Name: Would you buy a subscription to a restaurant? Bay Area businesses turn to regulars in new model
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Would you buy a subscription to a restaurant? Bay Area businesses turn to regulars in new model

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Bay Area restaurants are trying a new way to ensure survival during the pandemic: subscriptions. The idea echoes the performing arts world, with restaurants asking frequent customers to commit to supporting them regularly.Some restaurant owners, such as Matt Brewer of San Francisco’s Che Fico, said they were already contemplating the idea of some sort of subscription service during the pandemic but — well, they got busy. Then, a couple of new tech companies appeared with online services already designed and ready to go. The entrepreneurs behind these offerings argue they can help fix flaws in the traditional restaurant model long after the pandemic is over and even create new models for chefs no longer interested in brick-and-mortars.Restaurateurs say they’re not sure this is the answer to saving their industry, but subscriptions could be one of many answers — and serve as a practical way forward.“The idea of recurring revenue you can count on is something everything operator appreciates,” Brewer said. “At the same time, you can plan for it, too. It’s not like restaurant service where you don’t know if you’ll sell this or that.”More than 70 people have signed up since November to pick up a monthly Che Fico provisions box, packed with local produce and items made by the restaurant, such as jams, pasta sauces and desserts. Che Fico uses Table22, a service started this spring by a New York entrepreneur that’s also tapped San Francisco Irish bar Casements and Chinatown destination China Live.Other restaurants have gone with the Third Place, which built steam as an app last month after San Francisco residents Vivien Sin and Glen Wang started it in August. Both of these new services allow restaurants to offer subscriptions of their own design, whether it’s those Che Fico boxes, or Subscribers can typically choose to receive their goods — via delivery or pickup, depending on the service and the restaurant — as often as weekly or as little as once every three months.Table22 takes a 10% commission, while the Third Place is currently free because of the pandemic but will eventually instill a 7% commission fee. Both cost restaurants less than delivery apps like Doordash and Grubhub, which are known for charging as much as 30%, while diners can cancel their subscriptions at any time.Sin and Wang had been working on a venture to help restaurants for years, realizing “the business model is fundamentally broken,” Sin said. When the pandemic hit, they accelerated their plans, believing that formalized patronage could help many restaurants.“It’s really the notion of thinking about retention in a more systematic way,” Sin said. “Restaurants are stressed about one bad Yelp review killing business — this is more about taking care of your core audience.”On average, the businesses on the Third Place have 20 to 40 subscribers paying $50 to $250 per month, according to Sin. While the app might introduce some value-based plans in the future — encouraging families to subscribe by making it slightly cheaper than buying the same meals directly from the restaurant — Sin said that’s not ultimately the point. She wants it to feel more like an online social club, where subscribers get insider access to their favorite restaurants through private chat rooms and other tools.Food &amp; WineAt this point, Cassava owner Yuka Ioroi isn’t convinced the social aspect is what’s drawing customers to the service, which is bringing in a helpful but not yet game-changing $2,000 a month.“I’m not sure people are being enticed about the chat rooms or having exclusive access to the chefs,” she said. “It’s more that they want our food and they don’t have to think to order — it’s coming.”In that sense, these restaurant subscriptions are somewhat similar to a meal kit delivery service such as Blue Apron, except subscribers only have to do some light reheating and assembly instead of following a recipe.Where to eat in the Bay Area. Find spots near you, create a dining wishlist, and more.In the cases of popular pop-ups, subscribing can ease the pressure on constantly paying attention to Instagram to catch announcements. Pandemic-born San Francisco pop-up Dabao Singapore, for example, has built a fervent following for its rich Singaporean laksa, and in the past, it’s been challenging to snag a bowl before they sell out. Subscribers, however, areSin said subscription services can also create new business models for chefs who don’t want to work in traditional restaurants. She pointed to Eric Minnich, who was laid off during the pandemic from his executive chef job at upscale Spanish restaurant the Commissary. to an average of nine households every week for $75 apiece. Having loyal subscribers also creates other opportunities, like doing meal prep or cooking additional dinners.“There’s a very personal relationship established there, which is something I’ve never experienced as a chef at a restaurant,” Minnich said.There are drawbacks. He misses working with other creative chefs and sommeliers, and Minnich doesn’t love boxing up food for delivery. But he may choose to stay on the subscription track post-pandemic, knowing many of the challenges facing restaurants won’t disappear when vaccines are distributed.“It may not be the 100% solution to a lot of the problems, but it’s a step in the right direction to make people think differently about what a restaurant is,” he said. “The only way to change the restaurant industry — outside draconian measures — is different models, different ways of competing with it.”Janelle Bitker is a San Francisco Chronicle staff writer. Email: Twitter:Where to eat in the Bay Area. Find spots near you, create a dining wishlist, and more.

Bay Area restaurants are trying a new way to ensure survival during the pandemic: subscriptions. The idea echoes the performing arts world, with restaurants asking frequent customers to commit to supporting them regularly.Some restaurant owners, such as Matt Brewer of San Francisco’s Che Fico, said they were already contemplating the idea of some sort of subscription service during the pandemic but — well, they got busy. Then, a couple of new tech companies appeared with online services already designed and ready to go. The entrepreneurs behind these offerings argue they can help fix flaws...

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Janelle Bitker

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Would you buy a subscription to a restaurant? Bay Area businesses turn to regulars in new model

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