Rest assured, Costco and wiener fans — despite inflation having driven up the cost of groceries to their highest level in years, the budget retailer has no plans to raise the price of its fabled $1.50 hot dog combo special.
The wholesale club’s new chief financial officer, Gary Millerchip, underlined that point during a call with Wall Street analysts this week to discuss its third-quarter results.
“To clear up some recent media speculation, I also want to confirm the $1.50 hot dog price is safe,” Millerchip said, referring to Costco’s hot dog and soda deal.
Although that might seem like a minor aside for a global retail chain valued at $354 billion, Costco’s low-cost dog has become an emblem of the company’s commitment to delivering value. In short, it’s great marketing. Costco hasn’t hiked the price of its hot dog since 1985.
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Costco has even cracked down who uses its food court to ensure that only warehouse members can get discounted dogs. A basic Costco membership costs $60 annually, while the executive membership, which has perks like a 2% cash-back reward, runs $120 per year.
Costco has interest in emphasizing its affordable prices as inflation-weary consumers pull back on everything from fast food to takeout coffee. Target, Walmart, Walgreens and other retailers have also recently dropped their prices on a range of goods.
Of course, the Costco dog isn’t the only product out there whose price seems like it’s from yesteryear. Other popular items whose inflation-adjusted prices have remained relatively low, or even dropped, over the years include coffee, televisions and plane tickets.
