So much of the modern world is based on signing up to memberships. From streaming services to gyms, we’re used to forking out weekly or monthly fees. Now the latest user-pays model is coming to a cafe near you. 

In London, popular cafe chain Pret has Club Pret, which gives customers 50 percent off up to five barista-made drinks daily for £5 per month. 

In the US, Blank Street Coffee offers a two-tier membership plan of US$22 or US$11 per week. Blank Street Regulars provides discounts on coffee and food. It’s so popular, there’s a waitlist to join.

Sydney has just had its first foray into subscription coffee with the opening of Sana in the CBD, where $15 gets you unlimited specialty black Single O coffee. At the moment it’s cold brew and batch brew filter; an oat milk iced latte and iced matcha is in the works. 

Credit: Supplied

Related story: Cool beans! Drinking coffee has been linked to healthy ageing

Daniel Sorridimi, founder of Sana and owner of Blackwood in Bondi and Cronulla, sees this as solving a problem for the consumer and the cafe.

“Coffee price increases are hurting people,” he says. “Venues can’t avoid the increase in prices, and they have to pass it on. This is a solution to that.”

A self-serve model reduces staffing costs, which is why this is more affordable than hot, milk-based coffees. 

“Over the past three years, our coffee prices at Blackwood have gone from $3.80 to $5 and they’re still not where they need to be to make a profit,” Sorridimi says. “It’s a pain point for businesses and consumers.

“This solves the problem. If you’re having two coffees a day, you’re spending a lot of money. The subscription model fixes this because the fully automatic machine removes the labour component, which allows us to charge a lower price.”

Related story: Is this Melbourne coffee order the most confusing yet?

Therapist and business consultant Sheena Schuy says that from a consumer’s point of view, subscriptions seem like a good deal. But only if they use it. 

“Consumers usually will use a subscription a lot at the beginning, but just like gym memberships, very few people will continue to be as regular as they are when they first sign up,” she says. “Value for the consumer goes down over time as they use the service less.”

From a business point of view, she believes subscription models are good for cashflow by guaranteeing monthly recurring revenue (MRR) and stabilising income predictability. But straddling the fine line between offering a good deal and profitability is tricky.  

“Some will come in every day, some come a couple times a week and a lot end up paying for something they don’t really use,” she says. “The variance in usage, from a profitability standpoint, means the ones who don’t use it end up balancing out the people who over-use it.

“If businesses can do the maths, consumers who are intentional about their usage will get a great deal and the business can boost their MRR, so it can be a win/win all round.”

Related story: Trying to love black coffee? Cinnamon could be the secret

Sorridimi thinks $15 per week is the sweet spot.  

Credit: Getty Images

“We worked out what people are spending and where’s the value add,” he says. “Most people drink white coffee, so there’s some compromise for the consumer, but going from spending $60 a week on coffee to $15 could convert a latte drinker to cold brew.

“Behaviour is price driven. I’d make the change for that. I still make money if people have two coffees a day; three is borderline. But at Blackwood, I’ve only had one customer in 10 years order three coffees a day.” 

Would Blackwood follow suit with a subscription model?

“We don’t have the tap machine at Blackwood, but if it was super-successful and worth the investment, we would look into it,” Sorridimi says. 

Related story: Matt Preston asks, have our coffee orders gone too far?