this post was submitted on 02 Nov 2023
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Costco loses a good amount of money on the food. The CEO has principles.
The food court and samples is a loss leader, also it anchors people to the perception that Costco is cheap.
They loose money on the hotdog, but gain money on the foot traffic. It’s good for business at the end of the day.
Another is the rotisserie chicken which they put in the back of the store.
True dat. I always wondered why they don’t put the hotdogs in the back to lure people in - like IKEA.