Subscriptions were once limited to magazines, newspapers, and mail-order companies such as Columbia Records and the Book of the Month Club. In the 1980s, consumers began shelling out to access low prices at Costco. But Amazon’s astonishingly successful Prime program now seems to be spurring similar paid memberships at a variety of businesses. (No wonder: In 2024, Amazon collected more than $40 billion from membership and subscription fees.)

Restaurants, movie theater chains, furniture retailers, and others have plans that, for an extra monthly or annual fee, provide free stuff, discounts, and perks.

In 2022, fast-casual restaurant giant Panera Bread rolled out its Unlimited Sip Club; for $14.99 a month you can guzzle unlimited drip and iced coffee, tea, and fountain drinks. In 2019, CVS introduced ExtraCare Plus; for $5 a month you get free same-day deliveries, free shipping, and a $10 all-purpose discount once a month.

Paid programs are a departure from more common free loyalty programs—think Starbucks Rewards, frequent-flyer programs, and the like—which require members to spend over time for free stuff later. Paid programs offer similar perks, but members get them immediately.

At the end of this article we report the costs and benefits of several “free for a fee” plans. We crunched the numbers for each and discovered some are good deals if you’re already a steady customer. But we also found it difficult to assess the value of some plans, especially if you don’t often get stuff delivered or take advantage of non-purchase-related perks.

Why Are Companies Charging for Perks?

“These so-called ‘paid loyalty programs’ provide a predictable revenue stream, and give companies lots of data about members,” said Jordan Etkin, a professor of marketing at Duke University. “For instance, salad chain Sweetgreen’s Sweetpass+ probably helps the company learn about which lettuces or veggies are selling well, and which aren’t.”

Paid loyalty memberships are also designed to make customers engage with a brand more frequently and choose it over its competitors. “Companies are exploring how to drive repeated interactions with their products,” said Etkin. If you’re paying a fee for, say, Amazon Prime, you’ll likely use it more often to get the full value from your membership cost.

These loyalty programs also increase customer traffic to brick-and-mortar locations such as the luxe furniture store RH (formerly Restoration Hardware) and movie theater chains. Studies show that you’ll visit more frequently if you join a paid loyalty program. A 2020 McKinsey survey found that people who bought such memberships were 60 percent more likely to buy from those brands. It’s a classic case of “sunk cost fallacy,” in which customers, having paid a fee upfront, use that to justify higher spending.

“Those movie theater passes can be awesome if you’re a film nut, but they’re not just about watching movies on the cheap,” said José Cayasso, co-founder of online presentation tool Slidebean, who has studied movie theater paid loyalty programs. “They’re a way for theaters to get you in the door and spending on those overpriced snacks.”

Another reason companies love paid memberships is that they can capture a steady stream of extra revenue without necessarily providing any products or services.

Similarly, if you’re running a movie theater, you’re happy to collect $25 every month for unlimited screenings because you know that while a small number of subscribers will see several flicks a week, most won’t watch more than a few a month, and some won’t see any. Those that do show up still might buy overpriced popcorn, candy, and beverages.

These programs haven’t always panned out for companies. Paid subscription programs for P.F. Chang’s, Taco Bell, and Lululemon launched to great fanfare over the last few years—and then quietly fizzled, with little explanation.

Is a Paid Loyalty Program Right for You?

Like gym memberships, streaming services, and anything else with an annual or monthly fee, paid loyalty programs are only worthwhile if you use them. For some programs, it can be difficult to assess whether things like free shipping from Amazon or discounted salads from Sweetgreen are providing good value for that extra cost. Plus, if joining a program pushes you to buy a lot of extra movie theater popcorn or to order stuff you don’t really need or want, it’s a money eater, not a money saver.

Below we attempt to summarize how to make several popular programs worth the money. (Note that we didn’t include grocery stores on our list; many now offer paid memberships in exchange for waiving delivery fees and getting first dibs on delivery-time windows.)

We found that some free-for-fee subscriptions can pay for themselves quickly. The big caveat? You have to be a frequent user to get your money’s worth. RH’s $200-a-year membership, which provides a 20 to 25 percent discount on purchases, is worth the fee only if you order $800 or more per year in blocky leather sofas, linen bedding, or oddly shaped lamps. While the program is a boon for interior designers and people moving into new homes, it’s a bad buy for someone who wants to purchase a single $100 bath rug.

Joining coffee or salad “clubs” that offer straightforward pricing—for example, Pret A Manger’s Club Pret ($40 a month for five barista drinks a day)—makes financial sense if you really do drink that much java, you caffeine fiend. If you regularly shop at a warehouse club, well, membership is the price of admission. Simply calculate whether you purchase enough megapacks of T-bone steaks or giant bags of Cheetos to justify the cost (our surveys of grocery store prices typically find that prices at warehouse clubs are about 30 to 40 percent lower than at most supermarket chains).

Some membership plans provide benefits beyond free delivery or free stuff. Amazon Prime, warehouse clubs, AAA, and others can net you perks like cloud photo storage, extended warranty protection, and complimentary travel services.

But many other paid loyalty programs have murkier benefits. Uber One, a $9.99 a month service, promises no delivery fees on “eligible” Uber Eats food orders and discounts on “eligible” Uber rides. We found it very difficult to assess whether these spotty discounts were worth it.

The most confusing program we reviewed is the new MoviePass, a second take on the all-you-can-watch cinephile subscription service that went bankrupt in 2020. While other movie theater memberships offer clear-cut benefits if you frequently head to the megaplex, MoviePass uses a confusing system of credits (which roll over from month to month).

