Costco's Food Court Flip-Flops: A Simple Bet on Member Loyalty

Costco is making two moves at its food courts, and they both aim to protect the core deal. The first is a simple swap: the warehouse chain has quietly reversed a decade-long decision. After switching to Pepsi products in 2013 to help preserve the iconic $1.50 hot dog and soda combo, Costco is now phasing back to Coca-Cola nationwide. The change, driven by better pricing and upgraded equipment, is nearly complete, with the full transition expected by the end of summer 2025. The second move is more pointed. A gradual rollout of scanners is requiring members to show their card before ordering food-a crackdown on non-members who have long used the combo as a low-cost meal.

So, do these changes make common sense for the business? The soda switch is a no-brainer. It's a win-win. Members get a more popular drink, and Costco secures a better deal. The social media buzz is real, with fans celebrating the return of Coke. This is a clean, low-risk adjustment that strengthens the value proposition without raising a price.

The scanner rollout is the riskier bet. The logic is straightforward: the $1.50 combo is a member reward, so why let non-members piggyback on it? Costco's stated goal is to encourage more memberships and ease peak-hour crowds. That sounds reasonable on paper. But here's the smell test: is a $1.50 hot dog combo really the kind of incentive that will drive someone to pay $60 or more for a membership? The evidence suggests not. A shopper noted that even with the scanner, some locations aren't using it strictly. The real utility of the combo is as a low-stakes, high-satisfaction perk for existing members, not as a membership sales tool.

The potential backfire is clear. If the scanner feels too strict or inconsistent, it could sour the experience for members who see it as a hassle. It risks turning a beloved, simple ritual into a bureaucratic checkpoint. For now, it's a gradual rollout, but the principle is what matters. Costco is trying to protect its model, but it must ask: does making the food court feel more like a gated club help or hurt the brand's image of everyday value? The soda change is smart. The scanner change is a gamble.

The Soda Switch: A Low-Risk Win for Members

This is a classic case of keeping it simple. Costco's reversal on the soda is a straightforward move to satisfy its customer base and protect a beloved perk, not a complex financial play. The switch was driven by two practical factors: better pricing terms with Coca-Cola and the availability of upgraded fountain equipment. It's a clean, low-risk adjustment to a proven formula that costs the company nothing but a few weeks of operational effort.

The social media reaction shows just how much members value this change. Hundreds of posts and videos on platforms like TikTok and Threads are celebrating the return of Coke. The sentiment is overwhelmingly positive, with fans calling it a "no-brainer". One shopper summed it up simply: "Coke is more popular. I've never heard of anyone sniffing Pepsi." This isn't about a deep brand loyalty shift; it's about a simple preference for a more popular drink.

For all the talk of corporate strategy, this is a classic "kick the tires" adjustment. The $1.50 combo remains intact. The product quality and price haven't changed. Costco is just swapping one fountain drink for another that its members overwhelmingly prefer. It's a win for customer satisfaction and a win for the brand's image of everyday value. There's no hidden cost, no complicated accounting. Just a warehouse chain listening to its members and making a small change that feels big to them.

The Scanner Test: Protecting the Deal or Pushing Members Away?

Costco is trying to crack down on a long-standing loophole. The chain's food courts are supposed to be a member-only perk, but the policy hasn't always been enforced. Now, with scanners being installed at locations like store #88 in Pompano Beach, the company is aiming to make that rule stick. The goal is clear: protect the value of the membership by ensuring only cardholders get access to deals like the $1.50 hot dog and soda.

The rollout, however, is creating a confusing patchwork. Some locations have scanners already hooked up but not yet operational, while others are still waiting. Even where they are installed, their use appears inconsistent. This creates a mixed signal for shoppers. A member might get a warm welcome at one store and a strict scan at the next. For a non-member tagging along with a friend, the experience is now a gamble. As one shopper noted, the change could end a cherished family tradition, making them skip the food court entirely.

The bigger risk here is brand perception. The food court is a place of simple, high-value indulgence. Cracking down on access, especially in a gradual and uneven way, could make it feel less welcoming. It risks turning a beloved, low-stakes treat into a bureaucratic checkpoint. Yet the low price point likely insulates the food court from the worst of it. The $1.50 combo is such a small part of the overall membership cost that it's unlikely to be the deciding factor for someone considering a card. As one observer put it, "I don't fully understand that strategy myself; I am not buying a Costco membership for a $1.50 hot dog."

So, is Costco making a mistake? The scanners are a forward-looking move to protect its model, but they may not achieve the intended membership boost. The real utility of the combo is as a simple perk for existing members, not a sales tool. The potential backfire is a souring of the experience for those who value the food court as a relaxed, inclusive spot. For now, the rollout is slow and patchy, giving Costco time to see if the trade-off is worth it. The bottom line is that protecting a $1.50 deal with scanners feels like a lot of effort for a little gain.

Catalysts and What to Watch

The real test for these moves is simple: do they keep the parking lot full and members coming back? The changes are small, but their impact hinges on execution and member sentiment. Watch for three key developments.

First, watch for the full implementation of scanners. The rollout is already patchy, with some locations having scanners installed but not yet operational, and others still waiting. If this rollout becomes inconsistent or feels like a bureaucratic hassle, it could frustrate members and sour the experience at a place that thrives on simple, high-value indulgence. The goal is to protect the deal, but if it makes the food court feel less welcoming, the brand's image of everyday value could take a hit.

Second, monitor if the soda switch leads to any measurable increase in food court traffic or member satisfaction. The social media buzz is real, with hundreds celebrating the return of Coke. But does that translate to more people ordering? The change was driven by better pricing and member preference, so the expectation is that it strengthens the value proposition. The key will be whether members see it as a tangible upgrade that makes the $1.50 combo feel more special again.

The bottom line is that these are tweaks to a beloved, low-stakes perk. The real test is whether they make the deal feel less special or more special. For now, the soda switch is a clear win. The scanner rollout is a gamble on protecting the model. The outcome will be written in the parking lot and in the comments sections of social media.