Memberships soon to be required for food court?
By now most of us know April 8 is the day of the total solar eclipse. For some foodies, however, the day may mean the sunsetting of a perk: dining at the food court at Costco.
The warehouse retailer’s food courts – home of the $1.99 pizza slices and $1.50 hot dog and drink combo – have been a favorite of members and non-members alike. To shop at Costco, you must have a membership, which starts at $60 annually. But historically non-members have been able to slip into the food court to dine.
There are some signs – literally – the laxity is coming to an end. Earlier this month, a user on the social network Reddit posted a picture of a sign saying it was taken at an Orlando, Florida Costco.
“Effective April 8, 2024, an active Costco membership card will be required to purchase items from our food court,” the sign read. “You can join today. Please see our membership counter for details.”
Others have posted pictures of signs at other locations, but there’s no apparent uniform policy, business site The Street reported.
Costco did not immediately reply to a request on the food court situation.
This isn’t the first time Costco has reportedly sought to deter non-members from eating at the food lobby. Back in February 2020 – just before the COVID lockdown was about to hit – similar signs were reported by shoppers at Costco.
Costco also recently began cracking down on non-members coming into stores. Last year, the retailer began routinely asking to see shoppers’ membership IDs with their photo when they use the self-checkout lanes to thwart the sharing of memberships with non-members.
“We don’t feel it’s right that non-members receive the same benefits and pricing as our members,” a Costco statement to USA TODAY said at the time. “Costco is able to keep our prices as low as possible because our membership fees help offset our operational expenses, making our membership fee and structure important to us.”
Workplace concerns:Fast food workers are losing their jobs in California as new minimum wage law takes effect
Why do you need a Costco membership to shop or buy a hot dog?
All these steps being taken can encourage shoppers to get their own membership.
Costco, which reported 2023 revenue of $237.7 billion, generated $4.6 billion in membership fees from nearly 128 million members, according to the company’s 2023 Annual Report. That’s up 8% from 2022. For 2023, the company reported a 90% membership renewal rate.
In addition to the $60 Gold Star memberships, Costco also sells Executive memberships for $120 annually, which gets you additional deals on gas, travel, insurance and more.
Some members discussing the issue on Reddit thought it was always the case that memberships were required to eat in the found court. “$1.50 dogs are not a right,” said one Reddit poster.
“After my Costco started to enforce it the lines for the food court went way down and I love it. After I drop $300 bucks at Costco that 2 dollar slice brings me such joy,” another said.
Still, the change, if it happens, won’t be a good deal for everyone. “Oh man back when I was in college and too poor to have a membership I’d totally go there for lunch. $1.50 hot dogs? Pizza? Free refills? I saved so much money!” one Reddit post recalled.
Why is Costco’s hot dog still only $1.50?
Two years ago, Costco CFO Richard Galanti told investors during a call discussing financial results that even though prices for other items at the store may increase, the hot dog combo would not go up.
“Hold the price on the hot dog and the soda a little longer – forever,” he said on the call, per MarketWatch.
That’s not the first time a Costco bigwig stood firm on the hot dog combo price. Then-Costco CEO Craig Jelinek recalled how he told Costco co-founder Jim Sinegal that the retailer couldn’t continue selling the combo for $1.50 because “we’re losing our rear ends,” 424 Business site reported.
Sinegal told Jelinik, who’s now a Costco advisor, “If you raise the effing hot dog, I will kill you. Figure it out.”
So Costco built its own hot dog manufacturing plant. “We keep it at $1.50 and make enough money to get a fair return,” Jelinek said then.
Contributing: James Powel and Scott Gleeson
Foollow Mike Snider on X and Threads: @mikesnider & mikegsnider.
What’s everyone talking about? Sign up for our trending newsletter to get the latest news of the day