While some restaurants and fast-food establishments are struggling to attract new customers, Costo remains true to its business strategy and does not plan to increase prices for its famous hot dogs. that cost $1.50 since they first appeared on the menu in the 1980s.
The Hotdog and lemonade combo for $1.50 has become a trademark of the fast food chain’s restaurant offerings. It all began in 1984, when Hebrew national team – the original supplier of Costo hot dogs – sold hot dogs at a Costco store in San Diego, California.
Sales were strong enough for the The strategy will also be implemented in other branches – high until 2008, when The company decided to operate its own hot dog factories to reduce supply chain costs. It was the Beginning of a new era: with a food court in every store. The Costco Food Court now offers pizza, cookies, ice cream sundaes and other products.
But have you ever thought about why the price of his legendary hot dogs has not increased over the years?
That’s why Costco is not increasing the price of its hot dogs
Given the current inflation A hot dog and lemonade combination costs about $4.40However, the company keeps the price of its distinctive brand unchanged for one simple reason: to be loyal to its customers to maintain the consumer culture they have built with hard work over the years.
To keep hot dog prices stablethe company has had to take other measures, such as raising the prices of other fast-food classics, although they remain relatively low compared to those of other establishments. According to Gary Millerchip, the company’s chief financial officer, revenue from other Costco businesses helps keep prices low in the food court.
“It’s a good PR move by Costco not to change this price,” explains Jamie Loftus, author of Raw Dog: The Naked Truth About Hot Dogs. “That’s like saying, ‘No, we’re not going to change the price. We support you.'”
In the 2023 financial year alone The company generated nearly $200 million in sales from hot dog and soda combinations.
