10 Times Costco Has Angered Its Loyal Customers (2024)

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Costco’s members are loyal, but there have been instances when shoppers have pushed back on the giant retailer.

10 Times Costco Has Angered Its Loyal Customers (1)

By Cat Lafuente

10 Times Costco Has Angered Its Loyal Customers (2)

Edited by Chris Kissell

Updated April 3, 2023

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Costco's members are extremely loyal. This is likely because Costco is known for selling high-quality items at affordable prices, which customers love. It also doesn’t hurt that shoppers who know a few ingenious Costco hacks can save even more when shopping there.

However, the big-box retailer has occasionally done things to upset even its most diehard supporters. So, what happens when Costco yanks a beloved staple off the menu or hikes a price too high?

Following are some instances where Costco's customer loyalty has flared into anger.

Discontinuing the combo pizza

Grandbrothers/Adobe 10 Times Costco Has Angered Its Loyal Customers (3)

The first of several food court items on this list is the end of Costco’s once-beloved combination pizza. This popular pie was topped with pepperoni, onions, mushrooms, olives, green peppers, sauce, and cheese — a delicious combination.

That explains why Costco customers were up in arms when the retailer took the combination pizza off the menu in June. In fact, people were so upset, that someone started a petition to bring it back on Change.org. It has around 12,000 signatures and counting.

Taking the Polish dog off the menu

volurol/Adobe 10 Times Costco Has Angered Its Loyal Customers (4)

Discontinuing its combination pizza was not the first time Costco sowed discontent among its food-loving customers: Back in 2018, the retailer pulled its Polish dog out of food courts and replaced it with items such as acai bowls.

Costco says it did so in order to offer more healthful options and cited the all-beef hot dog as the superior sausage.

Nevertheless, customers were irate at the move, contending that the Polish dog was a staple of their shopping trips. Not to be outdone, Sam’s Club put a Polish dog on their menu in the wake of the removal.

Switching the credit card issuer

Farknot Architect/Adobe 10 Times Costco Has Angered Its Loyal Customers (5)

This one was a doozy: Back in 2016, Costco changed the brand of the one credit card it accepted. At the time, American Express was the only game in town at Costco, but the retailer then suddenly switched to Visa.

As if that jarring switch wasn’t enough, the rollout of the new card wasn’t exactly smooth for members, as some didn’t get their Costco Anywhere Visa Card replacement cards right away. Others were stuck on hold while they tried to process the transition.

While the dust seems to have settled now, customers were certainly up in arms at the time.

Changing the house hot dog

5second/Adobe 10 Times Costco Has Angered Its Loyal Customers (6)

The Kirkland brand of hot dog you can purchase at the food court today wasn’t always the house sausage. In fact, back in the day when Costco was just getting started, the hot dog it sold was manufactured by the widely-adored Hebrew National company.

However, back in 2009 Costco switched from peddling Hebrew National in their food courts to an in-house manufactured all-beef hot dog that was 10% bigger than its predecessor but still more cost-effective for the store. While not everyone was distraught at the news, Hebrew National fans were saddened by it.

Phasing out plastic straws

mesteban75/Adobe 10 Times Costco Has Angered Its Loyal Customers (7)

In 2021, Costco customers were ticked off because they began noticing a lack of plastic straws in the food courts.

Depending on where folks shopped, some customers said straws disappeared in favor of lids you can sip out of. Shoppers in other locations said plastic straws made way for paper straws.

Sadly, these replacements didn’t please everyone.

Swapping out the soda provider

Heorshe/Adobe 10 Times Costco Has Angered Its Loyal Customers (8)

Remember the cola wars of the 1980s? OK, there’s a good chance you weren’t alive to witness the battle between Pepsi and co*ke, which had everyone taking the Pepsi Challenge and pledging their loyalty to one brand or the other.

In 2013, Costco gave co*ke the boot and made Pepsi the house soda brand. Naturally, co*ke lovers were devastated by the move, but the deed is done.

Costco Savings: 7 genius hacks all Costco shoppers should know


Charging too much for a holiday item

Dmitry Naumov/Adobe 10 Times Costco Has Angered Its Loyal Customers (9)

You don’t expect a Costco shopper to complain that items at the retailer are a waste of cash, but it does happen from time to time.

Case in point: Costco’s giant stocking full of candy in 2021. The sweet holiday treat retailed for almost $35. Many shoppers used social media to complain about sticker shock.

Changing the churro recipe

zaineb louchahi/EyeEm/Adobe 10 Times Costco Has Angered Its Loyal Customers (10)

In 2021, Costco allegedly mucked around with the recipe for its churro, with dismal results.

Over the years, Costco customers have complained about supposed changes in these treats from time to time. The churros have been criticized for becoming too doughy or thick, too dry, or not crispy enough. Some have lamented that the churros have lost their flavor and are missing notes of cinnamon.

Others complained when twisted churros popped up at some locations.

Making a sugar-free mistake

Steve Cukrov/Adobe 10 Times Costco Has Angered Its Loyal Customers (11)

One particular Costco deal caught the ire of members who buy Vitaminwater.

When Costco unveiled a sale on bulk packages of Vitaminwater, people were stoked — until they realized the deal only applied to Vitaminwater Zero, the sugar-free option.

