Coffee Chains Embrace Subscription Services for Boosted Sales

Coffee Chains Embrace Subscription Services for Boosted Sales

Major coffee franchises are shifting towards subscription services, which provide customers with special perks like free drinks and exclusive discounts. This trend is helping these companies stay competitive against cheaper coffee shops, especially as market prices rise. The "lock-in effect" is also observed, where customers become reliant on these services. Starbucks Korea has launched its Buddy Pass, offering discounts and free delivery, while Gong cha Korea has introduced an unlimited drink subscription. The Coffee Bean has also joined in with its Aurora service. These initiatives have led to increased customer visits and savings for subscribers. As consumers look for affordable options amidst rising prices, these subscription services are becoming essential for coffee chains to attract and retain customers.

• Subscription services offer perks like discounts, free drinks, and delivery.

• Starbucks Korea's Buddy Pass increased store visits by 50% during testing.

• Gong cha's service allows unlimited drinks for 30 days at a fixed price.

• The Coffee Bean's Aurora service includes free drinks and discounts.

This trend is significant as it reflects changing consumer behavior in a competitive market. With coffee consumption in Korea rising, these subscription models provide a way for franchises to maintain customer loyalty and adapt to economic pressures. As coffee prices continue to climb, these services may become a standard offering, shaping the future of the coffee industry.

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