Costco's new CFO finds $1.50 hot dog price 'safe'

US News

by Patrick Reilly

Costco shoppers will be happy with this news.

The wholesale retailer's popular $1.50 hot dog combo will continue to be sold at that rock-bottom price, at least for now, Costco's new chief financial officer confirmed Thursday.

“We want to make sure that $1.50 hot dog price is safe,” Chief Financial Officer Gary Millerchip said, according to CNN's Nathaniel Myerson.

Hot dogs have long been a customer staple at Costco, and the price of the $1.50 hot dog and soda combo has remained unchanged since 1985 thanks to a pledge made by the grocer's founder.

In a 2018 interview, then-CEO Craig Jelinek recalled a conversation where now-retired CEO Jim Sinegal threatened to kill him if he changed the price of a hot dog combo.

“'If you raise a f**king hot dog, I'll kill you. Work it out,'” Sinegal told him.

When former Chief Financial Officer Richard Galanti stepped down in March after decades at the helm, rumors circulated that the price of the hot dog combo might finally be catching up with the times.

However, Miller Chip's comments suggest that pricing will remain unchanged for the time being.

Costco also began trying in April to crack down on non-members who eat in its food courts and take advantage of the retailer's discounted prices.

Costco, which operates 871 warehouse stores across the United States and Puerto Rico, makes more than $4 billion a year in fees associated with its membership cards. Official policy allows cardholders to bring up to two guests per visit.