Many Americans are feeling financially strained these days. And when we look at how inflation is trending, it’s easy to see why.
The Consumer Price Index rose 3.3% on an annual basis in March. Although fuel oil mostly drove the increase, food costs rose substantially as well — particularly restaurant costs, which were up 3.8% year over year.
Because it’s gotten so darn expensive to dine out, consumers seem to be doing it less often, or are at least making plans to cut back on restaurant meals.
Among consumers who expect their finances to worsen in 2026, 66% intend to cut back on dining out, according to a March YouGov survey.
And recently, Bank of America reported that higher prices are making consumers more selective about where and how often they dine out. The bank’s card data showed that diners are increasingly favoring convenience and value over traditional restaurant spending.
Given that the cost of dining out rose a whopping 39.3% between January 2019 and January 2026, according to S&P Global, that’s not surprising.
But while a shift away from dining out may be hurting restaurant chains, Costco has found itself in a great position to capitalize on that trend.
Costco expands organic frozen meal offerings
Giving up restaurant meals is not necessarily an easy thing for consumers, so it’s important that retailers looking to capture some of that spending really step up to the plate.
Costco seems to be doing just that.
Related: Sam’s Club just gave members a reason to ditch Costco
Earlier this year, Costco introduced its Kirkland Signature Braised Beef With Yukon Mashed Potatoes, a meal fans say is a restaurant-quality dish.
Costco is also rolling out a line of organic meals from Amy’s Kitchen.
More than 150 Costco locations in Los Angeles, the Bay Area, and Texas will be stocked with bulk versions of Amy’s Cheese Enchiladas and Organic Bean & Cheese Burritos. The products are specifically designed for Costco shoppers seeking affordable meal solutions in larger pack sizes.
“What we’re seeing from both retailers and consumers is that people want organic options that don’t require choosing between quality and value, and this Costco expansion is a direct response to that demand,” Amy’s Kitchen President Paul Schiefer said in a statement.
Bulk sizes of Amy’s organic frozen enchiladas and burritos are coming to more than 150 Costco locations in Los Angeles, the Bay Area, and Texas.
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Costco is well positioned for changing consumer habits
The timing of Costco’s Amy’s Kitchen rollout couldn’t be better.
A growing number of companies are warning that financially strained consumers are becoming increasingly cautious. Chipotle recently forecast weaker sales growth as lower-income consumers reduce discretionary spending and scale back restaurant visits, Reuters reported.
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Meanwhile, Americans are consistently spending less on discretionary items and prioritizing grocery purchases. That puts Costco in a great position to shine.
Warehouse retailers often benefit during periods of economic uncertainty because consumers seek bulk discounts, value pricing, and meals they can prepare at home instead of paying restaurant markups. By introducing its newest line of frozen meals, Costco is able to capitalize on a growing trend without making shoppers feel like they’re sacrificing quality to save money.
In fact, in addition to its newest addition of frozen meals, Costco has another weapon in its arsenal — its Kirkland Signature brand.
Kirkland has become synonymous with quality. And at a time when consumers are increasingly looking for value, that store brand, combined with strategic partnerships like Amy’s Kitchen, gives Costco a true edge.
Maurie Backman owns shares of Costco.