US eateries survive by subscriptions

New York – For Jebin Tuladhar, the past two years have been like walking a tightrope as he tried to steer Shanti, the Indian restaurant chain he manages in Boston, through the pandemic.

To cope, Shanti in June started offering customers at the restaurant’s three locations in and outside the city a subscription deal where a gourmet meal for two costs $80 (about R1 226) each month.

The plan now has about 80 subscribers, and Tuladhar estimates that if he adds about 10 additional accounts each month, Shanti can soon reach the breakeven point of 160 subscription.

From those offering fast food to others where white tablecloths are the norm, restaurants across the US are rolling out subscriptions to bolster their damaged businesses and lure back customers scared off by the pandemic.

In Washington, Italian restaurant La Collina launched a “Pasta Club” where, for $85 a month, customers receive two deliveries of pasta with sauce homemade by chef Katarina Petonito.

About 60 households have been won over so far.

“There is no denying that the pandemic has caused restaurants to pivot and learn new ways to connect with guests,” said Danya Degen, director of operations for Eastern Point Collective, the company of which La Collina is a part.

Cafe chain Pret a Manger is offering US customers as many as five coffee drinks a day for $19.99 a month, a programme that started last September after a successful trial run in Britain.

In January, Taco Bell rolled out the “Taco Lover’s Pass,” which allows you to order one taco a day over a 30-day period for $10.

The fast-food giant is presenting the programme as time limited but has set no deadline for it to end and is treating it as an experiment.

David Henkes, senior principal at restaurant consultancy Technomic, said these subscriptions can be both profitable and helpful to companies looking to expand their customer base. “What you’re really hoping to do is drive that engagement with the consumer.”

Besides fast food, most outlets that have launched subscriptions rely primarily on home deliveries because of the pandemic, but they don’t plan to stop there. The Wells, a bar owned by Eastern Point Collective, has created “Gin Society,” whose members get the ingredients for a cocktail sent to their homes each month, and also priority reservations and exclusive access to new drinks and food when visiting the bar.

Several companies have been set up to support these subscriptions, including Table22, which is collaborating with Shanti and La Collina, and the Summerlong Supper Club in New York, which launched a subscription-based programme early last year with 16 partner restaurants. –