Longtime Otto’s customers angry over decision to not honor ‘lifetime’ memberships

Jim Stack estimates he’s frequented Otto’s Pub & Brewery well over 1,000 times since it first opened in the State College area in 2002 — and he’s now not sure when, if ever, he’ll return.

He’s not alone.

Dozens of longtime customers have publicly expressed anger and disappointment over social media and beer-drinking apps about the brewery’s recent decision to stop honoring its lifetime Pub Club membership at the end of the year, meaning many members’ discount perks and benefits — such as 15% off on certain days of the week — will last far shorter than a “lifetime.” Many more customers are simply fuming privately, especially without the offer of refunds.

“Speaking with several of my friends, we’ve come to the conclusion that Otto’s simply cannot be trusted as a business anymore,” Stack, a Bellefonte resident, told the CDT in an email. “We won’t simply stop frequenting them or stop recommending them to all the people that come visit throughout the year; we will actively steer them toward establishments we feel have better earned the business.”

In place of the lifetime program, new and existing customers can instead sign up for a $100-per-year Pub Club membership. (Lifetime memberships, which were closed to the public about four years ago, previously cost a one-time fee of $150.) Stack called the move a “massive slap in the face.”

That sentiment was echoed plenty elsewhere. An Otto’s Facebook post announcing the new annual membership drew enough ire in 41 comments that the brewery closed the comments and made them invisible to the public. On Untappd, a beer-rating app, some reviews now include criticism of Otto’s. “They want $100/year now???” one reviewer noted. “F that. I’m only here because the kids wanted to come here.”

Although the feeling wasn’t universal — some defended the change — many longtime customers expressed outrage over the move, even if they still planned to sit at the bar or grab a booth.

“I’m going to visit Otto’s less frequently; it’s left a bad taste in my mouth,” Kirk French, who bought a lifetime membership in 2005, told the CDT. “But I’m still going to support them. ... I just feel like they should do better.”

Why the change?

Explanation for the move from Otto’s — which is owned by C&D Brewing Ventures — has been limited.

In response to the Centre Daily Times’ request for comment, a member of Otto’s management — who asked not to be identified — said the annual costs involving the lifetime memberships were “significant.” Otto’s declined to offer more information when asked to qualify “significant.”

In a December email to Pub Club members, which first announced the change, Otto’s noted it has had to adapt in many ways because the operational cost of the pub and brewery “has increased substantially in every aspect.” The email also acknowledged some changes were made to Pub Club memberships “out of operational necessity.”

Lifetime Pub Club members have gradually seen the perks and discounts diminish as the years have gone by. Three members told the CDT in separate interviews they used to receive 15% off food purchases Monday through Thursday; now, the party size is limited to four and Thursday is excluded in the perk. They also said members used to earn a $10 credit for every $100 spent in a month; now, it’s a $20 credit for $200. And Pub Club members used to receive a free entree on their birthday; now, it’s a half-off entree.

After speaking with one of the owners of C&D Brewing Ventures, a spokesperson said ownership wanted to make at least one thing clear.

“The only thing he wanted to add is that we got support from other Pub Club members that say they understand why we made the changes,” the spokesperson said, “that these Pub Club members have gotten their membership paid for numerous times.”

A lot has changed since Otto’s first began offering $150 lifetime memberships, long before customers began registering their 100th or 1,000th trips.

Otto’s Pub and Brewery first opened in 2002, before moving and expanding less than a half-mile to its current location at 2335 N. Atherton St. in 2010. It quickly grew into a Centre County landmark and a must-visit pub for Penn State visitors, while producing beers that can now be found in virtually every bar in Centre County. A sister business of sorts, Barrel 21 Distillery & Dining, opened just yards away from Otto’s in 2015.

Is this legal?

Without seeing the original membership contracts — which the CDT could not procure — it was difficult for Cary Flitter, an expert in consumer law and a founding partner of Flitter Milz P.C., to speak on legality with absolute certainty.

After all, “lifetime” legally has no specific meaning. Sign up for a “lifetime” warranty, and it’s possible the fine print clarifies the warranty could end once the manufacturer stops making replacement parts.

But, if Otto’s prior fine print mirrors the current disclaimer, Flitter believed the brewery might still have potentially opened itself up to a lawsuit. The disclaimer for current membership now reads, “C&D Brewing Ventures reserves the right to assign, revoke, or change benefits or membership at any time.”

“That’s probably enforceable,” Flitter said. “But I would say that you could construct an argument for what lawyers call a completely ‘illusory contract’ — so they should really give the money back. Because a contract that allows one party to change its terms, cancel it, whatever, at any time — you’re not buying anything for your money.

“If you’re paying for something, it seems awfully one-sided and illusory for the person collecting the money to say, ‘Well, we can choose not to perform this agreement at any time.’”

“Lifetime” Pub Club members could choose to file a class-action lawsuit against the brewery, or they could file a complaint with the commonwealth’s Bureau of Consumer Protection, Flitter added — though there’s no guarantee they’d win.

As of Thursday, a spokesperson with the Pennsylvania Office of Attorney General told the CDT that no such complaints have been filed. No lawsuits have been filed either.

Flitter added that Pennsylvania nationally ranks around the middle-of-the-pack when it comes to consumer protections.

Looking ahead

As it stands, “lifetime” Pub Club members will no longer be members come Jan. 1, 2024 — and any rewards not used by then will be forfeit.

On NextDoor, a social networking service, some said they felt cheated and don’t plan to return to Otto’s while others seemed less bothered and acknowledged the “lifetime” memberships already paid for themselves. Many more are somewhere in-between, like French who’s simultaneously disappointed but still not boycotting.

“It’s difficult for me because I really like what they represent and I’m really upset with this decision and the fact they’re not providing much detail, other than it’s become too costly,” he said. “But, man, Otto’s has grown so much. It’s packed all the time.

“I know there’s inflation and I know things have become more costly, but there’s got to be another way to honor your long-term members. ... This is completely reneging on an agreement.”