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.
well I never knew that. my wife took my card (I don’t like to shop at big box stores and gave it to our son.) But I have gone to the food court on occasion not knowing the rules and thus without a card. Since the food courts are open, I thought anyone could eat their.
People assume I have a Costco membership. I don’t like have to pay for the privilege of shopping someplace.
All it’ll take is one loudmouth Karen’iqua to shut down their members only policy….
this has been making the rounds for months,
I have not seen any changes at my local costco, but I have no problems with it.
if you can keep the rif-raf and high school students out great.
on the other hand Costco has no excuse for not bringing back the combo pizza.
Hey Costco! Bring back the combo pizza Please Please pretty Please.
Such racist. Such privilege.
Sam’s doesn’t have lines. Costco is a cluster getting in and out let alone the lines.
Sam’s club will not let anyone in without showing a card. I like that.
I just polished off a couple slices of Costco pizza. By just I mean two minutes ago.
I show my card to get in the door. It’s a spare card on my mom’s account. I have no idea if it’s still active.
Sam’s & BJ’s don’t have this problem.
You should ask how bad Costco’s financials are if they have restrict access to $1.50 hot dogs.
Normal working folks can’t afford McDonald’s new super- high prices —- especially not with families.
(And Costco hotdogs are GOOD, too!)
It is a “loss leader”... they make up for it in other sales. but if a non-member shows up to just eat the food, they truly are just losing money.
All it’ll take is one loudmouth Karen’iqua to shut down their members only policy….
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And it was probably the freeloading Karen’iqua’s that led this this policy.
Really? In Texas they started letting in anyone years and years ago.
But you buy something? Yeah, you need a membership card.
So do I.
I prefer Sam’s.
The Costco food court is a huge bargain - Costco seems to be glad to take a loss on the food it sells there, based on the assumption that you’ll be doing some shopping in the store. And the hot dogs and pizza are quite decent - I’d much rather pay $2 for a Costco hotdog and a drink than $7 for a Five Guys hotdog.
I thought a member could bring a guest to buy anything.
My wife has membership, I have not gone there in probably over a decade so I am confused here.
The other day when I went, they didn’t accept the one on my phone. They wanted me to dig out my hard copy one with my photo on it. Works for me.
I like both of them for different things. I love getting prime cuts in their meat department. We just had some prime ribeye caps from Costco on Saturday as a treat. We grilled them and topped with lump crab and homemade bearnaise sauce. As good as any fancy restaurant at a quarter of the price.
Sam’s will ship to me with my premium membership. That way I don’t have to spend gas to get to the store and back. It’s further away than Costco. I order non-perishables that way and they’re delivered to my front door in a couple of days.
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