Costco Founder Said He Would “Kill” The CEO If He Raised The Price Of Their Hot Dog

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Amid economic ups and downs across the nation, there is one place you can still count on to keep things simple and affordable: the illustrious Costco food court.

Jim Sinegal, one of Costcoโ€™s founders, made it clear: the $1.50 hot dog price wasn’t up for debate. He even had a direct chat with the CEO at the time, Craig Jelinek, warning him against any price hikes.

โ€œI came to Jim once and I said, โ€˜Jim, we canโ€™t sell this hot dog for a buck fifty. We are losing our rear ends,โ€™โ€ Jelinek shared. โ€œAnd he said, โ€˜If you raise the (price of the) effing hot dog, I will kill you. Figure it out.โ€™ Thatโ€™s all I really needed. By the way, if you raised it to $1.75, it would not be that big of a deal. People would still buy. But itโ€™s the mindset that when you think of Costco, you think of the $1.50 hot dog.โ€

So, despite everything else getting pricier, you can count on the Costco hot dog staying just as budget-friendly as ever.

 

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The price of Costco’s hot dog and soda combo has stayed at $1.50 since 1985.

There’s a sentimental attachment too: Costco’s other co-founder, Jeffrey Brotman, began his journey with a hot dog cart in Seattle. Before his passing, Jim Sinegal pledged to honor their shared history by keeping the hot dog price unchanged.

โ€œSome businesses that are doing well with margin…those things help us be more aggressive in other areas, or hold the price on the hot dog and the soda a little longer โ€” forever,โ€ Costcoโ€™s CFO Richard Galanti previously stated.

Costcoโ€™s CEO took a firm stance on the issue.

During a 2022 interview on CNBC’s “Squawk on the Street,” CEO Craig Jelinek gave a succinct response when questioned about raising the price of the signature food court item: “No.”

People clearly love Costco’s hot dog combo, going as far as making it the theme of their birthday parties and even adopting a week-long diet centered solely around this meal.

Here’s to hoping the $1.50 hot dog will continue to stick around for a long time. Or, in the words of CFO Richard Galanti, forever!

 

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