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Home » Costco Stores Closing and the Impact on Pupusa Supply: A Hidden Crisis in the Making

Costco Stores Closing and the Impact on Pupusa Supply: A Hidden Crisis in the Making

If you’ve ever walked into a Costco and left with a tray of frozen pupusas in your cart, you’re not alone. For many Salvadoran families and Latin American food lovers, Costco has quietly become a major supplier of ready-to-eat and frozen pupusas—a convenient, affordable link to home. But recent reports of Costco store closures across the U.S. and abroad have sparked concern about an overlooked ripple effect: What happens to the pupusa supply chain?

In this post, we explore how Costco’s retail decisions could disrupt the availability, affordability, and visibility of pupusas for millions of consumers—and what it means for Salvadoran brands, food entrepreneurs, and cultural preservation.


🧯 Quick Background: Why Is Costco Closing Stores?

Costco has announced the closure of a handful of underperforming or overlapping locations in markets like:

  • U.S. metro areas (California, Illinois, Florida)
  • Canada and the U.K.
  • Possible scaling back in Latin America and Asia-Pacific regions

Reasons Include:

  • Real estate cost increases
  • Shift to online delivery models
  • Increased competition from Amazon Fresh, Aldi, and Walmart+

While the number of closures may seem small in context, for niche ethnic products like pupusas, every shelf counts.


🫓 Costco’s Role in the Pupusa Supply Chain

Over the past 5 years, Costco has emerged as a major retailer of frozen Salvadoran-style pupusas, especially in areas with large Hispanic populations.

Popular Pupusa Brands at Costco:

  • Del Real Foods (California-based, sells pupusas with beans, cheese, pork)
  • Don Pancho
  • La Fe / Tropical (East Coast brands)
  • House brands in select Central American regions

Why Pupusa Lovers Chose Costco:

  • Bulk packs: 8–10 pupusas per tray
  • Competitive prices: ~$1.25–$1.50 per pupusa
  • Convenience: Fully cooked, microwave-ready in minutes
  • Quality: Corn masa, traditional fillings, good melt-factor

Costco has helped normalize and mainstream pupusas, making them available far beyond Salvadoran neighborhoods.


📉 What Happens When Stores Close?

1. Immediate Reduction in Shelf Space

Frozen Salvadoran brands already compete for limited space. Each store closure:

  • Removes one of the largest-volume outlets for pupusas
  • Forces smaller suppliers to fight harder for visibility in other chains
  • Risks delisting of niche products in consolidated regions

2. Diaspora Access Shrinks

Many Salvadoran families in the U.S. rely on Costco for:

  • Easy-to-store pupusas
  • School lunches
  • Family meals during busy weeks

In cities with only one Costco, its closure may mean no local alternative for Salvadoran frozen goods.


💥 Economic Impact on Pupusa Producers

Costco orders in bulk from regional producers. Its closures can lead to:

  • Reduced revenue for Salvadoran-owned or Hispanic-led food businesses
  • Lost jobs in food production and distribution chains
  • Slower expansion of Salvadoran culinary exports

Smaller brands that scaled up specifically for Costco demand may now struggle to pivot.


🔍 A Cultural Setback

The rise of pupusas in Costco helped introduce Salvadoran cuisine to millions of Americans and Canadians. In-store demos and frozen food samplings turned curious shoppers into loyal fans.

Store closures risk:

  • Reversing mainstream visibility of Salvadoran food
  • Less representation of Latin American cuisine in national food trends
  • Fewer opportunities for Salvadoran entrepreneurs to go national

🛒 Are There Alternatives?

Yes—but none offer the scale and affordability Costco brings.

Other Options:

  • Walmart – limited selection of frozen pupusas (often lower quality)
  • Target – rare, regionally limited
  • Latin supermarkets – great for freshness but not national reach
  • Online food delivery (Goldbelly, Instacart) – expensive shipping

Unless Costco redirects supply to online platforms or other retail partners, availability gaps will widen.


🛠 What Can Be Done?

For Pupusa Brands:

  • Diversify distribution beyond Costco
  • Expand into ethnic sections of mainstream groceries
  • Create direct-to-consumer frozen shipping programs

For Consumers:

  • Support local pupuserías
  • Ask neighborhood stores to stock frozen Salvadoran brands
  • Buy from Salvadoran online stores or diaspora entrepreneurs

For Cultural Advocates:

  • Use this moment to raise awareness about Salvadoran food
  • Share recipes, host events, and support visibility campaigns
  • Pressure Costco to keep Latino food brands prioritized in surviving stores

🌎 Long-Term Opportunity?

While the closures hurt, they also push the community to:

  • Build independent pupusa supply chains
  • Digitally distribute frozen foods
  • Launch cloud kitchen models for regional delivery

Platforms like Pupusas.com can play a role in bridging the supply gap by offering global access to Salvadoran cuisine.

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