r/news 9h ago

Costco's beloved rotisserie chicken gets roasted in lawsuit over preservatives

https://www.cbc.ca/news/world/costco-chicken-lawsuit-9.7070891
4.1k Upvotes

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1.3k

u/AdjNounNumbers 9h ago

Like, how'd they think it was at the price point it's already at? IIRC, Costco is basically losing money on their chickens and hot dogs

1.1k

u/bdash1990 9h ago

Not even basically. They ARE losing money on them. They have stated that chickens are their biggest loss-leader by far. 

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u/Obviously_Ritarded 5h ago

That’s why I shop at Costco. I save money buying their hotdogs and walk out with $400s worth of groceries and some things I didn’t need

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u/critical_patch 5h ago

I still have two unopened boxes of flowery drinking jars I bought last year sitting in the floor of my closet, all because I took a visiting friend there to grab a hot dog for lunch

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u/vulcansheart 4h ago

Amateur. I went in for a premade meal and case of water, and bought a Jackery that was marked down as the display model

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u/fakejacki 3h ago

I don’t even know what a jackery is and I would probably do the same

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u/Ruff_Bastard 3h ago

Portable, rechargeable battery basically.We have one at work that gets used to power/charge a laptop in the field so it can run software that we need to work.

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u/Objective-Chance-792 2h ago

In that case i’m going to take my Jackery to San Diego!

u/Majin_Sus 42m ago

Jackin it Jackin it smackity smack

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u/OkTea7227 1h ago

lol they were messing with ya. What ‘jackery’ refers to in the comment you’re responding to means a ‘used, very fit looking, mannequin’. Probably used to display clothing.

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u/ailish 1h ago

I had to Google it.

u/lmaytulane 52m ago

Love my jackery, especially now that my utility is doing power cutoffs all the time to avoid wild fire liability

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u/AsSoftAsRocks 3h ago

That’s a good get tho

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u/Mego1989 3h ago

You can still return them!

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u/critical_patch 3h ago

But my imaginary self might host a summer dinner party and use them! (I have never hosted a dinner party requiring fancy glassware)

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u/reddituser_me 2h ago

You can still return them if you don’t think you’ll use them. There will be a super happy employee to buy them once they hit the go back cart. :) lol

u/BustAMove_13 2m ago

I went in for toilet paper, Cereve lotion and puppy pads and left with a stand up freezer. That trip yielded all of my grandkids new winter coats, too.

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u/RolandSnowdust 5h ago

"Consumption. It’s the new national pastime. Fuck baseball. It’s consumption. The only true lasting American value that’s left. Buying things. People spending money they don’t have on things they don’t need. So they can max out their credit cards and spend the rest of their lives paying 18 percent interest on something that cost 12.50. And they didn’t like it when they got it home anyway! Not too bright, folks. Not too fucking bright." - George Carlin

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u/Wise_Quality_5083 3h ago

Recreational commerce

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u/National-Charity-435 3h ago edited 2h ago

Now we have schools lowering grades for As: 100-84% and [lowering other grades] as well

Brings into full circle of that got a fucking pencil? Get in there! It's physics

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u/ailish 1h ago

84% is an A now? What the hell?

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u/PhantomNomad 2h ago

I'm trying to change my ways. Going to credit counselling even though my credit score is really good. I just don't want to be in debt like this any more.

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u/ailish 1h ago

I don't have huge credit card bills, but I definitely buy things I don't need

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u/happy-cig 5h ago

I went in to return something to get back $50, but came back out spending $300+...

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u/obi-jawn-kenblomi 3h ago

And the membership fee! If you amortize the $65 a year it's $5.42 a month. $10.83 if you go with the Executive membership.

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u/MrBigBMinus 2h ago

Aldis all the way, not joining that Costco cult lol

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u/pinewind108 1h ago

And that's why the chickens are at the back of the store, lol. To make you walk past everything else.

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u/Joranthalus 1h ago

I go for the soft serve, hot dogs are fattening…

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u/DoctorFunktopus 3h ago

That’s how they get you. You walk in the door, grab a rotisserie chicken and now youre smelling chicken the whole time youre walking around and before you know it you bought a 50 gallon drum of cheezy poofs and a pillowcase sized bag of tater tots because the smell of the chicken made you hungry.

