Costco Tightens Food Court Access Amid Soaring Meal Costs — Is Affordable Dining Disappearing in B.C.?

In a time when even fast food has become a luxury, a $1.50 hotdog and drink combo from Costco has long stood as a beacon of affordability. But for many in Vancouver, that last stronghold of cheap eating just became harder to reach.

The downtown Vancouver Costco recently began enforcing its long-standing rule that only members can purchase food from its food court — a policy that had gone largely unenforced, especially at locations like the city’s urban warehouse, which sits outside the main store entrance. The move has sparked online backlash, as many Canadians say they rely on the budget-friendly food court for inexpensive meals during tough times.

“Everyone deserves to be able to buy a $1.50 hotdog and drink if they’re broke,” wrote one user on Reddit. Others shared stories of grabbing quick meals before concerts at nearby Rogers Arena or feeding their kids affordably between errands. Some even admitted to sneaking in or using the pharmacy loophole to get past the membership requirement.

Costco hasn’t officially commented on the policy change, but employees confirmed to CBC Vancouver that enforcement is now stricter.

This comes as Canadians face a growing affordability crisis. According to Statistics Canada, restaurant meal prices jumped 25% between December 2019 and December 2023. At the same time, Canada’s 2025 Food Price Report predicts families will spend over $800 more on food this year, with an average annual grocery bill topping $16,800.

William Huggins, a business professor at McMaster University, says that while Costco's food court was never meant to turn a profit — serving more as a draw for warehouse shoppers — the reality of food inflation has pushed non-members to seek out those cheap eats as a survival strategy.

“People are financially distressed and trying to eat on the cheapest option available,” he said. “Inadvertently, corporations like Costco are filling gaps left by weakened social programs.”

But from a business perspective, Huggins acknowledges Costco's decision. “If you’re attracting demand from people who will never buy anything else, it becomes a loss.”

A Growing Divide at the Dinner Table

As dining out grows more expensive, the impact is felt most by lower-income Canadians. One in four households experienced food insecurity in 2024, and the income gap in Canada is at a record high. For many, even fast-food chains have become out of reach: a McDonald’s meal for four can cost $50, while a single burrito at Mucho Burrito runs over $12.

Queen’s University professor Elaine Power says access to something as simple as eating out has significant social implications.

“Being able to eat out like ‘normal people’ can reduce feelings of social isolation and exclusion,” she said, especially for parents trying to create a sense of normalcy for their children.

But experts say the bigger issue isn’t about access to $1.50 hotdogs — it’s about wages, housing, and the structure of the food economy.

UBC professor Kelleen Wiseman notes that while Costco’s pricing may be exceptional, it's not a scalable solution to food insecurity — especially when most locations are far from walkable urban centres.

“Stable incomes and access to healthy food options are what really matter,” she said.

Fast Food, Slow Slide into Premium Pricing

Compounding the affordability issue is the fast food industry’s shift toward more premium offerings. Chains are focusing on higher-margin products like rice bowls and salads rather than maintaining value menus. As prices climb, that bottom-tier market — once served by $5 meals and dollar menus — is disappearing.

"There's a real need for companies to return to serving those budget-conscious consumers," Huggins said.

For now, the Costco food court remains one of the last havens for those seeking a full meal under $2 — but only for those willing (or able) to pay the $65 annual membership fee.

“I don’t know how they’re making money on this thing,” said one woman in a viral Facebook video showing how to feed a family of six for under $30 at Costco.

Another Reddit user mused, “Is it crazy to ask for 20 or so $1.50 hotdogs to go for a party?”

In today’s economic climate, it might be the most practical catering option on the menu.