Posted on 04/01/2024 9:51:45 AM PDT by nickcarraway
No more sneaking in with your friends.
It's about to become harder to get a table at the Costco food court than at a Michelin-starred restaurant.
In recent months, Costco has taken a more drastic approach to ensuring only actual members are able to get all those sweet, sweet perks. And now, Costco is taking aim at freeloaders hoping to snag a $1.50 hot dog at the food court sans membership card.
In March, a Reddit user shared a sign in the r/Costco community that they spotted at their local Costco in Orlando, Florida. The sign read: “Effective April 8, 2024, an active Costco membership card will be required to purchase items from our food court. You can join today. Please see our membership counter for details.”
However, this new crackdown likely really isn't about losing money on those aforementioned $1.50 hot dogs, as those are likely already costing the company a bundle anyway. As Richard Galanti, the soon-to-retire chief financial officer of Costco, shared with CNBC in 2022, the only reason the company has been able to keep that hot dog price stable since the '80s is because it's leveraging profits from somewhere else. "Some businesses that are doing well with margin…those things help us be more aggressive in other areas, or, as you mentioned, hold the price on the hot dog and the soda a little longer — forever," he said.
But what this could really come down to is getting more people to actually sign up for that all-important membership. Entrepreneur pointed to Costco's fiscal year 2023 earnings report, which showed that memberships generated $4.58 billion in profit. In 2021 that number was just $3.88 billion, marking a $700 million increase.
And really, these memberships are still a steal starting at $60 for a Gold Star membership — a cost that hasn't increased since 2017. So maybe it's worth investing that $5 a month into an actual Costco membership so you don't have to shamefully sneak in to enjoy a snack. And this way you can impress strangers by telling them you're a member of one of the most exclusive clubs in town.
I rarely eat fast food anywhere. Can you order a pizza from Costco, but take home what you don’t finish?
Sam’s & Costco are not equal. I now live in an area where there is only Sam’s and I cannot tell you how often we notice the difference between the two. There is no comparison when it comes to their meats. Costco wins hands down. IMO Costco is just higher quality. Sam’s is really just wal mart.
Thank you.
My guy at my COSTCO guards that door like he’s a bouncer at a swanky club in Miami Beach. You’re not getting in there without a card. We have another at the registers. They want to see the photo too. I have seen the place packed all the time with Spanish speakers. Multi-generational family units chowing down on hot dogs... Grand Parents down to the grandkids.
That’s because Sam’s has the app that allows you to pay from your phone. Easy-peasy.
Some Costcos, like the one in Orlando mentioned in the article, have outdoor food courts that didn’t require a membership card to buy anything. This new policy is mostly about that.
Costco prints a billion + dollars with membership fees. They can afford to subsidize the hot dogs and pizza a bit.
Ahhhh. Okay. Thank you for the clarification.
at one Costco we went to forget where the food court was actually outside....maybe it was just open there during the summer months.
I love that feature. It’s very efficient.
Yes.
I won’t disagree about the meats. We have enjoyed great prime cuts from both places. When I went on vacation last year, there was no Costco nearby, but there was a Sam’s. The prime cuts there were every bit as good as the Costco ones, with 2” + cuts that the in house butcher cut for us. Decadent. So I think it does depend on the location of the Sam’s as what quality you can get.
Pinging RB because the Sam’s was in his neck of the woods.
I seem to enjoy the vegetables that I’ve gotten from Sam’s, also. Very reliable.
My Costco membership is up at the end of July. This was my first year with them, as it’s a brand new location not too far from my house. 15 minute drive vs the hour the other locations were, so I’m happy that they built this one near me. Sam’s is a 30 minute drive. I’ll be renewing my Costco membership for the meats if nothing else. Sam’s has been so reliable, that I just renewed that membership a few days ago.
Pretty sure that the law in FL prohibits Costco from selling liquor (they really do have good deals on liquor) exclusively to members.
Thanks. Pizza is one meal I don’t make myself. I have never perfected a good pizza crust. Mine look beautiful but come out crunchy like a biscuit. That’s not the kind I like.
The nearest Costco to us in Mobile, Alabama.
Destin was supposed to get one a few year’s back, but that never materialized.
We have Sam’s in Ft. Walton, Pensacola and Panama City, and there’s a BJ’s in Pensacola....................
Our Costco’s are full of welfare folks. They bring all of their kids and grand parents, and a person should forget about trying to get a sample.
When I was a kid, you had to be 10 years old to even go into the Commissary with my parents.
One of the few good things about Covid lockdowns was Costco limited a visit to 2 people per family.
Hmmm, do they sell wine but not liquor in the Florida Costcos?
I wonder if Sam’s in Florida has the same restriction.
I was one of the first members when Costco consisted on a single store in Silverdale WA. Back then it was not open to the public - only to farmers, loggers, police, and commercial fishermen.
It went down hill some years later when it opened up to nurses - prices rose sharply and taxes were put on everything. Shortly after that it was followed by admitting the general public. Now Costco is just a crowded big box store.
I went to the Sam’s in Ft. Walton. My BIL came with us, and was so impressed, he promptly bought a membership back in St. Pete where he lives.
Can order a whole pizza for there or to go or can order by the slice and not have leftovers. Ours even has a phone number you can call in an order for a whole pie.
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