< Back to Insights

Subscriptions as a Response to Sluggish Retail Foot Traffic

Whilst we all know that the online percentage of retail spend is growing, in Australia today it still only accounts for approximately 9% of the traditional retail bricks and mortar retail spend1.  For bricks and mortar retailers foot traffic is absolutely critical to the success of their business.  Only once you get people through your doors do you have an opportunity to engage, sell, cross-sell and up-sell and to establish customer rapport in an effort to create loyalty and repeat business.

Traditional retailers have long worked to drive foot traffic through online and offline marketing, below and above the line promotions and simple word of mouth referrals from existing customers.  Despite these efforts, in challenging retail conditions it can be constant battle to increase, purely maintain or even arrest the decline in the number of customers through the doors.  This leads retailers to search for ever more innovative ways to drive traffic.

Out of the US this week comes reports of a global name in fast food launching a progressive initiative in response to stagnating visitor growth rates2.

Burger King is launching a $5 per month coffee subscription. Access is simple – download the Burger King app and sign up to a $5 per month subscription for access to one small coffee per day.

Consumers are likely to see clear benefits (only ~$0.17 per day for their caffeine fix) and the potential upside for Burger King is significant. Burger King will see this program as likely to drive increased loyalty and app adoption (with an associated increase in valuable customer data) while the increased foot traffic from consumers looking to access the coffee they are entitled to under the offer presents a fantastic up-sell opportunity (“would you like fries with that?”).

This is an initiative we will watch with interest and a great illustration of the emergence of ‘outside the box’ subscription initiatives.

At Payleadr we are passionate about the positive impact that subscription models can have on a wide variety of Australian businesses, whilst delivering significant benefits to the customers of those businesses.  To discuss how your business may benefit from participation in the subscription economy please contact our friendly team at info@payleadr.com or (02) 9030 0309 for a no obligation chat.


1McDonald, B. (2019). NAB Online Retail Sales Index, Quarterly Update: December 2018 | Business Research and Insights. [online] Business Research and Insights. Available at: https://business.nab.com.au/nab-online-retail-sales-index-quarterly-update-december-2018-33296/ [Accessed 18 Mar. 2019].

2McCaffrey, O. (2019). Burger King pitches a coffee subscription to java-crazed consumers. [online] Adage.com. Available at: https://adage.com/article/briefs/burger-king-coffee/316988/ [Accessed 18 Mar. 2019].


See what others are saying about us…

“We have had an awesome experience working with Payleadr to get our direct debit platform up and running before the opening of our business. We would not hesitate to recommend Payleadr to other businesses. The platform is straightforward and simple to use and the support staff are quick to help and respond to your queries.”