Tread Carefully, and Audit Yourself

Remember that companies offer membership plans hoping you’ll do more business with them—and not with their competitors. Conversely, some companies hope you’ll sign on but won’t show up, but keep right on paying the fee each month.

“If the program is at a store or website you use a lot, it might seem like a no-brainer to join a paid subscription service,” said Etkin. “But be concrete with yourself and ask if you’ll really use the discounts, shipping, or other features.”

Many of these programs are offered with free trial periods. When you sign up for one, mark the end date in your calendar as a reminder to cancel it if you’re not using it enough to justify the cost.

Regularly review your credit card and checking account statements. The average American consumer now spends more than $1,000 per year on subscriptions, according to several studies. Not using one anymore? Cancel it.

If you do buy from a store, eat at a restaurant, or see movies at a chain often enough to justify its membership program, every few months assess whether you’re still getting enough benefits from the deal to keep paying for it.
 

Costs vs. Benefits of Sample Paid Loyalty Programs

Movie Theater Chains

AMC Stubs A-List
Price: $19.95-$24.95/month (higher-cost plan required for many locations)
Main benefit: See up to three movies per week
Other perks: Accelerated loyalty points; free upsized popcorn and drinks; online fees waived; priority lines
Commitment: Three months
How to break even: See at least two movies a month

Cinemark Movie Club
Price: $10.99-$11.99/month
Main benefit: See one 2D movie a month; unused credits roll over
Other perks: 20 percent off concessions and discounts on additional tickets; online purchase fees waived
Commitment: Cancel anytime
How to break even: See at least one movie a month

MoviePass
Price: $100/year or $10-$30/month
Main benefit: Receive a set number of credits depending on plan, redeem for one to five movies a month
Commitment: Cancel anytime
How to break even: See several movies a month, or at least one movie a month, every month

Regal Unlimited
Price: $21.49-$26.49/month (higher-cost plan required for some locations)
Main benefit: See unlimited 2D movies per month
Other perks: Can see premium-format movies by paying a small surcharge each time; 10 percent off food and drinks
Commitment: Three months
How to break even: See at least two movies a month

Restaurants & Food Delivery

DoorDash DashPass
Price: $9.99/month or $96/year
Main benefit: $0 delivery fee and reduced service fee on orders from eligible merchants when you meet the subtotal minimum
Commitment: Cancel anytime
How to break even: Benefits too vague to calculate; depends on whether restaurants you like are eligible for free delivery

Grub Hub+
Price: $9.99/month; free for Amazon Prime members
Main benefit: $0 delivery fee for orders of more than $12 at eligible restaurants
Commitment: Cancel anytime
How to break even: Benefits too vague to calculate; depends on whether restaurants you like are eligible for free delivery

Panera Unlimited Sip Club
Price: $14.99/month or $119.99/year
Main benefit: Unlimited (one every two hours) drip coffee, iced coffee, fountain drinks, or tea; does not include espresso beverages and cold brews
Commitment: Cancel anytime
How to break even: Buy three to five drinks a month

Pret A Manger Club Pret
Price: $40/month
Main benefit: Up to five barista drinks per day (every 30 minutes)
Commitment: Cancel anytime
How to break even: Order approximately eight lattes, hot teas, etc., a month

Sweetgreen Sweetpass+
Price: $10/month
Main benefit: Daily $3 off
Commitment: Cancel anytime
How to break even: Order three salads or bowls a month

Uber One
Price: $9.99/month
Main benefit: Free delivery for eligible restaurant and grocery orders
Other perk: 6 percent credits on eligible Uber rides or 5 percent off eligible rides
Commitment: Cancel anytime
How to break even: Benefits too vague to calculate; depends on whether restaurants and stores you like are eligible for free delivery

Retailers (click here for perks from warehouse clubs)

Amazon Prime
Price: $14.99/month or $139/year
Main benefits: Free same-day, one-, or two-day shipping, free Prime Music access, stream exclusive Prime Video content
Other perks: Unlimited photo storage; access to books through Kindle; Prime Gaming; click here for more perks
Commitment: One month
How to break even: Ignoring free shipping, watch two to three movies a month that otherwise would cost money

CVS ExtraCare Plus
Price: $5/month or $48/year
Main benefit: Free same-day delivery; free shipping; $10 bonus once a month
Other perks: 20 percent off CVS brand health products (vitamins, toiletries and dental, first aid); 24-hour pharmacist helpline
Commitment: Cancel anytime
How to break even: Use your $10 bonus on a $5+ purchase

RH Members Program
Price: $200/year
Main benefit: 25 percent off all full-priced furniture and accessories
Other perks: 20 percent off sale items; complimentary interior design services
Commitment: 12 months
How to break even: Spend $800 or more in a year

Target Circle 360
Price: $10.99/month or $99/year ($49/year for Target credit card holders)
Main benefits: Unlimited $35+ same day delivery orders to multiple addresses; free two-day shipping on many items
Other perks: Same-day delivery from retailers at Shipt Marketplace; longer return windows
Commitment: One month
How to break even: How much is free and two-day shipping worth when most orders already qualify for free shipping?

Wayfair Rewards
Price: $29/year
Main benefits: Free shipping (includes sister brands AllModern, Birch Lane, Joss & Main, and Perigold); 5 percent back in rewards
Other perks: Dedicated phone line for subscribers
Commitment: One year
How to break even: Ignoring the free shipping, which you get for most orders, spend at least $580 per year