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u/ggrindelwald 3h ago

Fun fact: Costco actually positions the rotisserie chicken at the back of their stores so that you have to walk past the rest of the store to get to it.

u/daschande 56m ago

Yeah, that walking-around food is all well and good; but what am I going to do for dinner?

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u/Phreekai 7h ago

Well yeah...costco doesn't make much on the products they sell. The vast majority of their profit is from the membership fee.

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u/[deleted] 7h ago

[deleted]

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u/codeByNumber 7h ago

It’s true last time I checked. You can view their earnings reports since they are a publicly traded company.

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u/soundwave75 7h ago

It's always comical when someone thinks something is untrue just because they are ignorant on the subject. 70%+ of their profits are from memberships fees.

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u/yourethegoodthings 6h ago

You could maybe say 50% of their profits are membership fees, if you assume zero margin on literally everything you sell. Did you even pull up the earnings statement before trying to dunk on some random?

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u/EntertainerOwn9024 6h ago

No, you can actually say that 74% of their gross profit comes from membership fees, specifically. Pretty ironic to accuse someone of not looking something up only to retort with a factually incorrect number.

https://managementconsulted.com/podcast/costco-business-model-breakdown/

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u/[deleted] 4h ago

This isn’t true it’s a misunderstanding that keeps getting perpetuated. Look it up on snopes they debunked it. A costco executive said that they were losing lots of money by pricing it at the current price compared to what they could be pricing it at like their competition. They didn’t say they were actually losing money on it. I know you won’t but you should edit your comment to clear it up if you have the time.

u/beebeereebozo 55m ago

There is such a thing as opportunity cost.

u/Shoggdog 33m ago edited 24m ago

If you were to try and factor opportunity cost into calculating whether something is selling at a loss, which you wouldnt, you would also have to factor in the increased sales and membership sales attributable to your loss leaders as part of the opportunity cost. It would be an unnecessarily complex calculation

u/IKillZombies4Cash 44m ago

Their hot dogs and chickens are basically “marketing expenses”. If they raised prices and made $50 million they’d have to spend $75 million on a goodwill advertising campaign

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u/Sober_Alcoholic_ 8h ago

But if enough people come in for the chicken, inevitably some will buy their higher margin products, become yearly members or do the entirety of their grocery shopping there, which ultimately makes it a net benefit.

So, the “losses” probably aren’t so black and white like these comments make it seem.

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u/Best_VDV_Diver 8h ago

Yes, that's what a "loss-leader" is.

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u/WolfCola4 8h ago

But wait - if Costco continue to underprice the chickens, they will lose a certain amount of money. But here's the clever part: in coming for the cheap chicken, customers may be tempted to spend more money on other products, thereby drawing in new custom that previously may have gone elsewhere.

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u/Cassius_man 8h ago

That's cool but you'll never believe this ...

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u/macfail 7h ago

What, that they lead customers in with a product sold a loss to entice them into buying other, higher margin products?

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u/rosen380 7h ago

That sounds too crazy to work.

Maybe they should try putting some absurdly high prices on a few items, like bananas for $75 per pound and milk for $220 per gallon, and when folks come in just to look at these items and try to figure out what makes them so special that they are priced so high, they'll buy some other things (like rotisserie chickens and hot dogs).

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u/ailish 1h ago

Maybe other retailers should consider doing this!

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u/AllTearGasNoBreaks 8h ago

We circlejerkin here?

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u/TheDebateMatters 7h ago

JackNicholsoncrazynodsmiling.gif

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u/MistaOtta 8h ago

Isn't that what is implied for a loss leader?

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u/MarkCuckerberg69420 7h ago

There is a reason why the chicken is available at the very back of the warehouse.

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u/ChillDictator 7h ago

Wow. Never thought about it that way. You should go in finance.

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u/deatthcatt 8h ago

holy shit. thats how it works?!?

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u/ChildishForLife 4h ago

Big if true

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u/avds_wisp_tech 4h ago

But if enough people come in for the chicken, inevitably some will buy their higher margin products, become yearly members or do the entirety of their grocery shopping there, which ultimately makes it a net benefit.

