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WHAT HAPPENED TO CS?
The Covid pandemic created many crisis, but I did not think it would distance each other, affecting customer service, so vital in the hospitality industry.
Flavors and Knowledge
May 11

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Buongiorno amici:

The new subscription phenomenon needs little attention, so I add my two cents. In the mid-80s, I opened my first restaurant after mortgaging my home and placing financial death on my head like a guillotine. I had technical ability in the kitchen but was a complete novice in the art of marketing, and it showed relatively soon. Great concept, top-notch fine dining, exclusive, and utterly dedicated to la Cucina Italiana. No customers in the dining room.

I applied the only ingredient I had at hand. Concentrating on each person that walked through the door.

Their names, birthdays, eating habits, cultural backgrounds, health issues, and if they were open to trusting a chef. I offered plenty of discounts, complimentary cocktails, special attention, table-side service dessert, and complimentary cakes for ladies’ birthdays. I attempted to make everyone in the dining room feel like they were VVIP, as they say in Saudi Arabia.

We created a file on everyone except invading their privacy. As a result, Walters Ristorante d’Italia became, in 8 months, a national address featured in every major daily in the land, including my native Italy. After, 11 other restaurants were launched with the very idea. Work on each person, and make them trust you in anything related to sound, healthy living.

Unfortunately, I did not have the foresight and creativity to create a subscription program for my guests, which is in vogue today. Times have changed; we walked away from customer service, we demand more tipping, and we teach and taste wine through Zoom (ridiculous). Yes, indeed, times changed drastically.

And with the new social world, the subscription model has recently gained popularity in the restaurant industry. Moreover, with the rise of food delivery services and the pandemic that twisted our existence, more and more restaurants are exploring offering subscription-based services to their customers.

But is this model sustainable in the long term?

First, let’s take a look at how restaurant subscriptions work.

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Customers enroll in a monthly or annual paid membership to receive a set number of meals or other perks, such as discounts or exclusive access to special events. This recurring revenue stream can help restaurants offset the ups and downs of traditional restaurant sales. One of the main benefits of the subscription model is that it can provide a predictable source of income for restaurants. In addition, instead of relying solely on daily foot traffic, subscriptions can help restaurants plan and budget more effectively.

Moreover, subscriptions can create a sense of loyalty among customers, as they are incentivized to continue patronizing the restaurant to make the most of their subscription. Another advantage of the subscription model is that it can help restaurants build customer relationships. By offering exclusive perks and benefits to subscribers, restaurants can create a community around their brand. This can lead to increased customer engagement and advocacy, as well as valuable feedback and insights into customer preferences.

However, after analyzing the subscription model, it may offer some potential drawbacks.

One concern is that it could lead to declining quality or variety of food offerings. For example, suppose restaurants are focused on providing a set number of meals each month. In that case, they may be less likely to experiment with new dishes or ingredients. In addition, customers may become bored with the same offerings month after month, leading to a decline in interest and loyalty. Another challenge with the subscription model is that it requires a significant upfront investment from restaurants.

To offer subscriptions, restaurants need the infrastructure to manage orders and deliveries and the staffing and resources to produce a consistent volume of food. Therefore, the model may create a significant barrier for small or independent restaurants, which may need more resources to support a subscription program.

 

FOTO {Image Attribution via Unsplash Joshua Rodriguez}

Despite these challenges, some examples of restaurants have successfully implemented subscription models. For example, fast-casual chain Panera Bread launched a coffee subscription program ($120.00 per year for unlimited sips), allowing customers to pay a monthly fee of $11.99. The program has been a hit with customers and has helped to drive foot traffic and sales at Panera locations.

Similarly, in the UK, restaurant Indian-style chain Dishoom offers a subscription service called the Bacon Naan Roll Kit. It delivers ingredients and instructions for customers to make bacon naan rolls at home. The kit has been a popular offering and has helped drive revenue and engagement for the restaurant. So, can the subscription model be sustainable in the long term? The answer is… it depends. While there are certainly benefits to the model, significant challenges must be overcome to make it work.

One key factor is the size and scale of the restaurant. Large chain restaurants like Panera or Dishoom have the resources and infrastructure to support a subscription program. In contrast, smaller independent restaurants may need help to make it work. In addition, the type of cuisine and menu offerings can also impact the viability of a subscription program. For example, some types of food may be better suited to the model than others, depending on factors like preparation time, shelf life, and delivery logistics.

Another important consideration is the ongoing commitment required to make a subscription program successful. Restaurants must be willing to invest the time and resources necessary to manage the program, from marketing and promotion to order fulfillment and customer service. This can be a significant undertaking and may require a dedicated team or partner to help manage the costly logistics.

Ultimately, the success of a subscription program will depend on various factors, including the restaurant’s size and scale and the type of cuisine. But, in total honesty, I miss my customer service model. It did not rely on social anything. Instead, it was simply uncomplicated living that touched everyone’s soul.

 

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