Paid Loyalty Programs in the Restaurant and Retail Industry

SOURCE apnews.com
Paid loyalty programs are becoming popular in the restaurant and retail industry, offering exclusive perks and benefits for a monthly fee. Companies like Chuck E. Cheese and Long Story Short are implementing fee-based loyalty tiers to reward their most loyal customers. Target is launching a paid loyalty program to compete with Amazon Prime. While these programs can increase customer spending and loyalty, some experts warn about the risk of excluding customers who can't afford to join.

Key Points

  • Companies like Chuck E. Cheese and Long Story Short are implementing paid loyalty programs
  • Target is launching a paid loyalty program to compete with Amazon Prime
  • Paid loyalty programs can lead to increased customer spending and loyalty
  • Experts warn about the risk of excluding customers who can't afford to join

Pros

  • Increase customer spending and loyalty
  • Offer exclusive perks and benefits
  • Create a sense of belonging and special treatment for loyal customers

Cons

  • Risk of excluding customers who can't afford to join
  • Potential for businesses to disguise cost increases or reduce program perks