Well, well, well, it looks like Costco’s famous Hot Dog & Drink combo might be here to stay at $1.50 USD forever.
During a recent earnings call, when asked about raising the price of this iconic meal deal, Costco’s CFO, Richard Galanti, responded with a hint of humor, saying, “lightning just struck me.” He went on to explain that the combo’s price would remain the same, thanks to other parts of Costco’s business doing well and helping them be “more aggressive” in keeping that hot dog and soda price steady—maybe even “forever.”
In a world of rising prices, this combo has stood strong for over 35 years, selling a whopping 100 million hot dogs each year. And get this, they actually lose money on each hot dog sold! But Costco’s cost-plus business model is the secret sauce here. It’s all about fair markups and paying the bills, not just following what the market can bear.
So, if you’re a die-hard fan of the $1.50 Hot Dog & Drink combo, it looks like you can rest easy. Lightning won’t strike your wallet at the Costco food court anytime soon!
Stay thrifty and enjoy those hot dogs!
