Costco's iconic hot dog deal is still $1.50, despite record inflation rates raising prices everywhere else in the industry
Costcohas sold hot dogand soda combos for $1.50 since 1985.
- The retailer has publicly committed to maintaining the price of deal over the years.
Though inflation has reached its highest level since 1990 — killing other classic bargains buyers used to rely on, from dollar pizza slices to dollar stores — Costco's iconic hot dog deal has remained the same price since it first launched in 1985.
"We have no plans to take that hot dog above a buck fifty. End of story," Costco CEO Craig Jelinek told shareholders in January 2020.
The company has publicly committed to maintaining the combo over the years. Costco founder Jim Senegal once told CEO Craig Jelinek, "If you raise the [price of the] effing hot dog, I will kill you. Figure it out."
"It's the mindset that when you think of Costco, you think of the $1.50 hot dog," Jelinek told 425 Business, a local Seattle publication, in 2018.
The commitment to protecting the deal has paid off. During its 2019 fiscal year, Costco sold 151 million hot-dog combos for a total of nearly $226.5 million. The famously inexpensive snacks are part of what draws people to Costco, Jelinek said in April 2021, when the big box chain reopened its food courts during the pandemic.
The price has stayed stagnant even as
So far over the inflationary period of the last year, Costco has also been reluctant to raise the prices of other staples, including its famous $4.99 rotisserie chicken. Costco Chief Financial Officer Rich Galanti said in a May earnings call that there were no plans to charge higher prices on the chicken, despite "inflationary pressures" including "higher labor costs, higher freight costs, higher transportation demand, along with the container shortage and port delays."
Costco did not respond to Insider's request for comment.
Do you have a story to share about a
- Air India passengers stranded in Siberia for 2 days were abandoned by the crew, had to sleep on the floor, and were only given bread and rice, relative says
- Foreign investors have been dumping vast amounts of Chinese assets, and putting money there will only get riskier
- As a mom, I know punishments don't work. Parents should be trying to find a connection instead.
- Sensex, Nifty slip for second day; FMCG, IT stocks drag
- Air India puts together 'huge financing deal' for new fleet: CEO
- Marine species including whales and dolphins under significant threat from noise pollution
- ITR filing: Your guide to Form 26AS and why you should check for TDS discrepancies
- A complete itinerary for your 3 days in Mount Abu