Costco‘s food court menu rarely changes. It’s a simple offering built around pizza, sandwiches, and the chain’s legendary $1.50 hot dog deal.
For members, it’s a familiar, comforting treat that makes shopping a little more fun and their membership a lot more valuable.
“Costco’s food court items are a classic example of ‘loss leaders.’ This is the practice of deliberately charging below cost on certain items to draw customers into the store and retain their loyalty,” Tasting Table wrote.
The food court drives traffic, builds loyalty, and keeps customers engaged.
“Keeping food court prices low sends a message to Costco shoppers that the store is putting their experience first. The company makes up for what it loses on food court items by charging a little more for other items in the store. Costco also likes to encourage customers to spend time exploring the huge store, finding new deals, and having a cheap food court entices people to stay longer,” the food website added.
When Costco makes a change at the food court, it’s big news, and usually a little controversial. In this case, members’ reactions are mixed because the chain brought back an old favorite, but not the way it used to be.
Costco brings back churros (sort of)
When my son was little, I used to bribe him with a Costco food court churro to sit through our shopping trip. It worked surprisingly well.
The chain took the churro off the menu in 2024, when it was being sold for $1.49.
The loss hit customers hard.
“While it may have been replaced by the delicious and deeply meme-able double-chunk chocolate cookie, nothing has fully filled that cinnamon-sugar-shaped hole,” Delish reported.
Now, Costco has added churros back to its food court, but not as a standalone item.
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“Instead of bringing back the full-size pastry that once defined its food court, the Washington-based big-box retailer has unveiled a $2.99 Caramel Churro Sundae topped with tiny churro bites,” according to Fox News.
The dessert, which is on sale at my local Costco and locations nationwide, replaced the seasonal mint sundae. It features vanilla, chocolate, or swirl soft-serve ice cream drizzled with salted caramel and topped with crunchy mini churro bites.
Costco’s Churro Sundae costs $2.99 and comes in at a whopping 850 calories.
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A brief history of Costco’s churro
- Discontinued: Early 2024
- Removed from Costco food courts nationwide
- Replaced by a chocolate chunk cookie
- Price (final version): $1.49
- Larger, twisted churro introduced after Covid menu cuts
- Earlier price: About $0.99–$1.00
- Original, thinner churro sold pre-2020
Source: AllRecipes
Related: History of Costco: Company timeline and facts
Costco’s food court remains a key driver
While fans may not like every change the chain makes at its food court, Costco’s menu staples still drive customers looking for a cheap meal.
CEO Ron Vachris has been supportive of the chain’s $1.50 hot dog combo.
“When you run the company, but you still know the best lunch in town only costs $1.50,” he posted next to an Instagram video of himself enjoying the famous meal.
“The hot dog price will not change as long as I’m around,” Vachris says in the video as he eats his lunch. “That’s $1.50 well spent.”
GlobalData Managing Director Neil Saunders thinks that aside from the hot dog combo, Costco can raise some food court prices.
“Costco has suffered inflation just as every other retailer suffers inflation. As such, it’s unsurprising that some food court prices have risen. Overall, this may be a disappointment to some consumers, but it is not a game-changer for Costco as very few people go there for just the food court,” he posted on RetailWire.
Kai Clarke, a retail thought leader and a member of the RetailWire Braint Trust, believes that Costco has to hold the line on more than just the hot dog combo.
“Yes, keeping their food court items at the same price is a key component of the Costco shopping experience. Whole chickens at $4.99, $9.99 pizza, and hot dogs and sodas at $1.50, etc., have always been a position that Costco was proud of, and attracted many members to come into the store for quick food instead of just warehouse shopping. Why ruin a winning combination for the Costco club member?” he posted.
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