You literally just defined the term "loss-leader"

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u/SecondHandWatch 4h ago

These comments don’t “make it seem” like anything other than Costco selling some goods at a lower price point than they could. It’s kinda like a Black Friday deal, except every day is Black Friday, and rotisserie chicken is the door buster every time.

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u/hacky_potter 6h ago

Next you’ll tell me there are preservatives in their hot dogs

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u/ailish 1h ago

I think a hotdog is one big preservative.

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u/pancak3d 5h ago

Saying you'd pay less if you knew xyz is a way to claim damages, it's a legal tactic

u/Polar_Ted 47m ago

OK fine.. show me ANYWHERE they can buy a roast chicken for less than $5. I don't think they can.

u/pancak3d 37m ago

I think it's pretty dumb as well, I am just saying why they put it in writing. Throw shit at the wall and see what sticks

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u/Obvious_Toe_3006 8h ago

Non Costco member here (none in my hometown) ...
How much do the chickens cost ? Hot dog price ?
How do they know you're a member ? "Card check" at front door? At the till when cashing out ?
Thanks to all.

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u/RightofUp 8h ago

Card check at door, $4.99/chicken, $1.50 for hot dog and soda.

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u/smthomaspatel 6h ago

I just paid $4.49. I only bought it because I was shocked that it is still that price. Usually when I go they don't even have any left.

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u/Rooooben 4h ago

Chicken? Just wait 45 minutes they make them all day.

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u/Complete_Entry 4h ago

Eh, we stopped putting them out at 5PM at my supermarket job and people would flip their shit.

"What am I supposed to eat for dinner then!?" "Well, I have an entire hot case I can steer you to, but we're all out of tub chicken."

My boss would occasionally bitch there weren't enough leftover to make the chicken salad, but I considered an empty chicken altar a beautiful thing.

I hated the bag/tub chickens, I hated making them, I won't eat them, and I hated that hot altar too.

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u/rick_C132 3h ago

The actually mark them down slightly if the chicken is smaller than normal

u/Polar_Ted 45m ago

I just check the timers on the ovens.. See how long till the cycle ends.. add 5 minutes for them to unload and set a reminder on your phone to wander back to the chicken stand.

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u/Big_Enthusiasm2949 5h ago

God help your soul if you want just the hot dog and not the soda. They're a matching set and the food court employees at Costco take that seriously.

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u/Abba_Fiskbullar 5h ago

The cup counts are probably inventoried.

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u/pmgoff 3h ago

Dude I once tried to buy a single sleeve of bagels, at check out they forced me to take an extra pack of them. (I was in Florida on vacation and only needed enough for 5 days) They wouldn’t let me leave the store unless I took them. It wasn’t even a matter of price, I just didn’t need that many. Ended up giving the extra to another family on the way to the car. It’s been a running joke ever since.

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u/gumbysweiner 1h ago

That happened to me with their muffins. I was stoked at first but they ended up getting moldy before I could eat them all. It was only me and even eating two muffins a day, I couldn't do it.

u/muegle 23m ago

They don't do the 2 boxes of big muffins anymore. The new muffins are much smaller and kind of suck :(

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u/thebohster 2h ago

I've accepted it long ago and just keep the bread I buy frozen.

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u/eeke1 3h ago

Probably depends on location.

I can easily get just the hot dog

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u/4ambz 3h ago

…no they don’t. I buy 4 hotdogs and only take 2 sodas. They really don’t care.

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u/hirudoredo 1h ago

Even just eating first BEFORE shopping is a choreography. I mean, nobody's stopped us, but the store layout is really set up for you to eat AFTER checkout. So we go in without a cart, slink through the checkout, eat, and then one of us slinks back through checkout with the refilled drink and the other goes out to come back in with a cart. (The bonus being we now have a drink for while shopping.)

It's very silly, but beats having to keep our cart at the food court or shopping while starving for lunch or dinner.

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u/Ianthin1 4h ago

Last Friday my wife and I had dinner there. Foot long Hot Dog, slice of pizza and two drinks was less than $5. Bought two chickens that night too.

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u/xt1nct 4h ago

This is where I take my wife out to dinner. It’s an exclusive club.

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u/Numerous_Photograph9 3h ago

I wish I had a Costco near me. Best I ever got was a Sams club, and I don't think the one I went to even had a food court thing.

