For more than 40 years, the iconic Costco $1.50 hot dog combo has been one of the most talked about food items across any restaurant or food court. The offering from Costco Wholesale Corp (NASDAQ:COST) has fought off inflation and changing times to keep the price point the same.
Here's what Costco is changing about the hot dog combo.
Costco Makes Hot Dog Combo Change
Costco's famous hot dog combo consists of a half-pound all-beef hot dog on a bun alongside a 20 oz. refillable fountain soda.
This combo has been around since 1984 and remains a staple in the company's food courts today, drawing in customers for lunch, dinner or while they are shopping.
After decades of minimal changes to the combo, Costco is making a rather big change. Customers can now substitute the 20 oz. refillable fountain soda with a 16.9 oz. bottle of Kirkland Signature Water, according to the USA Today.
The price remains the same for consumers who prefer water over soda.
Costco previously offered its food court open to non-members, but that practice has since changed.
Earlier this year, Costco CEO Ron Vachris ate a Costco $1.50 hot dog combo in a video, sharing his thoughts on the "amazing value" of the staple. Vachris also confirmed that the $1.50 price will not change "as long as I'm around."
The $1.50 Hot Dog Combo History
Despite rising inflation over the years, Costco has kept the cost of its famous combo meal the same. The cost will likely stay the same for the foreseeable future or until a legendary Costco figure passes on.
A famous story that circulated over the years is the fact former Costco CEO Craig Jelinek asked Costco founder Jim Sinegal about raising prices on the combo.
“I came to (Jim Sinegal) once and I said, ‘Jim, we can’t sell this hot dog for a buck fifty. We are losing our rear ends.’ And he said, ‘If you raise the effing hot dog, I will kill you. Figure it out,'” Jelinek said, as reported by 425business.
Sinegal discussed the mindset of knowing Costco was famous for the combo and the particular price.
Costco built its own hot dog manufacturing plant and created the Kirkland Signature hot dogs to help with cost controls.
“By having the discipline to say, ‘You are not going to be able to raise your price, you have to figure it out,’ we took it over and started manufacturing our hot dogs,” Sinegal said.
The $1.50 hot dog and soda combo, which was launched at Costco in 1985, is one of many items the retailer has become known for, alongside its rotisserie chickens and lower price of gas at Costco gas stations.
While Costco may lose money on items like the hot dog combo, it makes up for it by getting shoppers in the store to buy other items and getting them to buy and renew their membership each year.
Benzinga previously reported on a fake story that circulated on social media in May 2022 of Costco raising the price of the combo by $1. The news shared by a parody account upset many Costco fans and was even used by the Republican House of Representatives on X (formerly Twitter) to attack President Joe Biden and inflation.
While Costco raises the cost of its membership fee every five to six years, the price of the hot dog combo is likely to remain the same for years to come.
Photo: dennizn / Shutterstock
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