Costco's $1.50 hot dogs are sticking around

As inflation continues to climb, there has been understandable concern regarding a potential price increase for the hot dog combo. If it were to keep pace with inflation, it would now cost approximately $4.50, a figure that would likely shock many Costco shoppers who are accustomed to paying just $1.50 for a meal—essentially the price of a pack of gum. Fortunately, Costco's leadership has firmly stated that the $1.50 deal will remain unchanged.
According to CNN, Gary Millerchip, who became Costco's CFO in March 2024, reassured investors during an earnings call, saying, "To address some recent media speculation, I want to confirm that the $1.50 hot dog price is secure." This "media speculation" may stem from a March 2024 Bloomberg interview with former long-time CFO Richard Galanti. When asked about the future of the $1.50 hot dog and soda combo after his departure, Galanti responded, "It's probably safe for a while," which left some room for doubt about whether the price would rise under the next CFO.
The hot dog represents more than just a meal; it embodies the core values of Costco: reliability, affordability, and generous portion sizes. It also functions as a loss leader—a product that doesn't generate profit but serves as a strategic marketing tool to draw in and retain customers. Clearly, this strategy is effective, as it even attracts culinary icons like Julia Child.
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