Coffee subscriptions have been in existence for more than ten years, but they unexpectedly surged to new heights during the pandemic. According to Square's annual report, the average size of subscriptions managed by coffee shops and roasters doubled in 2020.
Coffee shops and roasters know the importance of offering the freshest beans and most premium roasts to keep customers coming back. As a coffee shop owner, you have an opportunity to take your customer experience to the next level by offering your customers farm-fresh coffee bean subscriptions shipped directly to their doorstep. With subscriptions, you can provide your customers with curated coffee selections on a schedule of their choosing.
The Rise of Coffee Subscriptions for Fresh, Quality Beans
Coffee subscriptions have become increasingly popular, especially over the last year. Many coffee lovers have discovered the benefits of subscribing to receive fresh, sustainably sourced beans regularly delivered to their door.
For coffee shops, subscriptions offer an opportunity to build customer loyalty by providing high-quality, curated coffee experiences. Customers can discover new favorite roasts and single origins through coffee subscription services that offer variety and freshness.
Leading coffee brands like Peet's, Stumptown, and Devocion now offer coffee subscriptions with free shipping and discounts. Peet's, for example, provides subscribers with up to 10% off all orders and free delivery. They offer curated subscription series featuring blends like Small Batch, Single Origin, and Decaf. New subscribers can receive 30% off their first order.
The rise in artisanal coffee culture and an increased focus on sustainable and ethical business practices have boosted the popularity of coffee subscriptions. Consumers want to know the origin and farming practices behind their coffee and are willing to pay more for high-quality, responsibly sourced beans.
For coffee shops, launching a subscription program is an opportunity to highlight your commitment to quality, sustainability, and fair trade. Offering single-origin coffees and exclusive blends only available to subscribers can help build brand loyalty and attract new customers seeking a premium experience. Coffee subscriptions provide a way to engage customers with your brand on an ongoing basis.
How Coffee Shops Can Offer Subscriptions With a Mobile App
As the coffee industry expands and transforms, independent coffee shops are consistently exploring fresh methods to draw in and keep customers. A creative strategy that has gained popularity in recent years is the introduction of coffee subscription services. This trend has influenced coffee brands to build their mobile ordering apps. A mobile app simplifies the order placement process for your customers, and the incentives provided through the tiered subscription program to loyal customers encourage them to establish a habit of returning.
Reap the Benefits of Recurring Revenue
Subscription models provide predictable recurring revenue by charging customers on an ongoing basis. You'll gain insight into sales forecasts and be able to better anticipate demand for your coffee beans. Offering subscriptions also incentivizes customers to continue purchasing from you over the long term.
Provide Added Convenience for Customers
Coffee drinkers will appreciate the convenience of regular home deliveries of their favorite sustainably and ethically sourced coffee. Your app makes it simple for them to select a plan, pay, and manage or cancel their subscription at any time. They'll also earn rewards and receive special offers through the app for being loyal subscribers.
Gain Valuable Data to Improve Your Business
The mobile app gives you access to data about your subscribers' preferences and behaviors. You'll see details like the types of coffee they order, frequency of orders, and more. Use these insights to optimize your product offerings, better target marketing campaigns, and deliver an exceptional customer experience.
Choice and Personalization
A good subscription program offers choice and flexibility. Coffee shops can provide a range of subscription types like:
- Single-origin subscriptions to highlight unique beans from a specific region.
- Blend subscriptions for crowd-pleasing flavors.
- Decaf and dark roast options.
- Frequency options from weekly to monthly deliveries.
The best subscriptions are highly customizable. Customers can specify roast levels, grind sizes, and the exact beans they want to receive. Using their app, coffee shops have an easy way to promote their subscription services and make the signup process simpler. They can then manage all aspects of the subscriptions in one place, from taking payments to ensuring prompt delivery of the freshest beans to their subscribers’ doorsteps.
Successful Coffee Subscription Programs
Successful coffee subscription programs, like those offered by Peet’s Coffee, Coffee Project NY, Trade Coffee, and Devocion, provide a lucrative model for your own business.
Peet's Coffee, an iconic craft roaster, offers curated monthly coffee subscriptions with free home delivery and up to 10% off all orders. New subscribers get 30% off their first order. Customers can choose whole beans or ground coffee in a variety of roasts like Small Batch, Dark Roast, and Single Origin. Peet’s Coffee’s subscription program generates over $36,000 per year.
Devocion, a Brooklyn-based roaster, offers single-origin coffee subscriptions with free shipping. Subscribers choose between weekly, biweekly, or monthly delivery of freshly roasted beans from Devocion’s direct trade partners in Colombia and Peru. Devocion is renowned for exceptional coffees and personalized customer service. Their subscription program is an ideal example for specialty roasters looking to build loyalty and steady revenue.
Trade Coffee, an innovative craft coffee marketplace, provides a highly profitable subscription model. They partner with artisanal roasters across the U.S. to offer over 400 coffees. Subscribers receive a personalized recommendation quiz to match them with coffees they'll love. Plans include weekly, biweekly, or monthly shipments of whole beans or ground coffee. Trade Coffee’s success demonstrates the potential of coffee subscriptions.
Coffee Project NY
Coffee Project NY allows customers to choose between weekly, biweekly or monthly subscriptions of whole bean or ground coffee. They highlight seasonal coffee selections from small farms working to improve sustainability and fair wages for farmers. Subscribers get farm-fresh coffee at a 10-15% discount.
The success of these programs shows that customers appreciate the convenience, variety, and freshness of coffee subscriptions. They are willing to pay a premium for high-quality beans and to support sustainable and ethical business practices.
Implementing a subscription service for your coffee shop or roastery is a great way to build a loyal customer base, increase average order value, and drive repeat business.
Start Your Own Coffee Subscription Service
With a good mobile app that enables subscriptions, you can launch your coffee subscription plan easily. Your customers will be able to sign up to receive their favorite fresh beans shipped directly to their door on a schedule that suits them.
By offering a subscription service, you’ll gain several benefits:
- Build customer loyalty through a convenient service that delivers ongoing value.
- Gain insight into your customers’ preferences and habits to better personalize their experience.
- Create an additional revenue stream through subscription fees and increased bean sales.
- Reduce waste by ensuring you have the right amount of fresh inventory on hand to meet subscription demand.
To get started, determine the subscription options you want to offer, such as weekly, biweekly or monthly delivery of different bean varieties or blends. Set a price for each subscription tier that provides good value to your customers and a profit for your business. Promote it through your app, email marketing, social media, and in-store displays. Offer a discount for new subscribers to encourage sign-ups.
Offer farm-fresh coffee subscriptions to your regular customers and ship your sustainably and ethically sourced beans directly to their doorsteps. Your customers will enjoy the convenience and quality of being able to brew your great coffee at home whenever the urge hits. Offering a subscription service is an excellent approach to growing revenue and reaching new customers. So, as a coffee shop owner, are you thinking of launching your own subscription plan? Feel free to start a conversation with us!