Costco’s Rotisserie Chicken Supply Is At Risk, Why Food Should Not Be Used As A Weapon, Grocery Workers To Strike

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Cooked rotisserie chickens are displayed for sale at a Costco store in San Francisco.

I’m out this morning with a feature that tugs on the heartstrings in some weird ways: There’s a tale of pet peacocks sent to auction and the baby ducks purchased for a grandson for Easter that had to get taken away. Why? In short, avian flu.

The highly contagious virus is ripping through flocks of chickens, egg-layers and turkeys across the globe. In America, some 15 million birds have already been killed. But the ramifications are very varied and complicated. An outbreak has erupted in Nebraska, where many of Costco’s chickens come from, and the supply of the retailer’s iconic rotisserie birds is threatened. Losses for Costco have so far been small overall, but because the virus spreads quickly through factory farms, many of the chain’s chickens are still in the danger zone.

As are other farmers. I spoke with Yolanda Bailey, who runs Fox Run Farms in Brainard, Nebraska, which her family has owned since 1899. The Costco-contracted farms moved in a few years ago, and since many are now close by, it’s too risky for her family to keep any poultry on their farm.

“The outbreak is in Costco-sponsored chicken houses, but the consequences of this outbreak will lead to a lot of economic pain for all the farmers involved, including those that have nothing to do with Costco,” she told me.

The way Costco and other factory farms raise chickens—in overcrowded and stressed-out environments—makes it easier for bird flu to spread. That's why research published in February by the investor network Farm Animal Investment Risk & Return, or FAIRR, which is based in the U.K. and backed by $48 trillion in assets, is concerning. The study found that 63% of the world’s 60 largest meat, fish and dairy firms were not taking steps to prevent the next pandemic from incubating on one of their farms. The United Nations, meanwhile, has reported that four of seven risk factors for the creation of pandemics are directly linked to the meat industry and rising meat consumption. According to the Center for Disease Control and Prevention, three out of four emerging diseases are animal-born and can jump to humans.


Spring has already started—officially, anyway—but I’m just starting to see the signs of it here in New York City. This weekend I hope you enjoy some outdoor time, maybe in some dew.



Fresh Take: Costco’s Rotisserie Chicken Supply Is At Risk, Why Food Should Not Be Used As A Weapon, Grocery Workers To Strike (forbes.com)
 
[QUO
Wait what
"NOT THE FUCKING CHICKENS!!!"
That rotisserie chicken is slamming... and cheap ... $4.99 each :yes:


Why Costco Will Raise Membership Prices Before It Charges More for Rotisserie Chicken
Costco last increased its membership price in 2017 and raising it may allow it to keep selling cheap rotisserie chicken.

Customers love Costco's (COST) - Get Costco Wholesale Corporation Report $4.99 rotisserie chicken. Because of that, the warehouse club took the aggressive step of opening its own poultry farm back in 2019.

That facility produces about 100 million chickens per year -- about a third of what the company uses. Now, however, amidst rising prices for chicken (and meat in general) and activist concerns about how Costco treats its chickens while raising them, the company may face pressure to raise the price of its rotisserie chicken above $4.99.

The membership-based warehouse club has kept the price of its rotisserie chickens at $4.99 since 2009. That's an expensive move as it's widely believed that the company loses $30-$40 million per year selling rotisserie chicken. That's a relatively small number for the chain, but it's one that will increase if the company has to spend more to raise chickens on its farm and prices for poultry rise in general.

Why Does the Costco $4.99 Rotisserie Chicken Matter?
Costco uses a membership-based model. Its business success requires the company to retain and add members at a steady clip. In many ways, what it sells in its stores serves as a membership retention tool since the company sells its items at very low margins compared to other retailers.

Something like a $4.99 rotisserie chicken drives members to visit the warehouse club's locations. Basically, a member may visit because he or she wants a cheap meal option for dinner that night (and cheap chicken certainly fits) and, while there the member buys a bunch of other things.

