If You Can’t Beat Costco, Join Costco: Walmart’s Rotisserie Chicken Copycat Strategy Shows Where Grocerant Growth Is Going

 

There is an old business saying: “If you can’t beat them, join them.”

Walmart’s latest rotisserie-chicken marketing move may be one of the most entertaining examples of that strategy I have seen in food retail according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

But beneath the limited-edition $5.97 Chicken Purse, the bag charms and the social-media fun is a much bigger food-retailing story.

It is about Costco, packaging, price, prepared food, convenience, brand identity and the growing power of fresh-prepared meal components.

And from my perspective as the Grocerant Guru®, Walmart has learned an important lesson: when a competitor owns a consumer food ritual, sometimes the smartest strategy is not to invent a new ritual. It is to make your version better, cheaper, easier and more culturally relevant.

Costco Didn't Invent the Bag — But It Made the Packaging Change Strategic

Let's get one food fact straight.

Costco was not the first retailer to put rotisserie chickens into flexible bags. Walmart, Whole Foods and other grocers were already using similar packaging. When Costco began transitioning its famous Kirkland Signature rotisserie chicken from rigid plastic clamshells to flexible bags in 2024, it was actually following an established packaging direction.

But Costco did something much more important.

It made the packaging part of the conversation.

Costco said the flexible packaging could reduce its plastic use by roughly 75%, or about 17 million pounds of plastic annually, while eliminating the need for an estimated 1,000 freight trucks and reducing carbon emissions by approximately 4,000 metric tons.

That is not simply a packaging change.

That is food merchandising economics meeting supply-chain economics meeting sustainability.

And Costco had something most retailers don't have:

A $4.99 product with cult status.

The $4.99 Costco rotisserie chicken has remained essentially unchanged for years despite inflation and higher operating costs. In fiscal 2025, Costco sold approximately 157.4 million rotisserie chickens globally—more than 431,000 per day.

That is an extraordinary number for a single prepared-food item.

The lesson is equally extraordinary:

Packaging doesn't have to make the food more expensive. Packaging can actually become part of the value equation.

Why Costco Will Continue to Lead Whole-Rotisserie-Chicken Sales

I see three reasons Costco will remain exceptionally difficult to dislodge in whole rotisserie chicken.

1. Costco owns the value benchmark

At $4.99, Costco has created a consumer reference point.

Once consumers know they can purchase a large, ready-to-eat whole chicken for $4.99, every other retailer has to explain why its chicken costs more.

That is enormously powerful.

Costco isn't merely selling chicken.

It is selling a definition of value.

2. Costco has vertically integrated the chicken equation

Costco's Nebraska poultry operation was created specifically to help control the economics and supply of its rotisserie chicken program. The facility processes enormous volumes of poultry and gives Costco a level of supply-chain control that most supermarket competitors simply cannot replicate.

That matters because the real battle isn't just over the price on the deli sign.

It is over:

bird cost + processing + labor + packaging + transportation + shrink + merchandising + margin.

Costco has spent years building the infrastructure around the chicken.

3. The chicken is a traffic driver, not merely a deli item

This may be the most important point.

Costco doesn't necessarily need to make its money on the chicken.

The chicken gets the consumer into the warehouse, and the warehouse then gets the opportunity to sell everything else.

That is the classic loss-leader/grocerant traffic-driver strategy.

And it works particularly well because the product solves an immediate meal problem.

“What's for dinner?”

Costco has an answer.

For $4.99.

Walmart's Response: If You Can't Beat the Packaging, Join It

Here is where the story gets interesting.

Walmart has long had an enormous rotisserie-chicken business of its own. The retailer has reported selling 103 rotisserie chickens per minute, and Walmart says approximately one in every 12 Walmart customers purchases at least one rotisserie chicken each year.

So Walmart does not have a chicken problem.

It has a brand-positioning problem.

Costco owns the narrative of the inexpensive, oversized, iconic rotisserie chicken.

Walmart has the scale to compete—but it needs to make its own chicken culturally relevant.

And that is where the packaging—and now the purse—comes in.

Three reasons Walmart was effectively forced toward Costco-style packaging economics

First: cost pressure.

