Costco Just Dropped The Best News About Its Hot Dog And Soda Combo
While some people will argue that inflation is a natural part of the economy, it's hard to argue against Costco's famous hot dog combo. Despite the ebbs and flows of America's economic strength, the wholesale retailer's combo has remained unchanged since the 1980s, being offered for the reliable price of $1.50 for almost 40 years. Though one thing that is routine is the periodic rumor mill that the combo meal price may just go up in cost.
In 2018, 425Business reported a conversation between Costco's co-founder Jim Sinegal and CEO Craig Jelinek, in which Jelinek stated, "Jim, we can't sell this hot dog for a buck fifty. We are losing our rear ends." To which the president's response was, "If you raise the effing hot dog, I will kill you. Figure it out." The CEO obviously figured it out because the iconic meal is still selling at $1.50 several years after that particular conversation. Now, with inflation at its highest rate in decades, it seems more likely than ever that $1.50 for a hot dog is just not possible.
Other items may rise but hot dogs will stay
It was announced last July that at least two of Costco's food court items would see a price increase due to inflation: the chicken bake would increase by $1 and a 20 ounce soda would spike 10 cents (per Food and Wine). On Thursday, September 22, good news arrived on the fate of the chain's hot dog combo. The item will remain $1.50. Market Watch reported that Chief Financial Officer, Richard Galanti, suggested that because some industry margins under the Costco banner are doing well, it helps "hold the price on the hot dog and the soda a little longer — forever" (per Market Watch).
Not only is the hot dog cheap to produce — especially since Costco switched to making their own Kirkland's Signature hot dogs — but it serves as both marketing for the company and an incentive to shop there (via CNN). The prospect of a little refreshment after a stressful shopping experience might be just the thing that draws in the crowds. Of course, crowds in general mean profit, so it's a win-win for both company and customer. And as long as Costco co-founder Jim Sinegal is around, the hot dog combo's price will stay just the way it is.