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The Devious Reason Why Costco’s Food Court Is So Cheap
I, like most red blooded Americans, love Costco. It’s like Disneyland for adults except instead of marveling at fantastical rides, you marvel at Costco’s ridiculously cheap prices — where else can you buy enough bulk-sized containers of peanut butter to last you for the next 3 years?
One of the many things that makes Costco magical is its food court. There you can feed yourself or your family on the cheap with options such as a chicken bake, pizza, and Costco’s infamous hot dog combo. Shoppers can enjoy a hot dog and a 20 oz soda (with free refills!) for only $1.50 — a price that has been held constant for the last 30 years.
You may believe that Costco sells food so cheaply because Costco is just looking out for the family who wants to eat an affordable meal while doing their weekly grocery shopping. But given Costco is a public for-profit company, I think there’s more to the story. Recently I’ve had time to reflect on the questions that keep me up at night and why Costco’s food court prices are so low is at the top of that list. I believe there could be an extremely devious reason that Costco offers delicious food at such an affordable price. But first, let’s go through some of the more obvious reasons.