Flexible packaging can use substantially less material and occupy less space than rigid clamshell packaging. Costco's own packaging analysis demonstrates the potential scale of those savings.

For a retailer selling chicken at enormous volume, pennies matter.

Second: operational efficiency.

Flexible packaging is easier to store and transport and takes up less space than rigid containers. That can influence transportation, storage, handling and refrigeration economics.

When you are operating at Walmart scale, small efficiencies become big numbers.

Third: consumers increasingly want food that travels.

This is the larger Grocerant lesson.

Today's fresh-prepared food isn't necessarily eaten standing next to the deli counter.

It is taken home.

It is carried to work.

It is used in another meal.

It becomes sandwiches, salads, tacos, casseroles, soups and snacks.

FMI reports that 53% of consumers describe their typical meal preparation as a mix of scratch-cooked and semi- or fully prepared foods.

That is precisely where rotisserie chicken becomes more than dinner.

It becomes a meal component.

Walmart's Chicken Purse Is Actually More Strategic Than It Looks

At first glance, Walmart's new Chicken Purse is just fun.

The retailer launched limited-edition purses in Traditional and Lemon Pepper "flavors" for $5.97—the same price as its rotisserie chicken. It also introduced chicken-themed charms and Great Value hot-sauce and seasoning charms.

The purse reportedly generated enough demand to sell out quickly, creating a secondary-market buzz almost immediately.

But the real marketing genius isn't the purse.

It is this:

Walmart is taking a food product and turning it into a brand asset.

Walmart says its rotisserie chicken generated more than 15,000 social mentions during the previous year.

That is exactly what food retailers want.

A product that consumers don't merely purchase.

A product consumers talk about.

But Walmart Is Now Stuck in the Middle

And this is where I believe Walmart needs to be careful.

Walmart has successfully joined the rotisserie-chicken conversation.

But it risks becoming stuck in the middle.

There are three reasons.

1. Costco owns the extreme-value halo

Costco's $4.99 chicken is almost impossible to attack directly without attacking Costco's entire business model.

Walmart's $5.97 chicken is still an exceptional value, but it isn't the same value proposition.

Costco says:

“Look how much chicken you get for $4.99.”

Walmart says:

“Look how much fun our chicken is.”

Those are different messages.

2. Walmart cannot win the specialty-food experience simply by being cheaper

This is where Walmart encounters retailers such as Publix, Kroger and Albertsons.

These competitors can emphasize fresh-food quality, deli merchandising, meal solutions, regional preferences, prepared sides and broader supermarket meal occasions.

The battlefield is therefore moving from:

“Who sells the cheapest chicken?”

to:

“Who owns the entire meal occasion?”

That is a much more interesting battle.

3. Walmart risks becoming famous for the chicken without owning the meal

The chicken purse proves Walmart understands the power of the product.

But the next step is more important.

What does Walmart sell with the chicken?

Potato salad?

Fresh vegetables?

Macaroni and cheese?

Bakery rolls?

Salad?

Dessert?

Beverages?

A family meal bundle?

A two-person dinner?

A lunch solution?

A next-day sandwich solution?

This is where Walmart has an enormous opportunity.

Because the future of retail food isn't necessarily selling more whole chickens.

It is selling more meals built around the chicken.

The Real Grocery Battle Is Becoming Grocerant

FMI's research makes the opportunity particularly clear.

Its 2025 Power of Foodservice at Retail report found that consumers choosing deli-prepared foods instead of restaurant meals more than doubled from 12% in 2017 to 28% in 2025. More than half of Americans—53%—now take a hybrid approach to meals, combining deli-prepared foods with items prepared at home. Retail foodservice dollar sales reached $52.1 billion, up 1.6% over the prior 12 months.

That is the Grocerant Revolution in one paragraph.

The grocery store is no longer simply competing with the restaurant for ingredients.

It is competing for the meal occasion.

And rotisserie chicken is one of the best weapons in that battle.

FMI also points directly to rotisserie chicken as an example of how consumers use a prepared food as the foundation for multiple meals—including salads, sandwiches and casseroles.

That is why I believe Walmart's Chicken Purse is amusing—but the real opportunity is sitting in the deli.

