Retail giant Costco is tightening its grip on access to its food courts around the nation.
Recent images shared on the social media platform Reddit reveal new signs posted at various Costco locations, signaling more stringent enforcement of membership requirements, particularly concerning the beloved $1.50 hot dog and soda combo.
The signs, prominently displayed in stores in Washington state, indicate a significant policy change set to take effect from April 8. “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,” the sign reads.
While this move might seem like a sudden crackdown, it aligns with Costco’s ongoing efforts to safeguard its membership system. As far back as 2020, the company officially limited food court access to members.
In January, Costco began implementing new technology at select store entrances, requiring members to scan their cards upon entry. This move was specifically aimed at curbing unauthorized access and boosting membership value. Extending this vigilance to the food court appears to be the logical next step in Costco’s strategy.
Behind this apparent strictness lies a clear financial incentive. Costco’s membership fees accounted for a staggering $4.6 billion in 2023, according to CBS, constituting a significant portion of its total profits. By requiring more individuals to purchase memberships, Costco not only secures its revenue streams but also reinforces the exclusivity of its food court deals.
A basic membership sets one back $60 annually, according to the Costco website, while the executive tier, boasting additional perks such as a 2% cash-back reward, comes in at $120 per year. For many, the allure of Costco’s bargains and benefits outweigh the membership fees.
Costco’s rationale behind this heightened scrutiny is clear: fairness to its paying members. “We don’t feel it’s right that non-members receive the same benefits and pricing as our members,” Costco told USA Today last summer, emphasizing its commitment to upholding the value of membership.
Despite inquiries from various news outlets, Costco has remained tight-lipped about the specifics of these policy changes. However, the message to non-members is clear: to savor the famed $1.50 hot dog combo or any other food court delight, a Costco membership card is now your admission ticket.
