Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

0:00
0:00

Prices on almost everything at the grocery store are up - except rotisserie chicken. Here's why

At the grocery store, shoppers have seen food prices increase at their fastest pace in decades. Yet the price of one hot, juicy, spit-roasted favorite hasn't budged at several top chains: rotisserie chickens.
Despite a 16.4% annual increase in chicken prices rotisserie chickens remain $4.99 at Costco (COST) and BJ's Wholesale Club (BJ). At Sam's Club they cost a penny less than that. Meijer still sells its rotisserie chicken for $5.99, while Giant Eagle has kept it at $6.99 and Publix at $7.39.

There's a strategy behind these stores' decision to keep rotisserie chicken prices steady — and it signals a lot about how grocers are trying to manage inflation while still holding onto their shoppers.

The rotisserie chicken is a prized item for supermarkets because it pulls customers into stores. Typically, customers will shop around and buy more than just a chicken for dinner when they visit.

Companies want to stay competitive on rotisserie chicken prices and are willing to lose money selling them even as production costs rise. It's called a "loss leader" for a reason: stores can can raise prices on other goods to make up for these losses.

"Once [customers] are in the store, they can fill out the rest of their basket, which the store might make a higher margin on," said Ernest Baskin, an associate professor in the department of food marketing at Saint Joseph's University.

What's more, shoppers know exactly how much their rotisserie chicken meal costs, and they'll notice an increase. Like the price of a gallon of milk or a carton of eggs, the price of a rotisserie chicken helps set consumers' overall perception of a store's value. Pricing rotisserie chickens incorrectly could have far-reaching consequences.

BJ's CEO Bob Eddy highlighted the importance of this strategy last week: "We have continued to invest in our value proposition. A good example is our signature rotisserie chicken," he said during an earnings call, later adding that although BJ's production costs for rotisserie chickens have surged, the company has held prices firm because it's "such a meaningful thing to our members."

At Giant Eagle, too, "our rotisserie chicken is a very popular center of the plate item," said spokesman Dan Donovan. "We believe it's important to maintain a strong overall value for this item."

Perhaps no chain is linked more closely to its rotisserie chickens than Costco, which has priced them at $4.99 for more than a decade — and sold 106 million of them last year. Costco places the chickens at the back of the store, hoping that customers will pick up items on impulse as they pass pallets of merchandise on their way toward the rotisseries.

Keeping rotisserie chicken at $4.99 is such an important strategy for Costco that it built a $450 million poultry processing plant in Nebraska to supply its own birds to stores. The plant, which opened in 2019, processes more than 100 million chickens a year.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
×