Southern California company No Tip offers Costco food court favorites for home delivery, charging a steep premium for convenience and catering orders
A Southern California startup is offering customers a way to get Costco food court favorites delivered to their homes and offices, but the convenience comes at a substantial premium: its $1.50 hot dog and soda combo costs $18 through the service.
The company, called No Tip, is not affiliated with Costco. It sends buyers to Costco warehouses to purchase food court items and deliver them to customers who place orders through its platform.
The service offers items including hot dogs, pepperoni pizzas, chicken tenders, cookies and salads. It is primarily designed for office catering, parties and larger gatherings, although individual orders are also accepted. According to a report by KTLA, the service operates across Southern California. Its founder, Jack Chen, told SFGATE that the company can handle orders for as many as 200 people and has established 66 fulfillment locations.
READ: Amul’s Costco milk brings Indian brand, American dairy together (September 27, 2026)
The pricing, however, is considerably higher than Costco’s in-store menu.
Costco food court prices versus delivery
The difference is particularly striking for Costco’s iconic hot dog and soda combination, which has remained at $1.50 for decades. The $18 hot dog combo represents a 1,100% increase over its in-store price. The delivery prices are advertised as all-inclusive, with no additional tips or delivery fees. The company also promises refunds for orders that arrive late.
The premium reflects the cost of having someone travel to a warehouse, purchase the food and bring it directly to the customer rather than requiring customers to visit Costco themselves.
Founder says service is designed for catering
Jack Chen, a software engineer who founded No Tip, said the business was developed primarily to serve offices, parties and large family gatherings rather than individual lunch orders. The platform says it can accommodate orders for up to 200 people. Deliveries include plates and utensils, making the service an option for businesses arranging office lunches and events.
“A lot of offices are ordering from me,” Chen told SFGATE, explaining that corporate customers may be more willing to pay for convenience.
READ: Microsoft, Starbucks, Costco demand Seattle public safety action (September 10, 2026)
Chen said the idea came after he wanted Costco pizza but found it difficult to get it delivered. He saw an opportunity to serve customers who wanted the warehouse chain’s food without making the trip themselves. The startup launched about two months before the November 2026 reports and says it serves most of Southern California through 66 fulfillment locations. Its current delivery workforce includes Chen, friends and paid drivers, with plans to expand if demand grows.
Costco membership and delivery distinction
No Tip also offers a workaround for customers who do not have Costco memberships. Customers can order through the startup without holding their own membership, while the people purchasing the food at Costco are members. The arrangement is not an official Costco delivery partnership.
Costco does offer delivery for groceries and other merchandise through third-party platforms, but its food court menu is not generally available through those standard delivery services.
The distinction is important because Costco’s food court has traditionally been associated with inexpensive meals that encourage warehouse visits. Its $1.50 hot dog and soda combination has become one of the retailer’s best-known value offerings.
Chen has described No Tip as a way to generate additional business for Costco, arguing that the service brings more customers to its food courts.
The convenience economy behind the premium
The business illustrates a niche in the US food delivery market: customers willing to pay substantially more for products that traditional delivery platforms do not offer. Rather than competing directly with conventional restaurant delivery, No Tip is building its model around access to a specific retailer’s food court menu and the convenience of bulk ordering.
For individual customers, the price difference is substantial. For offices and event organizers, the proposition is different: outsourcing food pickup and delivery may be more important than paying the lowest possible menu price. Whether the model can expand beyond Southern California will depend on customer demand, delivery logistics and its ability to maintain the pricing structure.