Earlier this year Costco made headlines by testing chicken fingers to select food courts.
“The offering includes five breaded chicken breast strips, along with a dipping sauce,” reported TheStreet’s Maurie Backman. “The cost of the new meal deal is $6.99, which is a bit higher than Costco’s typical food court price point.”
Costco received some backlash over the price of the chicken tenders and the fact that an order contains 1,640 calories.
The chicken fingers, however, were a limited test that has not been rolled out nationwide. Now, however, the warehouse club has made a new seasonal addition to its food court menu at warehouse clubs across the country.
Costco adds a new food court dessert
While much of the Costco food court menu remains permanent, the chain does rotate its seasonal sundae.
In March, the warehouse club nodded to its much-missed food court churros with its LTO sundae offering.
“Instead of bringing back the full-size pastry that once defined its food court, the Washington-based big-box retailer has unveiled a $2.99 Caramel Churro Sundae topped with tiny churro bites,” according to Fox News.
The dessert, which is on sale at my local Costco and locations nationwide, replaced the seasonal mint sundae. It featured vanilla, chocolate, or swirl soft-serve ice cream drizzled with salted caramel and topped with crunchy mini churro bites,” TheStreet reported.
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Costco’s Churro Sundae costs $2.99 and comes in at a whopping 850 calories.
Now, the chain has replaced the Caramel Churro Sundae with a new strawberry offering.
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Costco adds a new sundae
Costco recently launched a new Strawberry Shortcake Sundae inside its food court, according to Parade.
“A rich blend of creamy strawberry ice cream, soft shortcake bites, and decadent strawberry topping,” is how the website describes the new offering.
Like its predecessors, it’s selling for $2.99.
“I was not ready for this one,” Costco-centered food blogger costcohotfinds said in her review of the product. “The Costco food court just dropped a Strawberry Shortcake Sundae with the softest bites of shortcake. It also has strawberry ice cream and strawberry topping, and I just think that Costco has the best strawberry ice cream ever.”
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Costco keeps driving sales
Costco’s food court drives members to its stores.
“Ancillary business sales were up mid- to high single digits. Pharmacy, food court, and optical were the top performers,” CFO Gary Millerchip said during the chain’s second-quarter earnings call.
He did not share a specific number, but noted that food court sales experienced “double-digit comparable sales growth.”
Costco uses low prices at its food court to entice repeat visits from members.
“Foodservice and in-store dining options continue to play an important role in driving retail traffic and reinforcing value perception for consumers,” according to Circana’s foodservice industry research.
Costco’s approach reflects how these broader retail foodservice trends show up in a real-world operating model.
The chain’s food court items are a classic example of ‘loss leaders.’ This is the practice of deliberately charging below cost on certain items to draw customers into the store and retain their loyalty,” Tasting Table wrote.
The food court drives traffic, builds loyalty, and keeps customers engaged.
“Costco also likes to encourage customers to spend time exploring the huge store, finding new deals, and having a cheap food court entices people to stay longer,” the food website added.
The warehouse club, while it’s famous for keeping its hot dog combo at $1,50, has raised other menu item prices at its food courts.
GlobalData Managing Director Neil Saunders thinks the chain can do that without angering members.
“Costco has suffered inflation just as every other retailer suffers inflation. As such, it’s unsurprising that some food court prices have risen. Overall, this may be a disappointment to some consumers, but it is not a game-changer for Costco as very few people go there for just the food court,” he posted on RetailWire.
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