Costco has quietly made a change to its food courts that will restrict access to the $1.50 hot dog and soda combo

Costco is cracking down on a major loophole in its outdoor food courts.

For years, the warehouse retailer has turned a blind eye to non-members stopping by for its iconic $1.50 hot dog and soda combo.

Staff typically check cards as customers enter stores, meaning non-members typically can’t eat in indoor food courts. But waiters at food courts outside parking lots almost never check.

But that will now change in April: new rules will apply to the 18 outdoor food courts across the United States.

On Reddit, a user posted a sign outside an establishment in Orlando that read: “Starting April 8, 2024, an active Costco membership card will be required to purchase items in our food court.”

Costco warns it will crack down on a loophole that allowed people to use its food courts even if they weren’t members.

Gary Millerchip is Costco’s new CFO. He took office in March. It is unclear whether he is behind the stricter rules for non-members in food courts.

Staff at several Costco locations in the US said that The street that they have been told to check membership cards when people order food.

The rule reportedly applies to all food courts, both indoor and outdoor. But staff at 18 Outdoor have been specifically instructed to check the cards.

There has always been a rule that people need a membership to enter warehouses. This means that non-members have typically been restricted from accessing indoor food courts.

But at Costco warehouses with food courts or outside kiosks, people without memberships have been able to avoid the checks.

As a result, many non-members have become accustomed to being able to purchase the $1.50 combo or other favorites.

It’s the latest attempt to crack down on customers who share membership cards.

Staff at a Washington warehouse near its headquarters in January began scanning shoppers’ cards before entering.

This displays a photo of the cardholder on a screen, which the worker at the entrance can compare with the person in front of them.

Costco’s $1.50 hot dog and soda is a big hit with members and has been the same price for decades.

Typically, shoppers simply show their card to the clerk, who can choose whether or not to examine the small photo printed on it.

The new system is believed to be a test before a possible wider rollout.

Costco charges between $60 and $120 a year for basic or executive membership, but is expected to raise rates soon. The official policy is that anyone with a card can bring two guests per visit.

Membership fees are a key source of income. In a recent earnings report, it emerged that they reached 1,110 million dollars for the three months for the year ending Feb. 18, up from $1.03 billion a year ago.

This means Costco makes about $4 billion a year in fees.

Costco’s chief financial officer is stepping down after 40 years and gave an interview last week about a topic members are obsessed with.

Richard Galanti is known for maintaining the $1.50 price tag on the company’s famous hot dog and soda offering.

The fan-favorite food and drink combo has been the same price since 1985, the same year Galanti was named CFO, and two years after the first Costco opened.

Pictured is a setup at the entrance to a Costco warehouse in Issaquah, Washington, that allows a store employee to view the photo associated with a membership card.

Costco membership fees typically account for more than half of the company’s profits.

In a 2022 earnings call, Galanti told analysts that the $1.50 price was “sacrosanct” and would remain at that level “forever.”

But this week he gave a less definitive answer when interviewed by Bloomberg.

This week he was asked: ‘What will happen to the $1.50 hot dog and soda combo when you’re gone?’

His response was, “It’s probably safe for a while.”

This is not as clear as the perspectives he gave in 2022, when he called the agreement “sacrosanct.”

Costco fans will now look for a clearer answer from Gary Millerchip, the former Kroger executive who will take over as chief financial officer.

His next speech is likely to be at Costco’s next quarterly earnings scheduled for June.