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Costco’s Legendary $1.50 Hot Dog and Soda Deal: Here to Stay, Says CFO

Credit: Houston Chronicle

Costco’s food court is a haven for budget-friendly, satisfying eats, and at the heart of its menu lies an unbeatable classic: the $1.50 hot dog and soda combo. This deal has not only fed hungry shoppers for roughly four decades but has also become something of a cultural icon among Costco loyalists. As the company prepares for a significant change in its executive team, outgoing CFO Richard Galanti has reassured fans that this beloved combo isn’t going anywhere anytime soon.

In a recent discussion with Bloomberg, Galanti, who’s wrapping up his impressive tenure at Costco, shared insights into the future of the $1.50 combo. “It is probably safe for a while,” he remarked, suggesting that under the stewardship of Gary Millerchip, his successor and former Kroger CFO, the cherished deal will continue to grace Costco’s food courts across the nation.

This promise echoes Costco’s long-standing commitment to value, a principle etched into the company’s ethos by its founders. Despite the ebb and flow of economic trends and inflationary pressures, Costco has steadfastly maintained the price of the hot dog and soda combo, much to the delight of its members. In 2022, amidst a landscape of soaring inflation rates, Galanti underscored the company’s dedication to keeping prices low, leveraging profits from its gas and travel businesses to subsidize food court favorites like the iconic combo.

While some aspects of Costco’s food court menu have evolved over time, these changes reflect the company’s efforts to diversify its offerings and cater to varying tastes. Recently, Costco bid farewell to its churro, introducing a new dessert option: a chocolate chip cookie priced at $2.49. This addition complements the menu’s latest savory offering, a $6.99 turkey sandwich, showcasing Costco’s commitment to refreshing its food court lineup while keeping prices accessible.

Costco’s strategy of maintaining an appealing and affordable food court selection goes beyond merely feeding its members—it’s a crucial part of the company’s broader business model. The food courts, alongside other ancillary operations like gas stations, play a vital role in drawing shoppers into warehouses more frequently, fostering a unique shopping experience that combines practicality with pleasure.

As Costco members continue to enjoy their hot dog and soda combos, they do so with the assurance that this cherished deal, emblematic of Costco’s dedication to value and quality, remains an unwavering fixture of the Costco experience. The $1.50 combo stands as a testament to the company’s commitment to its members, ensuring that no matter how the economic landscape shifts, the joy of grabbing this unbeatable deal at the end of a shopping trip remains a constant, comforting presence.