Why Costco Stopped Selling Half‑Sheet Cakes - The Real Reasons

When you walk into Costco the world’s largest wholesale retailer, famous for bulk groceries and a membership model, the bakery section is one of the first things that catches the eye. For years, shoppers could grab a ready‑made half sheet cake a 9‑by‑13‑inch birthday or celebration cake sold pre‑decorated and ready to eat for a bargain price. But in late 2024 Costco quietly pulled the product from shelves, leaving many to wonder what went wrong.

What Exactly Is a Half Sheet Cake?

A half sheet cake measures roughly 9" × 13" and serves 12‑20 people, depending on how it’s sliced. It’s the sweet spot between a small round cake (ideal for intimate gatherings) and a full sheet cake (perfect for large parties). Costco’s version was known for a dense, buttery crumb and a simple frosting that could be customized with candles or a quick “Happy Birthday” topping.

Costco’s Bakery Journey: A Brief Timeline

1. 2005‑2015: Costco introduced its bakery line, starting with whole‑sheet cakes and later adding the half‑sheet size due to strong demand from families celebrating birthdays.
2. 2016‑2019: The half‑sheet cake became a bestseller, often featured in the monthly "Cake of the Month" promotion.
3. 2020‑2021: The COVID‑19 pandemic disrupted supply chains, forcing Costco to prioritize staple foods over bakery items.
4. 2022‑2023: Rising ingredient costs and stricter Food safety regulations prompted a review of low‑margin products.
5. Late 2024: Costco officially stopped selling the half‑sheet cake across all U.S. and Canadian locations.

Why Did Costco Pull the Plug?

Multiple factors converged, making the half‑sheet cake a less attractive offering for Costco’s business model.

• Profit margin pressure: Supply chain disruptions drove up the cost of flour, sugar, and eggs. Since Costco sells the cake at a flat $12‑$15 price point, the margin narrowed dramatically.
• Waste and shelf life: Half‑sheet cakes have a short window of freshness-usually three days. Unsold inventory often ended up as waste, which clashes with Costco’s recent sustainability goals.
• Space constraints: The bakery case has limited real‑estate. Replacing the half‑sheet with higher‑volume items like whole‑sheet cakes or pre‑packaged desserts frees up valuable shelf space.
• Regulatory compliance: New Food safety regulations require more rigorous temperature controls for ready‑made cakes. Upgrading equipment for a low‑margin SKU wasn’t financially sensible.
• Changing consumer habits: Post‑pandemic shoppers are ordering custom cakes online or opting for healthier “protein‑packed” desserts. The simple half‑sheet cake no longer matches the trend toward personalization.

Put together, these pressures made the half‑sheet cake a liability rather than an asset.

What Replaced the Half‑Sheet Cake?

Costco didn’t abandon the cake aisle entirely. Instead, they doubled down on a few other products:

• Whole sheet cake - a larger 18" × 24" version that serves 40‑50 people, now sold at a slightly higher price but with a better margin.
• Pre‑decorated mini cupcakes and bite‑size desserts, which have a longer shelf life.
• “Custom cake orders” - an online service where members can upload designs, and Costco’s bakery partners fulfill them for a premium price.
• Seasonal specialty desserts (pumpkin spice cake in the fall, peppermint bark in the winter), leveraging Seasonal demand to drive sales.

How to Still Get a Half‑Sheet‑Size Celebration Cake

If you’re set on that classic 9" × 13" size, you have a few work‑arounds:

1. Buy a whole sheet and cut it down: A full sheet cake can be sliced into half‑sheet portions, saving you a trip to the bakery.
2. Order a custom half‑sheet: Use Costco’s online Custom cake orders portal. You’ll pay a small design fee, but the cake will be made to your exact specifications.
3. Support local bakeries: Many neighborhood bakeries now offer a “Costco‑size” half sheet for a comparable price, often with more flavor options.
4. Freeze and serve later: If you manage to snag a whole sheet, wrap a half in plastic wrap and freeze. Thaw it 24 hours before the party for a fresh‑tasting slice.

Tips for Storing and Serving Costco Bakery Goods

Even though the half‑sheet cake is gone, Costco’s other baked treats can still be a hit if you handle them right:

• Keep it cold: Store cakes in the refrigerator as soon as you bring them home. This extends freshness by up to five days.
• Cover it: Use a loose foil tent to prevent the frosting from drying out.
• Bring it to room temperature before serving: Let the cake sit out for 30 minutes to bring out the full flavor.
• Reuse leftovers: Turn cake crumbs into frosting‑filled cupcakes or cake‑parfait layers.

Frequently Asked Questions

Bottom Line

The disappearance of the Costco half sheet cake isn’t a random decision; it’s a blend of rising ingredient costs, tighter food‑safety rules, waste concerns, and shifting shopper preferences. While the iconic cake is gone, Costco still offers a robust bakery lineup, and clever shoppers can still enjoy half‑sheet‑size celebrations through whole‑sheet splits, custom orders, or local bakeries.

Quick Comparison of Costco Cake Options