Costco's food court has a new dessert — and not everyone is thrilled about the price tag. The warehouse retailer unveiled a $2.99 Caramel Churro Sundae topped with tiny churro bites this week, drawing immediate reactions from loyal customers online.
The new sundae arrives more than a year after Costco discontinued its beloved original churros in early 2024, and some shoppers are pointing out that the new treat costs nearly double the former $1.50 churro. Laura Jayne Lamb, who runs the Instagram account @costcohotfinds, shared a video of the new dessert this week, writing, "The Costco food court did it again!"
The announcement has sparked a lively debate among Costco's famously passionate customer base, with many questioning whether a $2.99 sundae can truly fill the void left by one of the food court's most iconic items. Critics argue that the price increase reflects a broader pattern of rising costs that budget-conscious warehouse shoppers are growing tired of.
According to the New York Post, Costco's churros first appeared in the 1990s and originally sold for 99 cents, according to reports. They were later reformulated and repriced, eventually reaching $1.50 before being pulled from menus entirely in early 2024. For many shoppers, the churro was as much a part of the Costco experience as the legendary $1.50 hot dog and soda combo.
The discontinuation left a hole in the food court lineup that Costco has been experimenting to fill. Earlier this spring, a Double Chocolate Mint Sundae briefly joined the food court rotation. Now, the Caramel Churro Sundae appears to be the retailer's latest attempt at a replacement. It's worth noting that availability may vary by location, as Costco's food court offerings can differ from store to store. It's also unclear how long the Caramel Churro Sundae will remain available. That uncertainty has only added to customer frustration.
Lamb's video drew significant attention, with one Instagram comment collecting nearly 5,000 likes. Commenters were split — some welcomed any churro-adjacent addition, while others balked at the cost. One commenter referenced the calorie count, noting the sundae packs 850 calories.
The price comparison is what stings most for longtime fans. Going from a $1.50 standalone churro to a $2.99 sundae is a 99% increase. One commenter even joked about offering a workaround: "here's one dollar!" — a nod to the gap between what customers want to pay and what the new item costs.
One parent noted that their child, just 6 years old, was among those disappointed by the change. Reddit users also weighed in, with discussions reflecting broader dissatisfaction about food court menu shifts. The sentiment is clear: Costco customers are fiercely loyal to their favorites and deeply skeptical of replacements.
In an interesting twist, Costco isn't the only warehouse retailer experimenting with caramel-themed desserts. Sam's Club Café rolled out a limited-time Caramel Palmier Sundae in February. The two chains introduced similar offerings within a month of each other.
Here's where it gets interesting for the price-conscious shopper: Sam's Club priced its Caramel Palmier Sundae at just $1.58 — roughly half the cost of Costco's new creation. For families watching every dollar, that's a meaningful difference. It also raises the question of whether Costco's pricing power at the food court is beginning to test its limits.
Competition between the two warehouse giants has always been fierce, and food court pricing is one of the most visible battlegrounds. Costco has long benefited from the perception that its food court is an unbeatable value, anchored by the iconic $1.50 hot dog combo and $1.99 pizza slices. A $2.99 sundae, while still inexpensive by restaurant standards, disrupts that perception.
From a pure economics standpoint, the story here is about inflation, consumer expectations, and brand loyalty. Costco's original churro traveled from 99 cents in the 1990s to $1.50 before its demise — a trajectory that roughly tracked broader food price inflation. The jump to $2.99 for a different product altogether feels less like inflation and more like a menu redesign with a higher margin baked in.
For the budget-conscious shopper — the type who plans meals around Costco runs and views the food court as a reward for navigating crowded aisles — every dollar matters. The $2.49 double chocolate chunk cookie already pushed the envelope for some. Now, a sundae approaching $3 is another data point suggesting that even Costco's food court isn't immune to the upward pricing pressures affecting every corner of the food industry.
The lesson for consumers is simple: vote with your wallet. If the Caramel Churro Sundae doesn't deliver the value customers expect, sales will reflect that, and Costco will adjust. The company has a long track record of listening to its member base. In the meantime, shoppers who want a similar treat at a lower price point may find themselves making an unexpected trip to Sam's Club — and that competitive pressure may be the best thing to happen to Costco's food court menu in years.