By now, most people know that April 8th is the day of a total solar eclipse. But for some foodies, that day may mean the end of the perks of eating in a Costco food court.
The warehouse retailer's food court is popular with members and non-members alike, with $1.99 pizza slices and $1.50 hot dog and drink combos. To shop at Costco, you need a membership starting at $60 per year. But historically, non-members could sneak into the food court and eat.
There are some signs that your relaxation is literally coming to an end. Earlier this month, a user on the social network Reddit posted a photo of a sign they said was taken at a Costco in Orlando, Florida.
“Starting April 8, 2024, you will need a valid Costco membership card to purchase items in the food court,” the sign said. “You can join today. Please see the member counter for details.”
Some people are posting photos of billboards from other locations, but there is no clear uniform policy, business site The Street reported.
Costco did not immediately respond to inquiries about the food court situation.
This isn't the first time Costco has reportedly tried to prevent non-members from eating in its food lobby. Costco shoppers reported similar symptoms in February 2020, just before the coronavirus lockdown began.
Costco has also recently started cracking down on non-members visiting its stores. Last year, the company began regularly requiring shoppers to show a photo membership card when using self-checkout, to discourage sharing memberships with non-members.
“We do not believe it is right for non-members to receive the same benefits and prices as members,” Costco said in a statement to USA TODAY at the time. “Membership dues and their structure are important to us because Costco is able to keep our prices as low as possible because dues help offset our operating expenses.”
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Why do I need a Costco membership to shop for and purchase hot dogs?
By taking all these steps, you can encourage shoppers to get their own membership.
Costco had revenue of $237.7 billion in 2023 and earned $4.6 billion in membership fees from about 128 million members, according to the company's 2023 annual report. This is an increase of 8% from 2022. The company reports a 90% membership renewal rate for 2023.
In addition to the $60 Gold Star Membership, Costco also sells an Executive Membership for $120 a year, which gives you additional benefits like gas, travel, insurance, and more.
Some members discussing the issue on Reddit thought it was normal for members to have to eat in court where they were discovered. “A $1.50 dog is not a right,” said one Reddit poster.
“Ever since my Costco started regulating, the lines at the food court have gone way down. I love it. After dropping $300 at Costco, that $2 slice makes me so happy.” another person said.
Still, even if this change were to occur, it would not be good for everyone. “Oh, when I was a student, I was too poor to have a membership, so I always went there for lunch. $1.50 hot dogs? Pizza? Free refills? I saved a lot of money!” It reminded me of a post on Reddit.
Why are Costco hot dogs still $1.50?
Two years ago, Costco's chief financial officer, Richard Galanti, told investors on a conference call to discuss earnings that prices for other products in the store might go up, but not for hot dog combos. He said no.
“Keep hot dog and soda prices going a little longer, forever,” he said on a conference call, according to MarketWatch.
This isn't the first time the Costco giant has taken a firm stance on hot dog combo prices. Craig Jelinek, Costco's CEO at the time, told Costco co-founder Jim Sinegal that the combo would be sold for $1.50 because “we're losing our rear end.” 424 Business Site reported that he recalled how he said he could not continue to do so.
“If you pick up a hot dog, I'm going to kill you. Do something about it,” Sinegal told Zelnik, who is now an advisor to Costco.
So Costco built its own hot dog manufacturing plant. “We are making enough profit to keep it at $1.50 and make a fair profit,” Jelinek said at the time.
Contributors: James Powell and Scott Gleeson
Follow Mike Snider on X and Threads: @mikesnider & Mike Snyder.
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