Costco food court will require showing a membership card now

[Dan Murphy]

I don't understand. If somebody wants to buy something at a membership type store, why wouldn't the person buy a membership?

 

[bcla]

I don't understand. If somebody wants to buy something at a membership type store, why wouldn't the person buy a membership?

A hot dog and soft drink are $1.50 plus tax. I've been to some outside food court Costco locations where it seems like there are a lot of diners who aren't members.

 

[tennisfan]

I'm a member of Costco in the UK and you can get to the customer service desk/food court through the out door but there is always someone checking membership before you get to the food court

 

[PollyannaMom]

I don't understand. If somebody wants to buy something at a membership type store, why wouldn't the person buy a membership?

Because $1.50 for a hotdog combo is a bargain, but $61.50 is not.

I saw the story on the news this morning, and wondered about the reasons for it. I actually think Coscto is going to lose money, unless they were really selling the food at a big loss.

People who used to come in and spend a little at the food court (but not buy a membership and shop) are not going to buy the membership just to eat, so they're going to go from spending a little to spending nothing.

 

[mnrose]

The reason you show your membership card at the door is NOT because they don't want non-members wandering the store. They really don't care about that. What they DON'T want (because it slows everything down) is for you to get to the checkout stand, where you DO need a membership card, and not have one. So, now, you've got your mounds of stuff on the belt, a long line behind you, and start looking for your card. That's what they are avoiding. It's a check to make sure that you HAVE your card before you go in. And, they've found this to be the most efficient use of their human capital and to protect the swiftness of checkout. If Costco does it, there's always a reason that fits with their overall business model.

In Minnesota, you MUST have a membership card to shop the liquor store. It is a separate entry...not because "anyone" can enter, but because in Minnesota, hours of liquor sales are controlled, especially on Sunday, and are much less than the hours a retail store can operate. The ONLY thing you can use without a membership in Minnesota is the food court (I doubt many people go to the trouble of visiting Costco if not a member...prices are not that good that it's worth battling those crowds), and the pharmacy. By state law, the pharmacy must sell to anyone. My MIL does this. She tells the door checker that she's going to the pharmacy and they let her in. She is not able to buy anything else while there, though!

 

[mnrose]

Because $1.50 for a hotdog combo is a bargain, but $61.50 is not.

I saw the story on the news this morning, and wondered about the reasons for it. I actually think Coscto is going to lose money, unless they were really selling the food at a big loss.

People who used to come in and spend a little at the food court (but not buy a membership and shop) are not going to buy the membership just to eat, so they're going to go from spending a little to spending nothing.

Costco breaks even, and that's it, on the food court. They don't "make" money on that aspect of the store. It is a service to their guests. So if there are people who are using the food court without being members, on those people, they actually "lose" money since you are not giving them an annual fee. They are NOT trying to attract the general public to the store for that reason. They don't care that some people no longer want to "buy" their $1.50 hotdog. The membership fee is a BIG part of their business model, and IS what allows them to have a "revenue neutral" food court. So, no, I don't think making it impossible for non-members to use the food court hurts them one little bit.

 

[maxiesmom]

That is quite the change. I know many people who go just to get a quick bite to eat. The one by me is set up so the food court is on the opposite side of where you go in, the food court is right before you exit.

 

[shoney]

Up until a few years ago the food court was cash only and you had to show membership card. Because I rarely have cash, I would pay for my food court stuff at the register when paying for my regular stuff and then just pick it up.
when they started taking credit cards at the food court they didn’t ask for the membership card anymore. Weird. It is inside so you need the card to get in or I guess you could pretend you were going to the membership desk.
we dont have liquor or gas here.

 

[Searc]

As an offshoot to this discussion, does your Costco require you to show the card to purchase gasoline? In my state they can’t limit gasoline sales to members so anyone may purchase it.

Yes, a membership card is required here.

 

[Julie's Haircut]

DW and I had a Costco membership for 3 or 4 years but let it expire about 5 years ago when it no longer met our needs. I think we only went to the food court once or twice, but sometimes made a "meal" out of grazing on all the samples of food throughout the store.

In New Jersey, I think the type of food service license Costco has prohibits limiting it to members. There are private clubs that serve food, but they have to follow a different set of arcane rules.

The same applies to gasoline, pharmacy, and liquor. Open to all customers, no membership required. There may be a few other things too, like the optical department and leased space like a cell phone vendor.

And why does Costco say they are "wholesale?" Selling things to the consumers who use them is retail.

 

[Mackenzie Click-Mickelson]

And why does Costco say they are "wholesale?" Selling things to the consumers who use them is retail.

Wholesale is being referred to the sale of goods in bulk quantities in this case.

