Costco sold 157.4mn rotisserie chickens worldwide last year, almost double the number of a decade ago.  “It’s $4.99 and for Costco members, that’s one fantastic deal. I don’t think you can produce it for that,” said Walt Shafer, who oversaw the construction and management of the Nebraska site before he retired from Costco this year.

Roasted in ovens in the rear of the retail giant’s hundreds of cavernous stores, the birds have cost only $4.99 since 2009 even as the US retail price of chicken almost doubled. The product has become a textbook “loss leader”, buttressing the loyalty of Costco customers who pay membership fees for the right to shop there…

Rotisserie accounts for only a portion of the chicken processed in Nebraska. The plant also cuts breasts, thighs and other cuts delivered in six-pouch “saddle packs” to stores. Raw breast meat, for example, sells for $2.99 a pound, helping make up for losses on rotisserie.

Here is more from Gregory Meyer at the FT.  Via Mike Rosenwald.