Is the NEW Costco Food Court Rule for Non-Members too STRICT? (#247)

A.B. Ridgeway delves into the recent changes in Costco's food court policy and its implications for both members and non-members. As Costco tightens its membership requirements to access food court deals, A.B. explores the economic reasoning behind this decision and its potential impact on consumers.

Key Takeaways:

1. Costco's Membership Strategy: A.B. outlines Costco's strategy of using the food court as a "loss leader" to attract customers, emphasizing the importance of membership fees to the company's profitability.
2. Impact on Consumer Behavior: The episode explores how changes in Costco's food court policy may influence consumer spending habits and perceptions of value, particularly for non-members accustomed to accessing low-cost meals.
3. Economic Rationali ...