Shoppers don’t flock to Costco only for the deals on grocery and household items, but also for the infamous food court Hot Dog Combo. The dog-and-drink combination is so popular and unmatched that it’s become a symbol of the brand itself, representing quality and bang-for-your-buck value. Here’s everything you need to know about the legendary Costco hot dog.
It Debuted in 1984
Costco first opened its doors in 1983, and the hot dog made its debut about a year later. While the exact location is hard to pin down (some sources say Portland, some say San Diego), we do know that hot dogs were first sold at Costco from a food cart out front. Some locations still have an outdoor cafe, which seems like a little nod to its humble beginnings.
The Price Has Never Changed
The most incredible thing about the Costco hot dog is that the price has never changed since 1985. It’s still just $1.50, despite a recession, whatever Wall Street does, a global pandemic, and crazy inflation. That’s why it’s such an iconic symbol of the retail chain: It’s the one reliable constant after all these decades.
They’re Made by Costco
Costco doesn’t buy its quarter-pound hot dogs; they manufactures them in their own processing plants. They started doing that in 2009 to keep costs low and keep the price at $1.50. Now, the all-beef wieners are made with USDA Choice or better beef with no fillers, binders, phosphates, corn syrup, artificial colors, or artificial flavors, and are gluten-free.
… But They Weren’t Always
Before 2009, Costco sourced hot dogs from two Kosher suppliers, including Hebrew National (even the original food cart was branded Hebrew National). When the chain decided to switch to its own dogs, many customers were dubious, since it was a well-known and popular brand. Clearly, once those people tasted the new hot dogs, they were hooked along with everyone else.
They Used to Be Smaller
One thing that changed after switching from Hebrew National was the size of the hot dog. While you’d assume that they got smaller — shrinkflation, of course — they actually got a little bigger when Costco started manufacturing them. They’re now 10% heavier and longer than their predecessors. (The soda in the combo has also grown over the years. It used to be a 12-ounce can, but it’s now 20 ounces.)
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The Buns Aren’t the Same Everywhere
While the hot dogs are all the same across the U.S., the buns are not. They’re still sourced from suppliers, and there are at least a few, because you’ll see some areas have buns that are scored, have sesame seeds, or are without any adornment.
The Price Would Be Triple if It Kept Up With Inflation
If Costco raised its Hot Dog Combo price to keep up with inflation (you know, like most companies do), it would be $4.62 right now, according to CNN. While we much prefer the $1.50 price tag, less than $5 for a giant hot dog and a soda with free refills doesn’t seem too bad either.
It’s Better Than Sam’s Club’s Hot Dog
Our own taste test comparing Costco and Sam’s Club’s cafes revealed that the Costco hot dog just plain tastes better than their rival’s. The only thing Sam’s Club does better than Costco when it comes to hot dogs is the price: $1.38 vs. $1.50. But we’re not really complaining.
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It’s a Loss Leader
The intentionally ridiculously low price of the hot dog is a strategic decision by Costco. Like its rotisserie chickens, Costco doesn’t make money on the hot dog itself, but it creates customer loyalty and gets people in the door, where they tend to take out their wallets and buy tons of bulk snacks or pre-made meals for dinner. Lots of people joke about how you can’t get out of Costco without spending $200, and if you happen to grab a $1.50 hot dog on the way out, the company is pleased as punch.
You Can Ask For Toppings
Ketchup, mustard, and relish are standard hot dog toppings that are usually available at all locations. But there also used to be a self-serve dispenser next to them for chopped onions. During the pandemic, the chain removed the onion dispensers and stopped offering onions altogether. But onion lovers take note: All you have to do is ask at the food court counter, because onions are back in individual containers. Some locations also have sauerkraut, but it’s rarer.
They’re Different Around the World
Costcos around the world have food courts, too, including Hot Dog Combos, but they’re not the same everywhere. The price varies slightly, but they’re usually around $1.50, give or take 50 cents. The hot dogs themselves are often pork products in other countries, instead of 100% beef like in the U.S., and can come with different toppings, like jalapeños in Mexico.
Julia Child Loved Them
Television cooking darling and French food expert Julia Child loved the Costco hot dog so much that she ate one every time she went shopping there. She loved them “as much as a fine French meal,” according to the New York Times. It was one of the many unpretentious qualities of Child that made her so relatable and endearing to the American public.
It Outsells the Entire MLB
If there’s anything more American than Costco that’s also associated with hot dogs, it’s baseball. Fans catching their local Major League Baseball team’s games gobble up hot dogs while at the stadium (but they’re a lot more expensive than $1.50, that’s for sure). Yet despite the fact that MLB fans eat up 22 million hot dogs combined at all the major league stadiums each season, Costco outsells them all — by a lot. In its 2023 fiscal year, Costco sold almost 200 million Hot Dog Combos, almost 10 times more than the MLB.
It’s the Most Popular Menu Item
Costco’s freshly baked pizza is no slouch, but people just can’t get enough of the hot dog. It’s the most popular item on the food court menu, and it’s hard to imagine the chain selling 200 million of anything else at the cafe, including pizzas.
The Price Isn’t Going Up Anytime Soon
When confronted about the Hot Dog Combo’s price, Costco’s co-founder Jim Sinegal famously told the company’s former CEO, “If you raise the effing hot dog, I will kill you.”
With Sinegal’s retirement and recent changes in Costco’s upper management, many customers were worried that the price would finally go up. But Gary Millerchip, the company’s new CFO and executive vice president, said earlier this year that the “$1.50 hot dog price is safe.” Phew, at least that’s one less thing we have to worry about.
More Costco Stories From Cheapism
- Costco’s Food Court Menu, Ranked Best to Worst — We know all about the hot dog combo, now what about the rest of the food court menu?
- How Costco Avoids Passing Tariffs on to Shoppers — Find out how the warehouse giant is shielding its shoppers from the effects of the tariffs.
- The Worst Costco Locations in America According to Annoyed Customers — Hey, we can’t all be perfect. Find out which warehouses have a lousy reputation.