Three Grocerant Guru® Insights for Walmart

1. Stop selling the chicken. Start selling the meal ecosystem.

Walmart should build highly visible “Build Your Meal Around Our Chicken” merchandising.

The chicken becomes the protein anchor.

Then Walmart sells the sides, salad, bread, beverage and dessert.

That transforms a $5.97 transaction into a much larger basket.

2. Make the packaging part of the brand—not just part of the operation.

Costco demonstrated that packaging can influence cost, logistics and consumer conversation.

Walmart should make its rotisserie packaging instantly recognizable and use it consistently across its ecosystem.

The Chicken Purse demonstrates that Walmart already understands the power of visual recognition.

Now apply that thinking to the actual food.

3. Own the “tonight + tomorrow” meal occasion.

This is perhaps Walmart's biggest opportunity.

A rotisserie chicken should generate multiple consumption occasions.

Tonight: chicken + two sides.

Tomorrow: chicken sandwich.

Next day: chicken salad.

Later: chicken soup, tacos or casserole.

That is how fresh-prepared food becomes a grocery growth engine rather than simply a deli department.

The Bottom Line

The Walmart Chicken Purse may look like a novelty.

I see something different.

I see a retailer recognizing that food can become culture, packaging can become marketing, and a prepared-food item can become a brand.

Costco didn't invent the rotisserie chicken.

It didn't invent the flexible packaging bag, either.

But Costco did something more important:

It built one of retail's most powerful food-value propositions around the chicken.

Walmart now appears to be saying:

“If you can't beat them, join them—and then make it Walmart.”

The question is whether Walmart stops at the chicken purse.

Because the real money isn't hanging from a shoulder.

It is sitting in the shopping cart next to the chicken.

And that is where the next great grocerant battle will be fought.

Are you ready for some fresh ideations? Do your food marketing ideas look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® 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: us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

Costco Destination Dinning

 

Costco has long been recognized as a destination for consumers seeking Ready-to-Eat (RTE) and Heat-and-Eat fresh prepared foods. This strategic focus has significantly enhanced customer satisfaction and loyalty, positioning Costco as a leader in the grocerant niche—a sector characterized by the fusion of grocery and restaurant-quality offerings. Steven Johnson, Grocerant Guru® at Tacoma, WA-based Foodservice Solutions®, emphasizes that Costco's commitment to providing flavorful, affordable, and convenient meal solutions has been instrumental in this success.

The $1.50 Hot Dog and Soda Combo: A Timeless Favorite

Since its introduction in the mid-1980s, Costco's hot dog and soda combo has remained steadfastly priced at $1.50, becoming an iconic offering that exemplifies the company's dedication to value. In 2025, this commitment continues, with the notable change of switching from Pepsi back to Coca-Cola products, a move that has been met with enthusiasm from many customers. This enduring deal not only attracts shoppers but also reinforces Costco's reputation for delivering consistent value.

​

Rotisserie Chicken: A Staple of Quality and Affordability

Costco's rotisserie chicken, priced at $4.99, has become a staple for many households. Customers appreciate its larger size, freshness, and distinctive flavor profile compared to offerings from other retailers. This product exemplifies the Price, Value, Service Equilibrium that Johnson highlights as crucial in today's evolving fresh food sector. ​

Pizza: A Growing Contender in the Food Court

Costco's food court pizza has gained a loyal following, with customers praising its affordability and taste. The 18-inch pizza, priced at $9.95, offers a value proposition that rivals traditional pizzerias. In fact, Costco has become one of the largest pizza chains in the U.S., a testament to its success in the grocerant space. 

Evolving to Meet Consumer Preferences

In 2025, Costco continues to adapt its food court offerings to align with changing consumer preferences. Recent changes include menu adjustments and a renewed focus on customer experience. These efforts reflect an understanding of the importance of staying responsive to customer desires in the competitive retail landscape.​

Customer Satisfaction and Industry Standing

While Costco's fresh food initiatives have historically driven high customer satisfaction, recent reports indicate a slight decline. The American Customer Satisfaction Index (ACSI) survey revealed that Costco's satisfaction score dropped to 81 in 2025, down from previous years. Factors contributing to this decline include increased competition and evolving consumer expectations, particularly among younger demographics who prioritize technological integration and convenience. ​

Costco's emphasis on fresh, ready-to-eat foods like the hot dog and soda combo, rotisserie chicken, and pizza has been central to its strategy of enhancing customer satisfaction. By maintaining a balance of price, value, and service, and by adapting to consumer preferences, Costco continues to be a formidable player in the grocerant niche. As the retail food landscape evolves, ongoing innovation and attentiveness to customer needs will be key to sustaining and growing its market position.

