Costco cracking down on non-members eating at food courts

Costco is cracking down on non-members eating at its wallet-friendly food courts.

The wholesale store has become known for its cheap eats as much as for allowing everyday consumers to buy in bulk, with the $1.50 hot dog combo and cheap pizza slices, or whole pies, becoming favorites.

According to social media reports, diners will be required to show their membership cards when making food court purchases starting early next month.

“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,” one sign, seen at a store in Orlando, Fla., reads.

Richard Galanti, the club’s chief financial officer, told Axios in March the policy change is aimed at locations with outdoor food courts. Customers already have to show their card to enter the store, and thus access indoor food courts.

Galanti told the outlet that member complaints had risen about people sneaking into food courts and taking advantage of the budget bits like the hot dog combo, which co-founder Jim Sinegal said will stay at the same price it was at in 1985 “forever.”

Galanti said the food court, like its gas stations and optical services, was one of the ancillary parts that drives membership at the wholesaler. The company touts being able to offer those benefits for less because of its membership fees.

Costco had 128 million members at the end of 2023 with fees adding up to $4.6 billion — nearly 75% of its total profit for the year.