Costco isn't what you'd call a specialty store. The wholesale-priced items at the members-only retail giant run the gamut, from mounds of mushroom soup and rotisserie chicken to best sellers and musical instruments.
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00:00Costco isn't what you'd call a specialty store. The wholesale-priced items at the
00:05members-only retail giant run the gamut, from mounds of mushroom soup and rotisserie chicken
00:11to bestsellers and musical instruments. You can enter this world of pure consumerism with
00:16a membership or by walking in with a friend who has a card. Once there,
00:20many cannot fully enjoy their shopping spree without a visit to the food court.
00:25Of all the store's departments, this is where Costco sells more of one particular item than
00:30any other. A Kirkland Signature All Beef Hot Dog is a tasty shopping tradition for many
00:36meat-munching Costco members. It's such a classic, in fact, that the retailer sells
00:41more hot dogs than any other grocery retailer. The chain served 151 million dogs a year as of 2020,
00:49accounting for $226 million of its annual profit. Most fans would agree that Costco
00:56sells all these Kirkland dogs because they taste good, but like many Costco items,
01:00the main draw is also the price. Even amidst global food inflation, Costco has kept its
01:06hot dog combo meal, which comes with a bottomless 20-ounce soda, at a cool $1.50.
01:13Wow, well, thank you for the hot dog.
01:15Oh, Martha, it was $1.50. Thank you for spending time with me.
01:20In September 2022, Costco Chief Financial Officer Richard Galanti told the Wall Street Journal that
01:26the beloved combo meal is, quote,
01:28"...sacrosanct."
01:29As such, the chain would try to keep this combo at the same price it's had since 1985.
01:35Longtime fans of Costco's hot dog combo meal might remember when the chain used Hebrew
01:40national franks before it was switched to Costco's Kirkland Signature house brand.
01:45The switch allowed Costco to keep its hot dogs cheap by sourcing them from its own plant.
01:50This move pleased its loyal customers and appeased its ferocious founder.
01:54It happened when Costco CEO W. Craig Jelinek suggested raising the price of the hot dog
02:00deal to meet rising costs. According to Food & Wine, Costco founder Jim Sinegal issued Jelinek
02:06a harsh reply, saying,
02:08"...if you raise the effing hot dog, I will kill you. Figure it out."
02:12Yikes. As Food & Wine aptly commented,
02:15"...when given the choice between your life or processed meat,
02:18you're best to choose your life every single time."
02:22Luckily for everyone, and especially for Jelinek,
02:25the Kirkland brand dogs are still as popular as ever.
02:28Loyal patrons of Costco's frank and soda deal might find it hard to believe that some shoppers
02:33prefer to chow down on other items than the retailer's food court. Costco also offers a
02:38hot turkey and provolone sandwich, a chicken caesar salad, a Hot Pocket-like chicken bake,
02:43a barbecue brisket sandwich, and, of course, either pizza slices or a whole pie.
02:50What? I ordered no pizza! Did you, Lieutenant?
02:54No, sir.
02:55You can also order sweet treats, including frozen yogurt, a very berry sundae, and churros. Those
03:01who veer away from the Costco hot dog lifestyle, however, will be paying a different price.
03:06Costco's name is short for Cost Company. As much as the chain prides itself in staying
03:12conscious of affordable prices, the high cost of food production and distribution
03:17has swept the globe for well over a year, and Costco is not immune. While data shows
03:21that food inflation rates may have finally reached their peak, not every ingredient is
03:26in the clear. Fluctuating costs affected the prices of both chicken and eggs, which is likely
03:31due to the massive avian flu outbreak that has wiped out droves of egg-laying birds.
03:36Chicken prices were still high earlier this summer. Costco raised the price of its chicken
03:41bake from $2.99 to $3.99. But it's not just chicken that's been impacted by fluctuating costs.
03:49A 20-ounce soda was bumped up from $0.10 to $0.69.
03:54Despite rising costs for other items, there have been no further reports of threats from
03:59passionate co-founders. Life and groceries continue to roll along as usual at Costco,
04:05a place where roast chickens fly off the shelves and hot dogs are still a pretty good little meal
04:10deal.