Dive Brief:
- Panera Bread will begin limiting its Sip Club subscription to 30 drink redemptions per month, effective Aug. 19, according to program terms and conditions updated Monday.
- Previously, the Unlimited Sip Club, which launched in 2020 as an unlimited coffee and tea program, offered one drink every two hours each day. The company has already removed “Unlimited” from its Sip Club website. Members will continue to receive free refills while dining inside the restaurant.
- The changes to the drink subscription program come after Panera began piloting a points-based rewards program in 216 restaurants in January, with a rollout expected later this year.
Dive Insight:
Panera has changed its Unlimited Sips Club over the years. In 2022, it expanded the program to cover all self-service drinks, including iced coffee, lemonade and soft drinks. At the time, the cost was $10.99 per month. In 2023, the chain added an annual subscription option for $119.99.
Per the updated terms, the monthly subscription is now $14.99, while the annual charge remains the same. The program excludes specialty drinks like Energy Refreshers, Frescas, bottled beverages, smoothies and frozen blended drinks and various other specialty drinks, per its terms and conditions. It also excludes most customizations, which can still be purchased for an additional upcharge.
Panera claims on its website that a customer who redeems a 30 ounce beverage each day, at an average price of $3.99, would save over $100 per month with the monthly subscription price.
The August updates could help support the chain’s ongoing turnaround initiative Panera RISE, which includes various shifts in marketing, customer service and menu innovation meant to help the chain reach $7 billion in annual sales by 2028. Panera has already made other updates to its menu, including adding handheld versions of its salads, Market Bowls, a Mix & Match value menu and various specialty beverages like Refreshers.
