What Does Costco Do With Unsold Food Court Items?

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Food waste is one of the biggest issues facing grocery stores today. Every year, millions of tons of food go to waste, with a significant amount ending up in landfills. Aside from unnecessary waste, this has also been linked to increasing greenhouse gases and global warming. It's a hot-button topic, and with increasing pressure, many grocery chains have taken steps to reduce their carbon footprint. However, when it comes to Costco's unsold food court items, shoppers have complained that the bulk-buy chain is falling short of their expectations. 

"I have seen entire pizza pies being thrown away upon closing," one Redditor wrote. This was backed up by a self-identified employee, who shared, "Any food we don't sell gets tossed (but we sell close to all of what we make, if not all)." This is surprising, considering that Costco itself has claimed that it donates certain food items like produce and bread to Feeding America. It's also been revealed by employees that the meat of unsold rotisserie chickens is used to prepare certain deli meals.

So why does the same not happen to its unsold food court items? Unfortunately, Costco has never made an official statement on the matter, so we can only guess. One of the most popular theories floating around online is that if Costco started to offer unsold items at a discount, or even better, for free, it would quickly get abused. Already, its food court is famous for its ultra-low prices, and it even loses money on its iconic $1.50 hot dog and soda combo. If word got out that you can simply wait until closing to get free or discounted items, there's the potential that the whole system could fall apart, and in turn, prices would inevitably have to rise.

While there are several instances of social media users reporting witnessing Costco throwing away unsold food court items firsthand, this might not be a strict rule. According to a self-identified food pantry volunteer in that first Reddit thread, "The local [Costco] donates all their food court leftovers to us," while an employee claimed in another thread, "We're supposed to donate [leftover food court items] to a local shelter." These conflicting testimonies make it hard to gauge what Costco's official policy is when it comes to unsold food court items, as it seems to vary from store to store.

A contributing factor to the inconsistent store policies could be differences in state law. In five states — Connecticut, California, Rhode Island, Massachusetts, and Vermont — it's illegal for commercial retailers to simply throw food away. That forces businesses, like Costco, to find alternative outlets for their surplus, and donation is only one option. Composting and other eco-friendly disposal methods count too, so if you see Costco employees throwing away food court items in these states, they're either breaking the law, or you're only seeing half the story before the waste is diverted into compost or animal feed. 

But legality aside, there could be a more practical reason not every Costco is donating its leftover food court items: Some food banks simply don't want them. Because the food is cooked, it has to be kept refrigerated to avoid sitting in the danger zone where bacteria multiply, and that food becomes unsafe to eat. Many food banks have limited cold-storage space reserved for higher-priority perishables, and frequently discourage donations of hot, prepared food. In these cases, stores might have no other choice but to throw away any unsold food court items.