Costco confirms major change to its food court menu

While Costco (COST) is the largest and most popular warehouse club in the U.S., with over 600 locations and roughly 132 million members nationwide, it still faces threats from major rivals such as Sam’s Club, BJ’s, and even Target, which recently expanded its discount offerings.

However, one particular area inside Costco’s stores has managed to help the club stand out from its competitors. That area is its food court, which has consistently gone viral on social media for menu items such as its chicken bake, chocolate chip cookie, and $1.50 hot dog and soda combo.

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Last year, Costco even made a few tweaks to its beloved food court menu. In February, it added a $6.99 turkey swiss sandwich.

Also, in March, it replaced its strawberry ice cream with chocolate-flavored ice cream, and by August, it unveiled its new $6.99 chicken and bacon sandwich.

Costco announces major food court menu shakeup

Now, Costco has opted to kick off 2025 with another major menu change, and it’s sure to rattle the 100-year-old rivalry between two popular companies.

During Costco’s annual shareholder meeting on Jan. 23, the club confirmed that it will be switching from PepsiCo (PEP) to Coca-Cola (KO) products in its food court within the next few months.

Customers wait on line at a Costco food court in Austin on June 24, 2022.
Shutterstock-Ant DM

“This summer, we will be converting our food court fountain business back over to Coca-Cola,” said Costco CEO Ron Vachris during the meeting.

Some of PepsiCo’s popular drink brands include, Pepsi, Mountain Dew, Aquafina, Dr. Pepper, Schweppes, etc.

Costco has had PepsiCo products in its food courts since 2013; before then, it had Coca-Cola products. At the time, it made the switch to “preserve the integrity of the price point” of its $1.50 hot dog and soda combo, according to a Costco executive.

Costco could help boost Coca-Cola's struggling sales

Costco’s choice to now revert back to Coca-Cola products comes after the beverage company revealed in its latest earnings report that it faced a 23% year-over-year decline in operating revenue (a company’s profit after expenses) during the third quarter of 2024.

Coca-Cola, which owns Sprite, Fanta, Smartwater, Minute Maid, etc., faced a 2% year-over-year decline in concentrate sales, and in the U.S., its overall sales remained stagnant. While the company did see a boost in soft drink sales, its water bottle sales declined by about 6% year over year globally.

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Coca-Cola’s return to Costco’s viral food court could be beneficial in helping to boost the beverage company’s sales, and it may also help it maintain its edge over its top rival, PepsiCo. Coca-Cola is currently the top beverage company in the U.S. based on market value.

Coca-Cola’s market value is currently at about $275 billion, while PepsiCo’s is at roughly $212 billion.

PepsiCo’s market value hasn’t surpassed Coca-Cola’s since 2006, which was the first time it did so in its over 100-year rivalry. At the time, PepsiCo’s stock surpassed Coca-Cola’s, which was facing a 30% decline in its stock price.

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