San Francisco Chronicle - (Sunday)

Regulars give hope for future of dining

Bay Area restaurant­s use online services to sell subscripti­ons

- By Janelle Bitker

Bay Area restaurant­s are trying a new way to ensure survival during the pandemic: subscripti­ons. The idea echoes the performing arts world, with restaurant­s asking frequent customers to commit to supporting them regularly.

Some restaurant owners, such as Matt Brewer of San Francisco’s Che Fico, said they were already contemplat­ing the idea of some sort of subscripti­on service during the pandemic but — well, they got busy. Then, a couple of new tech companies appeared with online services already designed and ready to go. The entreprene­urs behind these offerings argue they can help fix flaws in the traditiona­l restaurant model long after the pandemic is over and even create new models for chefs no longer interested in brickandmo­rtars.

Restaurate­urs say they’re not sure this is the answer to saving their industry, but subscripti­ons could be one of many answers — and serve as a practical way forward.

“The idea of recurring revenue you can count on is something everything operator appreciate­s,” Brewer said. “At the same time, you can plan for it, too. It’s not like restaurant service where you don’t know if you’ll sell this or that.”

More than 70 people have signed up since November to pick up a monthly Che Fico provisions box, packed with local produce and items made by the restaurant, such as jams, pasta sauces and desserts. Che Fico uses Table22, a service started this spring by a New York entreprene­ur that’s also tapped San Francisco Irish bar Casements and Chinatown destinatio­n China Live.

Other restaurant­s have gone with the Third Place, which built steam as an app last month after San Francisco residents Vivien Sin and Glen Wang started it in August. Both of these new services allow restaurant­s to offer subscripti­ons of their own design, whether it’s those Che Fico boxes, a threecours­e pasta meal for two from San Francisco’s Cassava or wines with virtual tastings from the restaurant group behind San Francisco’s Atelier Crenn. Subscriber­s can typically choose to receive their goods — via delivery or pickup, depending on the service and the restaurant — as often as weekly or as little as once every three months.

Table22 takes a 10% commission, while the Third Place is currently free because of the pandemic but will eventually instill a 7% commission fee. Both cost restaurant­s less than delivery apps like Doordash and Grubhub, which are known for charging as much as 30%, while diners can cancel their subscripti­ons at any time.

Sin and Wang had been working on a venture to help restaurant­s for years, realizing “the business model is fundamenta­lly broken,” Sin said. When the pandemic hit, they accelerate­d their plans, believing that formalized patronage could help many restaurant­s.

“It’s really the notion of thinking about retention in a more systematic way,” Sin said. “Restaurant­s are stressed about one bad Yelp review killing business — this is more about taking care of your core audience.”

On average, the businesses on the Third Place have 20 to 40 subscriber­s paying $ 50 to $ 250 per month, according to Sin. While the app might introduce some valuebased plans in the future — encouragin­g families to subscribe by making it slightly cheaper than buying the same meals directly from the restaurant — Sin said that’s not ultimately the point. She wants it to feel more like an online social club, where subscriber­s get insider access to their favorite restaurant­s through private chat rooms and other tools.

At this point, Cassava owner Yuka Ioroi isn’t convinced the social aspect is what’s drawing customers to the service, which is bringing in a helpful but not yet gamechangi­ng $ 2,000 a month.

“I’m not sure people are being enticed about the chat rooms or having exclusive access to the chefs,” she said. “It’s more that they want our food and they don’t have to think to order — it’s coming.”

In that sense, these restaurant subscripti­ons are somewhat similar to a meal kit delivery service such as Blue Apron, except subscriber­s only have to do some light reheating and assembly instead of following a recipe.

In the cases of popular popups, subscribin­g can ease the pressure on constantly paying attention to Instagram to catch announceme­nts. Pandemicbo­rn San Francisco popup Dabao Singapore, for example, has built a fervent following for its rich Singaporea­n laksa, and in the past, it’s been challengin­g to snag a bowl before they sell out. Subscriber­s, however, are guaranteed their laksa.

Sin said subscripti­on services can also create new business models for chefs who don’t want to work in traditiona­l restaurant­s. She pointed to Eric Minnich, who was laid off during the pandemic from his executive chef job at upscale Spanish restaurant the Commissary. Now, he serves meals such as grilled steak with romesco sauce and greens to an average of nine households every week for $ 75 apiece. Having loyal subscriber­s also creates other opportunit­ies, like doing meal prep or cooking additional dinners.

“There’s a very personal relationsh­ip establishe­d there, which is something I’ve never experience­d as a chef at a restaurant,” Minnich said.

There are drawbacks. He misses working with other creative chefs and sommeliers, and Minnich doesn’t love boxing up food for delivery. But he may choose to stay on the subscripti­on track postpandem­ic, knowing many of the challenges facing restaurant­s won’t disappear when vaccines are distribute­d.

“It may not be the 100% solution to a lot of the problems, but it’s a step in the right direction to make people think differentl­y about what a restaurant is,” he said. “The only way to change the restaurant industry — outside draconian measures — is different models, different ways of competing with it.”

 ?? Rosario Estrella ?? Meals available through the Third Place subscripti­on service, clockwise from top left: laksa broth and toppings from Dabao Singapore; New York strip and trimmings from chef Eric Minnich; and a pasta dinner, salad and dessert from Cassava.
Rosario Estrella Meals available through the Third Place subscripti­on service, clockwise from top left: laksa broth and toppings from Dabao Singapore; New York strip and trimmings from chef Eric Minnich; and a pasta dinner, salad and dessert from Cassava.
 ?? Third Place ??
Third Place
 ?? Liz Hafalia / The Chronicle ??
Liz Hafalia / The Chronicle

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