No more freebies: Costco cracks down on food court access

Getting a $1.50 hot dog and soda combo deal at Costco is officially becoming a members-only perk.

The retail giant is reportedly restricting food court access in the latest move to ensure only paying members enjoy Costco’s in-store prices and products.

A photo recently posted on Reddit has caught attention nationwide. It’s of a sign posted at a store in Orlando, Florida, which read, “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.”

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Costco said food court access has always required a membership. However, enforcement of that policy has varied across store locations. In 2020, multiple media outlets reported the company expanded it to outdoor food courts, which previously did not require a Costco card.

Costco has long been known for leniency with non-member visitors. Typically, only active members have been able to purchase products (with Costco cards verified by a cashier at checkout). But in the past, those who have already joined Costco have been allowed to bring in up to two guests, who can browse, sample, and enjoy a food court snack.

Previously, a common “hack” for non-members would be to use self-checkout to make purchases, thereby avoiding having the card physically inspected by an employee in regular checkout.

Now, Costco workers are stationed at self-checkout in many locations, monitoring every purchase and matching each membership card against a photo ID. And it appears the food court will be employing the same techniques.

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Costco also appears to be ramping up scrutiny of who walks in and out of the store doors. Previously, a shopper could flash a Costco card at the entrance (which may or may not be borrowed) to gain access.

Last summer, the warehouse retailer announced it will now more closely examine the cards and photograph of the cardholder on them, before allowing people to enter the store.

“We don’t feel it’s right that nonmembers receive the same benefits and pricing as our members,” the company wrote in a prepared statement at the time.

In its latest escalation, Costco is testing out a system that requires members to scan their membership cards at the store entrance. Reddit users in Washington state posted a photo in January at the club’s Issaquah store that appears to show the new scanners in action.

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A significant piece of Costco’s earnings comes from membership fees, according to the company’s quarterly earnings report. The retailer currently charges $60 a year for annual memberships and $120 a year for its higher-tier plan, called the Executive Membership. Costco membership cards are non-transferable, but the company allows members to give a second household card to one other person in their home. According to Statista, a global data and business intelligence platform, the company made $4.58 billion in membership fees last year.

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