Subscription Services Are a Hit With Customers and Franchise Owners

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If more tacos is your idea of joy, you will join a wave of consumers nationwide who are onboard and enthused over Taco Bell’s new subscription service.

Since its trial run in September, Taco Bell’s “Taco Lover’s Pass” membership program has been a win-win. Owners love the growth in membership and returning customer rate. Consumers love getting free tacos and perks.

Taco Bell reports their subscription program is generating new loyalty members and traffic. Data shows members of the Taco Lover’s Pass program are three times more likely to visit a Taco Bell in a given month. And since it works through their app, it builds on the brand’s digital growth. The fast-food chain’s digital sales now account for 20% of the overall mix, with the company’s goal set to eventually reach 50% in this sector.

The move comes at a time when consumers are increasingly adopting the idea of subscriptions in other industries as well, including movies, music, exercise, and entertainment genres. Once customers pay upfront for a membership, they are highly motivated to use the service. Pandemic conditions also contributed to heightened subscription use.

Taco Bell isn’t the only fast food chain capitalizing on the trend. Panera Bread’s pilot program saw a whopping 70% increase of diners and an initial 25% increase in loyalty members. A 2002 State of the Industry Report by the National Restaurant Association revealed 57% of adults would likely participate in a subscription program if it were offered at their favorite restaurant. 80% of millennials and Gen Z’ers chimed in with their support.

What popular chains will get on the subscription wave next, and will your favorite be on the list? Find out more here:

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