For millions of Costco members, the shopping trip doesn’t end when the cart is full. It ends at the food court.
Whether it’s the legendary $1.50 hot dog-and-soda combo, a slice of pizza, or one of the chain’s oversized desserts, the food court has become as much a part of the Costco experience as buying paper towels in bulk.
It’s one of the retailer’s biggest differentiators, giving shoppers another reason to visit the warehouse and another positive experience to associate with the brand.
Now, Costco is giving members a new reason to stop at the food court before heading home.
The warehouse club has introduced a Vanilla Cookie Crunch Sundae, which might seem like a small menu tweak. In reality, though, it’s part of a broader strategy.
Costco’s food court is about much more than selling lunch
Costco’s Vanilla Cookie Crunch Sundae already has fans raving. The dessert, which costs just $2.99, tops Costco’s famous food court vanilla soft serve with chocolate syrup and chocolate cookie crumbles similar to crushed Oreos.
Early member reaction has been overwhelmingly enthusiastic, the New York Post reported. Social media quickly filled up with photos and videos from shoppers eager to try the latest addition.
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That very reaction explains why Costco’s latest menu addition is such a win.
Costco has never treated its food court like a major profit center. Instead, it’s one of the company’s most effective customer loyalty tools.
The retailer’s famously low-priced menu reinforces the value message that runs throughout the entire warehouse. Members leave with a cart full of bargains, then finish the trip with an inexpensive meal or dessert that makes the experience feel even more rewarding.
The food court also generates enormous attention online. New menu items routinely become viral social media posts, bringing Costco free publicity other retailers would happily spend lots of money to generate.
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Why Costco keeps refreshing the menu
Costco could easily stick to its tried-and-true food court menu. But the company understands that just as new inventory is important to members, so too are new menu items.
The new Vanilla Cookie Crunch Sundae follows the recent launch of Costco’s breaded chicken fingers, another food court addition that generated significant online buzz.
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It’s items like these that may inspire members to make an extra trip.
New food court offerings also help Costco compete with warehouse rival Sam’s Club, which has increasingly experimented with seasonal desserts and other exclusive food court items.
Retail consultant and GlobalData Managing Director Neil Saunders has previously described Costco’s food court as an important part of the company’s overall value proposition, noting that it reinforces Costco’s reputation for offering exceptional value beyond just the merchandise on its shelves.
Saunders called the iconic hot dog meal “a symbol of what Costco stands for.”
And in a LinkedIn post, Saunders said the food court “helps to drive traffic and to reward customers for making the trip to Costco.”
Of course, a single ice cream sundae isn’t going to transform Costco’s business on its own. But it doesn’t have to.
Every new menu item gives members something to talk about, something to post on social media, and one more reason to visit the warehouse.
If the early reaction is any indication, the latest $2.99 dessert is doing exactly what Costco hoped it would.
Maurie Backman owns shares of Costco.
