The cost of Costco’s hot dogs won’t increase. CEO Craig Jelinek offered a one-word response to the question of whether he would increase the price of the iconic food court dish during an appearance on CNBC’s “Squawk on the Street” on Monday: “No.”
Even while other retailers talked about shoppers being more cost-conscious and spending more on services than on products, Costco’s has managed to post robust sales. Additionally, it has prevented a recent issue that many retailers have faced: the need to pack away or price down surplus merchandise that has accumulated in warehouses and storefronts.
Some items from the food court at Costco’s now cost more. Its chicken bake increased in price earlier this month from $2.99 to $3.99, and the price of a 20-ounce Coke increased by 10 cents to 69 cents. That led to rumours that the company’s absurdly cheap price for hot dogs would also be about to increase. The hot dog and Coke combo has been offered for $1.50 for many years, and a Mental Floss piece from 2018 that was just resurfaced discussed it.
The story describes a period when Jelinek contacted Jim Sinegal, a co-founder of Costco’s and a former CEO. He informed him that the popular cuisine was costing the firm money. Instead than from the sale of goods, Costco’s makes the great bulk of its money via yearly fees. According to Corey Tarlowe, an analyst at Jefferies, it has typically increased it every 512 years, and the most recent increase was in June 2017. This puts it on pace for a hike shortly. The annual membership price usually rises by $10. A membership fee increase is “not on the table right now,” Jelinek said on Monday to CNBC.