Costco builds its own chicken coop to meet the $ 5 chicken demand

For years, the company has been losing money on this essential and unavoidable item, but uses it as a way to get its customers into the store.
(IStock)

In an effort to continue to sell quality products at the lowest possible prices, particularly its $ 5 roast chicken, Costco is implementing its own production system to provide the poultry warehouse retailer at a discounted price. affordable.

For years, the company has been losing money on this essential and unavoidable item, but uses it as a way to get its customers into the store. "We were willing to consume, if you will, $ 30 to $ 40 million a year in gross profit, keeping it at $ 4.99," said Richard Galanti, Chief Financial Officer of Costco, reports the Seattle Times.

AUTHENTIC AT 5 YEARS IN NEW YORK, THE BRIDE TO CINDERELLA IS FAULT, INTERNET WANTS TO SEND IT TO A DISNEY WORLD

But now, Costco plans to take the lead by opening a $ 275 million poultry processing center in Fremont, Neb. By September 2019, in order to help avoid losing money on chicken, according to Business Insider.

Once this capacity is reached and fully operational, the 414-acre plant will aim to produce two million chickens a week, which will cover about 40% of Costco's needs, says NPR. The big box store sells about 60 million rotisserie chickens a year.

FOLLOW US ON FACEBOOK FOR MORE NEWS ON FOX LIFE STYLE

The retailer will have to contract between 100 and 125 farmers to raise chickens, and the plant would employ 800 people.

The chicken factory follows the same pattern that the store uses for its hot dogs, which are produced at a Costco owned plant in Tracy, California.