Why Is Costco's Rotisserie Chicken So Cheap?

iStock.com/LauriPatterson
iStock.com/LauriPatterson

Rotisserie chicken is a quick, easy meal with frequent leftovers. Couple that with the fact that Costco's ready-to-eat version costs less than raw chicken, and it might be tempting to give up cooking altogether. So why exactly does Costco's four-pound bird cost a paltry sum of $4.99, and why don't they raise the price?

When Barclays analyst Meredith Adler asked Costco CFO Richard Galanti this question in 2015, he responded, "I can only tell you what history has shown us: When others were raising their chicken prices from $4.99 to $5.99, we were willing to eat, if you will, $30 to $40 million a year in gross margin by keeping it at $4.99. That's what we do for a living."

In other words, it's their business philosophy—plain and simple. (The company has the same rule about keeping their concession hot dogs and soda at an inflation-ignoring $1.50.) Some were skeptical, though. According to Money, a more likely explanation is that the chicken is a "loss leader" that's meant to lure customers into the store later in the day—especially around dinner time. The hope is that these hungry customers will pick up a few other items they wouldn't have bought otherwise. As CNBC points out, that's why the rotisserie chicken counters are strategically located at the back of the store.

One other theory is that Costco sometimes has a high supply of chickens, and instead of throwing them away when they're about to expire, they cook them and sell them as ready-to-eat food. After all, making less money is better than making no money at all. "What's more, if the rotisserie chickens don't sell, the meat can be used in soup, chicken salad, and other profitable deli items," Money writes.

Whatever the exact reason, Costco is going to great lengths to hold its prices steady. According to Eater, the company will be launching its very own chicken farming operation in Nebraska. That way, it will no longer be entirely dependent on the chicken "monopoly" dominated by companies like Tyson and Perdue, whose prices have increased in recent years. Costco plans to raise 100 million chickens annually, which will supply them with 43 percent of the poultry needed for its rotisserie chicken counter, as well as one-third of the raw birds needed to stock the meat section. The company has already broken ground on a poultry processing facility in Fremont, Nebraska (roughly an hour outside of Omaha), and it also plans to construct a feed mill and over 500 barns.

It looks like families will continue serving up $5 rotisserie chicken for some time to come.

[h/t Eater]

Cook a Game of Thrones-Inspired Feast With This Video Tutorial

Kristofer Hivju, Kit Harington, and Emilia Clarke celebrate in Game of Thrones
Kristofer Hivju, Kit Harington, and Emilia Clarke celebrate in Game of Thrones
Helen Sloan, HBO

Tonight marks the series finale of Game of Thrones. Hosting a watch party? Consider skipping the chips and dip, and try whipping up a dish inspired by the show. In the video below, first spotted by Laughing Squid, Binging With Babish host Andrew Rea provides recipes for three foods featured in the fantasy series: Purple Wedding pigeon pie, Dothraki blood pie, and Sansa Stark’s lemon cake.

For the uninitiated, Binging With Babish is a YouTube tutorial channel that features Rea cooking—and in some cases, improving on—foods from popular movies and television shows. Game of Thrones's characters are likely better on the battlefield than they are in the kitchen, so Rea takes a few culinary liberties while recreating Medieval and Dothraki fare: His “pigeon pie” is made with squab, and the blood pie, in Rea’s own words, is “essentially a black pudding in pie form” that’s garnished with figs, goat cheese, and black sea salt.

Updated for 2019.

10 Things You Might Not Know About Wine

iStock/MarkSwallow
iStock/MarkSwallow

Between the vine and the liquor store, plenty of secrets are submerged in your favorite bottle of wine. Here, Tilar J. Mazzeo, author of Back Lane Wineries of Sonoma, spills some of the best. Here are a few things you might not know about wine.

1. Digital eyes are everywhere in today's vineyards.

Certain premium estates in Bordeaux and Napa are beginning to look a little more like army bases—or an Amazon.com warehouse. They’re using drones, optical scanners, and heat-sensing satellites to keep a digital eye on things. Some airborne drones collect data that helps winemakers decide on the optimal time to harvest and evaluate where they can use less fertilizer. Others rove through the vineyard rows, where they may soon be able to take over pruning. Of course, these are major investments. 

