One of the best parts of every visit to the Costco supermarket mega chain (COST) – Get a free report stops at the little food counter on the way out the door. Customers will secure a spot in line as soon as they’re done checking out, leaning on their carts packed with bulk groceries and listening intently for their ticket number to be called.
Costco’s grocery offerings are known for one thing: affordability. Some may even use the word “cheap,” but low ticket prices on food like pizza, chicken sandwiches, and hot dogs actually cost the chain a fair amount of money. Fortunately for Costco, the loss is worth it. Because low-priced food drives customers into the store and incentivizes those same customers to keep their memberships active.
The company has been crystal clear: When it comes to its small restaurant, Costco will raise membership prices before slashing prices for its beloved prepared food. And that makes sense because it also has Walmart (WMT) – Get a free report Sam’s Club owned warehouse competitor to compete.
Costco is okay with losing money making food that attracts more foot traffic. But the company isn’t wasting more money worrying about the highest quality ingredients or the most complex flavors. No one is going to Costco looking for a gourmet experience…or are they?
Dave Chang isn’t a fan of Costco’s rotisserie chicken
In this week’s episode of the popular culinary podcast “The Dave Chang Show,” the celebrity chef, along with his co-host, food journalist and chef Chris Ying, delve into the Costco rotisserie chicken phenomenon. The two friends talk about shopping trips to Costco and the convenience of big box stores when cooking for a family.
But according to Chang, the chicken from the giant grocery center didn’t meet his expectations.
“I think Costco chicken is the worst rotisserie chicken,” said the owner of the beloved Momofuku restaurant. The problem, he says, is the lack of seasoning. Often leftover chicken ends up in the fridge to be eaten cold the next day. Without any seasoning, Chang says, Costco chicken is less than delicious after the first day. Ying also says that, in her opinion, chickens are undercooked.
Chang is right, but he may be missing the point.
Chang’s perspective could be explained by customers’ ability to manage their own expectations. For the low price of $4.99 per chicken, consumers certainly seem happy to trade the taste for a few extra bucks in their pockets. Lack of seasoning, while a valid criticism of the food, doesn’t seem to stop chickens from flying across the counter from one open store to another closed.
Part of the charm of the Costco restaurant is the school cafeteria experience. Where else can you find a slice of pizza that probably has the exact same recipe as the pizza you had for lunch in public school? None of Costco’s menu items will be winning any James Beard awards anytime soon. But for customers looking for a hot, prepared meal option to feed a large family, Costco’s cheap chicken offering is still a bargain.
For the record, Chang says the best-tasting grocery store rotisserie chicken comes from another store shoppers are likely to find in their town. If you’re prioritizing taste over price, Chang recommends buying your birds at Sprouts Farmers Market. (OFS) – Get a free report for $6.99.
