Costco Hot Dogs Will Always Cost $1.50—Here's Why
Every Costco shopper knows the big box store offers a lot more than killer deals on home products and bulk goods. Between its prepared foods (we're looking at you, $5 rotisserie chicken!) and wallet-friendly food court options, the beloved retailer has become a veritable culinary mecca for the budget conscious.
Take the hot dog and soda combo, for example. Just $1.50 has gotten Costco shoppers a jumbo all-beef hot dog and a 20 oz. soda (plus refills!) since the 1980s. A lot has changed in the 30 years since the combo was introduced, but the price has never once varied.
Each year Costco reportedly sells more than four times the number of hot dogs sold at all Major League Baseball stadiums combined. According to a 2012 documentary, the chain sells in excess of 300 million hot dogs, pizza slices, and other ready-to-eat foods annually. Seems like a wasted opportunity, right? On the contrary! Even though Costco could have easily raised the price a number of times—and raked in millions in the process—in the end, it pays to keep costs down.
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The hot dog combo and other affordable food court items are a proven incentive for shoppers, and according to Money, exponentially increase foot traffic in stores. Cheap, easy-to-eat foods keep shoppers popping in, sometimes daily. And we all know it's impossible to leave without spending more than $1.50. It's the old come for the hot dog and leave with a television principle!
So, as long as people keep eating them up, don't expect the price to change any time soon.