PF Chang’s launches subscription program

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New York
CNN Business

First it was streaming services, then tacos, and now the last subscription you might be paying for: Chinese food.

PF Chang’s is relaunching its seven-year-old loyalty program to now include a paid tier, joining a growing trend of restaurants entering the space.

For $6.99 per month, members of the chain’s Platinum Rewards program will earn 15 points for every dollar spent, redeemable for a $15 credit once 2,000 points have been earned. Platinum members are also eligible for unlimited free shipping and access to priority reservations, among other benefits.

The chain’s existing loyalty program isn’t going away: the free tier will be renamed Gold and offer fewer benefits, including only earning 10 points per dollar spent.

The program’s goal is to create “added value for loyal customers,” PF Chang’s explained in a press release. “As the first fine-casual restaurant chain to launch this type of loyalty program, we are proud to drive innovation in the industry while adding even more value for our customers,” said CEO Damola Adamolekun. in the press release.

Loyalty programs have been proven to increase customer frequency, increase revenue through fixed fees, and help give restaurant owners insights into ordering habits that help target customers with personalized offers.

Taco Bell has found success with its $10 per month Taco Lover’s Pass program that gives customers a free taco every day.

Others include Sweetgreen, which experimented with a paid pass in January. Last month, Subway launched a $15 pass that offered customers a 50% discount on its one-foot subs that sold out in just 6 hours. Panera currently sells a beverage subscription program for $10.99 per month.

For casual, sit-down restaurants, loyalty is even more important since diners typically only visit two to three times a year and “increasing that by even just one visit can be very significant for revenue,” according to Gregory Frankfurt, a restaurant analyst. at the Guggenheim.

“Loyalty programs provide customers with key benefits while helping brands understand how their customers behave so they can better market their offerings to those consumers,” Frankfurt told CNN Business. The biggest benefit of PF Changs’ program, in his view, is free shipping as the chain aims to grow that part of its business.

PF Chang’s is privately held with approximately 200 locations in the United States.

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