It's not the purchases that matter to Costco. Instead, each visit reinforces the value of being a member. That makes it more likely that the member will renew and that helps the company maintain its roughly 90% retention rate.

Because of that, Costco can afford to subsidize the cost of its rotisserie chickens and it will likely continue to do so. That $30-40 million loss may grow if the company addresses calls from various animal rights groups, including Mercy for Animals, to join the Better Chicken Commitment, "which sets ethical standards for poultry raising and processing," Grocery Dive reported.

But, even pricier chickens likely won't lead to a price increase on Costco's $4.99 rotisserie chicken as management has been resolute in maintaining the price. It's an optics issue where the goodwill matters more than the money (much like the company's $1.50 hot dog and soda combo).

Keeping the rotisserie chicken at $4.99, however, does not mean Costco members won't face a meaningful price increase.

CONTINUED:

Why Costco Will Raise Membership Prices Before It Charges More for Rotisserie Chicken - TheStreet




.
 
[QUO

"NOT THE FUCKING CHICKENS!!!"
That rotisserie chicken is slamming... and cheap ... $4.99 each :yes:


Why Costco Will Raise Membership Prices Before It Charges More for Rotisserie Chicken
Costco last increased its membership price in 2017 and raising it may allow it to keep selling cheap rotisserie chicken.

Customers love Costco's (COST) - Get Costco Wholesale Corporation Report $4.99 rotisserie chicken. Because of that, the warehouse club took the aggressive step of opening its own poultry farm back in 2019.

That facility produces about 100 million chickens per year -- about a third of what the company uses. Now, however, amidst rising prices for chicken (and meat in general) and activist concerns about how Costco treats its chickens while raising them, the company may face pressure to raise the price of its rotisserie chicken above $4.99.

The membership-based warehouse club has kept the price of its rotisserie chickens at $4.99 since 2009. That's an expensive move as it's widely believed that the company loses $30-$40 million per year selling rotisserie chicken. That's a relatively small number for the chain, but it's one that will increase if the company has to spend more to raise chickens on its farm and prices for poultry rise in general.

Why Does the Costco $4.99 Rotisserie Chicken Matter?
Costco uses a membership-based model. Its business success requires the company to retain and add members at a steady clip. In many ways, what it sells in its stores serves as a membership retention tool since the company sells its items at very low margins compared to other retailers.

Something like a $4.99 rotisserie chicken drives members to visit the warehouse club's locations. Basically, a member may visit because he or she wants a cheap meal option for dinner that night (and cheap chicken certainly fits) and, while there the member buys a bunch of other things.

It's not the purchases that matter to Costco. Instead, each visit reinforces the value of being a member. That makes it more likely that the member will renew and that helps the company maintain its roughly 90% retention rate.

Because of that, Costco can afford to subsidize the cost of its rotisserie chickens and it will likely continue to do so. That $30-40 million loss may grow if the company addresses calls from various animal rights groups, including Mercy for Animals, to join the Better Chicken Commitment, "which sets ethical standards for poultry raising and processing," Grocery Dive reported.

But, even pricier chickens likely won't lead to a price increase on Costco's $4.99 rotisserie chicken as management has been resolute in maintaining the price. It's an optics issue where the goodwill matters more than the money (much like the company's $1.50 hot dog and soda combo).

Keeping the rotisserie chicken at $4.99, however, does not mean Costco members won't face a meaningful price increase.

CONTINUED:
Why Costco Will Raise Membership Prices Before It Charges More for Rotisserie Chicken - TheStreet




.
Costco is 1 of the leaders and origin stories of memberships/subscription companies that many are trying to duplicate.. I forgot what was the number I heard yrs ago but most of their money come from the membership fee and not the actual product sales… mad companies want to be Costco now..cause the money is in the monthly/yearly subscription game
 
:popcorn:
now the OP is posting about information that was given 2 years ago.

next thread will be about the $30T+ in debt this corporation has.
 
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