Costco Cuts Its Churro, to Chagrin


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From wondery. I'm David Brown and this is business wars daily on this January 26 Friday. Already. Hope it's a happy one. Warehouse clubs like Costco and Sam's Club have long been bitter rivals. They're best known for trying to win consumer dollars by offering the best prices on a pallet of toilet paper or a truckload of frozen chicken wings. Okay, I know that may be an exaggeration, but not by too much.


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Eh?


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Speaker 3
What often goes unnoticed is a fight on a different front, the food court. All that shopping makes folks hungry, after all. And warehouse clubs are more than happy to serve up all manner of grab and go food, perfect for a quick bite during your shopping trip. It all adds up, right? Costco's recently made a big move in its munchy lineup. The company announced that it's replacing its twisted churro with a giant chocolate chunk cookie. Rumblings about this change began several weeks ago on Reddit and were confirmed by axios last month. Now you might have never thought you'd see the day when a giant chocolate chunk cookie served warm from the oven would be a source of ire or controversy. But yeah, here we are. You see, the twisted churro is a longtime favorite of Costco food court fans. And there are those.


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Speaker 3
And the new cookie costs a dollar more than the churro and than a slice of pizza. No wonder customers are salty about this change. Some who've tried the cookies said it made them feel ill. That might be, as one Reddit user put it, what happens when you consume 750 calories of fat and sugar in 5 minutes? Okay. Rival Sam's club has been making its own changes on the food court front. The cafe, as it's called at Sam's, has been testing a range of limited time options to tempt hungry shoppers. Last fall, the cafe unveiled a brownie sundae, and to take the strategic move one step further, the sundae had to be ordered on the Sam's club app, which was intended to beef up app engagement. And the cafe, it must be noted, still offers churros.


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As for who's winning this particular food fight, well, it depends on who you ask. Both offer affordable, convenient snack options. One Motley fool report said that Costco's food is tastier, but Sam's club cafe pricing is lower. And here's another way that the cafe benefits customers'bottom. Lines, you can eat at the cafe without a Sam's club membership. Costco began restricting its food court to members only four years ago. Clearly, Warehouse club customers have strong opinions about their grab and go snack options. As Sam's club and Costco compete for pallets and wallets, listening and reacting to those preferences and demands is certainly giving them plenty of food for thought. From wondery this is business wars daily. I'm your host, David Brown, written by Gwen Moran and produced by Jessica Yarmoski. Our executive producers are Tina Rubio and Marshall Louis.


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