For years, Costco has attracted customers not only for its low prices and generous return policy, but for its food.
The chain’s food court has become famous amongst its members, from its chicken bakes to its incredibly cheap hot dog and soda combo.
One hot food item that is especially popular at the store is the rotisserie chicken, mainly because it can frequently be purchased for less than $5. But does that price really make sense?
What’s so weird about Costco’s rotisserie chicken pricing?
In a video with over 2.2 million views, TikTok user @berevann_xo shows a bag of Costco’s Kirkland rotisserie chicken. The price is listed at $4.99.
“Why the hell does a cooked chicken cost $4.99,” she starts before walking to the freezer. “And then, a whole chicken, for a 2-pack, it’s $16.97?”
This means that a rotisserie chicken is about $3.50 cheaper than a frozen, uncooked one.
Immediately, commenters began to offer their theories as to why this is the case.
“The raw chicken is 2x as big. The more it weighs the more it costs,” claimed a user. “A rotisserie chicken Is tiny and doesn’t have a lot of meat but it’s good for those days you don’t feel like cooking.”
“Volume of sale as well. They will sell hundreds of the rotisserie before they sell ten uncooked,” alleged another.
But what’s the real answer?
Why Costco’s rotisserie chicken is cheap
As many commenters were quick to point out, the difference in pricing has less to do with Costco’s costs for the product and more to do with the role each product plays in the store.
In a 2022 article for Vox, author Kenny Torrella explained how the chain managed to keep its chicken prices so low.
A significant reason why the chicken prices are so low is due to the fact that Costco has vertically integrated its chicken production. In 2019, the chain set up its own feed mill, hatchery, and slaughter plant, tasking farmers overseeing the Nebraska facility to raise over 100 million birds each year.
@berevann_xo Bruh
♬ original sound – B
However, another (arguably more important) reason that the chicken prices are so low is that Costco knows the low price of rotisserie chicken will encourage customers to come through the door—and hopefully buy more than just a rotisserie chicken.
This is known as a “loss leader,” which is a product sold at a loss to attract customers.
According to commenters, this strategy works.
“I’ll spend $500 at Costco and buy a pizza for $10 $5 for a chicken and feel like I got a HUGE deal,” said a user.
“And gladly do it again,” replied a second.
The Daily Dot reached out to Costco via media relations contact form and @berevann_xo via Instagram and TikTok direct message.
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