COSTCO shoppers have spotted another swap at the beloved food court, changing the popular hot dog combo and prompting much backlash online from foodies.
Following its recently announced switch from Pepsi to Coca-Cola, the warehouse club has made another change to its soda machines.
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Costco CEO Ron Vachris announced earlier this year plans to ditch Pepsi products in its food courts in favor of Coke products after over a decade.
The first Costco to see the switch was a brand new warehouse in Brentwood, California – 55 miles east of San Francisco.
The Coke offerings at Costco’s food court, according to a Facebook post, include:
- Coca Cola
- Diet Coke
- Sprite
- Coke Zero
- Raspberry Fuze Iced Tea
- Minute Maid Zero Sugar Lemonade
The retail giant plans to transition its food court beverage offerings from Pepsi to Coke products nationwide by mid-2025.
However, Costco members at a handful of locations with the old Pepsi machines have begun to call attention to another food court switch.
The soda fountains now only offer diet drinks, removing the sugary soda that traditionally accompanied Costco’s iconic $1.50 hot dog combo.
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“What happened?!” questioned one San Francisco shopper in a Reddit post from Wednesday.
They paired the post with an image of the machine, which featured drink options including Diet Pepsi, Zero Sugar Pepsi, Bubly Sparkling Water, and Unsweetened Brisk Iced Tea.
A fellow Costco member in the comments section shared that the warehouse in Seattle likewise had no drinks with sugar.
Redditors chimed in and explained that the soda machine swap was the result of the sugar tax in these cities, which tacked on an extra fee for distributors of sugar-sweetened beverages in 2018.
Costco responded to the tax by offering only diet or sugar-free beverages to avoid the additional fees imposed on sugar-sweetened drinks.
Some members were excited to see the change, citing their love for Pepsi Zero and Coke Zero and saying they would be “soooo happy to see this on my local machine.”
Other customers, on the other hand, were not pleased with the food court switch.
“That’s so frustrating,” fumed one Costco member. “As someone who can’t tolerate diet sodas, it sucks when cities do this.”
SUGAR SWITCHUP
As a result of San Francisco’s Sugary Drinks Tax implemented in 2018, Costco’s food courts have been serving only diet sodas to avoid the tax on sugar-sweetened beverages.
The tax established a one-cent per fluid ounce tax on the distribution of sugar-sweetened beverages, syrups, and powders.
The Costco food court in Seattle similarly offers only no-sugar Pepsi products due to the sugar surcharge tax, which is 1.75 cents per ounce.
Membership and store cards on offer from major retailers
Here is a breakdown of the store cards on offer to customers from various retailers and their benefits
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Costco:
- Gold Star Membership: $65 per year, shop all Costco stores and online with two additional cards for your household.
- Executive Membership: $130 per year, annual 2% reward, additional discounts and benefits on Costco services, shop online and in-store, and get two additional cards for household use.
- Sign up for a Costco Membership here
Sam’s Club:
- Club Membership: $50 per year, bonus offers, same-day delivery, instant savings, Sam’s Club Mastercard, members-only fuel savings, tire and battery center, complimentary membership, and add-on memberships.
- Plus Membership: $110 per year, all benefits of Club membership plus Sam’s Cash, free shipping, free curbside pickup, early shopping, and pharmacy and optical savings.
- Sign up for Sam’s Club Membership here
Target:
- Target Circle: A free-to-join reward program allowing users to earn 1% in Target Circle earnings rewards when an eligible purchase is made, access deals and personalized offers, get a birthday gift, and earn a vote to help direct how Target helps out your community.
- Target Circle Card: A credit, debit, or reloadable account card that gives users 5% off in-store and online as well as exclusive offers, free two-day shipping, and an additional 30-day returns window. Formerly Target RedCard.
- Sign up for Target Circle here
Walmart:
- Walmart+: $12.95 per month or $98 per year with a free 30-day trial. Offers members free delivery, free shipping with no minimum spend, fuel savings, Paramount+ subscription, auto car, Walmart+ travel, returns from home, mobile scan and go in-store, and early access to deals and product releases.
- Sign up for Walmart+ here
Other cities have also rolled out a sugar tax, including Philadelphia at 1.5 cents and Boulder at two cents.
One Reddit user explained that Costco swapped traditional sugary sodas for diet and sugar-free options to maintain the $1.50 price of its popular hot dog combo.
Had the chain continued offering sugary sodas, it likely would have had to raise the combo’s price to offset the sugar tax.
They noted that the beverage fees were “not cheap, especially since they’re already losing money on hot dog combos.”
“There’s a reason why in the sugar tax areas most self serve fountain drinks disappear,” said the shopper.
Although fans at certain locations may no longer be able to get their hands on sugary drinks, the Costco CFO did announce that a fan favorite would be returning.
Meanwhile, other members are begging Costco “Please don’t discontinue!” after a new cheesecake flavor “exceeded” their expectations.
