A California entrepreneur has found a way to bring Costco’s famously inexpensive food court favorites straight to customers’ doors. However, his new delivery service comes with a catch: Customers can expect to pay significantly more than they would at the warehouse, with some items carrying markups of more than 1,000%, according to SFGate.
Jack Chen, a longtime software engineer based in Southern California, launched No Tip, a food delivery platform that lets customers order popular Costco food court items without having to visit a warehouse themselves. The menu includes the retailer’s iconic hot dog and drink combo, pepperoni pizzas, double chocolate chunk cookies, and chicken tenders. Customers place their orders through the company’s website, and a driver handles the pickup and delivery.
The convenience comes at a considerable cost. A whole Costco pizza that normally sells for $9.95 costs $30 through No Tip, while a $7.99 chicken salad is listed for $28. Even the retailer’s famous $1.50 hot dog and drink combination jumps to $18, representing an approximately 1,100% increase.
Customers apparently prefer convenience over money
Chen isn’t particularly concerned about the eye-watering prices, though. Speaking to the outlet, he explained that the service is primarily designed for businesses and larger gatherings rather than individuals looking for an inexpensive lunch. “It’s the company’s money. As long as you’re not too expensive, I mean, they’ve got the money to blow,” he said.
Chen reportedly came up with the idea after living near Venice Beach and craving Costco pizza one evening. He realized that getting the food required making the trip to a warehouse and waiting in line, so he decided to create a service that would handle the entire process. He also believes customers are willing to pay more for Costco’s food specifically, rather than settling for alternatives available through conventional delivery platforms.
The entrepreneur also revealed that his pricing strategy was based on testing what customers were willing to spend. He initially adjusted prices in response to early orders until he found what he considered a reasonable spending threshold for his target audience. “It was just basic math … I just increased the price to what their budget was,” he asserted.
Despite the markups, No Tip advertises an all-inclusive pricing structure, meaning customers don’t have to worry about additional delivery fees or tipping. It also promises refunds when deliveries arrive late.
The service reportedly operates through 66 fulfillment locations across Southern California, although availability depends on customers’ addresses. Chen currently handles some deliveries himself, alongside friends and other people he pays to collect orders. He hopes to eventually expand the operation with dedicated drivers.
Despite how well the app performs, there is the question of how Costco views the arrangement. The retailer’s membership policies state that only members can purchase items, while its reseller conditions include requirements for businesses seeking sales tax exemptions. Chen maintains that his pickup workers are Costco members in good standing. He also believes that he is helping the company by streamlining the food court a bit by minimizing long lines and stand-off orders.
Costco’s inexpensive food court offerings aren’t simply about selling affordable meals. They help reinforce the value of shopping at its warehouses and encourage customers to keep returning. According to Forbes, Costco previously brought hot dog production in-house to help control costs and preserve its famous $1.50 combination. The retailer’s membership-based business model allows it to prioritize customer loyalty rather than maximizing the profit on every individual item.
Published: Nov 10, 2026 02:45 pm