​In recent years, Costco's Ready-to-Eat (RTE) offerings have significantly contributed to its customer satisfaction and loyalty. However, recent data indicates a shift in customer satisfaction levels. According to the American Customer Satisfaction Index (ACSI) Retail and Consumer Shipping Study 2025, Costco's customer satisfaction score has declined to 81, down from 85 in 2024. ​

Several factors may be contributing to this decline:

·         Increased Competition: Competitors like Sam's Club have enhanced their customer experience through technological innovations such as touch-free checkout, leading to higher satisfaction scores. ​

·         Evolving Consumer Expectations: Younger demographics, particularly Gen Z consumers, prioritize seamless shopping experiences that integrate both in-person and online tools. Costco's current offerings may not fully align with these expectations. 

·         Product Changes: Adjustments to popular food court items, such as the introduction of standing tables and modifications to menu offerings, have received mixed reactions from customers. ​

Despite these challenges, Costco continues to focus on delivering value through its RTE options, including the iconic $1.50 hot dog and soda combo, $4.99 rotisserie chicken, and $9.95 18-inch pizza. Maintaining the balance of price, value, and service remains central to sustaining customer satisfaction in the evolving retail landscape.

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Customers Like Shopping at Costco In-Store and Online: Here’s Why With Insights from the Grocerant Guru®

 

Costco Wholesale has long been a favorite among consumers seeking quality products at competitive prices. Over the years, the company has adeptly evolved, blending its renowned in-store experience with a burgeoning online presence. This strategic evolution has attracted new customers and fostered loyalty among existing members. However, as Costco expands, some critics claim it may be too large to remain agile and customer-focused. Steven Johnson, the Grocerant Guru® at Tacoma, WA-based Foodservice Solutions®, disagrees.

"The key to Costco’s ongoing success is its ability to adapt while staying true to its core principles—value, convenience, and customer trust. Rather than being ‘too large,’ Costco has mastered the art of simplifying complexity for customers, making shopping effortless and rewarding," says Johnson.

Let's explore seven historical reasons behind consumers' migration to Costco and five strategies the company employs to retain them, along with insights from the Grocerant Guru® on why bigger does not mean bloated for Costco.

 

Seven Reasons Consumers Have Migrated to Costco:

1. Value-Oriented Membership Model:

Costco’s annual membership structure provides an exclusive club-like shopping experience where customers feel they are getting premium deals. This model encourages loyalty and repeat visits, making shopping feel more like an investment than an expense.

💡 Grocerant Guru® Insight: “A membership-based model fosters built-in loyalty and recurring revenue, enabling Costco to reinvest in pricing, quality, and new service enhancements without losing focus on the consumer.”

2. Private Label Excellence:

The Kirkland Signature brand has disrupted traditional grocery store brand hierarchies. It offers premium products at lower costs than national brands while maintaining high quality, keeping Costco’s value perception strong.

💡 Grocerant Guru® Insight: “Private label success isn’t about price alone—it’s about trust. Kirkland Signature products deliver on the quality promise, making consumers feel like insiders to an exclusive deal.”

3. Diverse Product Selection:

Costco is no longer just about bulk groceries. Its product mix includes apparel, electronics, home goods, and even travel services. This wide variety enhances convenience, allowing customers to consolidate shopping trips.

💡 Grocerant Guru® Insight: “Shoppers love bundled value. Costco’s ability to cross-sell essentials, treats, and big-ticket items under one roof maximizes shopping efficiency.”

4. In-Store Experience:

Costco’s treasure-hunt merchandising strategy keeps customers engaged. Limited-time offers and ever-changing inventory create a sense of urgency and excitement, encouraging repeat visits.

