When Pret A Manger launched its ambitious coffee subscription campaign in September 2020, the world was in the throes of the COVID-19 pandemic. With fewer commuters in city centers and a dramatic drop in foot traffic, the British fresh food and coffee chain needed an innovative solution to keep its customers engaged and revenue streams flowing. Enter the Pret Coffee Subscription, a bold initiative offering customers up to five hot or iced drinks per day for a monthly fee of £20, later increased to £30. This campaign was hailed as a game-changer in the food and beverage industry. But as Pret gears up to overhaul its subscription model, we examine the highs and lows of this journey and what might lie ahead.
Subscription Launch and Initial Success
The initial response to Pret’s subscription service was overwhelmingly positive. The allure of unlimited daily coffee for a fixed price was too tempting for many to resist, especially with remote work blurring the boundaries of traditional office hours. Within the first three months, Pret reported signing up over 16,500 subscribers, a figure that would grow substantially as the service gained traction.
By the end of 2020, Pret’s subscription service had attracted over 150,000 subscribers. According to Pret’s CEO, Pano Christou, the subscription model played a crucial role in stabilising the company’s revenue during a tumultuous year. “The subscription has helped us generate a steady cash flow and retain customer loyalty at a time when footfall is unpredictable,” Christou noted in a December 2020 interview with Bloomberg .
Peak Performance and Expansion
2021 marked the peak of Pret’s subscription model. The service expanded beyond the UK, reaching Pret’s locations in the US and France. During this period, Pret saw a significant increase in daily visits from subscribers, who not only redeemed their drinks but also often purchased additional items. 37% of transactions in the UK were made through digital channels, with Coffee Subscription used more than one million times each week in the UK.
The Challenges and Criticisms
However, not all was smooth sailing. As the subscription model matured, Pret faced logistical and operational challenges. The unlimited nature of the subscription led to increased pressure on store staff and supply chains, particularly during peak hours. Some customers began to voice frustrations over long wait times and inconsistent service quality.
Moreover, the financial viability of the subscription came under scrutiny. Analysts pointed out that while the model drove traffic, the margins on discounted and free drinks were thin, raising questions about long-term profitability. The competitive landscape also shifted, with other coffee chains and independent cafes launching their own subscription services, intensifying the battle for consumer loyalty.
Pret launched a smart QR code system to try and stop the persistent ‘over-sharers’ of their subscriptions.
The Turning Point
In July 2024, Pret announced a significant change to its subscription model, set to take effect in a few months. The new scheme would reduce the monthly fee from £30 to £10, but subscribers would only receive a 50% discount on up to five drinks per day, instead of the previously unlimited free drinks. This move sparked a wave of reactions from customers, with some expressing disappointment and others threatening to cancel their subscriptions.
A Pret customer on social media lamented, “It’s a very sad day for coffee lovers,” while others branded the move “ridiculous.” The shift reflects a strategic pivot by Pret to address the sustainability of the subscription model while still offering value to customers. “We are committed to evolving our offerings to meet customer needs and business realities,” Pret stated in a recent press release.
The Future Outlook
As Pret navigates this transition, several questions remain. Will the reduced monthly fee and discounted drinks retain the loyalty of current subscribers? Can Pret maintain the delicate balance between customer satisfaction and profitability? And how will this shift impact Pret’s overall market position in a highly competitive industry?
The data suggests that Pret’s subscription model, despite its challenges, has been a significant driver of customer engagement and revenue. As Pret embarks on this next phase, the company will need to leverage insights from the past three years to refine and optimize its approach. The evolving subscription landscape presents both opportunities and risks, and Pret’s ability to adapt will be crucial in shaping its future success.
Pret A Manger’s journey with its subscription campaign is a testament to the power of innovation in times of crisis and the necessity of agility in business strategy. As the company moves forward, the lessons learned from this experience will undoubtedly inform its path, offering valuable insights for the broader industry but it is without doubt, many coffee lovers will be nursing their last subscription lattes very soon.
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