Costco’s upcoming location in California won’t have its famous $1.50 hot dog, rotisserie chicken, or even a warehouse to browse ‒ just a few dozen gas pumps.
The membership-only retailer is planning to open its first standalone gas station in the spring of 2026 in Mission Viejo, California. The coastal city, located outside of Los Angeles in neighboring Orange County, had its Planning and Transportation Commission in March approve plans for the 40-pump station, Costco’s largest to date. Construction is expected to begin this fall.
The new site comes as Costco works to expand its gas station offerings to members, who pay $65 to $130 per year to shop at the warehouse giant. While gasoline has a lower margin than other products, Costco believes it enhances traffic to its stores.
Cheaper gas – on top of the 5% rewards that Costco gives credit cardholders – is one of the top membership draws for Costco. Standalone stations could help alleviate traffic at existing warehouses, which often face snarled parking lots and long lines at the pump.
“Costco gas is wildly popular with members because of the cheaper prices,” said Neil Saunders, a retail analyst at the research and analytics firm GlobalData. “If successful, there are other locations where this could be implemented.”