Costco rival Sam's Club makes major food-court change
While most people don’t join a warehouse club because of its food court, that area has been a major perk for members of Costco and Sam’s Club. Cheap food adds to the stores’ overall value proposition.
While they shop for cheap goods, try samples, and find unexpected things to buy, Costco (COST) and Sam’s Club members know that they can end their trips with an inexpensive meal. The two companies offer slightly different menus, but customers get access to low-priced pizza, sandwiches and snacks.
Costco, of course, has its famous $1,50 hot-dog-and-soda combo while Sam’s Club offers a similar deal for $1.38. That’s Sam’s Club taking a shot at its rival, but consumers aren’t likely to switch their memberships because of a slightly cheaper hot-dog deal.
Still, food courts are a major part of the overall offering for both chains. And when either Costco or Sam’s Club makes a change to its food-court menu, it’s a big deal.
Sam’s Club recently made such a change, and it gave its members a role in deciding what the change would be.
The $1.50 hot dog combo has been a staple for Costco. Image source: Patrick T. FALLON / AFP) (Photo by PATRICK T. FALLON/AFP via Getty Images
Sam’s Club adds a new food-court item
Sam’s Club actually let the public pick its latest food-court item. In February the Walmart-owned (WMT) company posted on its Facebook page, allowing everyone — not just members — to vote on what the pick would be.
Which Sundae flavor would you like to see at the Café during #MembersMark month this April?
Tuxedo Chocolate Bar Cake Sundae: Vanilla Ice Cream + Tuxedo Chocolate Bar Cake + Caramel Syrup
Chantilly Bar Cake and Fruit Sundae: Vanilla Ice Cream + Sweet Fruit Chantilly Bar Cake + Mixed Berry Topping
Apple Turnover Sundae: Vanilla Ice Cream + Tart & Sweet Apple Turnover + Caramel Syrup
The Tuxedo Chocolate Bar Cake Sundae won the vote and will be added to the chain’s menu on April 1.
“Tuxedo Bar Cake is a specialty of Sam’s Club’s bakery, and features layers of chocolate cake, chocolate mousse, cream cheese filling, with a rich dark and milk chocolate ganache on top,” All Recipes reported.
Sam’s Club, unlike Costco, does not require people to be members to use its food court. Costco has been cracking down on nonmembers eating in its food court, a rule it had previously not enforced.
Walmart has big Sam’s Club plans
Costco adds between 20 and 30 new warehouse locations each year, about two-thirds of them in the U.S. Walmart has been much slower in growing Sam’s Club, but that’s going to change.
Walmart plans to open more than 30 new Sam’s Club locations across the U.S. over the next several years.
“The first location, which is planned in Florida, is slated to open in 2024,” the company said on its website.
“In addition to new clubs, the company has a multiple-year plan to invest in and modernize its supply chain through new distribution and fulfillment center locations across the country, including cutting-edge automation. Sam’s Club will launch five new supply chain fulfillment and distribution centers in 2023, with the first location planned in Georgia in Q3.”
In addition, the company has been working to update its more than 600 existing locations.
“Over the past several years, Sam’s Club has invested significantly in its physical footprint, enhancing member experiences with improved member service desks, and redesigning the majority of its 600 clubs, making them brighter, easier to navigate, and more functional,” the company added.
“The brand has also invested significantly in its in-club technology to improve the shopping experience with Scan & Go Checkout, Scan & Go Fuel, Scan & Ship, Curbside Pickup, and other omnichannel offerings.”