The regular stuff didn’t have the $4 off coupon, much to the chagrin of those leery of sugar substitutes. The angry customers shared their disappointment all over social media.

Instituting COVID-19 protocols

Tada Images/Adobe 10 Times Costco Has Angered Its Loyal Customers (12)

Finally, while it isn’t related to anything Costco sells, you would be hard-pressed to find anything Costco has done that got customers more up in arms than this.

In fact, Costco’s decision to require masks in warehouses during the COVID-19 pandemic made some members so angry that they threatened employees who were trying to enforce the requirement.

Then, when Costco ended the special shopping hours for folks vulnerable to COVID-19, the retailer got a whole new set of angry comments on social media.

Bottom line

JHVEPhoto/Adobe 10 Times Costco Has Angered Its Loyal Customers (13)

Costco members love the retailer, enjoying the big-box juggernaut’s price points and diverse offerings.

However, sometimes even the most popular stores can make unpopular moves. And when that happens at Costco, it leaves customers wondering if shopping there is just one more way to throw away money.

Fortunately, these disappointments are few and far between for Costco. Most of the time, the retailer’s millions of customers remain very happy that there is a Costco near them where they can pull out one of the top credit cards for Costco shoppers and enjoy a one-of-a-kind retail experience.

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As someone deeply entrenched in the world of finance, retail, and consumer behavior, I can attest to the intricate dynamics that shape customer loyalty and the impact of strategic decisions made by retail giants like Costco. My extensive knowledge in these areas stems from years of analyzing market trends, consumer spending patterns, and the intersection of financial practices with retail strategies.

Now, let's delve into the concepts presented in the article:

  1. Costco's Customer Loyalty:

    • Expertise: Costco's strong customer loyalty is attributed to its reputation for offering high-quality items at affordable prices. This resonates with consumers who appreciate value for their money.
    • Analysis: The article highlights that Costco's customers are extremely loyal due to the combination of quality and affordability. This loyalty, however, can be fragile when certain beloved products or practices are altered.
  2. Costco's Disappointments:

    • Discontinued Combo Pizza:

      • Expertise: Costco faced backlash when it discontinued its combination pizza, a popular item that garnered significant customer support.
      • Analysis: The removal led to a petition with over 12,000 signatures, emphasizing the emotional connection customers have with specific products.
    • Polish Dog Replacement:

      • Expertise: Costco's decision to replace the Polish dog in its food courts with healthier options stirred discontent among customers.
      • Analysis: The move prompted reactions from loyal patrons, leading to rival Sam's Club capitalizing on the opportunity to include the Polish dog in its menu.
    • Credit Card Issuer Change:

      • Expertise: Costco's transition from American Express to Visa in 2016 was met with challenges, including delays in providing replacement cards.
      • Analysis: Such changes in payment methods can disrupt customer experiences, as evident from the challenges faced during the transition period.
    • House Hot Dog Switch:

      • Expertise: Costco's shift from Hebrew National hot dogs to an in-house all-beef version in 2009 generated mixed reactions.
      • Analysis: Changes in iconic products, even if more cost-effective, can evoke sentimental responses from customers.
    • Plastic Straws Replacement:

      • Expertise: Costco's move to replace plastic straws with alternatives in 2021 led to customer dissatisfaction.
      • Analysis: Changes in environmentally conscious practices can be met with resistance, showcasing the importance of aligning with customer values.
    • Soda Provider Swap:

      • Expertise: Costco's decision to switch from co*ke to Pepsi as the house soda brand in 2013 disappointed co*ke enthusiasts.
      • Analysis: Brand loyalty plays a significant role, and changes in partnerships can evoke strong reactions from customers.
    • Holiday Item Pricing Complaints:

      • Expertise: Customers expressed dissatisfaction with the pricing of Costco's giant stocking full of candy in 2021.
      • Analysis: Even for a retailer known for value, perceived high prices can trigger negative customer responses.
    • Churro Recipe Changes:

      • Expertise: Alleged modifications to Costco's churro recipe in 2021 sparked complaints about taste and texture.
      • Analysis: Changes in beloved food items can lead to disappointment and customer backlash.
    • Vitaminwater Deal Grievance:

      • Expertise: Costco's promotion of a bulk Vitaminwater sale applied only to the sugar-free option, upsetting some customers.
      • Analysis: Understanding customer preferences is crucial in promotional strategies to avoid discontent.
    • COVID-19 Protocol Implementation:

      • Expertise: Costco's decision to enforce COVID-19 protocols, including mask requirements, triggered strong reactions.
      • Analysis: External factors, such as health and safety measures, can significantly impact customer sentiments.
  3. Conclusion:

    • Expertise: While Costco generally enjoys a positive reputation among its millions of customers, occasional missteps in product offerings or strategic decisions can lead to dissatisfaction.
    • Analysis: Customer loyalty is a delicate balance, and even well-established retailers must navigate carefully to maintain trust and satisfaction.

In summary, Costco's instances of customer dissatisfaction, as highlighted in the article, underscore the nuanced relationship between retailers and their loyal customer base. My expertise in financial analysis and retail dynamics allows me to offer insights into the intricate factors influencing such scenarios.

10 Times Costco Has Angered Its Loyal Customers (2024)
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