Costco edifies Customer Relevance

Recently Costco began testing self-service computerized ordering kiosks in the food court area at two locations in Orange County, California and as regular readers of this blog know Costco ‘food court’ sales now exceed $2 Billion a year in sales and as a standalone unit they are profitable according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

When the kiosks were installed in the Tustin and Pacoima stores around the first February everyone knew customer adoption would be the question.  Well so far the kiosk have been a “great success and wait times have been cut substantially,” according to a Costco employee who was interviewed by the Orange County Register.

To make room for the units, Costco cut its “yellow line section” in half, and moved the coffee grinder and bagged ice freezer to other areas of the store. Shoppers simply walk up to the kiosks that feature large TV screens and tap them to select the items they would like to purchase. Items offered include Costco’s famous $1.50 foot-long hot dog, chicken Caesar salad, turkey and provolone sandwich, Chicken Bake, beef chili, Very Berry Sundae, frozen yogurt cup, Cold Brew Mocha Freeze, pizza by the slice or whole pie in pepperoni, cheese, combo or special order, and a 20-ounce Pepsi brand soft drink for 59 cents.

Shoppers then pay with a credit or debit card (cash is not accepted), take the printed receipt and go to the kiosk pickup window to get their order. The Orange County Register found during a visit on a “very hectic” Sunday afternoon that the kiosks had dramatically reduced the number of customers waiting along the yellow line, and that the wait at the kiosk pickup window was very short. In the minds-eye of our Grocerant Guru® that equates to  higher sales and incremental profits. How are you driving customer relevance, sales and profits?  What is you new electricity to fuel sales?

Are you trapped doing what you have always done and doing it the same way?  Interested in learning how www.FoodserviceSolutions.us can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit:  www.FoodserviceSolutions.us for more information.