When asked what places they’d like to visit before they die, most people are quick to name an array of scenic spots, whether that’s a natural excursion around the Grand Canyon, an island getaway in the Maldives or a simple trip to a bustling metropolis like Tokyo or London. For me, it was the Costco food court.
I stepped inside my very first Costco store last summer. After spending hours getting lost in the vast aisles and nibbling on free samples, I ended my trip with a visit to the famed food court. There, I was enticed by menu items I had only heard about but never had the pleasure of trying: chicken bake, double chocolate chunk cookie, whole pepperoni pizza and, of course, the famous $1.50 hot dog and soda combo.
The Costco food court is undoubtedly the big-box retailer’s greatest asset. So much so that in recent years, the food court has reached cult status. It’s more than just a place for grabbing a snack post-shopping; it’s a must-visit destination for fans and foodies alike. There are devoted food influencers and Costco-holics who religiously track and review new menu items. Some run Costco fan sites and even sell Costco-themed swag.
“Costco’s food court is a distinct, beloved, earnest slice of discount, faster-than-fast food. It’s basically like upscale microwave food. Like a latchkey kid somehow got hold of industrial kitchen equipment,” Thrillist wrote back in 2018.
The food court is best known for three main traits: simplicity, reliability and affordability. Its menu includes commonplace, mass-produced items that deliver on taste and convenience. Take, for example, the humble cheese pizza, which is deliciously greasy with a generous layer of caramelized mozzarella cheese. Or the rotisserie chicken Caesar salad, which includes Costco's low-cost rotisserie chicken; and the chicken and bacon sandwich, which provides sustenance rather than anything gourmet. On the sweet front, there are offerings like the vanilla ice cream sundae, chocolate ice cream cup and cold brew mocha freeze — sweet treats that aren’t overly fancy.
“It’s a very controlled business model aimed at streamlined service,” explained a 2009 story in Costco Connection, the company’s official magazine. “It’s much like the warehouse: the most popular and best-quality items instead of a wide range of choices.”
When it comes to price, the food court menu has remained incredibly cheap, with all items ringing in at less than $10. The most expensive item is the whole 18-inch pepperoni or cheese pizza, which is available for $9.95 each. Inflation, however, has caused several food court staples to hike up in price, namely the chicken bake. The savory pastry, which previously cost $2.99, is now priced at $3.99. The price of a 20-ounce fountain drink (with refill) also increased by 20 cents from $0.59 to $0.79. And on store aisles, 40-packs of Kirkland-branded water bottles increased from $1.89 to $4.
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Costco’s bestseller is its signature hot dog and soda combo. With such a low price point, the combo itself isn’t lucrative, but a part of Costco’s “broader strategy to distinguish its warehouses,” CNN reported. It’s “one of the perks that helps persuade shoppers to dish out $60 or $120 for a membership every year,” the outlet added.
The hot dog and soda combo has remained beloved since its introduction in 1984. Although changes have been made to it (like increasing the size of the soda from 12 to 20 ounces or switching between Coca-Cola and Pepsi products), none of them have affected its price. In fact, there’s an unspoken rule that the combo is immune to price hikes, even in the face of rising food costs. As Costco co-founder Jim Singal infamously told Costco CEO Craig Jelinek in what has become a now-viral exchange, “If you raise the [price of the] effing hot dog, I will kill you. Figure it out.”
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To keep costs low, Costco built its own hot-dog-manufacturing plant in Los Angeles and another in Chicago to produce Kirkland Signature hot dogs. “By having the discipline to say, 'You are not going to be able to raise your price. You have to figure it out,' we took it over and started manufacturing our hot dogs,” Jelinek said. “We keep it at $1.50 and make enough money to get a fair return.”
Costco’s food courts generate about one billion in sales for warehouses nationwide, according to CNN. That’s not surprising, considering that the food court is famous across social media, thanks to Costco “influencers” on TikTok and Instagram. The warehouse also has its very own subreddit where Redditors frequently hype up the food court. “I crave it. It makes me happy. The cheap price means I don’t have to think about money when I get it, so it’s like a pure positive experience,” said one user when asked if they genuinely like the food court menu.
Last March, Costco announced that starting in April, locations with outside food courts will require membership cards to purchase menu items. “One of the challenges is that some of the food courts have gotten so busy, particularly if it’s near some office buildings or construction sites,” Costco’s chief financial officer Richard Galanti told Axios in an interview. “We were getting member complaints.” The crackdown on its food court came after the warehouse introduced new card scanners in January, requiring members to scan their cards at select store entrances to prohibit membership sharing and keep non-members out of Costco stores.
Despite the strict membership enforcement, Costco’s food court is still going strong. After all, it’s what makes Costco, well, Costco.
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