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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Costco Recognizes Value of Rotisserie Chicken to Increase Sales

11/01/2019

Data generated by Costco Wholesale confirmed a positive relationship between the purchase of their iconic rotisserie chickens and frequency of visits to stores.

When the Nebraska complex was first announced, there were questions in the industry as to why Costco would wish to invest $400 million in a dedicated complex when rotisserie-sized birds were available from existing producers. It is evident that the size and quality requirements imposed by Costco for their own store brand involved considerations beyond simply the cost of acquisition.

Costco determined that regular buyers of rotisserie chicken visit stores 1.7 times more frequently than non-buyers of rotisserie chicken. Costco has also determined that the value of groceries and other items is significantly higher among shoppers who regularly purchase rotisserie chickens compared to Costco members who do not purchase the cooked birds. 

Obviously the justification for the investment in a consistent supply of suitably sized broilers from the Nebraska operation extends beyond simple margins. The birds priced at $4.99 per unit are as important to the Company as the $1.50 hot dog combo meals and other value-priced food items.


 
Copyright 2019 Simon M. Shane