Costco has found a new way how not to raise the price of its branded grilled chicken

Seeking to continue selling quality products at the lowest prices, in particular, grilled chicken at 5 dollars, Costco creates its own production system to supply stores with affordable poultry.

Фото: Depositphotos

For many years, the company constantly loses money on a very cheap grilled chicken, but does not raise prices on it, I use this dish as a way to attract customers to the store, writes Fox News.

According to Richard Galanti, CFO at Costco, the company is not against losing 30-40 million dollars a year in gross profit, while maintaining the price of a chicken in 4,99 dollars.

But now Costco plans to take the whole chicken production into its own hands, opening a poultry processing center in Fremont, Nebraska, worth 275 million dollars. The center will be open by September 2019, to help the retailer avoid losing money from the sale of grilled chicken.

Once it reaches its maximum capacity and will operate at full capacity, the center with an area of ​​414 acres (167,5 ha) will deliver about two million chickens per week to Costco stores, which will provide about 40% of the total net demand for poultry meat. The retailer sells about 60 million grills a year.

The network will have to contract with some 100-125 farmers to grow chickens, and about 800 people will be working in the center, which the company will hire next year.

The poultry production center will use the same model that the store uses to make sausages, they are made at a Costco plant in Tracy, California.

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