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
Hungarian Prime Minister Viktor Orbán stated that Hungary will not adopt the euro because the European Union is falling apart.
Mayor in western Germany in intensive care after stabbing
Australian government pays Deloitte nearly half a million dollars for a report built on fabricated quotes, fake citations, and AI-generated nonsense.
BYD’s UK Sales Soar Nearly Nine-Fold, Making Britain Its Biggest Market Outside China
Latvia to Bar Tourist and Occasional Buses to Russia and Belarus Until 2026
Wave of Complaints Against Apple Over iPhone 17 Pro’s Scratch Sensitivity
Munich Airport Reopens After Second Drone Shutdown
Pro Europe and Anti-War Babiš Poised to Return to Power After Czech Parliamentary Vote
Sean ‘Diddy’ Combs Sentenced to Fifty Months in Prison Following Prostitution Conviction
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
×