{"id":526620,"date":"2022-12-13T23:53:30","date_gmt":"2022-12-13T20:53:30","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/how-costco-keeps-1-50-hot-dog-and-soda-combo-despite-inflation\/"},"modified":"2022-12-13T23:53:30","modified_gmt":"2022-12-13T20:53:30","slug":"how-costco-keeps-1-50-hot-dog-and-soda-combo-despite-inflation","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/how-costco-keeps-1-50-hot-dog-and-soda-combo-despite-inflation\/","title":{"rendered":"#How Costco keeps $1.50 hot dog-and-soda combo despite inflation"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3ad732004d8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3ad732004d8\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/how-costco-keeps-1-50-hot-dog-and-soda-combo-despite-inflation\/#%E2%80%9CHow_Costco_keeps_150_hot_dog-and-soda_combo_despite_inflation%E2%80%9D\" >&#8220;How Costco keeps $1.50 hot dog-and-soda combo despite inflation&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CHow_Costco_keeps_150_hot_dog-and-soda_combo_despite_inflation%E2%80%9D\"><\/span>&#8220;How Costco keeps $1.50 hot dog-and-soda combo despite inflation&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n        <\/aside>\n<p>Longtime Costco CEO Craig Jelinek recently revealed how the big-box retailer has managed to maintain its $1.50 price point for a hot dog-and-soda combo despite an inflation surge over the last year.<\/p>\n<p>Jelinek, the top boss at Costco since 2012, said in-house production of hot dogs has helped the company keep costs lower. Costco has sold hot dogs at its stores since the 1980s \u2013 with the original hot dog cart evolving into a full-fledged food court.<\/p>\n<p>\u201cWe kind of evolved and came up with the food court, but we kept the $1.50 hot dog,\u201d <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.linkedin.com\/posts\/yahoo-finance_heres-how-costco-keeps-its-legendary-hot-activity-7007002950132748289-fSNO\/?utm_source=share&amp;utm_medium=member_desktop\">Jelinek told Yahoo Finance in a Dec. 5 interview<\/a> published last Friday. \u201cTo keep it $1.50, we actually produce our own hot dogs.\u201d<\/p>\n<p>\u201cDo we make a lot of margin off of it? No,\u201d Jelinek admitted. \u201cBut we make it ourselves.\u201d<\/p>\n<p>Costco\u2019s hot dog deal grew so popular that the company opened its own hot dog factory in Tracy, Calif., in 2011. The factory produces regular-sized hot dogs that are sold in packs at its stores, as well as a larger hot dog sold at its food courts.<\/p>\n<p>Aside from the plant in Tracy, Costco also makes hot dogs at a meat factory in Illinois. The two facilities make about 300 million hot dogs each year, Costco CFO Richard Galanti <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/the-1-50-costco-hot-dog-combo-that-defies-inflation-11657753870\">told the Wall Street Journal in July.<\/a><\/p>\n<p>Jelinek reiterated that Costco has no plans to raise the price of its famed combo.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/costco-71.jpg?w=1024\" alt=\"Costco\" class=\"wp-image-24997798\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/costco-71.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/costco-71.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/costco-71.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Costco began producing its own hot dogs more than a decade ago.<\/figcaption><figcaption><span class=\"credit\">AFP via Getty Images<\/span><\/figcaption><\/figure>\n<p>\u201cWe are very h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>y with our $1.50 hot dog and we have no plans to change it,\u201d he said.<\/p>\n<p>Food prices continued to hammer American shoppers in November, even as overall inflation cooled. The price of groceries rose 12% last month, according to the latest Consumer Price Index.<\/p>\n<p>The cost of hot dogs spiked 13.4% in November compared to the same month one year earlier.<\/p>\n<p>Costco executives have been adamant for months that the hot dog-and-soda combo won\u2019t see any price hikes in the days ahead.<\/p>\n<p>When asked about a potential increase during an earnings call in September, Galanti joked, \u201clightning just struck me.\u201d He added that higher-margin parts of Costco\u2019s business, such as gas and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">travel<\/a> sales, helped to offset the hit taken from the hot dog deal.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/craig-jelinek-77.jpg?w=1024\" alt=\"Costco CEO Craig Jelinek\" class=\"wp-image-24997806\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/craig-jelinek-77.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/craig-jelinek-77.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/craig-jelinek-77.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Costco CEO Craig Jelinek explained how the company is able to keep the low price.<\/figcaption><figcaption><span class=\"credit\">AP<\/span><\/figcaption><\/figure>\n<p>\u201cThose things help us be more aggressive in other areas, or as you mentioned, hold the price on the hot dog and the soda a little longer \u2013 forever,\u201d Galanti said.<\/p>\n<p>In 2018, Jelinek shared an anecdote regarding the time that he approached Costco co-founder Jim Sinegal about a potential price hike for the company\u2019s hot dogs.<\/p>\n<p>\u201cI said, \u2018Jim, we can\u2019t sell this hot dog for a buck fifty,\u2019\u201d <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.425business.com\/news\/costco-ceo-craig-jelinek-on-shareholders-costco-com-and-hot-dogs\/article_5ff4b632-1f75-5e98-b9ff-6e02d676668b.html\">Jelinek said<\/a>. \u201c\u2018We are losing our rear ends.\u2019 And he said, \u2018If you raise the effing hot dog, I will kill you. Figure it out.\u2019 That\u2019s all I really needed.\u201d\n                        <\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/12\/13\/how-costco-keeps-1-50-hot-dog-and-soda-combo-despite-inflation\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;How Costco keeps $1.50 hot dog-and-soda combo despite inflation&#8221; Longtime Costco CEO Craig Jelinek recently revealed how the big-box retailer has managed to maintain its $1.50 price point for a hot dog-and-soda combo despite an inflation surge over the last year. Jelinek, the top boss at Costco since 2012, said in-house production of hot dogs&#8230;<\/p>\n","protected":false},"author":1,"featured_media":526621,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/costco-73.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[137159,71906,5069,70978,72921,70551,70470],"class_list":["post-526620","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-12-13-22","tag-costco","tag-economy","tag-fast-food","tag-hot-dogs","tag-inflation","tag-retail"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/526620","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=526620"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/526620\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/526621"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=526620"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=526620"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=526620"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}