Food prices have climbed across the U.S. in the past few years, with inflation reshaping what fast meals cost at chains and grocery stores alike. Costco, though, has kept one of retail’s best-known bargains unchanged: the $1.50 hot dog and soda combo sold at its warehouse food courts.
Costco kept the $1.50 combo in place, even as prices rose elsewhere
Costco has not raised the price of its hot dog and 20-ounce soda combo since the mid-1980s, according to company statements repeated over several years. The company again reinforced that position during its March 7, 2024 earnings call, when CEO Ron Vachris said the price was still safe.
That call mattered because shoppers have watched menu prices rise across the restaurant industry since 2021. Costco’s combo, sold for $1.50 for roughly 40 years, stands out because it has remained unchanged through multiple inflation cycles, including the sharp food price increases tracked by the U.S. Bureau of Labor Statistics after 2020.
Former CEO Craig Jelinek also publicly tied the company to that price in past interviews. Costco has consistently treated the combo as a fixed part of the business, not a short-term promotion, and executives have framed it as part of the warehouse chain’s value message.
The price is the same nationwide, including in local Costco food courts
For shoppers, the key detail is simple: the $1.50 combo is sold at Costco food courts across the U.S., not just in one region or a small pilot market. Costco operates hundreds of U.S. warehouses, and the company has not announced any state-by-state increase for the item.
That means members in places with higher living costs, including California, New York, and Washington, generally see the same posted food court price as shoppers in lower-cost states. Costco has not released a recent public list breaking out every warehouse food court price by location, but the company’s national messaging has remained consistent.
The broader local impact is that the hot dog combo still functions as a predictable low-cost meal inside a membership-based retailer. At a time when many fast-food value meals now cost several dollars more than they did in 2019, Costco has kept this item as a rare national constant.
Costco says vertical control and its business model help hold the line
One major reason the price has held is Costco’s decision to control more of the supply chain. In 2009, Costco moved hot dog production in-house after opening a plant in Los Angeles, a step widely cited by company leaders as a way to manage costs and protect the $1.50 price.
Executives have also said the combo fits Costco’s broader model of keeping margins tight to reinforce member loyalty. Costco makes much of its profit from annual membership fees, not from maximizing food court margins, according to the company’s long-running public explanation in earnings discussions and investor messaging.
That does not mean the item is immune from cost pressure. Labor, meat, cups, and soda syrup have all become more expensive in recent years, but Costco leadership has continued to say the combo is important to the brand. For customers, that means the company is still publicly committed to keeping the $1.50 price in place as of 2025.
