How Subscriptions Are Changing The Hospitality Industry
The past couple of years have not been easy for the hospitality industry... That's no secret. But generally, working in hospitality isn't always the easiest industry to make a profit. We've all seen some of favorite restaurants or cafes close their doors because their profit margins weren't high enough, or because the amount of work didn't match their profits. It's tough. At Billycart, we want to find ways to support the hospitality industry and help people in it generate profit in less traditional ways to stand out.
By now, your probably know that Billycart is primarily a recurring payment platform. We allow you to send Smart Payment Agreements to your customers and get paid successfully on a recurring basis. So how does this help in hospitality? Well, in a lot of ways actually. Recurring payments or subscriptions aren't just limited to Netflix, they can come in many ways.
In hospitality, that might be:
- A monthly coffee subscription
- A take home meal service
- Monthly cooking classes
- Charge a fee for using your cafe as a working space
- Corporate accounts
- Barista training
- Charge a club to use your space each week outside of your opening hours
We've seen great success from big players like Pret in the UK taking on subscriptions. For £25 a month, you can have up to five drinks per day, including barista made coffees, hot chocolate, teas and frappes. We're pretty sure most people don't manage to hit the five a day quota, but overall this gives Pret some solid revenue month on month. If you're a small business owner, you probably can't afford to risk giving up to five drinks per day, but even at one drink each day, this subscription is still worthwhile.
Having recurring guaranteed revenue can help your profit margins and give you stability in your business. It's a great space to get creative and think outside the box too. As we mentioned before, you could consider renting some of your space or hosting a class, it doesn't have to be limited to food.
Interesting in seeing how recurring revenue can help support your business? Join Billycart today and don't pay a thing for the first three months
May 31, 2022