Costco Is Losing $40 Million Every Year In Rotisserie Chicken Costs And They Don’t Even Care


Costco has been selling whole rotisserie chickens for a while now. At $4.99, it’s one of the cheapest offerings of ready-to-eat whole chickens around. Turns out, that $4.99 price tag is costing Costco millions of dollars. They just don’t care.

Richard Galanti, chief financial officer of Costco, recently spoke to the Seattle Times about Costco’s consistent chicken pricing. According to the Times, Costco loses about $30 to $40 million every year in chicken prices because they refuse to raise them higher than $4.99. While competitors are charging $6-7 for chicken, Costco has been adamant at keeping the cost at $5.

This seems to be a practice that reaches all the way from the deli out to the food court where the price of hot dogs, sodas and pizzas are cheap and consistent.

Costco is reported to have sold 76 million rotisserie chickens in 2014.

Photo: Costco Chicken

Fast Food

McDonald’s Menu Gets Simpler, 8 Less Items in 2015


McDonald’s Corp. announced Wednesday that it plans to cut eight items from its store menus beginning in January. The fast food chain has been known for its extensive menu options, which have recently become more of a hindrance than an asset.

The company’s plan to nix eight items is part of an overhaul of its service model. Within the next few weeks, McDonald’s will be internally analyzing ingredients to see what can be kept and what can be set aside, focusing on improving the quality of the items they keep rather than offering a grander menu.

Its goal is to help ease the workload of line cooks while maintaining the same pace, if not better, in food production.

This could also be an attempt to relieve some of the stress that comes with their new “Build Your Burger”  tablet. Since drive-thrus will not be offering that option, the delivery times will not be stretched by the custom burgers and should be expected to speed up with the decrease in menu items.

McDonald’s has not commented on what eight items they plan on removing, however, the company also mentioned that they plan on cutting back the number of value meals offered as well.

What do you think will make the cut?

h/t NRN