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The Street
The Street
Daniel Kline

Costco quietly makes a massive food court change

Costco uses a membership-based model. To shop in its stores, for the most part, you need to spend $60 for a Gold Membership or $120 to become an Executive member.

There are, however, some exceptions to the members-only rule. In some markets, for example, Costco (COST) operates liquor stores, and certain states require those be open to all shoppers.

Related: Popular mail retailer shuts down abruptly after bankruptcy filing

In recent months, the warehouse club has actually gotten more strict with its membership rules. It has begun checking memberships at select locations using an automatic kiosk before people enter its stores.

Previously, the chain had only checked to make sure someone held an active membership at checkout. That, in theory, allowed non-members to come into its warehouse clubs, browse the aisles, and even try some of the free samples.

You could argue that while some people might abuse the samples, having non-members see its stores might act as a recruitment tool. People without memberships could see an item that's a tremendous deal and be willing to sign up on the spot in order to buy it.

Non-members have also traditionally been able to eat at the chain's food court and that's a practice that appears to be ending.

Costco's food court has always been a major draw.

Image source: Patrick T. FALLON / AFP) (Photo by PATRICK T. FALLON/AFP via Getty Images

Costco's food court has been incredibly popular 

Costco's food court has been a popular perk for members given the chain's commitment to low prices. It famously sells a hot dog and 20 ounce Pepsi for $1.50 and the founding CEO and his successors have promised that price would never go up.

The food court has a simple menu with cheap pizza, a couple of sandwiches, ice cream, and a new chocolate chip cookie being offered. It's a major draw because many people join Costco for its low prices and the food court offerings act as an extension of that.

Technically, only members are allowed to purchase items at the food court. That policy, however, has generally not been enforced as the clerks who wait on customers don't ask for a membership card (which makes sense given that a parent might send a teenager to grab a snack).

Now, Costco appears to be changing that policy.

Costco closes its food court to non-members

A post on Reddit showed a sign at a Florida Costco that made it clear that the company wants to continue its membership crackdown by extending it to its food court.

"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 read.

Costco's written policy has often been different than how it operates in its warehouses. The chain, for example, has a written policy on checking membership cards that's not what happens at most stores.

"You will be required to show your membership card when entering any Costco warehouse and when checking out at a payment register. Bar codes, photos, or other copies are not acceptable," the company shared on its website.

In reality, the chain has only recently begun checking membership cards upon entry and that has only happened at select stores.

Costco did not immediately return a request to clarify its food court policy. 

The Florida store is not the only location that has hung a sign detailing the food court policy. A number of people have posted pictures of the sign at other locations, but it does not appear to be a uniform policy. 

CostcoDeals, a popular Instagram page that's not affiliated with the warehouse club, noted the chain has been sporadically trying to make this change since the covid pandemic. It posted a picture of a similar sign from 2020.

"To us, it makes complete sense! Not sure why it’s taken Costco so long to implement...I mean you have to have a membership for gas," the site shared.

 

 

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