11 times more annually in fiscal 2021.
"Existing customers are coming in eight times more every month," Panera Bread CEO Chaudhary told FOX Business. "[They are] also attaching other food at least 30% of the time when they're coming in."
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Now, MyPanera customers can sign up for the new $10.99 per month Unlimited Sip Club subscription, which offers up to 26 drinks including drip hot coffee and iced coffee, hot tea, iced tea and lemonade, fountain soda and the company's new Fuji apple cranberry, mango citrus yuzu, and strawberry lemon mint charged lemonades.
Subscribers can select one self-serve beverage of any size every two hours during regular bakery-cafe hours, including free refills at participating U.S. Panera Bread bakery-cafes.
"We think this expanded beverage range will drive the momentum for lunch and for dinner, and therefore the attachments will be on a higher ticket," Chaudhary said. "So it should replicate the success that we had with the coffee program as we go forward."
Customers who sign up between now and May 6 will receive a free subscription through July 4.