Costco’s food court has long been a cherished amenity for its members, famed for its affordability and iconic offerings. Ever since its establishment in 1984, shoppers have flocked to enjoy the famously economical hot dog and soda combo, priced at just $1.50—a price that has remained unchanged over the years. Originally located outside the store, most Costco food courts have since moved indoors, but the beloved combo remains a staple.
A pivotal change occurred in 2013 when Costco announced it would switch its cola supplier from Coke to Pepsi. This decision sparked significant backlash among loyal customers, marking yet another chapter in the longstanding cola rivalry. Many customers expressed their discontent, with Coke and Pepsi enthusiasts fiercely defending their preferred brand, akin to sports team loyalties.
This year, Costco’s food court is set to undergo another noteworthy transformation. During the annual shareholder meeting held on January 23, CEO Ron Vachris revealed that Costco would revert to serving Coca-Cola products in its food courts. Vachris noted that the change was slated to begin in the summer, with a focus on maintaining the integrity of its hot dog and soda combo pricing.
The rollout of this switch began in July, affecting over 630 stores nationwide. Internal communications and numerous customer reports on social media platforms like Reddit confirm the transition is already in progress at various locations.
Stores that have announced the switch back to Coke include those in Nashville, Tennessee; Cherry Hill, New Jersey; Pleasanton, California; Burnsville, Minnesota; Springfield, Virginia; Fremont, California; and Lakeville, California. Additionally, the change was recently observed at the food court in Costco’s Summerlin location in Las Vegas.
However, the process of change isn’t uniform, with some locations still offering Pepsi as of mid-July. Customers from the Los Angeles area reported that Pepsi remains the soda option at most stores there. Similarly, patrons from Shoreline and Lake Stevens, Washington, mentioned the change had not yet occurred in their regions.
Despite the complexities surrounding beverage options, Costco continues to thrive, noticeably contrasting with some other retailers facing challenges. In its Q3 earnings call on May 29, the company revealed an 8% increase in net sales for the quarter, totaling $61.96 billion. Gone is the broader economic uncertainty that has caused some retail sectors to falter.
Nevertheless, Costco’s Chief Financial Officer Gary Millerchip indicated that consumer spending patterns are becoming more cautious. He noted that while members remain willing to spend, they are more selective about where their dollars go, emphasizing the importance of quality, value, and newness in products.
As inflationary pressures and tariffs continue to pose challenges, Costco has devised strategies to mitigate high costs. The company is collaborating closely with vendors to address the impact of tariffs and is considering alternative sourcing locations for some products. In a proactive move, Costco has also requested price reductions from its Chinese suppliers to navigate these challenges effectively.
While the reintroduction of Coca-Cola is a significant change for Costco’s food courts, shoppers can expect this new chapter to unfold amidst a company committed to managing rising costs. As each location transitions back to Coke, the nostalgic allure of the hot dog and soda combo remains a powerful draw for customers. Amid evolving consumer behavior and a challenging economic landscape, Costco’s adept navigation of these factors will determine how the beloved food court will continue to thrive as a destination for many.
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