Citi’s Bid for Premium Credit-Card Customers: Weekend Restaurant Bonuses

Citigroup has joined its rival banks in the lucrative premium credit card market. Its offering has an annual fee near $600, points for dining out and ordering in—and a difference that could give some frequent flyers pause.

It’s the latest new option in the premium credit card space—generally, cards with an annual fee of at least $250—as big banks offer massive welcome bonuses and other benefits, potentially worth thousands of dollars, in an effort to get largely well-heeled customers to sign up and spend.

The bank recently unveiled the Citi Strata Elite card, which it said “offers premium travel and dining benefits plus generous earn on every dollar spent.” It suggested the card could deliver “nearly $1,500 in value each year.”

The Citi Strata Elite card is offering a welcome bonus of 80,000 ThankYou points if customers spend $4,000 on the card in the first three months. Benefits include 12x ThankYou points on hotels, car rentals, and attractions booked on the Citi Travel platform; 6x points on air travel booked on Citi Travel; and 6x points at restaurants—including restaurant delivery services—on Friday and Saturday nights from 6 p.m. to 6 a.m. ET.

“We curated each benefit based on extensive customer feedback and research, asking what premium cardmembers value most,” said Pete D’Aleo, Head of Innovation and New Product Development for Citi U.S. Branded Cards. “We found that the number one way customers want to use their credit card rewards is to treat themselves.”

More than half, he said, wanted to use rewards on travel. Nearly half wanted to use them on dining. More than three-quarters said they would plan more nights of dining out if given sufficient rewards to do so.

What Citi Doesn’t Offer: A Branded Lounge Network

The Citi Strata Elite’s annual fee is $200 higher than Capital One Financial (COF) Venture X’s $395, but below those of JPMorgan Chase’s (JPM) Chase Sapphire Reserve ($795) or the American Express (AXP) Platinum ($695, but expected to rise soon).

Capital One, Chase, and AmEx, however, all have branded airport lounges offering free food and drinks to premium cardholders, something Citi does not.

The Citi Strata Elite does include other benefits, including a “Splurge Credit” that grants up to $200 in annual statement credits at a range of companies; the option to turn ThankYou Points into American Airlines AAdvantage miles; and four Admirals Club passes, which can be used at nearly 50 lounges worldwide.

Primary Citi Strata Elite cardmembers and authorized users will also get Priority Pass Select membership, which grants access to a network of more than 1,500 lounges worldwide, the bank said. Up to two guests will be able to get into some lounges for free, Citi added. The Capital One Venture X, Chase Sapphire Reserve, and American Express Platinum cards also offer complimentary Priority Pass memberships in addition to branded airport lounges.