Costco Chief Financial Officer (CFO) Gary Millerchip has spoken out about the store’s longstanding hot dog deal.
Millerchip, who became Costco’s chief financial officer in March 2024, revealed the retail chain’s plans for the $1.50 hot dog and soda combo, a topic that has sparked interest from customers and economists alike. as sky-high inflation continues to raise the price of everyday products.
CNN reporter Nathaniel Meyersohn created a x publication on May 30, revealing what Millerchip had to say about the future of the beloved combo.
“Costco’s new CFO today: ‘I also want to confirm that the $1.50 hot dog price is safe,'” Meyersohn tweeted.
Previous suggestions that the price of hot dogs could be raised prompted death threats from the former CEO, but new finance chiefs often come with new strategies and cost-cutting efforts.
Costco’s new chief financial officer (CFO), Gary Millerchip, confirmed on May 30 that the $1.50 price for its hot dog and soda combos will not change.
CNN reporter Nathaniel Meyersohn leaked the news in an X post he created yesterday. Millerchip announced as Costco’s new CFO in February 2024
Millerchip’s announcement about the status of Costco’s hot dog and soda combo comes just a month after its employees began cracking down on customer access to stores’ food courts, and as other Food chains are complaining that once-affordable fast food has become a luxury. .
Costco’s $1.50 hot dog and soda combo is a popular meal deal at the retail chain’s food courts, and its price has remained the same since 1985.
The retail chain’s decision not to change the price is what R5 Capital retail analyst Scott Muskin said. ABC 7 It was ‘brand’ and a way to remind customers what Costco is.
However, former Costco CEO W Craig Jelinek recalled a conversation with another former CEO of the chain, James Sinegal, about the state of bundled pricing.
“I came to (Sinegal) one time and said, ‘Jim, we can’t sell this hot dog for fifty dollars.’ “We’re losing our butts,” Jelinek said during a 2018 interview with 425 Business.
And he said, ‘If you pick up the damn hot dog, I’ll kill you.’ Find out.”‘
The company decided to figure it out and it apparently worked in its favor, as former CFO Richard Galanti claimed that the company will sell 130 million hot dogs a year by 2022.
Despite this, the company decided to crack down on access to its outdoor food courts, which began at its locations on April 8.
The $1.50 hot dog and soda combo has been a popular meal deal at Costco locations for nearly 40 years and its price hasn’t changed since 1985.
One of the new rules that led social media users to start heated debates about X was that Costco employees would have to ask to see a customer’s membership card before allowing them to make a purchase in the food court.
Costco locations with food courts even posted signs explaining what customers needed to do to buy something at one of their food courts: buy a membership.
The company offers two different memberships that potential customers can purchase at their website.
Anyone who becomes a Costco Gold Star member will receive two membership cards, a 100 percent satisfaction guarantee, and the option to shop online or in any of their stores for $60 a year.
Those who want more benefits can become Costco Executive Members, including discounts on services and a 2 percent annual bonus.
One downside for customers is that Executive membership will cost a whopping $120 a year.
X users have praised the continuity of the hot dog and soda combo, with one person calling it “the most stable product on Earth” in a cheep,
Others have focused on the food court situation, with one person stating in a cheep that their closest location still allows non-members to eat there.
Confirmation of the bundled price came just a month after the company began cracking down on access to Costco food courts.
New rules were implemented at Costco food courts on April 8, requiring employees to apply for membership cards before allowing a guest to purchase items.
“Costco doesn’t make money from the food court, the hot dog is the best example,” a user yesterday.
“Just because a grocer can afford to attract customers by doing that and make profits in other areas doesn’t mean it’s a restaurant.”