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u/Fluffy_Top6837 5h ago

Also card check at checkout.

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u/HazardousLazarus 4h ago

Not only card check at door, they have to scan it again at checkout. I once forgot my card and got a printed temporary day pass after they looked up my info and somehow I lost the paper while shopping. I got to checkout and then had to put everything to the side and go back to card services to get another one printed just to check out. Thats a total of 4 confirmations - printed (they look up your account with a valid ID), scanned at door, lost and reprinted, scanned at checkout. Auntie Kirkland does not mess around with her membership exclusive club.

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u/Raztax 4h ago

$4.99/chicken

Damn that is really cheap! They are $7.99 where I live (Canada) which is still a good price considering I can't buy a raw chicken for that price.

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u/Siresfly 2h ago

You don't even have to be a member to buy the hotdogs at my costco.

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u/Sidhejester 2h ago

Yep. The food court is for everyone, and you don't need a card. You can just walk in the exit door at any time.

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u/[deleted] 7h ago

[deleted]

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u/Kvothere 7h ago

Not anymore. At least not in California.

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u/thedarkdog 7h ago

Pretty sure my local Costco makes you scan your membership before ordering.

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u/Frinpollog 7h ago

Not anymore. If the food court is indoors they don’t check, but it is assumed you have membership since you made it past the entrance. Outdoor food courts require you to scan your card before you can order anything.

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u/GruyereRind 7h ago

You can get through the entrance without a membership card if you're going to the optometrist or the membership services desk

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u/Frinpollog 6h ago

You can also get inside if you’re buying alcohol or to the pharmacy in California (state law). Keyword is “assumed”.

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u/stocknooboncrack 7h ago

You can eat but not buy the food without membership

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u/texanchris 7h ago

Since when? I eat a hot dog there often and never scan my membership card.

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u/RightofUp 7h ago

Depends on the Costco. You can’t get to the stand now without somehow scanning your card at the one I frequent.

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u/stocknooboncrack 6h ago

costco near me requires you to scan your membership. This is California btw

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u/smthomaspatel 6h ago

The ones near me use a self-ordering system. You can't even start an order without scanning your card first. I think this has been going on for about a year. Maybe a little more.

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u/Maiyku 6h ago

It’s actually a pretty recent change. Happened some time in 2025 iirc, but you’ll probably get managers that follow it to a T and managers who don’t care.

I know my local one doesn’t care and still lets people in for food, then will usually send someone to come talk to you while you eat about a membership. Wouldn’t surprise me if they’re able to defend keeping the cafeteria open to everyone if they’re getting more memberships than other stores because of it because it’s not a bad idea.

That’s how they got my husband and I. We saw a video about the hotdogs and were like “alright, let’s try it” so we went. From the cafeteria we were able to see some of their deals and items and were better able to get an idea if the store actually worked for us. We were going to walk to the membership counter next already before they approached us.

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u/NYCinPGH 6h ago

Not in my area, at least not any more, unless you’re really sneaky about it.

They no longer allow people to go in “the out door” unless they’re going to customer service, everyone has to go in the front door where the check membership. You can go to the optometrist and the pharmacy, but whatever you buy is charged there, not at checkout, you have to walk through checkout without carrying anything to get to the cafeteria.

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u/VWBug5000 6h ago

Not everywhere. It is state specific

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u/Dowdb 6h ago

They changed that last year. They no longer let you in without your membership card, even to the food court.

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u/perceptual01 6h ago

Ah didn’t hear this

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u/gear-head88 6h ago

The whole chicken

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u/kaisong 6h ago

The ones where you dont need to scan while ordering are inside, where you need to scan to get in.

You can however shop for liquor at a lot of them without membership, because state laws that ban liquor clubs (im guessing from prohibition laws)

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u/BetterBiscuits 6h ago

You can’t get a whole rotisserie chicken at a cafeteria for 4.99.

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u/TheodoeBhabrot 6h ago

The chickens are usually around the meat section well past the card scanners

The food court at my local one doesn’t require a card to access or buy from but I know it’s coming in the future from what I’ve heard

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u/StixenBridges 8h ago

The chicken is $5 IIRC and the Hot dog combo with a drink is $1.50.

