Costco is well known for their really low prices on bulk items. But, one of the best
and most popular deals in the warehouse club doesn't come in sizes too big to fit in some
apartments. We are talking, of course, about Costco's famous $1.50 hot dog and soda combo
deal in their popular food court.
Since 1984, the price of a hot dog and soda has surprisingly remained the same while increasing
in size, from a quarter-pound hot dog to one that's 10% bigger, and from a 12-oz can to
a 20-oz fountain soda with free refills.
This isn't exactly news to most Costco shoppers and fans, however, particularly those that
have had their membership for years and have taken advantage of this deal on a regular
basis, whether or not they ever thought about the reason behind it. One TikToker has a theory,
though, shared in a recent video.
"This is the hidden reason why Costco will never charge more than $1.50 for a hot dog
and a soda."
The TikTok video from user @sparkpass goes on to list out several fairly well-known facts
relating to Costco's hot dog and soda combo price backstory, such as the co-founder's
harsh words threatening to kill the CEO if he ever raised the price of the hot dog, or
how, to keep prices down, they either switched suppliers or took on the production themselves.
Amazingly, Costco sells more hot dogs in a year than every single Major League Baseball
stadium combined! MLB fans consume an average of 20 million hot dogs a season, compared
to more than 100 million hot dogs sold by Costco in a year. But if you think about it,
a family of four can get dinner for just $6 — and there's plenty of Costco locations
around the country open year-round and not just for a season, so it's not that hard to
believe. But, that's despite Costco making little to no money on the combo, according
to CNN. So, why do they do it?
According to @sparkpass's theory, they do it, quote "so customers remember the low prices
as they walk out with their cheap meal," which makes it more likely that they will return
to Costco. Not a bad theory as to why Costco hot dogs are so cheap – it's a little subliminal
messaging to keep customers coming back.
However, despite the 2,000-plus comments that the TikTok video has since attracted, very
few had their minds blown by the original poster's suggested theory. Some of the commenters
simply regurgitated the point that the cheap prices overall attract customers to Costco,
while a few expressed the sentiment that they just really like the hot dog. One person wrote,
"Not only is it $1.50, but they are a footlong too. Worth every cent."
Another admitted,
"Ngl ... ALWAYS grab a dog and drink on the way out."
Evidently, the low cost has embedded itself in the minds of many and keeps them coming
back for more. However, a large number of people commenting on the post also focused
on Costco's other food court bargain — the pizza. Not just for its low price but also
its quality. One person declared,
"Costco has better pizza than half of New York, and I'll fight for that statement."
Insider notes that with 482 locations selling pizza, Costco is effectively the 14th largest
pizza chain in the country. Moreover, the $1.99 slice creates an incentive similar to
that of the hot dog and soda combo. In fact, we could also rope in the extent to which
Costco has tried to keep their rotisserie chickens at just $4.99, which, as CNN reported,
even includes changing the supply chain of the poultry industry.
So, in general, there's many ways in which Costco has attracted a huge fan base with
quality food at a cheap price, leaving the question about how important the hot dog and
soda theory posted on TikTok really is, and if it's really a "hidden reason" at all. In
fact, Costco's whole operation rests on the fact that it can sell its products for cheap.
It's literally on every item's price tag.
Check out one of our newest videos right here! Plus, even more Mashed videos about CostCo
are coming soon. Subscribe to our YouTube channel and hit the bell so you don't miss
a single one.