Would YOU pay $30/month for all you can drink coffee? How about $700 for a month’s supply of steak? Many Japanese customers would, and that demand is behind a new business model that Japanese restaurants say is driving increased loyalty and revenue.
Asahi Shinbun reports on a variety of shops that are resorting to a subscription model for certain items. For example, the izakaya Yuyu in Tokyo’s Akihabara offers a deal where, for $30/month, customers can drink unlimited amounts of beer or chuuhai (酎ハイ; alcohol made from soda and Japanese liquor or fruit). Other subscription services includes: $700 for up to 450 grams of steak in a single visit every day of the month; $85/month for a bowl of ramen a day; and $30/month for all you can drink coffee.
Customers who visit repeatedly report feeling like the more they come, the better of a deal they’re getting. For restaurants, the systems not only ensure repeat business, but drive sales of other items on the menu. The flow of repeat business also provides an opportunity to cross-sell: the more customers come in, the more businesses can learn about their preferences, and specifically offer products that cater to their tastes.
The concept of all you can drink (飲み放題; nomihoudai) is already popular in value-conscious Japan, with many restaurants offering all you can drink plans for the evening for groups of specified sizes. However, many restaurants continue to struggle to stay afloat, especially as younger Japanese continue to drink less alcohol, and as people decide it’s more economical to drink from home. Asahi itself reports that about 20% of inshokuten (飲食店; restaurants that serve both food and booze) shutter a couple of years after opening. Subscriptions provide the ability not just to attract new customers, but to guarantee loyalty. With Japan’s economy still struggling, and the country spending billions to recover to from various national disasters in recent years, restaurateurs are looking for any gimmicks they can find to keep themselves afloat.
