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.

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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.

 

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Consumers Want Value Meals Ready-2-Eat or Heat-N-Eat

 

For decades, grocerants food retailers blending grocery and restaurant conveniences—have redefined the way people eat, driven by evolving consumer needs according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Ready-2-Eat (RTE) and Heat-N-Eat (HNE) options have become core components of this revolution, offering consumers a way to enjoy quick, high-quality meals at home without compromising on flavor or variety. Significantly, restaurants and convenience stores have played a vital role in the widespread adoption of the grocerant niche, offering mix-and-match RTE and HNE meal options that expand choices and streamline dining.

In 2025, as food costs rise, a Harris Poll conducted for Flashfood reveals the pressing priorities of U.S. consumers: 83% prioritize saving money, and 81% aim to reduce food costs. While 89% believe cooking at home is cost-effective and healthier, time constraints and a lack of cooking skills push many toward the convenience of prepared foods from grocerants, restaurants, and convenience stores.

It's Time to Build a 

Larger Share of Stomach

A Historical View: Grocerant Evolution

The grocerant concept emerged in the 1990s when traditional grocery stores began offering prepared foods alongside standard aisles of ingredients. This evolution accelerated as restaurants and convenience stores entered the scene, using RTE and HNE meals to attract busy consumers. By providing mix-and-match meal components—like roasted chicken from grocery stores, sides from convenience stores, and sauces from restaurants—these sectors collectively elevated the appeal of grocerants.

Restaurants and C-Stores Fueling the Trend

Restaurants and convenience stores have been instrumental in shaping the grocerant experience, offering meal solutions that cater to consumer demands for both affordability and flexibility:

·         Restaurants: Quick-service and fast-casual restaurants have expanded into meal kits, heat-and-eat entrees, and prepared sides available in retail stores. Brands like Chick-fil-A and Panera Bread now offer signature menu items as ready-to-prepare meal kits, merging their dining expertise with at-home convenience.

·         Convenience Stores (C-Stores): Chains like 7-Eleven and Wawa have become leaders in mix-and-match meal components, with options such as pre-packaged salads, freshly made sandwiches, and microwavable sides, making it easy for consumers to assemble meals tailored to their tastes.

RTE/HNE vs. Cooking from Scratch

While cooking meals from scratch saves money, it often comes at the cost of time and effort. Preparing a meal can take 45 minutes to 1.5 hours, with added cleanup time, making RTE and HNE solutions the preferred choice for many. These options bridge the gap between convenience and quality, allowing consumers to enjoy home dining without the workload.

For instance:

·         A family dinner combining a rotisserie chicken from the grocery store, mashed potatoes from a convenience store, and a salad kit purchased at a restaurant makes meal preparation effortless.

·         Restaurant-branded HNE meal components allow consumers to recreate their favorite dishes without culinary expertise, expanding their repertoire without frustration.

Global Flavors at Home

As consumer tastes expand globally, grocerants, restaurants, and c-stores have become the gateways to international flavors without requiring extensive cooking knowledge. Heat-N-Eat dishes like Indian tikka masala, Mexican enchiladas, and Korean barbecue ribs offer diners authentic experiences in minutes.

Examples include:

·         Aldi: Bringing global discovery to consumers with affordable Ready-2-Eat meal kits featuring diverse cuisines.

·         7-Eleven: Offering international-inspired snack packs and microwavable meals tailored for busy individuals.

·         Wendy’s Grocery Partnerships: Expanding brand loyalty by introducing signature chili and dipping sauces into retail channels.

Value, Accessibility, and Sustainability

Mobile platforms like Flashfood further amplify the appeal of grocerants. By partnering with over 2,300 stores across North America, Flashfood offers discounts on fresh produce and Ready-2-Eat items, creating affordable options while reducing food waste. As the USDA projects food prices will increase by 1.9% in 2025, grocerants leveraging such technologies are well-positioned to capture consumer loyalty.

Why Grocerants Thrive

The integration of restaurants, convenience stores, and grocerants has cemented RTE and HNE meals as staples in modern dining. To maintain their trajectory, grocerants must continue to:

1.       Expand Mix-and-Match Options: Enable consumers to combine elements from various brands and categories to create customized meals.

2.       Embrace Value-Driven Offerings: Highlight cost savings compared to dining out while maintaining high-quality standards.

3.       Champion International Cuisine: Introduce more global flavors to broaden customer horizons.

4.       Partner Across Channels: Collaborate with restaurants and c-stores to co-brand meal kits, leveraging mutual consumer trust.

5.       Optimize Tech Integration: Use platforms like Flashfood to increase accessibility, foster sustainability, and drive traffic.

Think About This

In the battle to balance affordability, flavor, and time, the collaboration of grocerants, restaurants, and convenience stores has solidified RTE and HNE meals as transformative dining solutions. By offering mix-and-match meal components, these sectors provide consumers with flexibility and convenience while redefining what it means to "cook at home." As economic pressures continue to shape food choices, grocerants will remain central to the evolving dining landscape.

For international corporate presentations, regional chain presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert, and public speaking will leave success clues for all. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869