Costco Exec Says the Price of This Fan Favorite Will Never Go Up

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KEY POINTS

  • Like many retailers, Costco has raised the price of some of its items this year.
  • But one popular item won't be increasing in cost.
  • The popular $1.50 hot dog and soda combo is here to stay.


Talk about good news for Costco enthusiasts.

Many consumers have struggled this year with rampant inflation, and have been forced to rack up sky-high credit card tabs to buy groceries and cover basic expenses, like apparel and school supplies. It's at trying times like these that a Costco membership can really come in handy.

Costco hasn't exactly been immune to inflation. Pop over to your local warehouse club store, and you'll probably notice that a host of items are more expensive now than they were a year ago.

But thankfully, there's one Costco fan favorite whose price has not increased this year. And its price may never, in fact, go up at all.

You can still snag a cheap lunch at Costco

Many people flock to Costco to score great deals on bulk grocery items and household essentials. And if you've visited the food court during a trip to Costco, you're not alone.

Now the cost of some food court items has increased this year. The chicken bake, for example, is more expensive than it was a year ago. But Costco's famous hot dog and soda combo is still available at the very appealing price point of $1.50. And there's a good chance it will stay that way forever.

Recently, Costco released its earnings report for its fourth fiscal quarter, and during that call, CFO Richard Galanti suggested that the retail giant will be sticking with its $1.50 price point for the long haul. Given that the hot dog and soda combo has been priced at $1.50 since 1985, that statement is more than believable.

How can Costco afford to offer up such a cheap lunch at a time when inflation is soaring? It's simple. Costco is able to profit nicely from other parts of its business, including the membership fees it charges. And so it's able to keep passing certain types of savings onto consumers, like the $1.50 hot dog and soda deal.

Let's also keep in mind that the hot dog and soda lunch isn't exactly expensive to produce. So even at $1.50 a pop, Costco may still be profiting nicely.

Inflation has hit Costco

Although Costco's recent earnings beat expectations, the retailer did acknowledge the impact inflation has had. As such, consumers shouldn't be shocked to see other costs, like membership fees, go up in time.

But those in search of an inexpensive lunch can rest assured that Costco has no plans to hike up the price of its famous combo anytime soon. In fact, keeping that $1.50 price point in place could work to Costco's advantage through the years as a marketing gimmick. And for that reason alone, the price is likely to hold steady.

Of course, whether you choose to indulge in the $1.50 hot dog and soda combo is a different story. As is the case with most of Costco's food court items, the hot dog and soda pairing isn't exactly the healthiest lunch. But what you lose via a lack of nutrients, you gain in the form of not having to fork over half of the cash in your wallet to keep yourself fed.

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