 

[JimMIA]

We have a Costco Executive membership, which I think costs us $100 per year.

Next month, I will get my Rewards voucher for almost $900 for 2019 purchases. I'll take it to the store, exchange it for a check, and deposit it in the bank.

Our big savings is gas and bulk items. Our Costco gas is typically at least 15 cents per gallon less than other stations, plus we get an additional 4% rebate. So if Costco's gas price is $2.50 per gallon, I'm saving $0.15 + $0.10 rebate = $0.25 per gallon.

Our liquor store has a separate entrance, but I've never been in it so I don't know if a card is required or not.

I see a LOT of wholesale shoppers (restaurants, bowling alleys, skating rinks, etc) with several huge carts buying bulk items, and I know that many things are sold at much lower prices than grocery stores.

But you have to price check. Beer, for example, is always several dollars more expensive at my store than Publix.

 

[Mackenzie Click-Mickelson]

Because $1.50 for a hotdog combo is a bargain, but $61.50 is not.

I saw the story on the news this morning, and wondered about the reasons for it. I actually think Coscto is going to lose money, unless they were really selling the food at a big loss.

People who used to come in and spend a little at the food court (but not buy a membership and shop) are not going to buy the membership just to eat, so they're going to go from spending a little to spending nothing.

I've heard people claim (as in comments in news articles or quoted comments in news articles) Costco will lose out on money in regards to this but I really highly doubt they will.

They've sold their hot dog combos as a loss leader for years and they have no plans to adjust their pricing on the combo. They were selling their $4.99 chickens as a loss leader due to several reasons until they decided to create their own facility and are training farmers so they basically cut out their own middle man. They also don't plan on adjusting their pricing of their chickens which is in part what drove them to their decision because they didn't want to raise the pricing.

They make up any difference elsewhere in the store.

I think if it were a traditional retailer that might be different but with Costco it's so beloved, they are careful with their goods they sell and the profits generated from it that it's probably not going to even be a blip on their radar in the end.

 

[Mackenzie Click-Mickelson]

We have a Costco Executive membership, which I think costs us $100 per year.

I believe it's $120 (twice the cost of a normal membership). The extra $20 in terms of Costco (as it would be easy to spend that) I doubt is on your radar though lol.

 

[mjkacmom]

Because $1.50 for a hotdog combo is a bargain, but $61.50 is not.

I saw the story on the news this morning, and wondered about the reasons for it. I actually think Coscto is going to lose money, unless they were really selling the food at a big loss.

People who used to come in and spend a little at the food court (but not buy a membership and shop) are not going to buy the membership just to eat, so they're going to go from spending a little to spending nothing.

I’ve read that the food court costs them money, it’s there to encourage membership.

 

[Julie's Haircut]

Wholesale is being referred to the sale of goods in bulk quantities in this case.

Yeah, I suppose so. Even 50 ago there were warehouse type stores that sold things out of cartons. They advertised "wholesale prices to the public."

 

[JimMIA]

I believe it's $120 (twice the cost of a normal membership). The extra $20 in terms of Costco (as it would be easy to spend that) I doubt is on your radar though lol.

You're probably right, but nope -- not on my radar as long as the gas price situation and bulk item pricing remains the same!

 

[Mackenzie Click-Mickelson]

Yeah, I suppose so. Even 50 ago there were warehouse type stores that sold things out of cartons. They advertised "wholesale prices to the public."

Yeah I think it's probably a generous usage of the word in this case. They are selling to consumers like a retailer but a majority of items are sold in bulk quantities that normally you would associate is being sold to the retailer. Warehouse probably evokes something in people in terms of what they perceive is a good deal (and many times they are a good deal IF you're going to use all of it lol).

 

[JimMIA]

Yeah I think it's probably a generous usage of the word in this case. They are selling to consumers like a retailer but a majority of items are sold in bulk quantities that normally you would associate is being sold to the retailer. Warehouse probably evokes something in people in terms of what they perceive is a good deal (and many times they are a good deal IF you're going to use all of it lol).

A LOT of small businesses use Costco as a wholesaler. You won't find big chain restaurants pushing carts there, but you will find a lot of small family businesses buying their bulk supplies at Costco...just like they shop for office supplies at Office Depot.

 

[Mackenzie Click-Mickelson]

A LOT of small businesses use Costco as a wholesaler. You won't find big chain restaurants pushing carts there, but you will find a lot of small family businesses buying their bulk supplies at Costco.

Totally; a big chain is likely having a connection with a normal supplier.

I don't see your average person buying the huge huge bags of flour for instance lol. But there are tons of your ordinary people not connected with businesses who reap the benefits of bulk quantities and pricing.