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The Street
The Street
Patricia Battle

Costco is starting to crack down on a privilege customers love

Costco  (COST) is starting to make a major change that only nonmembers are going to hate. Social media users have been flagging that the retail giant is starting to roll out a new policy where customers will be required to have an active Costco membership to buy items at its beloved food court.

In a new sign that was spotted at a Costco in Orlando, Florida, and shared on Reddit, the company warns customers that the change will be effective on April 8, 2024.

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Many users replying to the thread on Reddit seem to be receptive to the change saying that it will help decrease foot traffic at food courts in Costco locations, which they claim are often crowded with nonmembers.

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Costco did not immediately respond to TheStreet’s request for comment.

It is no surprise that the food court at Costco locations are experiencing thick crowds. The retail giant is famous for its $1.50 hot dogs, and its recently viral new Double Chocolate Chunk Cookie, which retails for $2.49.

The change from Costco comes after it also revised its self-check out operations last year in June. The company started placing more staff at self-checkout lanes to monitor and scan photo ID cards from customers after it found that nonmembers were using self-checkout lanes to use membership cards that didn’t belong to them.

“We don’t feel it’s right that nonmembers receive the same benefits and pricing as our members,” said Costco in a statement announcing the change to CNN on June 28.

Costco offers two different memberships, its Goldstar Member one is $60 a year, and its Executive Member one is $120 a year, which includes additional benefits.

The retail giant makes a pretty steep profit yearly off of its membership fees and has recently gained a boost in its earnings from them since it began cracking down on nonmembers at its locations. In Costco's most recent earnings report, the company reported that it made roughly $1.1 billion in membership fees alone during the second quarter of 2024, an 8.2% increase compared to the same time period last year.

Related: Costco rival Sam's Club makes major food-court change

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