Costco’s secret weapon: Food courts and $1.50 hot dogs
Costco has been able to keep it’s $1.50 hot dog and drink combo for over three decades and it is helping them succeed. Hot dogs are emblematic of Costco's broader strategy to distinguish its warehouses. By maintaining a classic look and low prices despite inflation, Costco has managed to distinguish themselves against the likes of Amazon, Walmart, Target and Kroger.
- Costco sold over 135 million of their combos last year
- Costco's food courts make over a $1 billion in sales and have managed to maintain their classic and popular 1980's look
- The food courts have helped incentivize membership and sales
- How has Costco managed to be able to keep its prices down?
- What is Costco's motive behind having food courts and what advantage does it give them over competitors?