In loyalty, the biggest wins rarely come from chasing the occasional splurge. They come from owning the everyday. The brands that succeed are the ones that turn a customer’s routine into their own, making their choice almost automatic.
Panera Bread has built its loyalty program around exactly that goal, with a clear understanding of its competition and the behaviors it wants to lock in.
Panera operates in a uniquely broad competitive set. On one side are QSR giants like McDonald’s, KFC, and Chipotle built around convenience and protein-heavy meals.
Coffee and breakfast chains such as Starbucks, Dunkin’, and Tim Hortons dominate the early morning through the afternoon with beverages, bakery items, and light meals.
Bakery-café concepts like Paris Baguette, Le Pain Quotidien, and Corner Bakery Café share Panera’s focus on fresh bread, pastries, and a “stay awhile” atmosphere.
And with its commitment to fresh food and no artificial ingredients, Panera also overlaps with healthy QSRs such as Sweetgreen, CAVA, and Just Salad, which attract customers seeking lighter, fresher menus.
In this competition mix, Panera’s advantage leans on products that naturally fit into a customer’s daily life such as coffee, fresh bread, and baked goods. These are high-frequency, emotionally resonant purchases.
The loyalty opportunity is not to create a habit. Customers already have one. It is to make sure that habit plays out at Panera Bread instead of anywhere else.
Most restaurant chains rely on generic points and discounts, a one-size-fits-all formula that overlooks market realities and customer habit dynamics. MyPanera instead focuses on embedding itself into consumers’ daily routines, with its paid membership playing a central role in this approach.
New members are welcomed with a free pastry. Who doesn’t like a croissant with their morning coffee? And from there, members gain access to a range of exclusives, including:
- Early access to menu items, such as enjoying the Cinnamon Crunch Latte before it’s available to the general public.
- Challenges, like visiting multiple times to unlock surprise rewards like bakery items.
- Weekly savings like menu items such as 50% off a flatbread pizza.
- Birthday treats, such as a free cookies.
Benefits are personalized based on each member’s preferred items and habits. The objective is to encourage trying other menu items and reinforcing routine behaviors with gifts.
The most powerful driver is the Unlimited Sip Club. For $14.99 a month (often launched with a $5 for five months promotion), members can enjoy unlimited coffee, tea, and select beverages. Just five drinks a month cover the cost, so daily visits turn it into an unbeatable deal.
More importantly, it locks in the customer’s daily beverage decision before Starbucks, Hortons, or any other competitor has a chance.
Unlimited Sip Club also offers:
- No delivery fees
- Surprise savings
- Select Saturday deals
- An extra birthday treat
These extras boost the perceived value of membership while driving additional visits, embedding Panera even deeper into members’ daily lives and supporting their decision to join Unlimited Sip Club.
According to Panera CEO Niren Chaudhary during the subscription’s three-month pilot phase the offering drove a 70% increase in diners buying food with their coffee.
Panera’s loyalty program works because it starts with the fundamentals: understanding the market, playing to its strengths, and designing every touchpoint to reinforce habits that already exist in the consumer.
For loyalty professionals, the lesson is clear: before talking technology, apps, or rewards, decide which habits you are fighting to own, and design to win them. Start with strategy first!
