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Costco’s food court items are legendary, but they can’t be delivered to your home. Learn why Costco keeps its pizzas in food courts.
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Papa Johns does it. Domino’s does it (apparently, no matter where you are). Shoot — even Sam’s Club does it. So why doesn’t Costco deliver pizza?
It’s been a question the warehouse giant’s loyal fans have been asking in food courts and Reddit threads since the company started delivering groceries in 2017. How great would it be to have a $9.95 pizza, $1.50 hot dog, or customized cake delivered on command? The only thing better would be to have free samples delivered too.
So what gives, Costco? Why keep food court foods in the food court? After saying that seven times fast, let’s take a closer look.
Costco’s focus isn’t e-commerce or delivery
Costco hasn’t disclosed exactly why it doesn’t deliver pizza or hot dogs, but its CEO Craig Jelinek came pretty close.
“It’s still important to get people physically in stores,” Craig told CNBC in December 2020. “I still think brick-and-mortar is not going to go away. We want to continue to get people in the stores, and there’s no better way to do it than a $1.50 hot dog and a rotisserie chicken (for $4.99).”
This line of reasoning has been consistent with Costco throughout the Digital Era. The company has been notoriously slow to develop its digital infrastructure, even as its competitors have innovated new ways for consumers to shop, such as Amazon’s palm-reading payment processors at Whole Foods, or Walmart’s “scan and go” feature on its Plus app. Meanwhile, Costco has done pretty much what it’s been doing since 1983: Offer you an airplane hangar filled with food and other stuff and, yes, a $9.95 pizza after you’ve towed a flatbed trolley down its aisles.
Even if Costco delivered pizza and hotdogs we could hardly expect it to charge the same prices. Unlike other stores, Costco charges more for items that are delivered, as if discouraging members to order online. It’s fun to brag about a $1.50 hot dog, but even a modest $1.00 delivery charge suddenly makes you realize you’re eating a hot dog, which might be soggy or stale and definitely not as cool as eating it in the warehouse.
A hypothetical 20% upcharge on a $9.95 pizza would raise it into a double-digit price (plus some change). That might not make you second-guess Costco’s quality, but it could add some decision anxiety if you’re comparing Costco with other pizzerias.
Will Costco deliver pizza in the future?
Costco does appear to be waking up to its digital void. In its third-quarter earnings call, CFO Richard Garlanti admitted Costco could do more to improve its online store. But he didn’t name any specific improvements and even suggested Costco would continue to keep prices low simply by being the Costco we all know — a big physical warehouse.
One thing that Costco could improve, however, is its cake-ordering system. Currently, there’s no way to order cakes online, not even to get the cake started. Instead, you must show up at the bakery, write down your order, and come back later when the cake is done. To anyone who’s planned a party that requires a cake, this not only feels unnecessary but frustratingly outdated. I’m okay picking up the cake at Costco, but if I have to make two separate trips, I’m going to pick a store that eliminates at least one.
Its cake system could be updated, but in regards to delivering food court items — it’s doubtful Costco will ever break from its traditions. For now, just enjoy the fact that you can eat lunch at the Costco food court for less than what a delivery service charges in fees. That’s enough to make your personal finances happy, especially if you’re already at Costco taking advantage of its cheaper in-store prices.
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