Eat Up: Supper Clubs Get 21st Century Makeover

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Once contained to news and entertainment, subscription services have become a staple of all sorts of businesses today. Even as early adopters like Netflix describe a certain kind of subscription fatigue, new industries are launching subscription packages with success. Among the latest sectors are restaurants, with both large and small establishments increasingly giving subscriptions a shot.   

For small restaurants, supper clubs are a chance to get personal 

Almost two years ago, El Lopo, a Spanish tapas outpost in San Francisco, rolled out its first subscription offering. According to owner Daniel Azarkman, the tide was turning in March 2021 when he was approached by The Third Place, an online platform that helps local restaurants use subscriptions to strengthen customer relationships. The encounter would prompt Azarkman to create El Lopo’s take-care-of-me club.  

There was less on-site dining then, and most subscription ideas were about home kits or wine clubs, which were all popular at the height of COVID. But Azarkman was focused on returning to on-site dining and wanted to harmonize the subscription concept with getting people back through his doors. Framing the offering as a supper club that gives members a house credit felt like the right balance. “It kind of doubled as a loyalty program and a way to just have some more predictable revenue,” he recalls. 

Today, El Lopo’s club has about 27 members and Azarkman estimates roughly 15 members visit more than once a week. The club is geared toward local patrons and regulars; for $89 per month, each member receives a $100 credit. The size allows Azarkman to personalize meals — there are no menus, no bills; they simply bring members food they know they’ll like. 

Large restaurants experiment with subscriptions at scale

On the opposite end of the spectrum is Asian fusion chain P.F Chang’s. Over email, Genaro Perez, SVP of marketing, shared the company’s journey with subscriptions. Launched in September 2022, the restaurant’s Platinum Rewards program was among the first of its kind in the polished-casual dining category. Mr. Perez said it’s part of their omnichannel approach, allowing guests to interact with the restaurant when, where, and how they want. 

For $6.99 per month, members enjoy unlimited free delivery and priority reservations, while earning 20 points for every $1 spent. Like El Lopo, Perez relays that subscriptions are increasing dining and spending. “About 30 percent of all subscribers are ranked in the top percentile for frequency and spending,” he reports. When dining in, subscribers spend 18 percent more than nonmembers. 

Each restaurant sees a preference for service-based benefits

Just as both restaurants see higher engagement from subscribers, they also see a desire for more service-based benefits, rather than just item-based rewards, like a free appetizer or dessert. As an example, Perez cites the concierge service that comes with Platinum Rewards, in which members get priority attention from the guest services team. This may be one way of scaling what Alvarez sees as the biggest draw of El Lopo’s supper club. As he puts it, “A lot of the appeal of the program is our members feeling like they’re special — our staff knowing their names, what they want when they come in.”

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