Costco Closes Its Food Court to Non-Members, Leaving $1.50 Hot Dog and Soda Combo Fans Devastated Membership fees made up 73% of Costco's net profits last year.

By Sherin Shibu

Key Takeaways

  • Costco is limiting its food court to members-only and taking measures in some locations to enforce the policy.
  • Costco generated $6.29 billion in net profit in fiscal year 2023, according to its earnings report.
  • $4.58 billion of that total came from membership fees.

Shoppers enticed by Costco's $1.50 hot dog and soda combo, which has stayed the same price since 1985, but not by the wholesale store's $60 annual membership fees may be out of luck — the company is making its food court "members only."

And there are reports that Costco is already taking steps to enforce the policy at certain locations. A Reddit user posted on Thursday that at a Costco location in Conroe, Texas, the person at the door checking receipts wanted to see the food court receipt.

Earlier this month, a Costco location in Orlando, Florida posted: "Effective April 8, 2024, an active Costco membership card will be required to purchase items from our food court."

Related: Costco May Start Requiring Members to Scan ID to Enter U.S. Warehouses

In January, a Costco in Issaquah, Washington went further than ever to enforce a member-only space, by asking members to scan their cards before entering the warehouse.

Costco Kirkland Signature $1.50 hot dog and soda combo, which has maintained the same price since 1985 despite consumer price increases and inflation, at the food court outside a Costco Wholesale Corp. store on June 14, 2022 in Hawthorne, California. Photo by Patrick T. FALLON / AFP

According to Costco's earnings report from fiscal year 2023, memberships generated $4.58 billion in profit, which is 73% of Costco's net profit of $6.29 billion.

Statista data shows that the 2023 figure was an increase from the $4.22 billion generated by Costco memberships in 2022 and the $3.88 billion that memberships brought in for the company in 2021.

Costco memberships start at $60 per year for a Gold Star or business membership and go up to $120 annually for an executive membership. Costco has not raised the cost of memberships for 7 years, since 2017.

Related: Costco CFO Reveals Uncertain Fate of $1.50 Hot Dog and Soda Combo

Sherin Shibu

Entrepreneur Staff

News Reporter

Sherin Shibu is a business news reporter at Entrepreneur.com. She previously worked for PCMag, Business Insider, The Messenger, and ZDNET as a reporter and copyeditor. Her areas of coverage encompass tech, business, strategy, finance, and even space. She is a Columbia University graduate.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

What Is Stargate? OpenAI, Oracle, and Softbank Team Up for $500B AI Infrastructure Initiative.

President Donald Trump is reportedly announcing the news on Tuesday.

Business News

37% of Employers Would Rather Hire a Robot or AI Than a Recent Grad: 'Theory Alone Is No Longer Enough'

Three out of 10 HR leaders would rather leave a position unfilled than hire a recent graduate.

Business News

At Least 50 Local TV Meteorologists Across the Country Were Just Laid Off — Here's Why

The layoffs are happening at over two dozen local television stations and some meteorologists have more than 35 years of experience with the same channel.

Franchise

Turn Your Love of Travel into a Successful Business with Cruise Planners

Cruise Planners has over 30 years of travel franchise experience and the nation's largest home-based travel agency franchise network.

Business News

President Donald Trump Orders Return-to-Office Mandate for All Federal Workers

Trump also fired four government officials through a Truth Social post on Tuesday.