Costco is taking action to crack down on membership sharing and ensure that only paying members get access to its popular $1.50 hot dog and soda combo deal at its food courts. Signs posted at Costco locations indicate that starting April 8, 2024, an active Costco membership card will be required to purchase items from the food court. This move is part of the wholesaler’s efforts to enforce its membership requirements, with the goal of increasing membership and boosting its bottom line. Membership fees accounted for 73% of Costco’s total profit in 2023.
In January, Costco started rolling out new technology that requires members to scan their cards at some store entrances to crack down on membership sharing and nonmember walk-ins. The stricter enforcement is designed to encourage more people to purchase memberships and ensure that only paying members receive the benefits and pricing that Costco offers. A basic membership costs $60 annually, while the executive membership, which comes with perks like a 2% cash-back reward, is $120 per year.
Costco has not yet responded to inquiries about its existing policies and whether any formal changes are being made. The company has previously stated that it does not believe it is fair for non-members to access the same benefits and pricing as paying members. This sentiment was expressed over the summer when Costco began asking for members’ photo IDs along with their membership cards at self-checkout registers. By cracking down on membership sharing, Costco aims to maintain the value of membership and protect the benefits that paying members are entitled to.
The signs at Costco stores indicate that stricter enforcement measures are being implemented to ensure that only active Costco members can make purchases at the food court. The $1.50 hot dog and soda combo deal is a popular offering that draws customers to the food court, but only paying members will be able to enjoy this discount. Costco’s decision to require membership cards for food court access signals a more rigorous approach to enforcing membership requirements and discouraging non-member access to the store’s perks and pricing.
Costco’s crackdown on membership sharing is part of its strategy to maintain its premium position as a discount shopping club and retain the loyalty of paying members. By requiring membership cards for food court purchases and implementing new technology to monitor entrance access, Costco is aiming to protect the benefits and pricing exclusive to its members. The move reflects the company’s commitment to preserving the value of membership and ensuring that customers who wish to shop at Costco pay for the privilege. The decision to enforce membership requirements more strictly is expected to drive membership sales and contribute to Costco’s overall profitability.