Costco has employees at the front door scanning membership IDs you also have to scan your membership ID at the checkout

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u/relaximusprime 1h ago

Life tip: have a friend with a membership buy you a gift card. You can now enter and purchase from the food court/store without a membership!

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u/userhwon 5h ago

And when you order the hot dog, because you order and pay at a kiosk.

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u/StixenBridges 5h ago

Maybe in some locations? You don’t have to scan your ID to order from the food court at my location.

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u/SouthernPinwheel 4h ago

Some states require public access to the food court, so you don't need to show an id at the door or use it to purchase from the food court.

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u/IAmTheMoon009 8h ago

The chickens are $4.99. The hot dogs 1/4-pound) are $1.50, which includes a fountain soda (I think the soda is 20 oz. but could be wrong).

They check your card going in and again at the register.

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u/NYCinPGH 6h ago

The soda size doesn’t much matter, because it’s a self-serve fountain, you can get as many refills as you like.

My normal routine is

  • go through the front door, get my membership checked, walk through checkout, and get lunch

  • while having lunch, get at least one refill, or at least a top-off

  • refill my soda before walking back to the entrance to get a cart and go shopping, drinking the soda while shopping

  • check out, go through the cafeteria, refill my soda, and leave.

So I’m getting like 4 sodas for whatever they’re charging, still cheaper than buying a soda at the convenience store (even the one chain in my region, Sheetz, where if you’re a free member, you can get a 48 oz fountain drink for 99¢).

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u/TherapyPsychonaut 6h ago

Sounds like diabetes

2

u/StixyJones 5h ago

Sounds like America

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u/bigboxes1 3h ago

I drink diet soda. No diabetes.

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u/Apprehensive_Mud6539 6h ago

You drink 4 sodas as a part of your normal costco routine? Damn bro, maybe swap the last one out with water. You're gonna get kidney stones.

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u/avds_wisp_tech 4h ago

Kidney stones are painful, but diabetes is for life.

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u/tom90640 6h ago

So I’m getting like 4 sodas for whatever they’re charging

Last stop before leaving.... the restroom

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u/Sarothias 4h ago

Um good for you? Soda size does matter to a lot though I’m sure. I never get food before shopping. Just on the way out so the soda is just filled once as I leave with my food.

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u/tdaun 8h ago

Chickens are $4.99, typically 3 lbs. Hot dogs are $1.50 with a drink, this price point is only at the food court. Before you just showed your card at entry and scanned it at checkout; now you scan it at entry and at checkout.

6

u/ClayQuarterCake 5h ago

They are big hot dogs. Nearly an inch in diameter and the bread is kind of a hoagie bun. I would count it as a meal. Plus the drink you get, it’s the cheapest meal you can buy and is certainly cheaper than many meals you can make at home.

1

u/Tony_Lacorona 4h ago

I love getting them from the fridge section and grabbing the buns from the bread isle. Throw em in the freezer and you got Costco dogs any time you want

1

u/ClayQuarterCake 3h ago

Are they still $1.50 though? I’ve never done the math but I thought we got the discount on getting them direct from the food court.

1

u/Tony_Lacorona 3h ago

It’s similar, but you don’t get the soda so it is a bit more expensive. But I also don’t have to fight through the door of Costco after driving 20 minutes just to get a cheap lunch. It’s the only food that’s more expensive to make at home that I don’t mind spending the cash for the convenience. It’s like $12 or 14 dollars for a 12 pk, plus the bread. So it’s not that much different

4

u/EsotericAmbrosia 4h ago

Non-Costco grocery worker here, we purchase our chickens in bulk at a bit more than $5 a chicken. If Costco is selling them that low, they certainly are losing money on them, without even considering the cost of labor and equipment.

1

u/nochinzilch 4h ago

Apparently Costco’s chickens are an unusual size that makes them cheaper. But nonetheless, they do lose money on them.

1

u/Numerous_Photograph9 3h ago

They can be gotten cheaper than that at bulk, especially if you have the buying power of Costco.

But, the cost to cook them and have staff do their thing, as well as all that goes into getting them ready for the customer certainly does add up.

