Costco Keeps Hot Dog Bargain, but Membership Fee Could Rise

The rumors are false and the bargain remains. Costco’s $1.50 hot dog, a food court steal that comes with a 20-ounce soda, is staying the same price, just as it has since 1985, according to multiple reports.

While inflation has jacked the price of just about everything, Costco Senior Vice President Bob Nelson said during the company’s third-quarter earnings call that the warehouse club’s hot dog and soda combo at $1.50 would stand. He also said that Costco’s $4.99 price for rotisserie chicken would also remain. 

See also: From Membership Fees to $1.50 Hot Dog Combo, Costco Holds Firm on Low Prices

While both steals are loss leaders at the discount warehouse chain, the deals are popular with members who rarely stop in for just a hot dog or a chicken. 

Nelson said there was false information “floating around on social media and a few other media outlets” that said Costco upped the hot dog combo price. 

“Let me just say the price, when we introduced the hot dog-soda combo in the mid-’80s, was $1.50. The price today is $1.50, and we have no plans to increase the price at this time,” he said.

Read more: Inflation Concerns Drive Down Consumer Confidence Index

The warehouse club said an increase in the annual price of a Costco membership is not ruled out and it’s something that happens about every five to six years. The last membership price hike was in June 2017.

“… given the current macro environment, the historically high inflation, and the burden it’s having on our members and all consumers in general, we think increasing our membership fee today ahead of our typical timing is not the right time,” he added. 

Related: Consumers Buy Cheaper Groceries, Use Digital Channels Amid Inflation

PYMNTS’ Digital Economy Payments study, “Digital Economy Payments: How Consumers Pay in the Digital World,” showed that consumers’ average spending on their grocery purchases fell between March and April because people are buying less expensive staples. Price is becoming a key determinant of value and a key driver of loyalty.