💡 Grocerant Guru® Insight: “Scarcity marketing drives action. Costco’s rotating inventory ensures customers discover something new on each trip, reinforcing visit frequency.”

5. Competitive Pricing Strategy:

By leveraging economies of scale, Costco keeps its pricing competitive. The company also limits advertising expenses, relying on word-of-mouth and brand trust instead.

💡 Grocerant Guru® Insight: “Costco’s low-price perception isn’t a gimmick—it’s an earned reputation that customers rely on. Even if consumers shop elsewhere, they often return to Costco for bulk essentials.”

6. Quality Customer Service & Return Policies:

Costco’s generous return policies and exceptional customer service reinforce consumer trust. Shoppers know they can return items hassle-free, making purchases feel risk-free.

💡 Grocerant Guru® Insight: “Customer confidence is Costco’s invisible currency. Hassle-free returns translate to higher spending per visit because shoppers feel secure in their purchases.”

7. Adapting to Consumer Trends:

Costco’s product mix now includes organic, plant-based, and health-conscious options, aligning with shifting dietary preferences.

💡 Grocerant Guru® Insight: “Costco doesn’t just follow food trends; it scales them. The grocerant niche—ready-to-eat and heat-and-eat meals—will continue to be a growth driver.”

 

Five Strategies Costco Uses to Retain Consumers:

1. Enhanced E-Commerce & Same-Day Delivery:

Costco has rapidly expanded its online presence, with double-digit e-commerce sales growth in 2025. Same-day delivery partnerships and streamlined curbside pickup services keep online customers engaged.

💡 Grocerant Guru® Insight: “Costco proves that bulk shopping and convenience can coexist. The company has nailed digital integration without compromising its in-store experience.”

2. Investment in Technology & AI:

Costco’s AI-driven inventory management ensures high-demand items remain stocked, while self-checkout expansion and mobile ordering reduce wait times.

💡 Grocerant Guru® Insight: “Automation isn’t replacing Costco’s customer-first approach—it’s enhancing it. Smart tech minimizes friction, allowing members to shop efficiently.”

3. Strategic Expansion & Store Formats:

Instead of simply adding more warehouse clubs, Costco is expanding into urban micro-store formats and international markets to reach new demographics.

💡 Grocerant Guru® Insight: “Right-sizing expansion is key. Costco isn’t just getting bigger—it’s getting smarter in how it enters new markets and adjusts store formats.”

4. Customer Feedback & Personalization:

Costco listens to members, using data to fine-tune product selection and personalize marketing. Members get targeted discounts based on purchase history.

💡 Grocerant Guru® Insight: “Costco’s ‘personalized value’ approach keeps customers engaged. Even in a warehouse model, members feel like offers are tailored to them.”

5. Consistent Member Benefits & Services:

Beyond groceries, Costco’s gas stations, travel services, and financial products add everyday value to membership, incentivizing renewal.

💡 Grocerant Guru® Insight: “Costco’s ecosystem is more than shopping—it’s lifestyle integration. The more a customer relies on Costco beyond groceries, the harder it is to leave.”

 

Final Thoughts: Costco is Big, But It’s Not Bloated

Is Costco too large? The data and consumer sentiment say no. Unlike bloated retailers that struggle with inefficiencies, Costco maintains its agility by prioritizing value, streamlining operations, and adapting to new consumer behaviors.

"Costco’s size is its strength, not a liability. It scales value, simplifies shopping, and keeps customers engaged across touchpoints—online and in-store. That’s why Costco isn’t just surviving; it’s thriving,” concludes Johnson, the Grocerant Guru®.

Costco’s secret sauce isn’t just bulk buying—it’s an ecosystem of convenience, quality, and price integrity that continues to resonate with modern consumers.

So, whether you shop in-store or online, Costco isn’t just big—it’s built for long-term customer satisfaction.

 

Elevate Your Brand with Expert Insights

For corporate presentations, regional chain strategies, educational forums, or keynote speaking, Steven Johnson, the Grocerant Guru®, delivers actionable insights that fuel success.

With deep experience in restaurant operations, brand positioning, and strategic consulting, Steven provides valuable takeaways that inspire and drive results.

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