2. Modern vineyards also bury a lot of cow skulls. 

They’re not everywhere, but biodynamic farming techniques are on the rise among vintners who don’t want to rely on chemicals, and this is one trick they’ve been known to use to combat plant diseases and improve soil PH. It’s called Preparation No. 505, and it involves taking a cow’s skull (or a sheep’s or a goat’s), stuffing it with finely ground oak chips, and burying it in a wet spot for a season or two before adding it to the vineyard compost.

3. Ferocious foliage is a vintner's secret weapon.

The mustard flowers blooming between vineyard rows aren’t just for romance. Glucosinolates in plants like radishes and mustard give them their spicy bite, and through the wonders of organic chemistry, those glucosinolates also double as powerful pesticides. Winemakers use them to combat nematodes—tiny worms that can destroy grape crops.

4. Roses in a vineyard are the wine country equivalent to the canary in the coal mine. 

Vintners plant roses among their vines because the flowers get sick before anything else in the field. If there’s mildew in the air, it will infect the roses first and give a winemaker a heads-up that it’s time to spray.

5. Birds of prey help protect the grapes.

Glasses of red wine and charcuterie
iStock/Natalia Van Doninck

Small birds like blackbirds and starlings can clear out 20 percent of a crop in no time. But you know what eats little birds? Big birds. Falconry programs are on the rise in vineyards from California to New Zealand. Researchers have found that raptors eat a bird or two a day (along with a proportion of field mice and other critters) and cost only about as much to maintain as your average house cat.

6. Small bugs become big problems in wine tasting rooms.

Winemakers are constantly seeking ways to manage the swarms of Drosophila melanogaster that routinely gather around the dump buckets in their swanky showrooms. You know these pests as fruit flies, and some vintners in California are exploring ways to use carnivorous plants to tackle the problem without pesticides. Butterworts, sundews, and pitcher plants all have sweet-sounding names, but the bug-eating predators are fruit fly assassins, and you’ll see them decorating tasting rooms across wine country.

7. Wine needs to be filtered. 

Winemaking produces hard-to-remove sediments. Filters can catch most of the debris, but winemakers must add “fining agents” to remove any suspended solids that sneak by. (Unwanted compounds in the wine bind with the fining agents so they can be filtered and removed.) Until it was banned in the 1990s, many European vintners used powdered ox blood to clean their wines. Today, they use diatomaceous earth (the fossilized remains of hard-shelled algae), Isinglass (a collagen made from fish swim bladders), and sometimes bentonite (volcanic clay). Irish moss and egg whites are also fine wine cleaners.

8. Wine is ever so slightly radioactive (that's a good thing).

About 5 percent of the premium wine sold for cellaring doesn’t contain what the label promises. So how do top-shelf buyers avoid plunking down serious cash on a bottle of something bunk? Most elite wine brokerages, auction houses, and collectors use atomic dating to detect fraud. By measuring trace radioactive carbon in the wine, most bottles can be dated to within a year or two of the vintage.

9. MRIs can determine the fine from the funk.

Even with atomic dating, there are certain perils involved in buying a $20,000 bottle of wine. Leaving a case in the hot trunk of your car is enough to ruin it, so imagine what can happen over a couple of decades if a wine isn’t kept in the proper conditions. Back in 2002, a chemistry professor at University of California at Davis patented a technique that uses MRI technology to diagnose the condition of vintage wines. This technique may soon be used at airport security, meaning you’ll be able to carry on your booze.

10. Wines can be aged instantly.

If you end up with a bottle of plonk, Chinese scientists have developed a handy solution. Zapping a young wine with electricity makes it taste like something you’ve cellar aged. Scientists aren’t quite sure how it happens yet, but it seems that running your wine for precisely three minutes through an electric field changes the esters, proteins, and aldehydes and can “age” a wine instantly.

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