Subscription models have become big business: clothing retailers are getting in on the action, and now Panera Bread is taking aim at Starbucks with a new monthly subscription plan that just might work.
Panera Bread ($PNRA) just launched its Panera Coffee subscription. For $8.99 per month, MyPanera reward program members can grab a drink of choice every two hours, as much as they want, or until their eyes begin to twitch (whichever comes first). It is — potentially — a clever way to offer a cost-effective alternative to Starbucks ($SBUX) addicts who, by some estimates, spend as much as $1,100 per year on coffee.
Here's why it may work: Our proximity analysis shows that there are at least 20 cities in the US where there are 2 Panera Bread's within a quarter of a mile of a Starbucks. In other words, the odds are that Starbucks customers looking for an option are within walking distance of a Panera. The most common thing we found was in places like Seattle and New York City, where there was a LOT of both stores near each other. But what about places in the country where walking distance isn't so ubiquitous?
In Washington DC, for instance, dozens of Starbucks have 6 Panera Breads within 1 mile. On Average, every Starbucks in the US has .3 Paneras within a mile. That may not sound like a lot, but when we look at cities in which coffee drinkers are common, it's clear that Panera's subscription plan just may woo some caffeine addicts. In Richmond Heights, MO, for instance, Starbucks' has 3 Paneras within a mile on average. In Washington, DC, there is an average of 2.3 Paneras within a mile of each Starbucks.
|
Starbucks City |
State |
Number of Paneras within 1 mile |
|---|---|---|
|
Richmond Heights |
MO |
3.00 |
|
Washington |
DC |
2.33 |
|
Greer |
SC |
2.00 |
|
Pensacola |
FL |
2.00 |
|
Everett |
MA |
2.00 |
|
Columbus |
OH |
2.00 |
|
Washingon |
DC |
2.00 |
|
Strongsville |
OH |
1.78 |
|
Boston |
MA |
1.73 |
|
Grand Haven |
MI |
1.67 |
The top-10 cities when it comes to Paneras within a mile of Starbucks are listed above. Panera has been in a growth mode of late, too, as the store-count data below describes.
This new subscription plan is clearly an aggressive push for Panera, but if it increases foot traffic to its locations even as a loss leader, it stands to reap major rewards while distancing itself from similar coffee and healthy fare restaurants like Au Bon Pain.
The other thing this could do is finally get the Panera Bread Instagram account to crack half a million. It's been stuck below 500K for months now.
Panera's Facebook followers have also hit a plateau for the past two years. Maybe this will cause an uptick in 'Talking About' count, which could start to get the proverbial ball rolling on getting new followers, new fans, more likes, and more sales for this subscription plan.
About the Data:
Thinknum tracks companies using the information they post online - jobs, social and web traffic, product sales and app ratings - and creates data sets that measure factors like hiring, revenue and foot traffic. Data sets may not be fully comprehensive (they only account for what is available on the web), but they can be used to gauge performance factors like staffing and sales.