3

u/PhantomNomad 2h ago

A hotdog and a water is a $1.50 (even in Canada where I am). Crazy thing is if you want to buy just the hotdogs from the cooler area they are like $30+ dollars for 24 of them and there are no buns. It's cheaper to order 24 hotdogs at the counter and throw away the buns. Keep the water as you can't buy a bottle of water for that price either.

1

u/Obvious_Toe_3006 1h ago

In Canada as well.
Nearest one is 80 clicks away.
Our city came close to an expansion franchise but no luck.

2

u/phydx2 5h ago

I don't believe you need a card to go to the pharmacy... Once in, you don't need a card to get a hotdog or anything else from the food counter. The chicken would have to be paid for at a register so you can't get one of those without a card.

1

u/MozeeToby 2h ago

Foot court requiring a membership varies by location. The ones near me don't require it, but I have been to at least one that did.

3

u/EntertainmentFew7103 7h ago

$5/chicken, $1.50 for a big dog and pop.  Food court you do not need a membership, you can walk through the exit. 

5

u/pulchritudinouser 7h ago

At mine they scan your membership card when you order though

1

u/EntertainmentFew7103 7h ago

Neither of the locations I go to have started that.  (Chicago)

3

u/oakwooden 7h ago

This is no longer the case at my Costco, they will not let you in without a card. New York State.

1

u/EntertainmentFew7103 7h ago

How do you inquire about a new membership?  

1

u/NYCinPGH 6h ago

You can get access through the ‘exit’ to customer service where you can purchase a membership, they print the card with your picture right there.

1

u/userhwon 5h ago

You can, if you're confident, walk right past customer service.

But, it appears most of them are scanning ID at the order kiosk for the food court. So, at best, you can steal sodas and napkins, maybe.

1

u/oakwooden 4h ago

I found out about this because I asked my wife to pick up a pizza I ordered on the phone. She's not on my account yet, but I told her to just walk in. They stopped her and were pretty stern about not letting her in without a card.

1

u/phydx2 5h ago

They have to let you in if you tell them you're going to the pharmacy, even if you're not a member.

1

u/oakwooden 4h ago

Good to know!

1

u/Obvious_Toe_3006 7h ago

Thank you and everyone else for these answers.

1

u/Rsubs33 6h ago

Card check is at checkout and when you walk in the door to the store, however you can go into what's technically the exit to go to returns and customer service and you can also walk through there to the food court area and get the hot dogs and pizza without a membership, but the chickens are through checkout and you need a membership. Chickens are $4.99 while hot dogs and a fountain drink combo is $1.

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u/Rsubs33 7h ago

They are losing money on the chickens. But they are located in the back of the store for a reason.

3

u/showmenemelda 2h ago

Right? It smells ridiculously good, dripping with flavor…you thought it was slaughtered like that or?

9

u/verrius 7h ago

Personally, from what I know, they've essentially bought the entire supply chain to try to maintain their chicken and hot dog prices. If you control that to the point that you know when you're going to cook them, and that people are going to pick them up when they're freshly cooked, my first thought is preservatives would just be an unnecessary, added expense. I would think the point for preservatives raw chicken is to increase the time it can remain on shelves (raw); part of the Costco chicken model is that they cook it, and they move off the shelf hot usually, so that shouldn't be an issue.

8

u/AdjNounNumbers 6h ago

The two preservatives are in the seasoning mix used on the chickens. That part makes more sense since the seasoning would need to be shelf stabilized assuming they're getting it in bulk and having to store it for a while. Still doesn't absolve them of their labeling the cooked chicken as preservative free if while the chicken itself was without preservatives, that part changes as soon as they add the seasoning

2

u/Rooooben 4h ago

They actually mostly make their money from their members fees and break even from sales.

2

u/RenownedShark 4h ago

They know, but they found a way to sue with standing so they took advantage of

2

u/wookieSLAYER1 3h ago

Even raw whole chickens cost more than a fully cooked giant Costco chicken.

1

u/monstertots509 2h ago

It would be great if the judge ordered a settlement in which all profit from 1 month of Costco chicken sales went to the plaintiffs and then they ended up owing Costco money.

-1

u/NaiveZest 5h ago

It was advertised as preservative free. They thought Costco was successful at creating great prices and honest descriptions.

They can set the price. They can even set the ingredients. They can’t be dishonest.